Critical determinants for mobile marketing acceptance of Vietnamese retailers = Các yếu tố quyết định quan trọng cho việc chấp nhận tiếp thị di động của các nhà bán lẻ Việt Nam
LITERATURE REVIEW
Mobile marketing of retailers
Retail involves selling goods or services directly to end consumers for personal use, as defined by Philip Kotler It encompasses purchasing in bulk from manufacturers or wholesalers and reselling these items without intermediaries The primary focus of retail is to meet the personal needs of consumers, both materially and spiritually, rather than for business purposes According to the Vietnamese Ministry of Planning and Investment, retail is classified under industry code G47, which includes the resale of both new and used goods for personal, household, or social consumption through various outlets such as specialized stores, trade centers, and markets Additionally, activities that support sales, such as sorting and packaging, fall under retail However, certain activities like selling agricultural products, vehicle sales, and food services are categorized separately from retail Overall, retail goods primarily consist of consumer products that cater to individuals, households, and organizations.
Retail activities are evolving rapidly, encompassing both in-store and non-store options such as direct sales through sellers, phone orders, mail-in purchases, catalogs, vending machines, and online sales The rise of e-commerce is fueled by the proliferation of smartphones and social media, driving businesses to enhance their competitive edge.
7 traditional retail model is developed in the direction of enhancing modern conveniences to serve consumers' needs on experience, entertainment, and creativity
At the same time, many traditional retail businesses combine with e-commerce platforms to better suit the times and consumers
The retail industry is crucial to the economy, facilitating the exchange of goods and services between businesses and consumers By purchasing products from various manufacturers and selling them in one location, retail bridges the gap between large-scale production and diverse consumer needs This process not only promotes efficient distribution but also stimulates production expansion For consumers, retail offers convenience, allowing access to a wide range of quality and reputable products Additionally, retail significantly contributes to national income, drives economic development, and generates employment opportunities Ultimately, retail enhances the material and spiritual well-being of society, benefiting both urban and rural communities.
Retailers are classified according to the following criteria :
- According to the number of services provided, retailers include self-service retailers, limited-service retailers, and full-service retailers
Self-service retailers in Vietnam, such as Coopmart, Big C, and Lotte Mart, require consumers to take on most purchasing tasks themselves These stores, which include supermarkets, convenience stores like Vinmart and Circle K, and fast-food outlets such as KFC and Burger King, offer minimal service Customers are responsible for selecting their products and cleaning up after themselves, especially when dining on-site, emphasizing the self-service nature of these establishments.
Limited service retailers, such as The Mobile World, Dien May Xanh, Nguyen Kim, and Phong Vu, focus on providing a select range of services These stores enhance the shopping experience by offering additional support, allowing customers to receive consultations during product selection, as well as services like delivery, installation, warranty, and maintenance.
Full-service retailers specializing in premium and specialized products, such as high-end restaurants and luxury car showrooms like Mercedes and BMW, command higher prices by offering consumers a comprehensive range of services These retailers enhance the customer experience by providing care and maintenance, technical support, user manuals, complimentary refreshments, and assistance with warranty, maintenance, delivery, and installation, ensuring a seamless purchasing and consumption process.
- According to the items that the retailer sells, retailers include specialized stores, department stores, supermarkets, convenience stores, and high-end stores
Specialized stores focus on narrow product lines or single brands to meet specific consumer needs, while department stores offer a wide range of items across various categories, catering to everyday necessities like food, hygiene, and health Supermarkets are large, cost-effective retail centers that provide a self-service experience, addressing diverse consumer demands from essential items to hobbies such as dining and beauty Convenience stores, a newer retail model in Vietnam, cater to regular customer needs by offering groceries alongside ready-to-eat items like mixed noodles, fried rice, and hot pot, emphasizing convenience and quick service.
- According to the price, retailers include promotion stores, high-end stores, warehouse stores
Promotion stores focus on offering discounted items, operating on lower profit margins but achieving higher sales volumes due to their extensive inventory In contrast, high-end retail stores cater to affluent consumers, featuring premium-priced products that guarantee quality, reputable brands, and attentive customer service.
- According to the mode of operation, retailers include retail through stores and retail without stores
Offline retailing involves a physical sales location where customers must visit to make purchases, with face-to-face consultations and immediate delivery of goods In contrast, non-store retailing, or online shopping, allows customers to purchase products through websites, e-commerce platforms, or mobile apps, with items shipped directly to their addresses Currently, both online and offline retail models are widely used, as retailers increasingly integrate online and offline interaction methods to enhance customer experiences.
- By form of ownership, retailers include independent retailers, chain corporations, retail cooperatives, consumer cooperatives, and franchise agents
Private and individual stores dominate the retail landscape in Vietnam, characterized by a straightforward organizational structure that can range from sole proprietorships to small teams This model includes small grocery stores, market traders, street vendors, and traditional eateries In contrast, corporate chains consist of multiple retail outlets under a single ownership, allowing for centralized control over product offerings and sales Additionally, retail cooperatives are formed by independent retailers who collaborate to enhance their market presence.
