An Experimental Investigation of Factors Affecting Consumers' Reactions to Mobile APP-Based Promotions
The purpose of this study is to understand how
consumers react to a company's promotional offers with mobile
applications (APP) as premiums. This paper presents the results of an
experimental study where five features of APP were involved: the
cost (free/discounted) for earning APP, the relationship between APP
and the promoted product, the perceived usefulness, the perceived
ease of use, and the perceived playfulness of APP in the context of
light foods purchase. The results support that the above features,
except perceived ease of use, have substantial influences on
consumers' intention to adopt the APP. Among the five features, the
cost for earning APP has the most impact on the adopting intention
of APP. The study also found a positive influence of adopting
intention of APP on the consumer's purchase intention of the
promoted product. Thus, APP-based premiums may enhance the
consumer's purchase intention of a company's promoted products.
<p>[1] Weiss, M. (2010). APC forum: U-commerce apps. MIS Quarterly
Executive, 9(3), 195-196.
[2] Song, J., Kim, J., and Jones, D.R. (2012). The effects of application
discoverability on user benefits in mobile application stores. Lecture
Notes in Business Information Processing, 108, 429-441.
[3] IDC (2010). IDC forecasts worldwide mobile applications revenues to
experience more than 60% compound annual growth through 2014.
Retrieved from: http://eon.businesswire.com/news/eon/
20101213005138/en/mobile-apps/IDC/apps-store.
[4] d’Astous, A. and Landreville, V., (2003). An experimental investigation
of factors affecting consumers’ perceptions of sales promotions.
European Journal of Marketing, 37(11), 1746-1761.
[5] Reisinger, D. (2009). Coca-Cola launches face-matching Facebook app.
Retrieved from: http://news.cnet.com/8301-17939_109-10409015-
2.html.
[6] Vaughn, A. (2011). Starbucks Extends Free "Pick of The Week"
Promotion To Apps. Retrieved from: http://appadvice.com/appnn/
2011/08/starbucks-extends-free-pick-of-the -week-promotion-to-apps.
[7] Guiltinan, J.P. (1987). The price bundling of services: a normative
framework. Journal of Marketing, 51(2), 74-85.
[8] Harlam, B.A., Krishna, D.R. Lehmann, and Mela, C. (1995). Impact of
bundle type, price framing and familiarity on purchase intention for the
bundle. Journal of Business Research, 33, 57-66.
[9] d’Astous, A. and Jacob, I. (2002). Understanding consumer reactions to
premium-based promotional offers. European Journal of Marketing,
36(11), 1270-1286.
[10] d’Astous, A., Montréal, H., Jacob, I., and Media, Z. (2000), How do
consumers react to premium-based promotional offers?. ASAC- IFSAM
2000 Conference, Canada, Retrieved from: http://luxor.acadiau.ca/
library/ASAC/v21/ ASAC/MKTING1/dastous1.pdf.
[11] Darke, P.R. and Chung, C.M.Y. (2005). Effects of pricing and
promotion on consumer perceptions: it depends on how you frame it.
Journal of Retailing, 81(1), 35-47.
[12] Dang, P.J. and Banerjee, A. (2005). A theory based explanation of
differential consumer response to different promotions. Advances in
Consumer Research, 32(1), 235-236.
[13] Lovelock, C.H., and Quelch, J.A. (1989). Consumer promotions in
service marketing. in Quelch, J.A. Sales Promotion Management.
Englewood Cliffs, New Jersey: Prentice Hall, 205-241.
[14] Hiam, A. (2000). Match premiums to marketing strategies. Marketing
News, 34, 12-22.
[15] Jagoda, D. (1999). The seven habits of highly-successful promotions.
Incentive. New York: August.
[16] Ertel, M. (2000). Make sure promos leave primo impression. Marketing
News, Chicago: September 25.
[17] Sexton, N. (1987). Toiletries and beauty aids: GWPs and PWPs losing
edge as promotional tools. Advertising Age, March 2, 58, S4–S5.
