An investigation of antecedents and consequences of young consumer attitude towards social messaging app advertising in vietnam

Proceedings the 10th students scientific research conference An investigation of antecedents and consequences of young – consumer attitude towards social messaging app advertising in Vietnam Group sciences: Nguyễn Hà Trang Bùi Thi Thùy Linh Đặng Khánh Linh Nguyễn Huy Bình Class: AC2015D & AC2015E Science advisor: Ms Đỗ Ngọcc Bích 403 Proceedings the 10th students scientific research conference Introduction: "Advertising is the nonpersonal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media."(Bovee, 1992, p.7) Advertising is a mean of communication with the users of a product or service Contents in advertisement are messages paid for by organizations/brands and those are intended to inform or influence mass audience, as defined by the Advertising Association of the UK According toEntrepreneur report (2017), advertising can call the public's attention to your business, usually for the purpose of selling products or services using various forms of media such as print or broadcast notice Another definition of advertising of Alyque Padamsee is “Advertising is the missing linking between product attributes and consumer perceptions.” Therefore, marketer uses advertising to introduce a product/ brand, differentiation, positioning, to increase sales/profit and to call to action In recent years, the advertising industry has had important developments, not only in terms of content but also in terms of appearance, in order to attract users It can be said that advertising is an almost indispensable marketing tactic of companies or brands In the 1960s, the advertising industry started to rapidly evolve through the use of focus groups They built advertising from their own creative genius many times in direct conflict with the research findings This unique dynamic continued into the 1990s (Duke Perrucci,2017) Currently, marketers have been talking about the “death” of traditional advertising when it became obvious that the Internet was here to stay and the digital revolution was spread worldwide The “death” of traditional advertising as occurring when less than half of all companies pursue a form of traditional advertising and more than half of all companies pursue a digital marketing strategy There are dozens of factors for why traditional advertising has gradually declined in popularity over the course of the past decade Millennials increasingly distrust traditional forms of advertising (as well as corporate brands), digital marketing has become more accessible and more affordable, and people are finding better digital substitutes for traditional forms of interaction and entertainment, such as social media, video streaming services, and even remote work In short, traditional advertising does not die, it only transform themselves to fit with new platform (DeMers J, 2017, Forbes) 404 Proceedings the 10th students scientific research conference Computer and communication technologies have changed the classical ways of advertising as well as many other areas of human being habits Over 40% of the world’s population now has access to the Internet (LivingStone R, 2017) Since then, a growing number of advertisers transfer from mass media platform to the Internet, they integrate these channels into their media mix to take advantage of the computerized advertising environment According to data of Statista (2017), the number of smartphone users worldwide is 2.32 billion in 2017 and it is forecasted grow to 2.5 billion in 2019 However, advertising industry is facing an issue regards presences; majority of them repeats on mass media and social media platform makes consumers overwhelmed and annoyed (Gregorio and Sung, 2010) Current ads not carry meaningful messages, and sometimes excessive exaggeration of the products and services makes them feel slightly disappointed about those in real life According to study by Lab42 (2013), among surveyed consumers, 57.4% say advertising claims are "somewhat exaggerated," and 19.0% say they are "very exaggerated," Only 2.8% of consumers surveyed say the claims in various ads are very accurate To catch this flaw, the marketers should explore a new tendency and method to perform advertising A quarter of Internet users using Facebook; while 70% of them use dark social primarily (dark social consists of messaging apps such as Facebook Messenger, Viber, Whatsapp As CEO of Facebook said, “Messaging is one of the few things that people more than social networking” In 2016, for the first time in history, mobile advertising reached $109 billion, or 55% online advertising revenue (Emarketer, 2016) In the latest speech at IAB Annual Leadership Meeting 2017, Director of P&GMarc Pritchard raised concern about the down-path of social media advertising due to overuse From those indexes, it is clearly that mobile advertising is becoming new trend in marketing Therefore, marketers are striving to examine new platforms to approach audiences effectively Since 2014, Facebook started to test launching the first advertising on Facebook messenger in the US and this trend opens new opportunity for e-advertising (The guardian, 2017) In VietNam particularly, about 37% of people who installed messaging apps such as Zalo, Facebook Messenger ,Viber, Skype, etc but only 11% of them used chat apps to shopping online (Pew Research, 2015) ) In addition, the use of social networking is increasing leading to the risen of using messaging apps 405 Proceedings the 10th students scientific research conference According to www.fastcompany.com, people ages 18 to 29, 49% use one or more messaging apps, and 41% use apps that automatically delete messages after they are viewed Vietnam's advertising industry is developing and catching up with the advertising trends of the world in general and in Southeast Asia in particular Digital will be the new trend (Deboo Mohanty - CEO Vivaki Vietnam) With big growth in