A centralized purchasing organization streamlines sales and advertising efforts, while consumption cooperatives empower customers to establish their own purchasing groups Franchising has emerged as a dynamic business model, significantly accelerating brand development compared to traditional methods Like retail franchising, individuals or organizations can acquire a franchise to run their own retail outlet under an established brand name, fostering growth and brand recognition.
An enterprise is a legally recognized economic organization characterized by its own name, assets, and a stable operational office, registered in accordance with the law to conduct business activities (Article 1, Chapter 1, Enterprise Law 2020) Retailers, as a subset of these enterprises, engage in selling goods directly to consumers without involving intermediaries.
The mobile revolution in information technology began with the wireless telegraph in the 1890s and evolved through various stages, including the transition to landline systems from 1910 to 1980, the introduction of analog cellular systems in the 1980s, and the emergence of digital cellular systems in the 1990s By the 2000s, advancements in multimedia systems enabled the efficient and comprehensive delivery of mobile services, marking a significant milestone in mobile technology development (Steinbock, 2005).
Mobile marketing research has frequently employed two key concepts:
Mobile marketing leverages wireless interactive media to deliver personalized information to customers, aiming to enhance the sale of products and services while adding value for shareholders.
Mobile marketing focuses on delivering product and service information to consumers to drive sales What sets mobile marketing apart is its ability to be highly customized; the content, messaging, and timing of campaigns can be easily tailored to meet the specific needs and preferences of the target audience.
Factors affecting the acceptance of mobile marketing by retailers
Limited research has examined the values or benefits of mobile marketing from both a management perspective (Okazaki & Taylor, 2008) and a front staff perspective (Lee, Cheng).
Retailers' assessment of value significantly influences their loyalty to mobile advertising services, paralleling its effects on engagement and utilization in other mobile marketing sectors According to Komulainen et al (2007), both outcome benefits—such as pioneering and commercial effectiveness—and process benefits—like technical functionality and service support—impact retailers' perceived value of mobile advertising The adoption and use of these services vary based on perceived benefits and user participation in value co-creation; greater participation leads to higher perceived value Additionally, multinational companies' intentions to leverage mobile advertising are driven by its benefits for branding strategies and location-based marketing, while challenges like security, privacy, and costs may hinder adoption (Okazaki & Taylor, 2008) Research on mobile marketing acceptance from an organizational perspective utilizes models such as the organizational adoption model and perceived value models for B-to-B services, alongside task-technology fit models for personal technology use (Lapierre, 1997; Goodhue & Thompson, 1995).
Research on the factors influencing enterprise technology application is grounded in established theories, including Innovation Diffusion Theory (IDT) by Rogers (1962), the Three-core model by Swanson (1994), and the Technology-Organization-Environment (TOE) Model developed by Tornatzky and Fleischer (1990) These frameworks provide a comprehensive understanding of how various elements impact the adoption and implementation of technology in organizations, as highlighted by researchers such as Hsu et al (2014).
Oliveira and Martins, 2011) identify TOE as the most widely used innovation application theory in organizational-level applied research
The TOE framework is an organizational theory that identifies three key elements influencing a firm's adoption decisions: technological context, organizational context, and environmental context These elements collectively impact technological innovation within the organization.
The technological context encompasses all relevant technologies for a firm, including those currently in use and those available in the marketplace but not yet adopted Existing technologies play a crucial role in the adoption process, as they define the limits on the scope and speed of technological change a firm can pursue.
Innovations that are available but not yet implemented within a company play a crucial role in shaping its innovation strategy They define the boundaries of potential advancements and demonstrate how technology can facilitate organizational evolution and adaptation.
The organizational context encompasses the firm's characteristics and resources, including employee connections, communication processes, size, and available slack resources This context significantly influences adoption and implementation decisions by enhancing mechanisms that link internal subunits and facilitate collaboration across boundaries.
Informal linking agents, including product champions, boundary spanners, and gatekeepers, play a crucial role in the adoption of innovation (Galbraith 1973; Tushman and Nadler 1986) Additionally, cross-functional teams and employees with formal or informal connections to other departments or value chain partners enhance collaboration and drive the innovation process.
The environmental context of an industry encompasses its structural dynamics, the availability of technology service providers, and the regulatory framework Research indicates that a competitive industry structure fosters innovation adoption, highlighting the significance of competition in driving technological advancements.
1.2.3 Proposing research models and hypotheses
The TOE model is the primary theoretical framework for analyzing the factors that influence the adoption of mobile marketing in retail businesses By reviewing existing research on mobile marketing applications and utilizing the TOE model, this study empirically investigates the elements that impact the integration of mobile marketing strategies in Vietnamese retail operations The research aims to provide insights into the determinants affecting the adoption of mobile marketing within this sector.
2Figure 1.2 Research model of factors affecting mobile marketing applications of Vietnamese retail businesses
The integration of technology significantly enhances the productivity and efficiency of enterprises (Gutierrez et al., 2015; Oliveira and Martins, 2011) Key factors influencing the adoption of mobile marketing include compatibility, relative advantage, and affordability (Ramdani et al., 2013) Businesses are drawn to the benefits of mobile marketing, which must outweigh the associated risks for successful technology adoption (Thong and Yap, 1995) However, complicated technology can hinder acceptance (Alshamaila et al., 2013), and the costs involved in technology adoption remain a critical consideration, particularly for small businesses (Ramayah et al., 2016; Eze, 2019).