[18] Raghubir, P. (2004). Free gift with purchase: promoting or discounting
the brand?" Journal of Consumer Psychology, 14(1/2), 181-186.
[19] Diamond, W.D. and Sanyal, A. (1990). The effect of framing on the
choice of supermarket coupons. Advances in Consumer Research, 17,
488-493.
[20] Huang, L.S. and Chang, C.C. (2004). The effects of price-framing
methods on premium promotion. 2004 Management Thoughts and
Practices Conference, Taipei, Taiwan.
[21] Seipel, C. (1971). Premiums forgotten by theory. Journal of Marketing,
April, 26-34.
[22] Strernersch, S. and Tellis, G (2002). Strategic bundling of products and
prices: A new synthesis for marketing. Journal of Marketing. 66, 55-72.
[23] Titheesawad, I. and Kijboonchoo, T (2004). The effects of bundle
composition, price, framing, and familiarity on consumers' purchase
intention. Journal of Management, 2(1), 20-26.
[24] Estelami, H. (1999). Consumer savings in complementary product
bundles. Journal of Marketing Theory and Practice, 7(3), 107-114.
[25] Varadarajan, P.R. (1986). Horizontal cooperative sales promotion: a
framework for classification and additional perspectives. Journal of
Marketing, 50(2), 61-73.
[26] Simonson, I., Carmon, Z. and O’Curry, S. (1994). Experimental
evidence on the negative effect of product features and sales promotions
on brand choice. Marketing Science, 13(1), 23–40.
[27] Davis, F.D. (1989). Perceived usefulness, perceived ease of use and user
acceptance of information technologies. MIS Quarterly, 13(3), 319-340.
[28] Davis, R.D., Bagozzi, R.P., and Warshaw, P.R. (1989). User acceptance
of computer technology: A comparison of two theoretical model.
Management Science, 35(8), 982-1003.
[29] Horton, R.P., Buck, T., Waterson, P.E., and Clegg, C.W. (2001).
Explaining intranet use with the technology acceptance model. Journal
of Information Technology, 16, 237–249.
[30] Yang, K.C.C. (2005). Exploring factors affecting the adoption of mobile
commerce in Singapore. Telematics and Informatics, 22(3), 257-277.
[31] Luarn, P. and Lin, H.H. (2005). Toward an understanding of the
behavioral intention to use mobile banking. Computers in Human
Behavior, 21(6), 873-891.
[32] Wu, J.H. and Wang, S.C. (2005). What drives mobile commerce? An
empirical evaluation of the revised technology acceptance model.
Information & Management, 42(5), 719-729.
[33] Wang, R., Pan, T. and Cao, Y. (2011). Users' acceptance behavior for
m-commerce based on customer perceived value and TAM. E -Business
and E -Government (ICEE), 2011 International Conference, 1-4.
[34] Kim, C., Mirusmonov, M., and Lee, I. (2010). An empirical
examination of factors influencing the intention to use mobile payment.
Computers in Human Behavior, 26(3), 310-322.
[35] Hong, S., Thong, J.Y.L., and Tam, K.Y. (2006). Understanding
continued information technology usage behavior: A comparison of
three models in the context of mobile internet. Decision Support
Systems, 42(3), 1819–1834.
[36] Davis, F.D., Bagozzi, R.P., and Warshaw, P.R. (1992). Extrinsic and
intrinsic motivation to use computers in the workplace. Journal of
Applied Social Psychology, 22(14), 1111-1132.
[37] Igbaria, M., Parasuraman, S., and Baroudi, J.J. (1996). A motivational
model of microcomputer usage. Journal of Management Information
Systems, 13(1), 127-143.
[38] Moon, J.W. and Kim, Y.G. (2001). Extending the TAM for World-
Wide-Web context. Information and Management, 38, 217-230.
[39] Liao, C.H., Tsou, C.W., and Huang, M.F. (2007). Factors influencing
the usage of 3G mobile services in Taiwan. Online Information Review,
31(6), 759-774.
