Management | Literature Review : Mobile Marketing

Running head: MANAGEMENT
Literature Review Chapter
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Table of Contents
Chapter 2: Literature Review..........................................................................................................2
2.1 Concept of Mobile Marketing...................................................................................................2
2.1.2 Acceptance of Mobile Marketing.......................................................................................3
2.2 Mobile Marketing, Small Business and Return on Investment.................................................5
2.3. Contributions of Small Business to Economy of Saudi Arabia................................................7
2.3.1 Overview of the Economy of Saudi Arabia........................................................................7
2.3.2 Factors Influencing Mobile Marketing of Small Coffee Shop in Saudi Arabia.................9
2.3.3 Research Gap:...................................................................................................................11
2.4 Effective Mobile Marketing Strategies for Small Business....................................................11
2.5 Mobile Marketing Planning on Enhancing Brand Image........................................................13
2.6. Mobile Marketing Planning on Enhancing Customer Loyalty...............................................14
2.6.1 Perceived Value of Mobile Marketing for Consumers.....................................................15
2.6.2 Impact over the Purchase Decision...................................................................................16
2.7 Benefits of Mobile Marketing for Small Business..................................................................16
References:....................................................................................................................................20

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Chapter 2: Literature Review
2.1 Concept of Mobile Marketing
2.1.1 Understanding Mobile Marketing Concept
Mobile marketing can be defined as marketing practices which enables the organization
to engage and communicate with the audience in relevant and interactive manner through any
mobile device (Ström, Vendel & Bredican, 2014). Shareef, Dwivedi & Kumar (2016) has of the
defined mobile marketing as the promotion and communication of multiple or double pathways
flanked by the firm and the consumers through the use of a device, medium or the mobile
technology. Rowles (2017) has defined mobile marketing as use of the wireless means for
providing the customers with real time personalized information that is not only sensitive to the
geographical location but also seek towards promoting either a good, idea or a service thereby
bringing in the benefits to all the stakeholders.
In order to address its issue, it is vital for understanding characteristics of mobile devices
that fuelled the changes in the society of present day and put forward newer opportunities for
innovation in carrying out the marketing actions. Some of the characteristics includes:
 Ensures Enhanced level of Personalization: Mobile phone represents a personalized
device and is hardly used by another person instead of its possessor. It is also able to
deliver personalized information via the subscriber identification module (SIM) that is
considered quite valuable by the marketing team. Besides this, the device also served as
the mechanism for self-expression both through the design, brand and the technological

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attributes as well as serve as an object of the appealing personalization through melodies
and tones chosen by users.
 Ensures Omnipresence: It represents the ability of the users in receiving and carrying
out transactions irrespective of the place and the time. This ability has been made feasible
since the devices are always turned on as the users carry them everywhere.
 Allows both way Communication: This acts as a crucial feature for application in the
marketing. The devices helps in establishing lifetime connectivity with the users (Pei &
Liang, 2013). This results in creating bigger opportunities for generating sensible
communication experience around the brands.
 Ability to Identify Location: It comprises of an ability of identifying the geographical
location of a user's by tracking the location of the device. This feature is derived through
the integration of geographical localization of technologies commonly known as Global
Positioning System or GPS. This technology allows marketers to focus on location
specific marketing of the products or services.
2.1.2 Acceptance of Mobile Marketing
Some authors have claimed that consumers will express their consent on mobile
marketing provided they derive benefit from the advertising messages received. This can be
explained with the help of various theoretical models which are mentioned as follows:
 Economic Information Model: It is based on communication backed up by the
theoretical basis for this particular assertion. The model considers consumers as active
organism who makes conscious decision on the advertising stimuli they want to perceive
and explore. The process of decision making process not only allows the user to
superimpose advertising perception on available activities along with selecting the format

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and type of advertising that they consider to be most useful. Time however acts as a key
constraint within the process of decision making (Leppäniemi & Karjaluoto, 2008)
 Diffusion Innovation Model: It is the key theoretical model for analyzing relationship
amongst characteristics which made up innovation and rate of its adoption (Sugarhood et
al., 2014). According to this theory, whenever a particular concept is considered new, the
individual is found to use various communication tactics within the social system for
reaching a point that allows him to decide and understand whether to reject or adopt such
an innovation. The attributes or characteristics of the innovation has been found to
influence both decision of adoption by consumers and its speed of dissemination within
social group. In other words, this model puts forward suggestions which indicates that if
potential adopter indicates that positive perceptions with regard to combination of the
attributes that makes up the innovation there lies a higher probability of accepting or
adopting the innovation.
In regard to factors, which might impact the acceptance of the mobile advertising
amongst the consumers and researchers have discovered that the acceptance remain closely
associated with acceptance of the mobile device (Pelau & Zegreanu, 2010). A lot of studies on
the other hand, has searched for factors that associated the acceptance of advertising via Short
Service Messaging (SMS). It was found by Merisavo et al. (2007) that context and utility of a
content had noteworthy link of the advertising acceptance received via this medium. Other
studies has placed their focus on influence of a collection of inclinations, predispositions,
consumer attitudes and individual perceptions (Varnali & Toker, 2010). The additional
approaches that has helped in exploring the relationship amongst the demographic variable and
acceptance of the mobile marketing along with study of diffusion innovation in today’s society.

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In doing so they have put across various models that tries in predicting rate of decision and
adoption that people made while adopting innovation thereby taking into consideration the factor
might be innovative along with considering the personal characteristics of potential adopter.
Irrespective of the theoretical developments, Roach (2009) has put forward an argument that
most of the studies on diffusion of the innovation aimed at adopting technological developments
or tangible products. There has reasonably been few studies which focused on adoption of the
intangibles which implies innovation assumed as the process like ideas, services or concepts. In
this context, holds quite a relevance in assuming that the mobile marketing has been theorized as
the intangible innovation which differentiate it from tangible devices which is a smartphone or a
tablet.
2.2 Mobile Marketing, Small Business and Return on Investment
Mobile marketing is gradually turning to be an effective means of marketing. According
to a survey conducted in 2019, it has been found that over half of the online traffic is generated
via non PC devices (statista.com, 2020). In the same year, traffic from the mobile and the
wireless devise exceeded the wired traffic. Presently, close to over 1.91 billion people are
believed to possess a smartphone (Damaševičius et al., 2016). Small businesses are expected to
earn profitable returns through adopting the tactics of mobile marketing. Given the infrastructure
and cost of the small business they might not be able to use every mobile technique.at the first
go. Small firms requires the right foundation for undertaking effective campaigns through mobile
marketing (Berman, 2016).
In order to make its presence felt, the small business needed to build its presence felt
before starting to work for the marketing campaign. A small business should also undertake