- The complexity when applying mobile marketing
- Expenses when implementing mobile marketing
- Competence of information technology staff
- Financial resources of the business
Accepting mobile marketing application s of Vietnames e retailers
H1: The perceived benefits of mobile marketing have a positive influence on the decision to adopt mobile marketing of retailers
H2: The complexity when applying mobile marketing has negative effect on the decision to apply mobile marketing of retailers
H3: The cost of implementing mobile marketing has negative effect on the decision to apply mobile marketing of retailers
Environmental context - Factors in the external environment of the business
The adoption of new technologies in businesses is significantly influenced by the competitive landscape, the presence of technology service providers, and regulatory factors (Tornatzky and Fleischer, 1990) Competitor pressure compels companies to embrace innovation and new technologies, even before realizing their benefits (Lin, 2014) Additionally, customer demands for enhanced interactive communication through electronic services drive the implementation of information technology innovations (Rui, 2007) Research by Alshamaila et al (2013) highlights that suppliers' marketing activities play a crucial role in technology adoption decisions By offering technical support and experiential training, suppliers can help companies build technological innovation capabilities, reducing perceived risks and encouraging adoption (Weigelt and Sarkar, 2009).
H4: Support from business leaders has a positive influence on the decision to apply mobile marketing of retailers
H5: The capacity of information technology staff has a positive influence on the decision to apply mobile marketing of retailers
H6: The financial resources of the business have a positive influence on the decision to apply mobile marketing of retailers
The organizational context, including factors like size, management structure, and resources, significantly influences the adoption of new technologies in business activities (Tornatzky and Fleisher, 1990) Leadership perceptions and behaviors are crucial; effective communication and support from business leaders foster an environment conducive to technological innovation (Low et al., 2011) Additionally, the availability of financial and human resources plays a central role in technology adoption (Kim and Garrison, 2010) In the realm of mobile marketing, top management support is identified as a key driver for its adoption (Eze, 2019), while employee capacity also proves essential for successful implementation in small and medium enterprises.
H7: Competitive pressure has a positive influence on the decision to apply mobile marketing of retailers
H8: Pressure from customers has a positive influence on the decision to apply mobile marketing of retailers
H9: Organizations that support mobile marketing have a positive influence on the decision to adopt mobile marketing of retailers
1.2.4 Scale to evaluate the factors affecting the application of mobile marketing of retailers
The model's scale factors are based on previous research regarding technological innovation and mobile marketing applications in enterprises Following Nunnally's (1978) recommendation, a minimum of three scales are utilized for each factor to ensure adequate reliability A summary of the measurement scales and their sources is provided in the table below.
Factor The scale Encoding Source
Advertise products more effectively PE1 Lian et al
Reach consumers in a timely manner PE2 Develop better customer relationships PE3 Complication Apps that make it difficult for businesses
Complicated for marketing activities PC2
Cost High maintenance cost CT1
High cost of support system CT2
High staff training costs CT3
Factor The scale Encoding Source
Leader Provide the necessary resources TM1 Lian et al (2014);
Support using mobile marketing TM2
Enthusiastic mobile marketing application TM3
IT staff Ability to learn mobile marketing technology EC1 Lin and
Able to carry out mobile marketing EC2
Capable of providing new ideas for mobile marketing
Finance Have financial resources for mobile marketing FC1 Lai et al
(2014) Easily get financial resources for mobile marketing
Marketing budget is enough to implement mobile marketing
Factor The scale Encodi ng
Compete Influence from competitors' mobile marketing activities
CP1 Ghobak hloo et al
Competitive pressure from potential competitors
Customer Demand for using mobile marketing of consumers
Lee (2005); The need to maintain the relationship between businesses and consumers
Customer reviews about mobile marketing CU3 Support organizations
Suppliers actively promoting mobile marketing
Providing mobile marketing training services
4Table 1.4 Mobile marketing application factor scale
Planning to apply mobile marketing MA1 DK Maduku et al (2016) Have a plan to apply mobile marketing MA2
Would like to recommend to other businesses to apply MA3
In this research model, a 5-point Likert scale is employed to assess the observed variables, ranging from (1) Totally disagree to (5) Totally agree This format is widely recognized as the standard for gathering opinion data (Saunders, 2011).
FACTORS AFFECTING MOBILE MARKETING ACCEPTANCE
Mobile marketing ecosystem in Vietnam
Vietnam's mobile marketing ecosystem has been developing a system of devices, technologies, media companies, and applications to support the mobile marketing applications of retailers
23 Figure 2.1 Mobile ecosystem in Vietnam
Mobile marketing applications have emerged as a crucial trend for retail businesses in today's dynamic market The evolving habits and purchasing power of consumers, coupled with the widespread ownership of smartphones, have significantly influenced shopping behaviors The Covid-19 pandemic accelerated this shift, leading many consumers to prefer online shopping over in-store experiences Additionally, there is a noticeable trend towards reduced cash transactions and an increase in electronic payments, highlighting the importance of adapting to these changes in consumer behavior.