[40] Martinez, E. and Pina, J.M. (2003). The negative impact of brand
extensions on parent brand image. Journal of Product & Brand
Management, 12(7), 432-448.
[41] Nunnally, J. C. (1978). Psychometric Theory, NY: McGraw-Hill.
[42] Kuo, Y.F. and Yen, S.N. (2009). Towards an understanding of the
behavioral intention to use 3G mobile value-added services. Computers
in Human Behavior, 25, 103-110.
[43] Ajzen, I. (1991). The theory of planned behavior. Organizational
Behavior and Human Decision Processes, 50(2), 179-211.
[44] Dodds, W.B., Monroe, K.B., and Grewal, D. (1991). Effects of price,
brand & store information on buyers’ product evaluation. Journal of
Marketing Research, 28(3), 307-319.
[45] Grewal, D., Monroe, K.B., and Krishnan, R. (1998). The effects of
price-comparison advertising on buyers’ perceptions of acquisition
value, transaction value and behavioral intentions. Journal of Marketing,
62(2), 46-59.
[46] Foreseeing Innovative New Digiservices (2011). Observation on mobile
internet in Taiwan: 2011 Q2. Retrieve from: http://www.find.org.tw/
eng/news.asp?msgid=535&subjectid=4&pos=0.
[47] Chin, W.W. (1998). The partial least squares approach for structural
equation modeling. in George A. Marcoulides (Ed.), Modern Methods
for Business Research, Lawrence Erlbaum Associates, 295-336.
[48] Werts, C.E., Linn, R.L., and Jöreskog, K.G. (1974). "Intraclass
reliability estimates: testing structural assumptions. Educational and
Psychological Measurement 34, 25-33.
[49] Fornell, C. and Larcker, D.F. (1981). "Structural equation models with
unobservable variables and measurement errors. Journal of Marketing
Research, 18(1), 39-50.</p>
<p>[1] Weiss, M. (2010). APC forum: U-commerce apps. MIS Quarterly
Executive, 9(3), 195-196.
[2] Song, J., Kim, J., and Jones, D.R. (2012). The effects of application
discoverability on user benefits in mobile application stores. Lecture
Notes in Business Information Processing, 108, 429-441.
[3] IDC (2010). IDC forecasts worldwide mobile applications revenues to
experience more than 60% compound annual growth through 2014.
Retrieved from: http://eon.businesswire.com/news/eon/
20101213005138/en/mobile-apps/IDC/apps-store.
[4] d’Astous, A. and Landreville, V., (2003). An experimental investigation
of factors affecting consumers’ perceptions of sales promotions.
European Journal of Marketing, 37(11), 1746-1761.
[5] Reisinger, D. (2009). Coca-Cola launches face-matching Facebook app.
Retrieved from: http://news.cnet.com/8301-17939_109-10409015-
2.html.
[6] Vaughn, A. (2011). Starbucks Extends Free "Pick of The Week"
Promotion To Apps. Retrieved from: http://appadvice.com/appnn/
2011/08/starbucks-extends-free-pick-of-the -week-promotion-to-apps.
[7] Guiltinan, J.P. (1987). The price bundling of services: a normative
framework. Journal of Marketing, 51(2), 74-85.
[8] Harlam, B.A., Krishna, D.R. Lehmann, and Mela, C. (1995). Impact of
bundle type, price framing and familiarity on purchase intention for the
bundle. Journal of Business Research, 33, 57-66.
[9] d’Astous, A. and Jacob, I. (2002). Understanding consumer reactions to
premium-based promotional offers. European Journal of Marketing,
36(11), 1270-1286.
[10] d’Astous, A., Montréal, H., Jacob, I., and Media, Z. (2000), How do
consumers react to premium-based promotional offers?. ASAC- IFSAM
2000 Conference, Canada, Retrieved from: http://luxor.acadiau.ca/
library/ASAC/v21/ ASAC/MKTING1/dastous1.pdf.
[11] Darke, P.R. and Chung, C.M.Y. (2005). Effects of pricing and
promotion on consumer perceptions: it depends on how you frame it.