smartphone adoption, Vietnamese Internet users have a tendency to move online activities towards mobile devices and mobile apps, especially Mobile ads, thus, attracted advertisers’ attention and received higher ads budget Mobile ads spending in Southeast Asian countries ranged from 78 million to 194 million USD in 2017 Vietnam had the smallest mobile ads market among those countries in 2017, about 78 million USD was spent on mobile ads, accounting for 36.6% of total Vietnam digital ads spending Mobile ads are on the rise, and will continue to play a more significant role in the future of Vietnamese digital ads industry It’s forecasted that mobile ads spending in Vietnam would keep growing gradually to 220 million USD, and capture a bigger share (68%) of total digital ads spending in 2020 (eMarketer, lab (2017)) From those mentioned reasons, it is necessary to conduct a research to explore the influence of social messaging apps on young consumers’ attitude to suggest a platform for marketer This study focuses to review the mobile-apps advertising literatures and framework to indicate possible literature gaps Additionally, it adopts the characteristics of mobile-apps advertising and test in the context of social messaging apps advertising For these purposes, the study determine how to use advertising in messaging apps, whether this application will be popular or not So that it will introduce a new advertising tactics: advertising in social messaging apps, which would become the solution for businesses in competition of advertising 1.1 Research aim and objectives: Aim: This study aims to explore the influence of mobile app advertising, especially advertising in mobile messaging apps to Vietnam young consumers’ attitude in order to suggest new tactics for marketing communication Objectives  To review current e-advertising literature and construct research framework 406 Proceedings the 10th students scientific research conference - To investigate the influences of each variables/components of social messaging app advertising towards consumers’ attitude and buying intention - To introduce a new advertising method: advertising in social messaging apps, which would become the solution for businesses in competition of advertising - To determine how to use advertising in messaging apps, whether this application 1.2 Research contribution The academically contribution: - Enrich current advertising literature by examining proposed research framework and hypotheses - Fill the current research gaps: little research to examine social-messaging app advertising in Vietnam market, traditional advertising’s downtrend, and the need to explore new marketing communication tool - Generate the depth insight towards using social messaging apps advertising to attract young’s audiences The practical contribution: - Suggest new tool in teasing phase for integrated marketing communication - Provide guidelines to develop social messaging app advertising in IMC campaign based on hypothesis 1.3 Outline of this study This research is divided into parts: Section 1: Introduction: A general introduction to advertising and advertising on mobile phones In addition, talking about the use of social messaging apps and the new tendency of advertising is advertising on social mobile messaging apps Section 2: Literature Review: this part presents a review of the relevant literature of social messaging apps advertising A research framework also is constructed by using cognitive method Section 3: Data analysis and results: this part discusses theoretical contributions and provides the analysis results Section 4: Discussion, conclusion and highlights its limitations and future research directions 407 Proceedings the 10th students scientific research conference Literature review: 2.1 Social media: Social media not only improves human communication method today but also gives a new definition to modern business emphasizing on community and dialogue In this new customer-driven marketing, it is a tendency that more business organizations will use the social media to personalize marketing communication for each target audience group (Evans & McKee, 2010) Social media is the internet-based platforms and technologies which designed for users to make communication with each other, which helps consumers/ audiences to find, and to build more social connections based on similar social background or common interests (Kaplan & Haenlein, 2010; Kwon & Sung; 2011) As found in many researches, social media equipped the functions of inviting friends, setting personal information profiles, and sending emails or instant messages (Kaplan & Haenlein, 2010) Kietzmann et al (2011) have defined this platform as it:“… employs mobile and web-based technologies to create highly interactive platforms via which individuals and communities share, co-create, discuss, and modify user-generated content.” Critically synthesizing from studies of Mangold & Faulds (2009), Sterne (2010), Hoffman & Fodor (2010) have categorized social media in eight ways: Table 1: categorized social media Source: Research team collected Numbe r Types Examples Blogs web.com, eHost.com Micro blogs Tumblr, Twitter Co-creation sites Nike’s NIKEiD, Jet Blue’s Travel Stories Social Bookmarking Sites Blinkist, StumbleUpon Forums and Discussion Boards Google Groups, MyBB Review sites Angie’s List, Yelp 408 Proceedings the 10th students scientific research conference Social Networking Sites Facebook, LinkedIn Multimedia Sharing Sites Flickr, YouTube A new report compiled by Hootsuite and We Are Social found that there are 3.028 billion active social media users in 2017, that meant 40 percent of the global population is using social media(Williams, B (2018)) There are now over billion social media users in the world - about 40 percent of the global population (Mashable, 2018).There is no doubt that social media will be the most valuable market in the near future In this case, it is worthy to more deeply research around this