Consumer Attitudes towards Mobiles Advertising in Malaysia: A

Case Study at University Teknologi Mara (UiTM), Kelantan,

Malaysia

Nordelina Zulkarnain

, Nur Shaliza Sapiai

, Siti Aswani Mohd Ghazali

, Fadhilah Mohd Ishak

Khadijah Abdul Rahman

and Jannatul Iza Ahmad Kamal

UiTM, Kelantan, Malaysia

UniversitiTeknologi MARA Puncak Perdana, Malaysia

Keywords: Mobile Advertising, Consumer ‘attitudes.

Abstract: This study is aimed to conceptualized the validity of Ducoffe model and Brackett and Carr model to identify

the relationship between factors Irritation (IR), Entertainment, (EN), Informativeness (INFO), Credibility

(CR) and Personalization (PE) with Consumers Attitudes (AT) among students from Faculty of Business

Management in Mara University of Technology, Kelantan. A survey has been conducted among 150

students from a total population of 2101 students in Faculty of Business Management, Mara University of

Technology, Kelantan. The data analysis process was done using Partial Least Square Path Modelling (PLS-

SEM). The results of the study revealed INFO, EN and PE were found positive and statistically significant

towards Consumers Attitudes (AT). PE was found to be the most significant factor among the four factors.

1 INTRODUCTION

According to The International Telecommunication

Union there are almost 43.93 million Malaysia

mobile phone subscribers in 2014. This fact was not

surprising as because nowadays mobile phone has

been considered as a vital communication tool and

essential component in Malaysian society.

According to Sheeren and Rozumah (2009),

Malaysian people are increasingly using more

mobile phone rather than fixed line in order to keep

in touch with their family, friends, colleagues and

business associates. This statement was supported

with the facts from Malaysian Communications and

Multimedia Commission (2013) that 86.3 percent of

Malaysian citizens are mobile phone users.

According to Zenith Optimedia mobile advertising is

growing nine times faster than desktop internet

advertising. Zenith also claims that mobile internet

will increase by 39. 8 percent per a year estimation

range in 20142017.Based on BuzzCity, a global

mobile advertising company, in the second quarter

in the year 2015, Malaysia's mobile advertising

industry reported a positive growth of 21percent

compared with 17percent in the first quarter (Q1) of

this year. Malaysia also has shown positive mobile

penetration because according to World Bank, the

numbers of mobile penetration around 140 percent

and this country has leading Indonesia, Thailand and

even

United States. If we go through ‘On Device

research’, it was stated that Malaysia’s mobile

landscape is performing better than most Southeast

Asian countries, and even the United States. In

Malaysia, high mobile phone penetration has

allowed a new type of advertising to target a higher

volume of potential prospect known as mobile

advertising (madvertising). One of the most popular

media of madvertising is Short Messaging Services

(SMS) which is foundation of madvertising (Waldt,

Rebello, and Brown, 2009). This statement is

supported by the Universal McCann Malaysia

(Rozana, 2009) which claimed that, Malaysia ranked

fifth out of twenty one concerning Malaysian

consumers’ receptivity in the mobile advertising

emerging market.

Studies of consumer attitudes toward mobile

advertising were conducted in many countries, but

there has been no similar research in public

universities in East Coast Malaysia. Besides,

Abdullah et al., (2013) stated that madvertising for

the goods and services in Malaysia is still remain

unclear, so it is needed to gain a well understanding

about the underlying factors such as customers

Zulkarnain, N., Sapiai, N., Ghazali, S., Ishak, F., Rahman, K. and Kamal, J.

Consumer Attitudes towards Mobiles Advertising in Malaysia: A Case Study at University Teknologi Mara (UiTM), Kelantan, Malaysia.

In Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship (ICEEE 2017), pages 267-273

ISBN: 978-989-758-308-7

267

attitudes. So, this study carried in order to determine

and investigate the most possible factors that

influencing consumer’s attitudes towards mobiles

advertising by adopting Bracket and Carr model

(2001).