The rise of diverse payment methods like bank cards, wire transfers, and e-wallets, coupled with increased online shopping through social networks and e-commerce platforms, has prompted retailers in Vietnam to adapt their communication and sales strategies Notable retailers such as BigC, Vincommerce, and Saigon Coop have embraced mobile applications for advertising and sales, reflecting a significant trend in the retail sector As a result, there has been a marked increase in mobile advertising expenses, with a growing allocation of financial resources toward mobile advertising compared to traditional digital advertising in the Vietnamese market.
2 5Table 2.1 Spending on mobile advertising in Vietnam over the years
Spending on online advertising in retail and FMCG accounted for the highest proportion of total digital advertising spending, at 23.9% and 12.9% respectively
4 1Chart 2.1 Online advertising spend in some industries
Hanoi and Ho Chi Minh City remain the leading urban centers for online advertising budget allocation among businesses in Vietnam In fact, 35% of companies in Ho Chi Minh City and 33% in Hanoi invest over 50 million VND in online advertising, a spending level that is notably lower compared to other regions.
5 2Chart 2.2 Mobile Advertising Costs of Some Big Cities
2.1.2 Mobile marketing service provider company
In Vietnam, the retail landscape is predominantly composed of micro and small-scale enterprises, which often struggle to manage their marketing communication activities independently To address this challenge, media agencies offer a diverse range of solutions, including web design, social media advertising, video production, mass media advertising, brand development, public relations, and email marketing Notable media agencies in Vietnam include TNS Vietnam, Y&R Vietnam (Kantar Media), Smart Media, and Admicro, among others Additionally, companies specializing in mobile marketing, such as Gapit, Idee, and Mobile Solution Services MSS, play a crucial role in enhancing marketing efforts for these retailers.
Hanoi Ho Chi Minh city Haiphong Danang Cantho
Under 10 million VND 10- 50 million VND Over 50 million VND
The rapid expansion of technology-integrated companies during the 4.0 technology revolution has led to diverse mobile marketing strategies that enhance efficiency for retail businesses in Vietnam Mobile marketing has evolved beyond just a tool for large enterprises, enabling small and micro-businesses to leverage it as part of their digital transformation According to the Vietnam Assessment Report Joint Stock Company (VietNam Report), FPT stands out as the leading provider of software solutions and system integration services in Vietnam as of early 2021.
3 4Figure 2.2 Ten most prestigious system integrators, software solutions and service providers in Vietnam 2021
In Vietnam, popular online newspapers like VnExpress, Zing.vn, Kenh14.vn, and 24h.com.vn attract significant monthly website visits, making them essential platforms for digital marketers Alongside major search engines like Google and social networks such as Facebook and YouTube, these news outlets generate substantial advertising revenue through various solutions Additionally, leading newspapers have partnered with well-known advertising agencies, including Eclick for VNExpress, Adtima for Zing.vn, Admicro for Kenh14, and 24H Group for 24H Newspaper, enhancing their advertising capabilities.
45 Figure 2.3 The most visited social networks and online newspapers in 2019
(Source: Vietnam Digital Advertising Market Report 2019)
The Vietnamese game market has experienced significant growth, marked by an increase in game releases, downloads, and revenue, with 80% of users playing games on mobile devices This trend has prompted retailers to focus on mobile game applications to attract young consumers The mobile game ecosystem comprises various components, including publishers like VNG and Garena, developers such as Digital Octopus and Onesoft, app distributors like AppStore and Google Play, as well as media companies, mobile advertising, online payment systems, and streaming services.
Traditional mobile marketing relies on direct calls and messages, necessitating dependence on network operators like Viettel, MobiFone, and Vinaphone However, digital advertising has shifted this landscape, as network operators now offer diverse IT solutions, telecommunications services, AI capabilities, network security, and cloud information services for businesses Viettel Military Industry - Telecommunications Group remains a leader in developing mobile technology services and digital solutions to support enterprises.
Regarding smartphones in Vietnam, the largest market share still belongs to Samsung, followed by Oppo and Xiaomi For tablets, the largest market share belongs to Apple, then Samsung
In 2020, Android remained the dominant operating system in Vietnam, powering 60% of smartphones, while iOS accounted for over 30% Despite this popularity, a significant number of users have yet to update their devices to the latest operating system versions.
2.1.5 Mobile device consumers in Vietnam
In Vietnam, the 2021 Mobile Application Report reveals that 70% of the population utilized mobile phones in 2020, with over 70% accessing the internet, predominantly through mobile devices (95%) The primary user demographics are individuals aged 15-24 (Generation Z) and 25-34 (Millennials).
6 3Chart 2.3 Structure of age group using Vietnamese internet in 2020
(Source: Vietnam Mobile Application Report 2021)
The frequency of people using smartphones is increasing day by day Average smartphone usage per day increased from 4 hours a day in 2019 to 5.1 hours a day in
In 2020, the average number of mobile apps used weekly surged from 16.8 in 2019 to 22.1 Users predominantly engaged with social media and messaging apps, followed by a significant interest in entertainment and video applications.