Journal of Retailing, 81(1), 35-47.
[12] Dang, P.J. and Banerjee, A. (2005). A theory based explanation of
differential consumer response to different promotions. Advances in
Consumer Research, 32(1), 235-236.
[13] Lovelock, C.H., and Quelch, J.A. (1989). Consumer promotions in
service marketing. in Quelch, J.A. Sales Promotion Management.
Englewood Cliffs, New Jersey: Prentice Hall, 205-241.
[14] Hiam, A. (2000). Match premiums to marketing strategies. Marketing
News, 34, 12-22.
[15] Jagoda, D. (1999). The seven habits of highly-successful promotions.
Incentive. New York: August.
[16] Ertel, M. (2000). Make sure promos leave primo impression. Marketing
News, Chicago: September 25.
[17] Sexton, N. (1987). Toiletries and beauty aids: GWPs and PWPs losing
edge as promotional tools. Advertising Age, March 2, 58, S4–S5.
[18] Raghubir, P. (2004). Free gift with purchase: promoting or discounting
the brand?" Journal of Consumer Psychology, 14(1/2), 181-186.
[19] Diamond, W.D. and Sanyal, A. (1990). The effect of framing on the
choice of supermarket coupons. Advances in Consumer Research, 17,
488-493.
[20] Huang, L.S. and Chang, C.C. (2004). The effects of price-framing
methods on premium promotion. 2004 Management Thoughts and
Practices Conference, Taipei, Taiwan.
[21] Seipel, C. (1971). Premiums forgotten by theory. Journal of Marketing,
April, 26-34.
[22] Strernersch, S. and Tellis, G (2002). Strategic bundling of products and
prices: A new synthesis for marketing. Journal of Marketing. 66, 55-72.
[23] Titheesawad, I. and Kijboonchoo, T (2004). The effects of bundle
composition, price, framing, and familiarity on consumers' purchase
intention. Journal of Management, 2(1), 20-26.
[24] Estelami, H. (1999). Consumer savings in complementary product
bundles. Journal of Marketing Theory and Practice, 7(3), 107-114.
[25] Varadarajan, P.R. (1986). Horizontal cooperative sales promotion: a
framework for classification and additional perspectives. Journal of
Marketing, 50(2), 61-73.
[26] Simonson, I., Carmon, Z. and O’Curry, S. (1994). Experimental
evidence on the negative effect of product features and sales promotions
on brand choice. Marketing Science, 13(1), 23–40.
[27] Davis, F.D. (1989). Perceived usefulness, perceived ease of use and user
acceptance of information technologies. MIS Quarterly, 13(3), 319-340.
[28] Davis, R.D., Bagozzi, R.P., and Warshaw, P.R. (1989). User acceptance
of computer technology: A comparison of two theoretical model.
Management Science, 35(8), 982-1003.
[29] Horton, R.P., Buck, T., Waterson, P.E., and Clegg, C.W. (2001).
Explaining intranet use with the technology acceptance model. Journal
of Information Technology, 16, 237–249.
[30] Yang, K.C.C. (2005). Exploring factors affecting the adoption of mobile
commerce in Singapore. Telematics and Informatics, 22(3), 257-277.
[31] Luarn, P. and Lin, H.H. (2005). Toward an understanding of the
behavioral intention to use mobile banking. Computers in Human
Behavior, 21(6), 873-891.
[32] Wu, J.H. and Wang, S.C. (2005). What drives mobile commerce? An
empirical evaluation of the revised technology acceptance model.
Information & Management, 42(5), 719-729.
[33] Wang, R., Pan, T. and Cao, Y. (2011). Users' acceptance behavior for
m-commerce based on customer perceived value and TAM. E -Business
and E -Government (ICEE), 2011 International Conference, 1-4.
[34] Kim, C., Mirusmonov, M., and Lee, I. (2010). An empirical
examination of factors influencing the intention to use mobile payment.
Computers in Human Behavior, 26(3), 310-322.