2 PREVIOUS STUDIES

Nowadays, is a must or needs to have mobile

phones. This small gadget has considered a basic ne-

cessity of people’s lives. Mobiles or cell phones

have really changed the way of communication.

Apart from only communication purposes, mobiles

phones have a great tool of promoting products and

services through potential clients. It is true that more

consumers are relying on mobile devices not only

for communication purposes, but also to engage in

commerce. Consequently, industry experts foresee

greater use of mobile messages sent to consumers

for advertising and promotional purposes (Nasco&

Bruner, 2008).

Tsang et al., (2004) have conducted a study

about investigating consumer attitudes and usage

behavior in respect to mobile advertising. This study

investigated regarding consumer attitudes and usage

behaviour to SMS advertisement through mobile de-

vices. The findings of this study indicate that con-

sumers generally have negative attitudes toward mo-

bile advertising unless they have specifically

consented to it, and there is a direct relationship be-

tween consumer attitudes and consumer behavior. It

can conclude that it is not a good idea to send SMS

advertisements to potential customers without prior

permission. From the research done by Tsang et al.,

(2004), they found that entertainment, credibility, ir-

ritation and informativeness are the significant fac-

tors affecting respondent’s attitudes towards mobile

advertising. They use attitude as dependent variables

and consider the antecedents of advertising value as

factors of attitude.

In the other hand, Xu (2006) has also conducted

the factors that will affect consumers’ attitudes to-

wards mobile advertising in China with particular

emphasizes on personalization. The results of the

study indicated that personalization is the most im-

portant factors that affecting consumer’ attitudes to-

wards mobile advertising, especially for female

users and there is a direct relationship between

consumer attitudes and consumer behavior.

Koo, W. (2010) has extended his research on

mo-bile advertising by investigating Generation Y

con-sumers` different value perceptions toward

apparel mobile advertising according to cultures

(i.e., The United States vs. South Korea) and

modalities (short message service vs. multimedia

messaging service). The researcher has examining

the determinants of at-titudes toward mobile

advertising in an apparel con-text and subsequent

impact on behavior intention and to investigate the

effects of modality and culture on attitudes toward

apparel mobile advertising.

2.1 Related Previous Studies

The first theoretical framework reviews for this

study is Brackett and Carr (2001) research entitled

cyberspace advertising vs. other media: Consumer

vs. mature student attitudes. This BC model further

extended from Ducoffe (1996) model to incorporate

two more elements which are credibility and con-

sumer demographic by Brackett and Carr (2001).

The researchers found that both credibility and con-

sumer demographic are linked to consumer attitude

on advertising. However, relevant demographic is

not used as one of the independent variable in this

study because the demographic profile of the target-

ed respondents are varied compared to the targeted

respondents in Brackett and Carr (2001) research.

Figure 2.1 Theoretical Framework by Brackett & Carr

(2001)

The second theoretical framework reviews for

this study is from a study entitle Consumer attitudes

toward mobile advertising: an empirical study by

Melody M. Tsang, ShuChun Ho, and TingPeng

Liang which was published in Electronic Journal of

Electronic Commerce in 2004.

Based on the existing literature about attitudes

toward advertising and consumer behaviour models,

a research framework is constructed to illustrate the

factors affecting consumer attitudes toward

SMSbased advertisements and the relationships

among attitudes, intention to view mobile ads, and

users’ actual behaviour. Attitude, intention, and

behaviour are three major constructs in the theory of

reasoned action (TRA) proposed by Fishbein and

ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship

268

Ajzen in the early 1970s (later extended to become

the technology acceptance model in management

information systems research). The model links

individual beliefs, attitudes, intentions, and behavior

to describe the psychological process that mediates

the observed relations between attitudes and

behavior.

The result of findings show, the respondents held

negative attitudes about receiving mobile ads. This

may have been because they found mobile adds

irritating, given the personal, intimate nature of

mobile phones. Their attitudes were favorable if

advertisements were sent with permission. This

implies that permission based advertising may

become a major mechanism in the mobile

environment in the future. Entertainment was the

most significant of the factors affecting respondents’

attitudes, followed by credibility and irritation.

