Consumer Behaviour Mobile Marketing Communication Media Essay

Consumer Behaviour Mobile Marketing Communication Media Essay This research, titled; how has new media technologies affected the advertising industry and consumer behavior? Shall focus on new media is and how it has impacted on advertising and consumer behavior. The mass media has always been with us in some form or the other for centuries and over the years technology has evolved to such an extent that the world has virtually shrunk in size before our very eyes, now people can communication with anybody wherever they may be and communication features are embedded in virtually everything produced these days, Game consoles are now internet ready and two people across the world can play the same game together in real time. This research shall look at these technologies and see how they fit into the world of advertising and its implications for the industry and how consumers are reacting to these changes. The research tries to determine how new media technologies have affected the kind of messages created and how people perceive them. I shall make use of Hierarchy of effects theories and technological determinism as the theoretical framework for this research, these theories make some interesting bases for this research. I however want to note that this is a proposal and every concept, theory used in this proposal shall be elaborated upon during the main research and final compilation of findings. Finally, I hope that by the end of this research, I would have made a significant contribution to the field of advertising, business and communications and helped form the basis for more research in this field. INTRODUCTION According to Wikipedia, New media  is a broad term in Media Studies that emerged in the later part of the 20th century to encompass the amalgamation of traditional media such as film, images, music, spoken and written word, with the interactive power of computer and communications technology, computer-enabled consumer devices and most importantly the Internet. New media has also been referred to as technologies of telecommunication and computing, new user devices (e.g., videodisc machines), and their practical applications in office, home, business, health or educational environments. (Williams, Rice, and Rogers, 1988: xi). However for the purpose of this research new media technologies shall be limited to mean any device, instrument or medium through which messages in whatever format can be communicated to mass or limited audience. Virtually everything has an IP address these days, from refrigerators, game consoles even to handheld games like PSPs, Nintendo DS and so on. Today with the emergence of some cutting edge gadgets and accessories everyday life has changed a great deal, people no longer have to leave their houses to get newspapers, buy hard copies of the latest novel from your favorite author, most of them can be downloaded to your Ipad or you kindle or even to your mobile smart phone. This opens up a lot of opportunities for businesses, but poses a problem to advertisers and advertising agencies. Now advertisers are faced with the problem of creating messages that are fast paced and can communicate effectively through the most available and likely most preferred medium the mobile phone and handheld communication devices. Mobile marketing is fast becoming one of the best means of reaching the audience. Anderson supported this claim in his assertion that the effectiveness of traditional, retail, broadcast and other media channels is fast reducing, due to the high level of fragmentation in traditional channels. He went on to say that with the emergence of new media channels other media like, newspaper, magazines, radio and television are rapidly losing their audiences or market (in Becker, 2005) The research shall focus on determining the effect of new media on advertising, taking into consideration the effect these new media are bound to have on the creative aspect of advertising and also the dissemination of the messages. In general there are a lot of books and research on new media technology, but because of the ever changing dynamic world of innovative technology it is important that a research into this field is carried out especially as it is concerned with advertising and consumer behavior. LITERATURE REVIEW Different books and journals shall be sourced and used for this research. The books should give the researcher better insight into progress made in this field and other similar and relevant researches that have been carried out in this field. DEFINITIONS OF NEW MEDIA Lev Manovich (2001:43) defines new media as cultural objects which use digital computer technology for distribution and exhibition. Thus, Internet, Web sites, computer multimedia, computer games, CD-ROMs and DVD, Virtual Reality, and computer-generated special effects all fall under new media. This definition is supported in Webomedia.net which defines new media to mean a generic term for the many different forms of electronic communication that are made possible through the use of computer technology. This clearly shows that new media is electronic and make use of computer technology. Teemu Leinonen (2011) gave a good illustration of new media and even its characteristics all in a single simple diagram, which he titled holy-trinity-new-media The diagram best describes new media and it is based on this summary by Teemu Leinonen that I would attempt a definition of new media that would serve as its meaning throughout this research. From the various definitions from different scholars, new media are media that combines the features of various electronic media such as internet, computers and traditional media that allows for instant communication and feedback and