Consumers’ Adoption of Mobile Coupons in Malaysia

Consumers’ Adoption of Mobile Coupons in Malaysia

Sudarsan Jayasingh (Swinburne University of Technology, Malaysia) and Uchenna Cyril Eze (Monash University, Malaysia)
DOI: 10.4018/978-1-4666-1939-5.ch005
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Abstract

A mobile coupon is a new form of sales promotion tool used by marketers to advertise their products or services. This chapter examines key factors in consumers’ intention to use mobile coupons (m-coupon). The authors considered several factors and developed the conceptual framework underpinned on an extended Technology Adoption Model (TAM). The data analysis was based on 781 valid responses from four locations in Malaysia. The results indicate that perceived usefulness, attitude, and social factors influence the behavioral intention of consumers to use mobile coupons. Consistent with prior studies, perceived usefulness, and perceived ease of use were found to be significant antecedents of the attitude towards using m-coupons. The results also indicate that gender, income, and price consciousness are significant moderating variables.
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Introduction

The rapid growth of the global mobile phone market has made it another marketing communication channel, which leads to new forms of sales promotion tools such as mobile coupons (m-coupons). Mobile coupon is defined as an electronic ticket solicited and/or delivered by mobile phone that can be exchanged for a financial discount or rebate when purchasing a product or service (Mobile Marketing Association, 2007). Juniper Research (2009) forecasted that redemption value of mobile coupons would approach close to $6 billion by 2014. Two hundred million mobile subscribers globally will use m-coupons by 2013 (Juniper Research, 2009). However, Honeywell (2010) US internet users survey results shows that only 4% have redeemed a mobile coupon and 10% of the respondents feel comfortable storing coupons on their mobile phones.

Given the growing importance of m-coupons as promotional tools, predicting consumer’s m-coupons redemption intention is essential to evaluate this promotion strategy. The success of m-coupons will depend on consumers’ responses. Several studies report consumers’ reluctance toward m-coupons (Dickinger & Kleijnen, 2008; Kondo, Uwadaira, Nakahara & Akter, 2010). The measurement of consumers’ mobile coupon proneness and the prediction of their redemption behavior are important to the evaluation of marketers’ mobile couponing programs. Little is still known about consumers’ attitudes toward adopting, and factors that influence consumers' attitudes and value perceptions towards m-coupons. This chapter therefore, provides detailed discussion on consumers’ intentions to redeem m-coupon as redemption rates are important drivers of sales increases, profits, and market performance.

The next sections of this chapter provide a description of mobile coupon, research background, research framework and hypotheses, data analysis and findings. The research and managerial implications including the limitations and agenda for future research are discussed.

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