Attitude is positively related to the intention to

receive mobile ads.

Intention is affected by the incentive associated

with the ad. The respondents were more willing to

accept incentive based mobile advertising. Finally,

intention significantly affected how and when the

respondents read the message. This is consistent

with the TRA model and the literature on the

subject.

The third theoretical framework reviews for this

study is from a study entitled “The influence of

personalization in affecting consumer attitudes

toward mobile advertising in China by David

JingjunXu in 2006. A total of 235 questionnaires

have been distributed and 143 of them were returned

among people in Guangdong Province, China. The

results of the study indicated that personalization is

the most important factors that affecting consumer’

attitudes towards mobile advertising, especially for

female users and there is a direct relationship

between consumer attitudes and consumer behavior.

The fourth theoretical framework reviews for this

study is from a study entitled “Attitudes towards

mobile advertising – A research to determine the

differences between the attitudes of youth and adults

by Unal, S., Ercis, A., and Keser, E. (2011). The

study was carried in a way to investigate the

attitudes of youth and adults towards mobile

advertising and whether there was a difference

between their acceptance rejection behaviours

regarding mobile advertising. A total of 400

questionnaires were admin interred to the youth and

adults living in Erzurum/Turkey.

According to the results, consumers have

positive attitude to the advertisements that being

entertaining, informative, reliable and more

personalized, and the advertisements should being

sent with permission to them by advertisers. The

advertisements considered as irritating affect

attitudes negatively. Similarly, advertisements

The fifth theoretical framework reviews for this

study is from a study entitled “Attitudes towards

mobile advertising: a study of mobile display and

APP display advertising by Tri Dinh Le and

BaoTran Ho Nguyen .This study was conducted by

the researchers to provide deep understanding of

mobile advertising in Vietnam country. For

researchers, the increasing use of mobile devices to

deliver advertisements for products and services

especially using smart phones devices have create a

need among researchers to have full understanding

regarding factors that affecting consumers attitudes

towards mobile advertising. The findings from this

study can help the researchers to develop a

successful mobile advertising for mobile advertisers.

A survey of 206 participants was conducted in this

study using the convenience sampling method. The

findings of this study show that although many users

do not have positive feelings toward advertising,

they cannot ignore the importance of mobile

advertising. If mobile advertisers can present

credibility and entertainment in their advertisements,

consumers are willing to view the ads and be

influenced to buy products and services.

3 THEORETICAL FRAMEWORK

There are six total variables that make up this

framework. It consists of five independent variables,

and one dependent variable consists of one

dimensions. These variables were identified and

taken from previous study and theoretical reviews

that have been done. In this section, all the variables

in the framework will be defined in depth. The

relationship between independent variables and

dependent variable also will be examined.

Figure 3.1: Theoretical Framework

Consumer Attitudes towards Mobiles Advertising in Malaysia: A Case Study at University Teknologi Mara (UiTM), Kelantan, Malaysia

269

4 METHODOLOGY

4.1 Data Collection and Sampling

Method

The target population for this study is among the

postgraduate and undergraduate students from the

Faculty of Business Management, Mara University

of Technology, Kelantan campus, Malaysia. The

total number of population in this setting will be

1650 students from postgraduate and undergraduate

level. The unit of analysis for this study will be

individual as the researcher collects data from each

and every one student that involved in this study. In

other words, each student will be considered as one

data resource. The selected population will be

among postgraduate and undergraduate students at

the Faculty of Business Management from various

courses.

As stated in previous discussion earlier, the

sampling frame of this study is among 1650 students

from postgraduate and undergraduate from Faculty

of Business Management, University Technology

MARA. Clearly, the size of the population number

is huge, the researcher may face difficulties and

limitation to distribute questionnaire as a data

collection instrument to all students within the

population. Therefore, the researcher will collect

data from specific target population (sample

population) only that will be enough for representing

the whole population.

A total of 150 out of 180 students participated in

the study, resulting in an 83.33% response rate and

start with the text after a return.