also gives the user a significant amount of control. DEFINITIONS OF MOBILE MARKETING Different scholars have defined mobile marketing differently, some scholars call it Wireless digital advertising, permission-based mobile advertising, Mobile or wireless advertising, etc the implication is that in most cases these terms are used inter changeably, though they might not necessarily mean the exact same thing when looked in broader and more detailed terms. Barnes (in Bruner II and Kumar, 2002) describes mobile marketing to be a permission-based mobile advertising that is a flexible, tactical medium suitable for short, time-based communication. Bulander et al (2005: 285) describes it simply as advertising that uses mobile terminals as its target platform. Yuan Tsao ( in Jaana Tahtinen, 2006) defines mobile marketing communications as, as a contextualized advertising that makes use of a medium to disseminate customized campaigns targeting users according to where they are, their needs at the moment and the devices they are using. Scharl et al. (2004) define mobile marketing as the use of a wireless medium to provide customers with individualized information about products, services, and ideas at any time and locations, which benefit all stakeholders. In the same vein, according to Advertising age (2006: 20) mobile marketing is defined as the use of wireless media as an integrated content delivery and direct-response vehicle within a cro ss-media marketing communications program. Leppaniemi (2008: 9) gave a very detailed list of what qualifies as mobile advertising or mobile marketing; he suggested five categories which mobile advertising can be classified into; web category which includes mobile internet, Broadcast category, narrow cast category, physical browsing category which includes divergent methods such as touching, pointing and scanning that can be used to distribute information to mobile phones and lastly a category which he labeled other that covers advertising formats that did not fit well into any of the other four categories listed. From these definitions, it is clear that mobile marketing is basically communication of marketing/advertising messages directly to the target audience through mobile devices over Bluetooth, mobile internet or GSM coverage/WIFI. Any kind of advertising that makes use of mobile phones, PDAs, Ipads or any mobile communications device to communicate the message qualifies as Mobile marketing, examples are; proximity marketing, sms marketing/advertising, Bluetooth advertising etc. The researcher therefore wants to find out how this increasingly popular medium is affecting the way advertisers create and communicate their messages and its impact on consumer behavior. CHARACRTERISTICS OF NEW MEDIA From the forgoing; we know new media is electronic, interactive, uses computer technology amongst other things. The researcher however wants to find out the distinguishing features of new media, what makes them unique and why they are called new. Martin Lister, et al (2003:13-27), in their book titled; New Media; a critical introduction, gave the characteristics of new media as; digital, interactive, allows for registrational interactivity which they described to mean the opportunities new media texts affords their users to write back into the text; that is to say to add text by registering their own messages, new media allows for Interactive communications. This is supported by Henry Jenkins (2006), when he asserted that new media, virtually removes the problem of geographical separation, it is Ubiquitous, new media is digital, it is space binding and Distance Insensitivity; new media is personalized implying that these systems can be instructed to customize, individualize information for each user. He went on to say that new media is interactive, it is convergent denoting that formally separated technologies are blending together with a digital common denominator, an example is Intercast; a blend of web pages and TV. From the characteristics of new media suggested by different scholars it is clear that communications technology has evolved and there is now a convergence or overlapping of different media to create new media. The realities of these changes are not farfetched and we experience them every day. Our mobile phones have combined features of calling, texting, typing, photo editing, surfing the internet, video calling, voice sms, social networking, e-book readers, camera, and recording sound, amongst other features. All these features used to be exclusive of one another, but todays technological advancements have seen a convergence in all these media into one media-mobile phone. HISTORY OF NEW MEDIA Media simply means communication channels through which news, entertainment, education, data or promotional messages are disseminated. It includes every broadcast or narrowcasting medium such as newspapers, magazines, TV, radio, billboards, direct mail, telephone, fax and internet. If this is true then the media has always been with us for years, centuries even; ancient African kings had town criers and roman empires of old had scribes, they all tried to pass messages to a target audience. Until the 1980s  media  relied primarily upon print and  analog  broadcast  models, such as television  and  radio. And since then it has been one innovation to the next; the internet was invented, computer games were created, books were written and sold without it ever being printed in hard copies; The last twenty-five years have seen the rapid transformation into media which are predicated upon the use of digital computers. Andrea Botero and Teemu Leinonen (2011) in their attempt to create a timeline for the evolution of new media suggested that there has been a convergence of communication and technology