ABSTRACT
The study investigated the Impact of Mobile Marketing on Online Consumers’ Patronage, a study of Jumia in Abia state, Nigeria. The general objective of the study was to investigate the impact of mobile marketing on online consumers’ patronage in Abia state Nigeria. The specific objectives were to; ascertain the extent to which mobile marketing increases online retailers customer awareness, investigate the extent to which mobile marketing leads to online customer’s satisfaction and assess the influence of mobile marketing on the customer intention to buy online products. Simple random sampling and Topman’s formular were used to determine the sample size. Questionnaire was the primary source of data used for the study. Data were analyzed using frequency distributions, percentages, and simple regression. Results revealed that 37% of respondents agreed to a very strong extent while 44% to a strong extent that mobile marketing increases awareness. Result further revealed that 50% agreed to a very strong extent while 27% agreed to a strong extent that mobile marketing leads to customer’s satisfaction. Results of the hypotheses revealed that the correlation (r)=.825 implies there is a strong relationship between mobile marketing and customer awareness,(r)=.325 implies mobile marketing does not lead to satisfaction and (r)=.953 implies a strong relationship between mobile marketing and customer intention to buy. Some reasonable recommendation were made such as; online owners are advised to use a persuasive marketing communication to create awareness and inform the customers and also be need for trial and return if the product does not meet their satisfaction.
TABLE OF CONTENTS
Title
page
i
Declaration
ii
Certification
iii
Dedication iv
Acknowledgement
v
Table of
contents vi
List of
tables
ix
Abstract
x
CHAPTER ONE
INTRODUCTION
1.1 Background of
the study
1
1.2 Statement
of Problem
4
1.3
Objectives of the study
5
1.4 Research
Questions
6
1.5 Research
Hypothesis
6
1.6
Significant of the Study 7
1.7 Scope of
Study
7
1.8
Limitation of Study 8
CHAPTER TWO
LITERATURE
REVIEW
2.1 Brief
History of Jumia
9
2.2 Mobile
Marketing
10
2.3 Tools and
Strategies of Mobile Marketing
14
2.4 Online
Mobile Marketing 15
2.5 Perceived
Advantage of Mobile Marketing
16
2.6 Types of
Mobile Marketing
20
2.7 Perceived
Receptiveness of Target Consumers 22
2.8
Implication of Mobile Marketing on Marketers 23
2.9
Implication for Operators 24
2.10
Conceptual Framework of the Study
25
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research
Design
28
3.2 Study
Area
28
3.3
Population of the Study 29
3.4 Sample
Size
29
3.5
Determination of Sample Size 29
3.6 Method of
Data Collection
31
3.7 Method of
Data Analysis
31
3.8 Model Specification
32
CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF
DATA 33
4.1
Presentation of Data
33
CHAPTER FIVE
SUMMARY,
CONCLUSION AND RECOMMENDATION 52
5.1
Preamble
52
5.2
Summary 52
5.2
Conclusion
53
5.3
Recommendations
54
5.4
Contribution of Knowledge
55
References
56
Appendix
53
LIST OF TABLES
Table 4.1
Questionnaire Administration and Return Rate 34
Table 4.2
Demographic Characteristics of Respondents 35
Table 4.2.1
Distribution of Respondents according to Use of Online Mobile Campaign 37
Table 4.3.1
Mobile Marketing Increases Awareness 39
Table 4.3.2
Satisfaction with Jumia Online Shopping Services 40
Table 4.3.3
Mobile Marketing Influences my Buying Decision 41
Table 4.3.4
Price Influence my Decision to buy
42
Table 4.3.5
Advertisement Influences my Decision to buy Online 43
Table 4.3.6
The Quality of Jumia Products is good 44
Table 4.3.7
Delivery Processes are good and it Influence my Decision to buy online 45
Table 4.3.8
Jumia after Sale Service Influences my Decision to buy 46
Table 4.3.9
Well informed about the Product before i Buy a Product 47
Table 4.4
Test of Hypothesis
49
CHAPTER ONE
INTRODUCTION
1.1 Background of
the study
Terms like mobile commerce
and mobile marketing have created a huge buzz. If business could use mobile phones
to reach consumers anytime, anywhere, it would fundamentally change how they do
business. However, today mobile still represents a tiny channel for most retailers.
Mobile marketing or online retail has become a very important tool for the
operation of online retail outlets.
Mobile Marketing
Association MMA (2008) defined mobile marketing as a set of practices which
enables organizations to communicate and collaborate with their public in an
interactive and pertinent way through any mobile devices or network. Mobile
marketing is the use of mobile channel as a means of marketing communication
(Leppaniemi et al, 2006). It is a rapidly developing concept giving the
increasing use of mobile telephone.
According Bauer (2005),
mobile marketing is the use of mobile telephone as a channel for the
transmission of commercial content to consumer. The concept ensures a more
precise targeting of consumer wherever they are and in all their movements. Mobile
marketing consists of adverts that appear on mobile Smartphone tablets, or
other mobile devices. Mobile marketing advert formats, customization and style
can vary, as many social media platforms website and mobile applications offer
their own unique and tailored mobile and options.
Business need a mobile
marketing strategy for the same reason that you need a computer advert access,
in this modern age in which we live, people walk around with their faces glued
to their smartphones screens. Mobile marketing consist wireless devices to
provide to at the appropriate places and time, personalized information and
promoting goods and services and ideas thereby generating values for all
stakeholders (Scharl et al, 2005).