5 RESULT AND FINDINGS

The result of the Harman Single Factor showed the

common method variance for this study which is

35.957%. It can be seen in the first row at the Total

Variance Explained table. Thus, the result is less

than 50% of acceptance; the result proposed that

there was no Common Method Bias that can be

found in the data set. (Refer to Table 1).

Table 5.1: Common Method Variance

Com

pone

Initial Eigenvalues

Extraction Sums of

Squared Loading

Total

% of

Varian

Cumulat

ive %

Total

% of

Variance

Cumulati

ve %

8.543

35.597

8.543

35.597

35.957

It was found out that the majority of the

respondents were female with (70.7%) compare to

the male respondents (29.3%). In term of the

respondents’ age, most of them were between 2426

years old (79.7%) followed by the aged between

1719 years old (36.0) and aged between 2024 years

old, between 2529 years old ( 4.0%) , between 334

years old (0.7%) and lastly the respondent aged

above 35 years old were the minority (1.3%) of the

survey. From the semester of study of the

respondents aspect, it was found out that most of the

respondents that involved in this survey were from

diploma level with 79 students (52.7%), followed by

respondents from bachelor degree with 49 students

(43.3%), and lastly the 7 of respondents from

prediploma with (4.0%). In terms of spending

money for prepaid or postpaid purposes, most of

respondents spent RM 50 and bellows consists of 81

students (54%), followed by RM 50 RM 100 with 52

students (34.7%) , RM 100RM 150 with 10 students

(6.7%) and only 6 students from total out 150

students could spent RM 150 and above which

carries (4.0%). From the survey, it was showed that

145 students (96.7%) having a mobiles phones while

only 5 (3.3%) respondents stated they don’t have

own a mobiles phones.

For the purpose of this study, a Confirmatory

Factor Analysis (CFA) is applied to determine the

measurement model of the study. The Confirmatory

Factor Analysis (CFA) for this study was defined by

using the SmartPLS software. Confirmatory factor

analysis (CFA) is a statistical technique used to

verify the factor structure of a set of observed

variables. CFA allows the researcher to test the

hypothesis that a relationship between observed

variables and their underlying latent constructs

exists. The researcher uses knowledge of the theory,

empirical research, or both, postulates the

relationship pattern a priori and then tests the

hypothesis statistically. In this study, CFA will be

performed by using SmartPLS software. Individual

items will be tested to examine whether their factor

loadings is above 0.5 As according to Hair et al.,

(2011), any item with factor loading value of less

than 0.5 should be dropped from the measurement

model. As shown in figure 4.1 and the summary in

the table 4.3, most of the factors loading of the items

was defined as more than 0.5values that can be

considered as an excellent result.

ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship

270

Figure 5.1: Analysis (CFA) using the PLs Model

For the purpose of this study, in order to

determine the convergent validity, each of the

construct from the Average Variance Extracted

(AVE), composite reliability (CR) and the reliability

need to be defined (Fornell and Larcker, 1981).

Convergent validity is described as the level to

which many items measuring the same concept are

in agreement (Ramayah, Wai, and Boey, 2011). Hair

et al, (2010) recommend that to assess convergence

validity, the researcher can employ factor loadings,

composite reliability and average variance extracted

(AVE).

According to Fornell & Larcker (1981), that the

value of each of the average variance extracted

needs to exceed 50% of them item or more than 0.50

in order to make it is a relevant convergent validity.

For this research, the convergent validity for each of

the items was found out to be relevant as all of them

exceeding the 0.5 level. The highest AVE result was

from the Entertainment items with 0.843 meanwhile

the lowest AVE result was from the Personalization

item with 0.607 AVE.

In Confirmatory Factor Analysis (CFA), Hair et

al., (2010) stated that a factor loading value is

acceptable to be a good result if it is more than 0.5

for the Average Variance Extracted (AVE) and the

Composite Reliability (CR) is 0.7 and above. For

this study, it was found out that all the composite

reliability values ranged from 0.856 to 0.955 , as

shown in Table 2 , which depicts the degree to

which construct indicators indicate the latent, and

construct ranged which exceeded the recommended

value of 0.7 ( Hair et al., 2010).