7 4Chart 2.4 Popular apps and average usage time in Vietnam
(Source: Vietnam Mobile Application Report 2021)
Form of mobile marketing of retailers
Retailers increasingly utilize messaging tools to connect with young, middle-income customers These messages are crafted either by the business's sales team or through specialized texting service providers The SMS marketing strategies employed by retailers are becoming more varied and innovative.
The purposes of implementing mobile messages are
- Text the winning code to accumulate points
The SMS messaging system relies on partnerships with network operators like Vinaphone, Mobiphone, and Viettel, featuring two main types: SMS Brandname and SMS Gateway This system empowers retail businesses to proactively engage customers, offering a cost-effective and highly interactive communication method Consumers can receive messages effortlessly, as it does not require a smartphone, app installation, or internet access Consequently, SMS remains a favored tool for retailers in their direct marketing efforts.
With the swift evolution of social networks, retail businesses increasingly rely on direct advertising messages to quickly connect with consumers Platforms like Facebook, with its free calling and texting features, along with other chat applications such as Zalo, enable retailers to engage with potential customers in a cost-effective and efficient manner.
Nutifood aspires to expand to new users and interact with them at the right time with the right messages to raise brand consideration
- Need to capture the consumer journey on a personal level
- Need a platform to effectively send messages at key milestones to remind the brand message
- Interact with them via personalized messages by: Sending automatically via Zalo ; Custom messages for each segment ( providing clinically proven knowledge, highlight product messages , trigger purchases ); Sending frequency
6 6Figure 2.4 Illustration of Nutifood's SMS mobile marketing program
In today's digital landscape, mobile applications have become essential for retailers, driving them to invest heavily in app development to connect with customers Major e-commerce platforms like Lazada, Tiki, Shopee, Sendo, Adayroi, and Lotte are leveraging promotional marketing strategies and significant discounts to attract downloads As a result, retailers are increasingly focusing on selecting e-commerce platforms for advertising to maximize their reach and engagement.
8 5Chart 2.5 Current mobile advertising channels in Vietnam
In 2020, TikTok advertising experienced significant growth, outpacing Instagram and establishing itself as one of the top three social networks with the highest advertising effectiveness in Vietnam.
9 6Chart 2.6 The most effective advertising social network in 2020 in Vietnam
The most popular forms of advertising on TikTok today are:
The Hashtag Challenge is an engaging advertising strategy designed for TikTok users, featuring simple and fun challenges tied to specific hashtags Participants join in by completing the challenge and using the corresponding hashtag, making it an effective way to foster community engagement and boost the success of marketing campaigns.
The Branded Effect leverages stickers and filters that showcase a brand's visual identity, allowing brands to create unique effects specifically for TikTok Users can enhance their videos by integrating these engaging effects, which are prominently featured and given special visibility within the platform.
"Hot" and "Trending" sections for the first six days, followed by a continued presence for a duration of two months
7 7Figure 2.6 Illustrating the forms of advertising on TikTok
As mobile advertising continues to evolve, advertisers are increasingly seeking optimal formats beyond traditional banner ads, which often receive little engagement across various platforms Video and rewarded ads can be time-consuming for users and are frequently ignored In this landscape, native in-app advertising has emerged as a highly effective strategy for marketers Among these, the native app wall format stands out, achieving a remarkable conversion rate that exceeds many other advertising types by 9.18% Notable mobile media campaigns from 2020 further highlight the success of this approach.
"Canvas of Pride - Proudly Made in Vietnam" by Biti's, "Summer Melodies" of Tea+ products, "Thank you, heroes, Quiet" by Coca Cola
Retailers and marketing agencies are increasingly leveraging rich media in their campaigns due to its superior effectiveness compared to traditional display ads Rich media ads, powered by modern technology, significantly enhance engagement, leading to higher click-through rates and conversions By utilizing diverse media formats to convey messages, brands can create more opportunities for audience interaction, ultimately transforming visitors into shoppers A notable example of a successful rich media campaign is "The Amazing Adventure of King Leo and His Friends" from P/S 2020.
" The Amazing Adventures of King Leo and Friends"
- Increase trial volume of new children's products,
- Broadcast TVC about difficulties when parents let their children brush their teeth and exchange messages via facebook
Articles on websites with links to message frames to facebook messenger
- Chatbot on Facebook Messenger will personalize the message, provide reminders with a link to access the AR feature every night when it's time to brush your teeth
- Content Video: Combined with Popjam social network to post
- Release of the ebook "The Adventures of Big Teeth and Little Teeth Mothers"
- The articles spread on the website
- Consumption of children's toothpaste increased by 19%, revenue increased by 22% after 1 month of implementation
- Reach and convince more than 14 million families to participate
- The attribute "P/s is a brand for family members" increased by 6% The attribute “P/s helps build family brushing habits” increased by 3%
Smartphones have become essential for consumers, leading retailers to increasingly adopt mobile applications for loyalty programs These programs utilize mobile apps to enhance customer care, allowing users to accumulate points and access promotions, thereby fostering customer loyalty In Vietnam, several businesses, including The Coffee House and Trung Nguyen Coffee, have successfully implemented mobile loyalty programs, demonstrating the effectiveness of this trend.