since as early as 1844, when the Morses communication innovation used electronic impulses, a key and a special code that sequences the impulses to letters of the alphabet, they trace this evolution from then till recent times when telephones using satellite signals were invented. Manovich (2001) explained the evolution of new media from 1800 when J.M. Jacquard invented a loom which was automatically controlled by punched paper cards, which later inspired Babbage in his work on the Analytical engine used for numerical calculations. He traced the history on to 1839, when Daguerre launched the new reproduction process in Paris. He continued tracing the history to the point when motion picture was invented in the 1890s. then in 1936 the universal Turing machine was invented which was capable of only four operations. Also in the same year Konrad Zuse invented the first working digital computer. In a nutshell Manovich considered the evolution and creation of new media as the meeting or overlapping of Daguerres daguerreotype and Babbagess Analytical Engine, the Lumieres cinematography and Holleriths tabulator-merging into one. From here on, new media became a combination of all this features. Today technology has evolved so much that it is almost impossible to separate everyday activities from them. Virtually everything we do uses some sort of fantastic technology, even switching on the bulb is not as straight forward as it was; it can be made much easier; just clap!!! NEW MEDIA, ADVERTISING AND CONSUMER BEHAVIOUR Consumer behavior in simple terms is the study of when, why, how, and where people do or do not buy a  product. Certain factors affect all the variables listed in the definition. It is clear that the way we perceive and get information has changed or is changing; people are no longer controlled by the media; now you can record live programs and watch it when you have the time! When, where and how we buy items have changed; virtually anything can be bought online these days. This position is supported by Lauren Maynard (2011) when she asserted that, television experience has changed in the past decade since we no longer into appointment TV; we no longer have to sit down at a specific hour to watch a specific show. She went on to state that, today, two significant behavioral changes in consumers are redefining the entertainment landscape. These changes require television networks and advertisers to evolve rapidly to keep their shows, content, and ad buys relevant to a demanding consumer set. People now consume television via time-shifted DVR, online (legally), online (illegally), mobile device, Internet streaming to TV, and a wide variety of other methods. Viewers now consume multiple forms of media at the same time, such as watching TV on a television while checking Face book on a computer. This is commonly referred to as two-, three- or multi-screen viewing. Because people are changing the way they get information, advertisers need to ensure that they create adverts for different communication platforms that would effectively communicate with the target audience. Technologies are changing consumer behavior, which in turn changes the type of message and medium that would appeal to the consumer, hence forcing advertisers to accept these changes and provide adverts to suit these new needs. Christina Spurgeon (2005: 1), argues that Debate about how new media will impact on advertising in the medium- to long-term future has focused extensively on the new technological capabilities that enable consumers to avoid advertising. the implication for advertisers is that they now have to come up with ways to ensure that their adverts are viewed by the target audience ( it can no longer be taken for granted that everybody watching the 7pm news would see the advert during the news break), Christina (2005) highlighted some ways advertisers are trying to cope with the new media trend, she posited that, Branded content, conversational interaction with consumers are some of the ways advertisers are trying to circumvent the problem of people intentionally not seeing the advert messages because of emergence of technologies that makes this possible. It is clear that in the very near future consumers would control the type of advert messages they are exposed to. In fact Our present technologies already allow consumers to provide information to retailers and manufacturers, voice their preferences, and communicate with other consumers, salespeople, and producers (Pavlou and Stewart 2000). Marketers are able to use the information provided by consumers to segment the market, generate ideas for future products or services, and personalize their advertising messages. Thus ads can therefore be targeted not only to a demographic or psychographic group, but also to a specific individuals wants and needs It is against this backdrop that I have decided to engage in this research. New media has created new ways for consumers to get information and of course this in turn has changed the way adverts are created and how they are communicated to the consumers. It is therefore imperative to determine how new innovative technologies in communication has impacted on advertising in terms of creativity, communication, market/product reach amongst other things and how the media and also the message has affected or changed consumer behavior and to what extent. THEORETICAL FRAMEWORK I shall draw ideas and build around the following theories; Lavidge Steiners hierarchy of effects theory Technological determinism. Diffusion of innovations theory Barry and Howard (in Lapointe, 2006) assert that the Hierarchy-of-effects model is created to show the process, or steps, that an advertiser assumes that customers pass through in the actual purchase process. The model is based on seven steps. According to the Pat Lapointe (2006), The Hierarchy of Effects (HOE), was founded upon the assumption of a three-stage process underlying consumer purchase behavior: Cognition à ¢Ã¢â€š ¬Ã‚ º Affect à ¢Ã¢â€š ¬Ã‚ º Behavior Lavidge and Steiner (1961) write that the steps have to be completed in a linear way, but a potential purchaser sometimes may move up several steps simultaneously. The steps consumers go through before arriving at a buying decision are: 1. Close to purchasing, but still a long way from the cash register, are those who are merely aware of its existence. 