In this study, the AVE’s ranged from 0.604 to

0.843, which were all within the suggested range.

All the cronbach’s alpha (CA) and composite

realibility (CR) , of it also exceeded the

recommended value of 0.80, indicating that the

measurement scaler in this study had high internal

consistency (Henseleret al. 2009, Sekaran and

Bougie, 2010).

Table 5.2: The Summary of the AVE, CR and

Cronbach’Alpha for this Study

Average

Variance

Extracted

(AVE)

Composite

Reliability

(CR)

Cronbach’s

Alpha (a)

Attitude

0.733

0.916

0.878

Credibility

0.687

0.867

0.769

Entertainment

0.843

0.955

0.938

Informativeness

0.779

0.913

0.857

Irritation

0.709

0.906

0.861

Personalization

0.604

0.856

0.780

Discriminant validity is the extent to which a

construct is different from others. According to Hair

et al., (2011), the discrimant validity stipulates that

each latent constructs AVE should be higher than

the constructs’ highest squared correlation with

other latent construct (Fornell Lackers 1981)

creation and the indicator’s loadings should be

greater than all its cross loadings. This study has

assesses the validity of the measure through Fornell

and Lacker’s creation.

In this study, five exogenous variables (IV) were

identified to be influenced the consumer’s attitudes

towards mobiles advertising. These five exogenous

(irritation, credibility, entertainment,

informativeness and personalization were

hypnotized to influence the relationship with

consumers attitudes. To determine these

relationships, PLS algorithm and book strapping

algorithm were conducted. Table 4 shows the results

of hypotheses testing between variables that have

direct impact on the conceptual model.

Table 5.3: Results (Summary) of Path Analysis Based on PLS Model

Original Sample

(O)

Sample Mean

(M)

Standard Deviation

(STDEV)

T Statistics

(OSTDEV)

Path Significance

(p-values)

Result

Entertainment > Attitude

0.255

0.08

3.184

0.02

H1: Supported

Informativeness > Attitude

0.227

0.214

0.082

2.779

0.006

H2: Supported

Credibility > Attitudes

-0.019

0.255

0.096

0.195

0.845

H3: Not Supported

Irritation > Attitudes

-0.0119

-0.125

0.069

1.74

0.0083

H4: Not Supported

Personalization > Attitudes

0.352

0.100

3.533

0.000

H5: Supported

Note: T>1.64, p-value=0.10, T>1.96,p-value=0.05,T>2.58,p-value=0.01

Consumer Attitudes towards Mobiles Advertising in Malaysia: A Case Study at University Teknologi Mara (UiTM), Kelantan, Malaysia

271

6 DISCUSSION AND

CONCLUSION

It was found out that Personalization (PE) was

identified as the most major factor in influencing

consumer’s attitudes towards mobile advertising

among students from Faculty of Business

Management in Mara University of Technology,

Kelantan. This finding is significant with the

findings and statements from other previous studies,

stated that personalization is one of the major factors

that may influence consumer’s attitudes towards

mobile advertising (Xu, 2007). Xu (2007) further

clarified that personalization plays a very important

roles in affecting people’s perceptions towards

mobiles advertising. It not only enhances people’s

favorable attitudes towards mobiles advertising, but

also improves people’s attitudes when they are

originally less favorable. The statement aligned with

the results showed by the survey, which indicate

PE3 items scores the highest mean (M=3.007

SD=1.105.) compared with PE1, PE2 and PE3. The

results showed that students have positive feelings

and agree that mobiles advertising displays

personalized message to them.

The second most contributing factors are

Entertainment. The findings were in accordance with

Le, T. D., & Nguyen, B. T. H (2014) which found

that Credibility and Entertainment emerged as the

significant predictors of attitudes toward mobile

advertising. In that study, the result showed that

even though most the respondents, mobile users hold

moderate attitudes. Although users do not usually

have positive emotions when seeing advertisements,

most of them agreed that mobile advertising has

helped them to collect information about products. It

was true, because based on the verbally conversation

with the majority of respondents, they have stated

that they do not likes receiving advertising through

their mobiles phones but they are agreed that some

of the advertisement makes them informed or update

their knowledge regarding new services, products

offered by the company.