In August 2021, Bibica Joint Stock Company launched a retail digital transformation platform centered around its mobile application, which includes a customer app and a store platform, Bibica Shop This initiative employs a loyalty program that accumulates points and allows for gift exchanges, effectively linking small stores into a larger network and enhancing customer engagement across various business sectors By implementing cross-selling and cross-marketing strategies, Bibica aligns with the evolving retail landscape, improving sales management while fostering connections among retail establishments This integration not only enhances sales but also prioritizes customer satisfaction throughout the supply chain from producers to consumers.
Wi-Fi advertising has become increasingly prevalent in Vietnam, with users required to view ads or log in through platforms like Google or Facebook to access free Wi-Fi at various locations such as stores, shopping centers, hospitals, schools, and event venues This strategy enables businesses to maintain ongoing engagement with their customers.
The advancement of location technology and Big Data enables retailers to create detailed consumer profiles based on regional product consumption behaviors This insight allows businesses to deliver personalized messages to individual users, enhancing communication effectiveness For instance, Phillips employs a customer outreach strategy that integrates multimedia on mobile platforms to boost brand awareness.
- The research team mapped the major residential districts, identified apartment buildings, and classified them based on the building's provided facilities
- The geographical data is then combined with the target data of the partner company Inmobi to identify the target consumers
- When the target consumer is seen within the virtual geofence, a customized Phillips ad is delivered to their mobile apps
Experience engaging full-screen ads in sequence, featuring interactive elements designed to enhance user interaction One ad showcases a steamer, inviting users to wipe their screens to simulate ironing, while another promotes an electric pressure cooker, encouraging users to set a timer to activate its cooking features.
After viewing a product advertisement, users are retargeted with a scope ad featuring an engaging building image marked with interactive points By clicking on these hotspots, users can access product videos and visit the website for additional information.
- The campaign reached over 80% of premium consumers,
- Click-through rate of 2.3% is five times higher than the global average for display ads
- 36% of users say they have better brand awareness, and 65% of users associate more favorably with a brand
9 9Figure 2.7 Phillips' location-based mobile marketing strategy
Factors affecting mobile marketing acceptance of retailers
2.3.1 Survey to evaluate the factors affecting mobile marketing acceptance of retailers
The survey on the factors affecting mobile marketing acceptance of retailers consists of two parts Part 1 is the survey content on influencing assessment, and part
2 is information about the etailers and survey respondents (Appendix 1)
The study focuses on the retail businesses in Vietnam, acknowledging the constraints of limited research resources that prevent a comprehensive investigation To address this, the author employs a sampling study, adhering to established empirical guidelines for factor analysis to ensure research reliability The minimum sample size is set at 50, with a recommended observation-to-analyte ratio of 5:1, as outlined by Hair et al (2006), resulting in a calculated minimum sample size of 135.
The questionnaire was developed using a convenient sampling method and targeted registered retailers engaged in retail activities in Hanoi, with the survey conducted from November 2021 to January 2022 Data collection involved face-to-face interviews, phone calls, and online surveys, focusing on management, sales, or marketing personnel who possess knowledge of their company's technological, organizational, and business environments These individuals play a crucial role in proposing or approving marketing plans, making their insights vital for the project's success A total of 135 valid responses were gathered from 60 commercial companies, with 32 businesses (53.33%) having registered capital between 5 and under 50 billion VND, 22 businesses (36.67%) between 50 and under 200 billion VND, and 6 enterprises exceeding 200 billion VND.
47 billion VND (10%) Of the total 135 survey respondents, 65 were managers (48.15%) and 70 were marketers (51.85%)
7 6Table 2.2 Descriptive statistics of observed variables
Number Minimum Maximum Mean Std
The survey results indicate that the average evaluation score exceeds 3, demonstrating that the factors and scales within the model significantly impact the acceptance of mobile marketing applications among retailers.
2.3.2.1 The reliability of the scale
This study utilized research inquiries from previously conducted questionnaires by various authors to assess construct reliability The reliability of the observed variables was measured using Cronbach’s Alpha, which ranges from 0.01 to 1 Higher Cronbach’s Alpha values indicate greater reliability, reflecting high internal consistency of the instrument and the questions within the questionnaire.
Reliability analysis for technology context scales
All observed variables exhibit Corrected Item-Total Correlation values exceeding 0.3, as shown in Table 2.3, confirming their acceptance for subsequent factor analysis The perceived benefits include more effective product advertising, timely consumer outreach, and enhanced customer relationship development.
7Table 2.3 Perceived benefits Scale Mean if
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
All observed variables exhibit Corrected Item-Total Correlation values exceeding 0.3, indicating their acceptance for subsequent factor analysis Complications arise from applications that hinder business operations, complicate marketing activities, and create challenges for employees.
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
The observed variables exhibit Corrected Item-Total Correlation values exceeding 0.3, as shown in Table 2.5, indicating their acceptance for subsequent factor analysis The identified costs include high maintenance expenses, substantial support system costs, and significant staff training expenditures.
