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The invention of mobile technology has not only changed peoples’ way of communication but also changed their consumption behavior starting from searching product information and comparing prices to making purchases and payments. Four out of five American consumers use smartphones to shop (Warden, 2017). Many people now consider their phones as extensions of their personalities and an essential part of their lives (Persaud and Azhar, 2012). The proliferation of mobile device usage and the significant impact of these devices on consumer behavior have forced marketers to reevaluate their marketing strategies. Companies are changing their communication mix to integrate mobile elements in their marketing campaigns. Current statistics show that 78% of retailers plan to invest in mobile (Warden, 2017). Compared to traditional media, these mobile devices provide marketers with great opportunities to get higher response rates from customers. Mobile applications cover multiple business functions ranging from advertising and auctions to shopping and banking. Along with other services, Global Positioning System (GPS) has made it easier for marketers to provide information about specific locations as well as special offers and discounts to customers (Fong and Wong, 2015).
Marketers have started looking at mobile marketing as a viable channel for marketing communications as it has inherent attributes such as ubiquity, personalization, localization, and interactivity (Bauer, Barnes, Reichardt, and Neumann, 2005). By applying mobile marketing, companies can increase the level of awareness of their brands and can also gather information about the customers' needs (Pelau and Zegreanu, 2010). One of the main drivers for firms to adopt mobile technology is the interaction and the operational efficiency it offers to customers (Strom and Vendel, 2012). Mobile marketing also plays a great role in creating customer relationships. Customers are well-connected to their mobile devices. Therefore, marketers chose to focus more on this medium because it can provide customers with special targeted and customized offers by connecting with them through Short Messages Services (SMS), apps, or other mobile marketing tools. These tools help in finding out when customers are ready to connect with their brands.
The investment in mobile marketing is increasing as it is an efficient and beneficial channel for both marketers and customers. However, marketers are still challenged to retain customers through mobile sites as they can easily switch from one site to another with the press of a thumb. Customers can compare thousands of products with different prices on different sites until they find the product that really fits their needs (LU and SU, 2009). In addition, some customers might be reluctant to engage in mobile marketing because they lack trust in new innovations or have some concerns about their privacy (Tanakinjal, Deans, and Gray, 2011). Therefore, it is essential both to understand from the consumers' perspective the factors that affect their intentions to engage in mobile marketing and to help marketers understand the factors that can potentially enhance or restrain customers' engagement in mobile marketing.