It was found that that the factor that has the least

impact among all the factors is the Credibility (CE).

The results showed that Credibility scores the lowest

scores compared with the other factors

(personalization, irritation, entertainment and

informativeness) among students in Mara University

of Technology, Kelantan campus regarding the

consumer’s attitudes towards mobiles advertising. It

can simply state that, for the credibility variables,

the score of three items above were below than 3.0

for Mean and Standard Deviation is lower than 1.06.

The highest score was CR4 –I use personalized

mobile advertising as a reference for purchasing

(M= 2.773 SD=1.059).In the other hands, the lowest

score was CR2mobile advertising is believable (M=

2.52 SD=0.83). The results shows that respondents

were disagreed that madvertisement are believable

and less trustworthy. The results have contradicted

with findings study by Chowdhury et al, (2010)

regarding the factors affecting consumer attitudes

toward SMSbased advertisements in Bangladesh. In

this study, credibility has found to be the most

significant of the factors affecting respondent’s

attitude toward mobile advertising.

Another finding that can discuss in this section

is the descriptive analysis of the study that includes

respondent’s age, gender, monthly spending and

ownership. Based on the results, it can show that,

most of respondents that answering the distributed

questionnaires are 70.7% are female while the rest is

male students. The result was being expected

because most of public universities including UiTM

are dominated by female rather than male students.

Majority of the phone or mobiles users in Mara

University of Technology, Kelantan branch are from

range 17 years old to 35 years old. As for the

information, Mara University of Technology,

Kelantan branch only offers pre diploma (MDAB),

diploma and also bachelor degree. There are around

10 respondents with the ages above than 25 years

old because most of students are considered Matured

Student. Matured Student usually is students from

peoples who are already working but further their

studies for career improvement or some of the

students extend their studies because of various

factors.

For this study, all the respondents have been

chosen from Faculty of Business Management with

the total numbers of students are 2101 from pre

diploma until bachelor degree. From the education

level aspect, a good number of diploma students

(52.7%) participated in the survey conducted. Most

of the students were comes from Diploma of

Banking and Diploma of Business study which

contributed 66.86% of total population numbers of

students for this faculty. For the degree students, it

was contributed around 43.3 % while pre diploma

only consists 6%.

In terms of spending money for top up phones

(prepaid) or paying bill (postpaid), majority of

students around (91.07%) prefer to spent or pay

billing RM 100 and below. That was because most

of them come from middle and low income family

and depending on the PTPTN loan to support their

studies. From the survey, it was noted from 150

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272

questionnaires answered, 100%respondents admit

they are having a phones. This is due and relate with

the survey by Malaysian Communication and

Multimedia Communication that conducted a survey

in 2014 hand phone user surveys. From the survey,

in terms of hand phone ownership in 2014, 66.8% of

users carry only one hand phone. 28.9%of users

carry two, 3.4% users use three hand phones while

0.8% require four or more. This survey only

considers hand phones that were actively in usage at

the time of the survey were counted.

Apart from that, the validity of Ducoffe model

and Brackett and Carr model are proven to in this

study as the previous studies are conducted in the

past. This study will provide a valuable contribution

to both models and a better understanding on the

factors affecting consumer attitude towards

madvertising in Malaysia.

Besides, this research further extended both

models by adding one more variable which is

personalization in determining consumer attitude

towards Madvertising. This study proved that

personalization via madvertising are another factor

to affect consumer attitude. This study provides a

foundation for future researcher in creating a new

model in the field of marketing and advertising area.

In the final conclusion, it can be concluded that

the aim of this study was achieved, the research

objectives, research questions were answered

alongside with the tested research hypotheses. The

data analyses also were calculated in detail,

alongside with related literature reviews. Hopefully,

the outcome of the research provides a new

knowledge both in the targeted population and the

nation. Hopefully, this study will be the direction

and guideline for future studies to develop more

information and knowledge regarding the

consumer’s attitudes among mobiles advertising

university and college student in Malaysia in a large-

scale.

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