Are Consumers Ready for Mobile Marketing?

Smart phones means that marketers can develop a wider range of pull strategies. For example Smartphone applications such as Amazon price check and Google Shopper allow consumers in a physical retail to access promotional offers, reviews and price comparisons. With the use of Bluetooth and location based marketing there are real opportunities to improve the consumers shopping experience and it’s more timely and relevant for consumers. This helps to reduce “search costs” for the consumer. However, do all consumers want this?

Recent research in Canada on consumer attitudes to mobile marketing via Smartphones found:

-          Consumers want some level of control over the interaction. Consequently brand trust and consumer control via permission are necessary conditions of consumer acceptance. The more control consumers have the deeper the involvement. It should be a mutually beneficial relationship without being intrusive.

-          Younger consumers (18-24) are more open to receiving several marketing messages per day, regardless of whether incentives are provided or not. The majority would proceed cautiously and spend only small amounts (about $20) on mobile purchases.

-          Consumption patterns differ across age groups. Consumers 13-24 use their smart phones more for texting, taking photos, social networking and viewing videos. Older consumers 35-54 use their phones for email, maps, news and banking.

-          Not all consumers want discounts and are less price sensitive, some are more brand conscious and do not value price comparison information. Some consumers are impulsive and don’t care about reviews and price comparison information. Price sensitive consumers will find comparison shopping more beneficial.

Recognizing these differences will help to develop a more informed marketing strategyand applying many time tested marketing segmentation and targeting principles.

Persaud, A and Azhar, J (2012), “Innovative Mobile Marketing via Smartphones: Are Consumers Ready?” , Marketing Intelligence and Planning, Vol 30. Iss: 4