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Reliability analysis for organizational context scales
All observed variables demonstrate Corrected Item-Total Correlation values exceeding 0.3, confirming their acceptance for subsequent factor analysis The identified leader scales include the provision of necessary resources, support for mobile marketing, and enthusiasm for mobile marketing applications.
Table 2.6 Leader Scale Mean if
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
All observed variables exhibit Corrected Item-Total Correlation values exceeding 0.3, indicating their acceptance for subsequent factor analysis The IT staff scales include the ability to learn mobile marketing technology, the capability to execute mobile marketing, and the proficiency in generating innovative ideas for mobile marketing.
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
All observed variables exhibit Corrected Item-Total Correlation values exceeding 0.3, as shown in Table 2.8, indicating their acceptance for subsequent factor analysis The finance scales identified include: availability of financial resources for mobile marketing, ease of obtaining financial resources for mobile marketing, and sufficiency of the marketing budget to implement mobile marketing strategies.
Table 2.8 Finance Scale Mean if
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Reliability analysis for environmental context scales
All observed variables exhibit Corrected Item-Total Correlation values exceeding 0.3, indicating their acceptance for the upcoming factor analysis The competition scales include the influence of competitors' mobile marketing activities, current competitive pressure, and competitive pressure from potential competitors.
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
The observed variables exhibit Corrected Item-Total Correlation values exceeding 0.3, indicating their acceptance for subsequent factor analysis These variables include consumer demand for mobile marketing, the necessity of maintaining business-consumer relationships, and customer reviews regarding mobile marketing effectiveness.
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
The observed variables exhibit Corrected Item-Total Correlation values exceeding 0.3, as shown in Table 2.11, indicating their acceptance for subsequent factor analysis The scales for support organizations include suppliers who actively promote mobile marketing, offer full technical support, and provide mobile marketing training services.
Table 2.11 Support organizations Scale Mean if
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Reliability analysis for mobile marketing application factor scale
The observed variables exhibit Corrected Item-Total Correlation values exceeding 0.3, indicating their acceptance for subsequent factor analysis The identified scales for mobile marketing applications include the intention to implement mobile marketing, having a plan for its application, and the willingness to recommend its use to other businesses.
15Table 2.12 Mobile marketing application factor scales
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
The reliability of the scale is assessed using Cronbach's Alpha coefficient and the total variable correlation coefficient, with a minimum Cronbach's Alpha threshold of 0.6 (Hair et al., 2006) Additionally, only scales with a total correlation coefficient exceeding 0.3 will be considered for further analysis.
816 Table 2.13 Summary of evaluating the reliability of the factor scale
N Variables Symbol Number of observed variables
Minimum total variable correlation coefficient
5 Competency of information technology staff
(Source: results by SPSS analysis)
CONCLUSIONS AND PROPOSALS TO FURTHER MOBILE
Conclusion of research results
The thesis has achieved the research purpose set out as follows
- Overview of the theoretical basis for retailers' acceptance of mobile marketing activities
- Analyzing the factors affecting mobile marketing acceptance of Vietnamese retailers
- Proposing solutions and recommendations to strengthen the mobile marketing application of Vietnamese retailers
This thesis thoroughly explores the theoretical foundations of the retail industry, focusing on mobile marketing and its ecosystem It examines different mobile marketing strategies within retail and highlights their importance for retail businesses Additionally, the thesis proposes a model to analyze the factors influencing retailers' acceptance of mobile marketing.
Chapter 2 of the thesis delves into the mobile marketing ecosystem of Vietnamese retail businesses, examining the various forms of mobile marketing currently employed A key focus is the analysis of survey results that identify factors influencing retailers' acceptance of mobile marketing, categorized into three groups: technological context, environmental context, and organizational context The research model's factors are quantified through a survey of retailers, and correlation regression analysis reveals that significant factors impacting mobile marketing acceptance include the perceived benefits of mobile marketing and the complexity of its application.
(3) TM - Implementation costs, (4) CT - Motivation from the leader, (5) EC - Competency of information technology staff, (6) PC - Financial resource, (7) VS - Competition, (8) CU - Pressure from customers, ( 9) CP - Support organizations.
Proposals to promote mobile marketing acceptance of retailers
3.2.1 Solutions in the technology context
Developing a customer database system is essential for retailers, as it gathers crucial demographic data, customer interactions, sentiments, and behaviors This comprehensive repository enhances the effectiveness of mobile marketing campaigns by providing deep insights into customer information Importantly, retailers utilize this database only with explicit customer consent, prioritizing the confidentiality of personal information.
There are various methods to gather consumer data across multiple channels and touchpoints where they engage with a retailer Key techniques for collecting this data include online surveys, purchase history analysis, website analytics, social media interactions, and customer feedback forms.
Website analytics tools such as Google Analytics, Mixpanel, and Matomo enable businesses to gain insights into customer preferences, referral sources, and conversion metrics while tracking real-time visitor behavior Additionally, tools like Crazy Egg, Optimizely, ClickTale, and Hotjar assist retailers in analyzing user behavior through heatmaps, conversion funnels, and enhanced user interface optimization.