topic 2.2 Mobile advertising: Mobile advertising is referred to as the communication of products or services to mobile device and smartphone consumers (Ki Youn Kim and Bong Gyou Lee,2014) Adding more information, in other research of P.Chen and H.Hsieh (2012), smart mobile advertising media is an interactive communication system that preidentifies consumer preferences and then delivers customized advertising messages or services to each user (P Chen, H Hsieh, 2012) Precisely, it is the use of wireless technology to provide an integrated content regarding a product or a service to the intended customers in a direct manner (Altuna and Konkuk, 2009; Plavini and Durgesh,2011) According to the research in 2014,mobile advertising is considered as the best mean to cut through the clutter and interact directly with the consumer Hence, it approach one to one marketing and attract attention of customer more effectively (Nandagopal et al., 2014)The lastest indexes from Statista indicate that the number of mobile phone users in the world will reach 4.9 billion in 2018,up percent year - on year (Statista,2018) Due to the widespread of mobile phone usage, mobile advertising is forecasted to grow more than three times faster than total media this year, 23.5% vs 6.6% , and continue increasing to 47.9% by 2022.(eMarketer,2018) To implement integrated marketing communication more effectively, Plummer, Rappaport, Hall & Barocci (2007) suggested that companies need to focus on targeting customer with customised content to fit with personal interests, so they need to transfer to desktop platform to mobile platform 409 Proceedings the 10th students scientific research conference Since mobile messenger apps advertising in Vietnam are still at an early stage of development (eMarketer,2016),research about mobile ad is essential for advertisers to better understand the communication channels to reach potential customers and understand the users’attitude of mass media channels (Dholakia and Dholakia 2004; Fortunato and Dunnam 2004; Heller 2006) Regarding a reputable Vietnam marketing website , Brandsvietnam, there is little attention on studying influences of new mobile advertising tool currently such as - social messaging app ad on young consumers in Vietnam context (Brandsvietnam,2017) toward mobile advertising applications Hence, this study is conducted to investigate the hypotheses of consumer attitudes toward mobile marketing and propose additional findings in regards to Vietnamese mobile apps users 2.3 Cognitive response: The cognitive response approach was used to examine how much the individuals who are exposed to a persuasive message engaged in active, effortful processing (Fiske and Taylor, 1991) The cognitive responses impact on attitude of consumers (Petty et al 1981) The thought-listing from environment to attention, comprehension, attitude and intention to buy (Cacioppo et al., 1981) Research subjects were instructed to list any thoughts that would come to mind when they read or heard a persuasive message Then, these thoughts were content-analyzed and categorized depending on their favorability (Petty and Cacioppo,1986a) Figure 1: cognitive process (source: Authors) 410 Proceedings the 10th students scientific research conference Environment Attention Comprehension Attitude Intention to buy 411 Proceedings the 10th students scientific research conference First of all is environment, generally it is exposure to information stage In online shopping, shopping atmosphere embraces various design features, including product presentation using technological devices Isen (1987) found that pleasant environments allowed an individual to handle more information, foresee more positive outcomes, and to engage in more exploration Hedonic pleasure is often associated with the degree of playfulness that shoppers experience from the website (Jaărvenpaăa and Todd, 1997) and enhances customer information search behaviors (Schmidt, 1996) In addition, pleasure derived from shopping is associated with consumers’ involvement with clothing (Michaelidou and Dibb, 2006), which leads them to be more thoughtful about information related to the product (Kim, 2005) Although the relationship between arousal and perceived amount of information has not been examined, the attention has been found to increase shoppers’ intentions to stay and browse in the environment (Greenland and McGoldrick, 1994; Sherman et al., 1997) By spending more time browsing the websites, consumers may acquire greater amount of information to process the transaction Comprehension encompasses syntactic, semantic, and pragmatic processes By the process of comprehension, the attitude will be defined as consumer’s favorable or unfavorable after viewing the advertisement (Michell and Olso,1981) Advertisement attitude has been argued to simultaneously affect purchase intention directly (MacKenzie et al,1986) Purchase intention is used to identify the last purpose of advertisement (Kim and Han,2014, Xu et al., 2009) That also can be used to explain the purchase of products or services due to a match between the advertisement and consumers (Kamins, 1990, Tingchi Liu et al, 2007) Mittal (1990) found that advertising attitude and brand trust affect brand attitude positively as well make the motivation of purchasing intention This idea has also been found in research of MacKenzie and Lutz (1989) that advertising attitude are the cause-and-effect parameters influencing purchase intention Drawing from mentioned literature, in order to examine influence of SMAD, cognitive process will be used to construct research framework as it presents a sequential flow of how consumer generate their affective and cognitive response towards stimuli or event 412 Proceedings the 10th students scientific research conference Out put Attitude as dependent variable Model (IF) Model (TC) Model Model (EN) (IN) Beta t-statistic 6.684 7.476 7.827 9.239 F-ratio 44.676 55.886 61.246 85.353 0.264 0.310 0.336 0.409 *** if p