2. Up a step are prospects who know what the product has to offer. 3. Still closer to purchasing are those who have favorable attitudes toward the product; those who like the product. 4. Those whose favorable attitudes have developed to the point of preference over all other possibilities are up still another step. 5. Even closer to purchasing are customers who couple preference with a desire to buy and the conviction that the purchase would be wise. 6. Finally, of course, is the step which translates this attitude into actual purchase. (Lavidge Steiner, 1961, p. 59) In short the stages are; unawareness, awareness, knowledge, liking, preference, conviction, and purchase. Using this theory, the researcher hopes to identify what has changed in consumers buying pattern since the emergence of certain technologies. Technological  determinism  is a  reductionist  theory that presumes that a societys technology drives the development of its social structure and cultural values. The term is believed to have been coined by  Thorstein Veblen, an American sociologist. Winston (in Chandler, 1994) defines it as the idea that the technology is the primary force that controls how individuals and society change. Chandler in an article written for The UK Technology Education Centre posits that Indeed, technological determinism, effectively the opposite of  social determinism, is a theory which points to technology as being  the  force which shapes society. He explained that Technological determinists hold that: Like the weather, technology is autonomous It causes social change By determining how new media has impacted on advertising and consumer behaviour, one can easily relate this theory to this research, since technological determinism focuses on how technology shapes society. Advertising has been a major routine in our life, every day we are bombarded by it; advertising in turn influences our buying patterns or decisions to a large extent. So it is the hope of the researcher to find out how new media has helped shape our society into what it is today. Diffusion research centers on the conditions which increase or decrease the likelihood that a new idea, product, or practice will be adopted by members of a given culture. Diffusion of innovation theory predicts that media as well as interpersonal contacts provide information and influence opinion and judgment. Studying how innovation occurs, E.M. Rogers (1995) argued that it consists of four stages: invention, diffusion (or communication) through the social system, time and consequences. The information flows through networks. The nature of networks and the roles opinion leaders play in them determine the likelihood that the innovation will be adopted. Innovation diffusion research has attempted to explain the variables that influence how and why users adopt a new information medium, such as the Internet. Opinion leaders exert influence on audience behavior via their personal contact, but additional intermediaries called change agents and gatekeepers are also included in the process of diffusion. Five adopter categories are: (1) innovators, (2) early adopters, (3) early majority, (4) late majority, and (5) laggards. These categories follow a standard deviation-curve, very little innovators adopt the innovation in the beginning (2,5%), early adopters making up for 13,5% a short time later, the early majority 34%, the late majority 34% and after some time finally the laggards make up for 16%. It is on the basis of these great works of very admirable scholars that the researcher as decided to focus his research. STATEMENT OF THE PROBLEM The emergence of new technologies to enhance communication and simple everyday activities has seen an explosion of chatter and communication. Everybody is talking to somebody all of the time. So many gadgets and social networking sites are available and all trying to outshine themselves with some having as many as 500,000,000 (Five Hundred Million) members. This new community or country produced by technology has created a very rare opportunity for advertising and the advertising industry at large. It has however produced another problem for advertisers; now advertisers now have to redefine who their audiences are and how has their demographics changed, advertisers now have to create messages/adverts that communicate effectively through the various media available. Who exactly are our audiences? How best do we communicate with them? Which medium or combination of media should be used? What time should the advert be up? Where are our audiences? These are some of the questions advertisers would be trying to answer for a very long time. It is therefore the aim of this research to discover how the emergence of some unique media has affected advertising and what consumers responses are. SIGNIFICANCE OF STUDY The findings of this study should help advertisers, scholars and practitioners in the field appreciate some of the innovative revolutionary technologies in the field of advertising and their influence on advertising and the advertising industry and also how they influence consumer behavior. Also it should help marketers and advertisers when planning their