[35] Hong, S., Thong, J.Y.L., and Tam, K.Y. (2006). Understanding
continued information technology usage behavior: A comparison of
three models in the context of mobile internet. Decision Support
Systems, 42(3), 1819–1834.
[36] Davis, F.D., Bagozzi, R.P., and Warshaw, P.R. (1992). Extrinsic and
intrinsic motivation to use computers in the workplace. Journal of
Applied Social Psychology, 22(14), 1111-1132.
[37] Igbaria, M., Parasuraman, S., and Baroudi, J.J. (1996). A motivational
model of microcomputer usage. Journal of Management Information
Systems, 13(1), 127-143.
[38] Moon, J.W. and Kim, Y.G. (2001). Extending the TAM for World-
Wide-Web context. Information and Management, 38, 217-230.
[39] Liao, C.H., Tsou, C.W., and Huang, M.F. (2007). Factors influencing
the usage of 3G mobile services in Taiwan. Online Information Review,
31(6), 759-774.
[40] Martinez, E. and Pina, J.M. (2003). The negative impact of brand
extensions on parent brand image. Journal of Product & Brand
Management, 12(7), 432-448.
[41] Nunnally, J. C. (1978). Psychometric Theory, NY: McGraw-Hill.
[42] Kuo, Y.F. and Yen, S.N. (2009). Towards an understanding of the
behavioral intention to use 3G mobile value-added services. Computers
in Human Behavior, 25, 103-110.
[43] Ajzen, I. (1991). The theory of planned behavior. Organizational
Behavior and Human Decision Processes, 50(2), 179-211.
[44] Dodds, W.B., Monroe, K.B., and Grewal, D. (1991). Effects of price,
brand & store information on buyers’ product evaluation. Journal of
Marketing Research, 28(3), 307-319.
[45] Grewal, D., Monroe, K.B., and Krishnan, R. (1998). The effects of
price-comparison advertising on buyers’ perceptions of acquisition
value, transaction value and behavioral intentions. Journal of Marketing,
62(2), 46-59.
[46] Foreseeing Innovative New Digiservices (2011). Observation on mobile
internet in Taiwan: 2011 Q2. Retrieve from: http://www.find.org.tw/
eng/news.asp?msgid=535&subjectid=4&pos=0.
[47] Chin, W.W. (1998). The partial least squares approach for structural
equation modeling. in George A. Marcoulides (Ed.), Modern Methods
for Business Research, Lawrence Erlbaum Associates, 295-336.
[48] Werts, C.E., Linn, R.L., and Jöreskog, K.G. (1974). "Intraclass
reliability estimates: testing structural assumptions. Educational and
Psychological Measurement 34, 25-33.
[49] Fornell, C. and Larcker, D.F. (1981). "Structural equation models with
unobservable variables and measurement errors. Journal of Marketing
Research, 18(1), 39-50.</p>
@article{"International Journal of Business, Human and Social Sciences:56891", author = "Shu-Lu Hsu and Jeffrey C. F. Tai and Yi-Han Wang", title = "An Experimental Investigation of Factors Affecting Consumers' Reactions to Mobile APP-Based Promotions", abstract = "The purpose of this study is to understand how
consumers react to a company's promotional offers with mobile
applications (APP) as premiums. This paper presents the results of an
experimental study where five features of APP were involved: the
cost (free/discounted) for earning APP, the relationship between APP
and the promoted product, the perceived usefulness, the perceived
ease of use, and the perceived playfulness of APP in the context of
light foods purchase. The results support that the above features,
except perceived ease of use, have substantial influences on
consumers' intention to adopt the APP. Among the five features, the
cost for earning APP has the most impact on the adopting intention
of APP. The study also found a positive influence of adopting
intention of APP on the consumer's purchase intention of the
promoted product. Thus, APP-based premiums may enhance the
consumer's purchase intention of a company's promoted products.
", keywords = "Mobile Application, Premium, Sales Promotion,
TAM.", volume = "7", number = "7", pages = "2063-7", }
