CHAPTER
ONE
1.0 INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
Human
existence has continued to move from archaic ways of life to align with modern
innovation, invention and social change introduced by technology. This
technology popularly known as Information and Communication Technology (ICT)
has continued to transform every facet of our life and concern to the notion
and concept of a great scholar Marshal McLuhan on “medium is the message”. This
in turn means that it is not the message in the content of the media that
influence the people, rather it is the capability of media technology which
extend our life through time and space.
Similarly,
innovation and invention are welcome development in this modern society where
the tenet of global village as continued to manifest itself. This therefore
have changed perception and frame of mind of individual who want to trade on
the track of modernization. Today, many organization, commercial and
non-commercial have continued to introduce one innovation or the others.
Global
Service for Mobile (GSM) is one of the innovations which is even in the
vanguard of revolutionary inventions that has dictated the pace and space of
changes in the social environment. This has revolutionized almost our entire
social environment with a very loud impact.
Nadioo
and Scuttle (1999), states that information communication technology has been
fundamentally different in the way education change towards information
communication technology (ICT). When
defining SMS advertising, it is first necessary to analyse the definition of
mobile marketing as this definition may in part apply to the definition of SMS
advertising.
Dickinger
et al. (2004:2) define mobile marketing as “Using interactive wireless media to
provide customers with time and location sensitive, personalized information
that promotes goods, services and ideas, thereby generating value for all
stakeholders.” Mobile marketing is based upon sending information to consumers
using either SMS or MMS (Multimedia Message Service) (Kavassalis, Spyropoulou,
Drossos, Mitrokostas, Gikas and Hatzistamatiou, 2003: 56).
It can
therefore be assumed that mobile marketing involves some degree of SMS
advertising with the latter being a component of mobile marketing. For the
purpose of this study, SMS advertising will be defined as “Using short message
service (SMS), sent to consumers’ cell phones, to provide consumers with time
and location sensitive information that promotes goods, services and ideas,
thereby generating value for all stakeholders” (Kavassalis et al., 2003:56).
Studies
have highlighted a vast number of advantages of SMS advertising and includes
that this medium allows for real-time communication with consumers anytime and
anywhere (Tsang et al., 2004: 68). SMS advertising also increases the
probability that the advertisement reaches the target market as consumers
generally have only one cell phone which is very personal in nature and carried
around with them at all times (Kavassalis et al., 2003:57).
SMS
advertising is the only channel relevant for recipients when on the move and is
a great benefit for targeting young consumers who often have active lifestyles
and are not exposed to the more traditional advertising channels (Heinonen and
Strandvik, 2002:142.) The younger generation of consumers have also been
quicker than older generations in learning to use and adapt to new technologies
such as the internet and cell phones (Spero and Stone, 2004: 156).
Another
benefit of SMS advertising is that, if effectively planned, an SMS advertising
campaign is low in cost. The low cost of SMS advertising is amplified by the
ability of this medium to target and provide specific customers with relevant
information and obtain a high response rate among recipients of the message and
reduce wastage (Kavassalis et al., 2003: 62-63).
Although
SMS advertising has a great advantage over more traditional mediums of
advertising, it is often stressed that the medium should not be used in
isolation. SMS advertising should be complimentary with the traditional mediums
of advertising (Kavassalis et al., 2003: 56; Scharl et al., 2005: 168). The
complimentary nature of SMS advertising may be based upon the fact that mobile
marketing and SMS advertising are still in the early stages of commercial
deployment. Consumers may not as yet be fully adapted to cell phone technology
and the receiving of SMS advertisements (Bauer et al., 2005:183).
1.2 STATEMENT OF THE PROBLEM
Little
research has been conducted with regard to the effect of promotional SMS on
consumers’ perceptions of SMS advertising and also the impact of sending
advertisements to consumers’ via SMS. Haghirian et al., (2005).
This
is particularly important as new medium such as SMS advertising relies on the
acceptance of the medium by consumers (Bauer, Richard, Barnes and Neumann,
2005:182).
Before
this medium can be effectively used to communicate with consumers, some factors
need to be examined with regards to their attitudes towards SMS advertising.
The
majority of research conducted with regard to consumer attitudes towards mobile
or SMS advertising has been conducted in foreign countries where the findings,
due to cultural differences and differences in the adoption of technology, may
not directly apply to Nigeria consumers.
The
general consensus among academics and practitioners is that SMS advertising is
an ideal medium for reaching young consumers (Scharl, Dickinger and Murphy,
2005: bn168). This study is therefore a partial replication of the study
conducted by Tsang, Ho and Ling (2004: b65-78) but in a Nigeria context. The
focus is on the effect of promotional SMS on the purchasing habit of students
using Osun State Polytechnic, Iree students on MTN Products.
1.3 OBJECTIVES OF THE STUDY
i.
To articulate the SMS
promo of MTN on the subscribers in order to determine how its influence their
purchasing habits.
ii.
To depict the influence of
SMS promo on students of Osun State Polytechnic,
Iree.
iii.
To examine the effect the
MTN SMS promo has on students in relation to their purchasing habit.
iv.
To examine the importance
of promotional SMS to students of Osun State Polytechnic, Iree.
v.
To create solution on how
promotional SMS will not be able to engross the students, pertaining to their education.
1.4 RESEARCH QUESTIONS
i.
To what extent do
promotional MTN products SMS affect the purchasing habit of Students?
ii.
Of what effect does
promotional SMS have on students?
iii.
Does MTN promotional
SMS deceive students towards buying its product and service?
iv.
Of what benefits are these
promotional SMS on students?
v.
To what extent has MTN
promotional SMS stimulates students more than other media?
1.5 SIGNIFICANCE
OF THE STUDY
As an
academic work which intends to pass through scientific scrutiny, it aims to add
to the academic knowledge both for the benefit of researcher and students of
great minds.
Importantly,
those who want to engage in similar topic will find it very useful by serving
as reference point.
This will
invariably allow such researcher to pin point the weak area of the work and the
same time, make correction(s) for the benefit of future researchers.
1.6 SCOPE OF THE STUDY
The focus
of this work will be to access the effect of promotional SMS on the purchasing
habit of students of students of Osun state Polytechnic, Iree.
Besides,
as a result of this, the demographical factors of the students from all the
major six faculties in Osun State Polytechnic, Iree will be studied such
demographical factors are age, sex, department, faculty, marital status, class
or academic level e.t.c
1.7 DEFINITION OF TERMS
Effect: The influence that the promotional SMS has on its subscribers.
SMS: This is a system for sending short written messages from one
mobile phone to another. The full meaning of the abbreviation SMS is Short Message
Service.
PROMO: This means the promotion or advertisement of MTN SMS.
PURCHASING: This is the activity of buying the MTN Voucher for SMS and for
making calls.
HABIT: The process by which the SMS is being sent often by subscribers.
STUDENT: A person who is studying either at University, Polytechnic or College.