marketing campaign and strategies, as they would now have available empirical research to back up their proposals if the campaign would involve new media (which most campaigns would anyway). This research shall draw from the experiences of companies that have used some form of new media; proximity marketing, 3D projection, etc to provide recommendations on how to run an effective campaign new media. From this research, Business owners and advertisers can accurately predict the response of their audiences to their advert message and the medium through which the messages are delivered. This would help them develop messages that would appeal to the audiences and also ensure they communicate same message through the right medium. Finally, it is the hope of the researcher that this research shall serve as appoint of reference for other scholars pursuing research or knowledge in the same or similar field. SCOPE OF STUDY This research shall restrict its definition of new media to mean the following; web based advertising, handheld communication gadgets, 3D projection and Bluetooth proximity marketing. It is the aim of the researcher to categorize new media into sub groups and determine who their target markets are and how individual new innovative medium has affected the advertising industry and consumer behavior. The researcher shall geographically limit his research to the UK and Nigeria as they represent two very different economies, ways of life and general standard of living. METHODOLOGY AND DATA COLLECTION The research is aimed at finding out the effect of new media technologies on advertising and consumer behavior. Researcher shall therefore make use of a combination of the qualitative and the quantitative research methods, which shall include in-depth interviews and survey methods. 1,000 (One Thousand) questionnaire would be distributed to people through random selection around Wales and its surroundings, also an online questionnaire would be set up to give the researcher a global perspective of the issues researched. The researcher shall interview distributors and resellers of Bluetooth marketing devices and other new media, critics and professional analyst of some of these new technologies, in UK and Nigeria, also companies that use these technologies for their promotional and marketing activities shall be interviewed to get their opinion on the effectiveness of the medium they use or have used and the effect it has had on their organization as a means of passing across information and advertising. Also a recall test shall be conducted; volunteers shall be exposed to advertising messages on different platforms and their level of recall for each medium is tested and analyzed. This would help give the researcher an insight into which medium is most effective based on how easily people remember adverts viewed or listened to via the medium. In analyzing the findings found during the interviews the researcher has chosen to record the interviews to make it easier to go back and go through them again later on. The findings of the questionnaires distributed shall be analyzed using the frequency distributing table. RESEARCH QUESTIONS The research findings would try to answer the following questions; Are new media technologies generally more effective than conventional stand alone media like TV, radio and newspapers? Can new media help increase sales volume? How has these new medium affected the buying pattern of individuals generally? Has it increased consumers awareness and knowledge of what they buy? What are the limiting factors of this medium? What are the advantages of this medium over other conventional media like, TV, Radio and Newspaper? How do we determine whether or not a medium is effective? Who are the target audience of new media and why? AIMS AND OBJECTIVE OF THE RESEARCH The aim of this research is to determine the following: To provide empirical evidence as to the effectiveness of certain new media as advertising and publicity medium To determine the factors and attributes that makes these media effective or not To determine how new media has affected consumer behavior To contribute to knowledge in the field of integrated marketing communications. DEFINITION OF TERMS Below is a list of some terms that frequently occur throughout this dissertation and their definition from the context of this particular research; New Media: the term new media for the purpose of this research shall be restricted to mean any communication medium that uses internet, Bluetooth or new innovations in technology that can effectively communicate with a mass or targeted audience. Advertising: It is a collective term for public announcements designed to promote the sale of specific commodities or services. Advertising is a form of mass selling, employed when the use of direct, person-to-person selling is impractical, impossible, or simply inefficient. It is to be distinguished from other activities intended to persuade the public, such as propaganda, publicity, and public relations. Proximity marketing: Proximity marketing is the localized wireless distribution of advertising content associated with a particular place. Transmissions can be received by individuals in that location who wish to receive them and have the necessary equipment to do so. Consumer behavior: it  is the study of when, why, how, and where people do or do not buy a  product. TIMESCALES S/N ACTIVITY COMPLETION PERIOD REMARKS 1 Introductions, chapter one 6 weeks 2 Literature review 3 months 3 Core research: 3 trips to Nigeria to collate data and distribute questionnaires 3-5 months 4 Data collation and interpretation 3 months 5 Chapter 5 3 weeks 6 Cross checking for errors and editing 2 months 7 Binding and submission 1 month 8 Total period for project 15-17 months