According to reports, 40%
of users on internet spend time on mobile devices which means ignoring the rise
of mobile in marketing is not just an option. Juniper Research estimates that
most consumer products spend less than 1% of their total advertising budget on
mobile. This will change and the change will likely be even faster and more
dramatic than the initial wave of mobile phone adoption that today means over 4
billion people use mobile phone. These innovation simply impacts dynamic of
retail industry in coming future. It would be interesting how customers/consumers
equipped with mobile phones connected to the internet will impact retail stores
and how anyone making, promoting, selling in a brick and mortar retail
environment prepare for it.
Most online retail stores
are complex environments that have developed gradually over the past few years.
Over the years online retailers have learned how to design the environment
(online environment) to better meet shopper’s needs and to drive sales through
the use of mobile messages and devices.
Mobile devices are a
generic term used to refer to a variety of devices that allow people access
data and information from wherever they are. It is also referred to as a
handheld device or handheld computer, is a print-sized computing device. Mobile
devices usually come with touch or non-touch displays screen and sometimes, even
mini-keyboard. There are many types of mobile devices, the commonest among them
being mobile phones, smart phones, PDAS, pagers and personal navigation
devices.
Online retailing is the
sale of goods sold primarily through a web page on other online source.
Jumia Nigeria retail
outlet offer a place where consumers can shop for their products online. For
even more sales many online store owners have started using applications that
load adverts to mobile devices. Mobile commerce is purchasing from an online
retailers mobile optimized online site or applications. In future, all retail
points for consumers could have a mobile element from this research work
available in the mobile space, one can identify the emerging application of
that will enable shoppers have richer interactions. These interaction points
enable scope for mobile marketing to be highly effective tool for retailers in
future.
1.2 Statement of
Problem
Online retailing is the
process whereby consumers directly buy goods or services from a seller in
real-time, without an intermediary service, over the internet. In Nigeria,
Jumia as one of the online retailers have recorded successes since inception.
One of the ways Jumia have been successful in this period has been through
their constant bulk SMS to the mobile phones of both their current and
potential customers. However, despite this, evidences from their Facebook wall
comments show that many customers have so much been dissatisfied with their
services. A customer stated that “On
6th February, 2015 i ordered (#309599256) for three items and two of the items
were delivered and paid for on 9th February. When i
checked the two items, i discovered they were not in good conditions. I called the dispatch
immediately and thereafter called the customer service team which promised to
send for retrieval the following day. When i didn’t see the dispatch on time on
10th February (following day), i took it to their store at Melita Plaza Area
11, Abuja. Up till now, no refund, replacement, vouchers. Jumia please do the
needful. You have so many competitors in the market”. Other
customers stated that “Terrible
terrible service. Fraudulent scums!
3 months after being notified of my order
failure (#304229246), no refund, no apologizes, just fake promises of
re-imbursement. I WANT MY MONEY
BACK!!!!!!!”. These and more evidences appear to show that despite the
combination of mobile and online retailing efforts, many customers still
complain of inadequacies, thus, this study investigates the impact of mobile
marketing on online consumers’ patronage in Nigeria, the case of Jumia.com.
1.3 Objectives
of Study
The general purpose of
this study is to investigate the
impact of mobile marketing on online consumers’ patronage in Nigeria, the case
of Jumia.com. However, this study intends to specifically achieve the
following research objectives.
(1) To ascertain the extent to
which mobile marketing increases online customers’ awareness of online
products.
(2) To investigate the extent to which mobile
marketing leads to online customers satisfaction of online services.
(3) To assess the influence of mobile marketing
on the customers intention to buy online products.
1.4 Research Questions
Based on the foregoing,
this study attempted to provide answers to the following research questions
1.
To what extent does mobile marketing increases online
customers’ awareness of online products?
2.
To what extent does a mobile marketing lead to online customers’
satisfaction of online services?
3.
To what extent does mobile marketing influences customers’
intention to buy online products?
1.5 Research Hypothesis
Based on the research
questions stated on 1.4, this study formulates the following null hypotheses
Ho1: Mobile
marketing does not increase online customers’ awareness of online products.
Ho2: Mobile
marketing does not lead to online customers’ satisfaction of online services?
Ho3: Mobile
marketing does not influence customers’ intention to buy online products?
1.6 The Significant of the Study
The significant of this
study lies in the attempt to determine the impact of mobile marketing on online
consumers’ patronage. However these will ascertain the contemporary changes
facing the online retailers as well as offering a way out at the problems. The
study is significance in the following ways.
1.
The study will enable Jumia Nigeria to adopt the most
appropriate tool for mobile marketing.
2.
It will help to ascertain the effectiveness of mobile
marketing.
3.
It will enable to know if people have frowned at their mobile
marketing techniques.
4.
It will serve as a guide to future researchers who may wish
to carryout studies on the same area of study.
5.
It will enlighten the consumers and broaden their knowledge
on the effectiveness impact of mobile phones.
1.7 Scope of Study
This study intends to analyze
the impact of mobile marketing in an online consumer patronage with regards to
Jumia Nigeria. Therefore this research will be carried out from Jumia.com; it
covers some part of their resources control and management.
1.8 Limitation of the Study
The major constraints to
this study were the lack of finance, initially there was not enough money to
carry out the research, and also time constraint and scarcity of materials and
information for research.
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