Social networks provide valuable data through user interactions, such as shares, views, and engagement with brand content However, this data is typically raw and anonymized to safeguard user privacy, necessitating the use of data analysis tools for effective processing and insights.
- Tracking Pixels (HTML or JavaScript code): Tracking pixels can record IP address, operating system, browser, behavior, etc Thereby they help retailers to run more effective targeted marketing campaigns
- Feedback and surveys on business offers, services, sales, and advertising activities
- Transactional information is collected when retailers have direct or online sales activities
- Contact information To get accurate customer contact information, retailers can collect customer contact information via the landing page, registration to receive the free ebook, information at checkout, sign up
Raise awareness of retailers about the role of mobile marketing applications
The survey indicates that perceived benefits rank as the second most influential factor in retailers' acceptance of mobile marketing When retailers recognize that the advantages of mobile marketing applications surpass the costs and outperform other communication methods, they are likely to invest significantly in this strategy Furthermore, a comprehensive understanding of the mobile marketing ecosystem and implementation process is crucial for retailers to effectively craft messages and select appropriate marketing formats Additionally, the awareness and support from business leaders are essential in fostering the adoption of mobile marketing practices.
The advancement of information and communication technology is driving mobile marketing in the retail sector, yet it also poses significant challenges for retailers due to limited investment and resources A recent survey indicates that the complexity and cost of mobile marketing negatively affect retailers' efforts in this area In the digital economy, technology is crucial not only for mobile marketing but for all business operations As such, retailers must prioritize the development and investment in technology platforms, with a particular emphasis on information technology Key components of an effective IT infrastructure are essential for enhancing mobile marketing strategies in retail.
63 people, processes, and application platforms To optimize IT infrastructure, retailers need to optimize all three of these factors
Mobile marketing programs offer significant informational value that attracts consumers and influences their purchasing decisions The essential benefit of these programs lies in the information they provide, which serves as a foundation for consumers to decide whether to engage with retailers and consider their products or services To effectively capture consumer interest, retailers must develop mobile marketing strategies that fulfill key requirements.
- Information content must be accurate, concise, easy to understand, suitable to the target audience;
- Information must be up-to-date (especially with promotions);
- Respond properly to the needs and interests of each consumer;
- Elicit brand recall and facilitate product differentiation and recognition among customers when comparing the same products with those offered by other retailers
Building consumer trust is essential for successful mobile marketing, as research shows that trust significantly impacts consumer attitudes toward marketing initiatives This trust encompasses the information, content, brand, and marketing activities of retailers When consumers feel confident in these aspects, they are more likely to develop positive attitudes and behaviors Conversely, promotional messages that lack credibility may be ignored or deleted, as consumers often disregard advertisements they do not trust.
To effectively engage the young audience of mobile device users, mobile marketing programs must prioritize entertainment and excitement This demographic is particularly drawn to interactive and provocative content, making it essential for marketers to go beyond merely sharing product information or promotions By incorporating entertaining elements into their strategies, brands can capture the interest of young consumers and enhance their overall marketing impact.
Young consumers are highly attracted to music and sports, making these fields powerful tools for engagement By integrating music and sports into mobile marketing strategies, brands can effectively enhance their visibility and reach among this demographic.
Strictly comply with the provisions of the law on consumer protection
Retailers are obligated to provide accurate product information and take responsibility for consumer interactions, supported by appropriate customer care policies The Law on Protection of Consumer Rights ensures that consumers are protected regarding their life, health, and property while using products and services They have the right to receive detailed information about these offerings and to seek compensation for any damages resulting from products or services that fail to meet declared standards or specifications Additionally, consumers can file complaints, pursue legal action, or engage social organizations to safeguard their rights and interests in accordance with the law.
In today's technology-driven landscape, retailers are continuously enhancing product offerings, resulting in an overwhelming array of choices for consumers This abundance of information complicates rational decision-making, leading emotions to play a significant role in purchasing decisions To foster positive brand perception, retailers must prioritize creating enjoyable experiences while minimizing distractions and negative feelings, as 20% of distractions can cause 80% of consumer frustration When brands engage with consumers without prior consent, it often results in negative perceptions and disengagement, prompting consumers to seek solutions like ad blockers and unsubscribe tools to avoid unwanted interruptions.
65 information from being stolen, etc To avoid annoying consumers, retailers need to actively attract customers' attention with some notes as below
- Content that is useful and valuable to consumers
- Send letters, messages, emails with the recipient's consent;
- Pay attention to the needs and feelings of consumers to understand them better instead of trying to introduce products in any way
Mobile marketing can be a significant challenge for retailers due to the associated costs, which often deter them from fully embracing these strategies However, with sufficient financial resources, businesses can effectively implement mobile marketing initiatives Even with limited budgets, retailers can still engage consumers by leveraging various mobile applications and formats A practical starting point is to develop a mobile-friendly website to enhance their digital presence Additionally, retailers can utilize mobile channels like chat and messaging apps to segment their audience based on location, age, and usage habits, effectively targeting the right customers To maximize impact, brands should prioritize visibility on social networks and chat applications Ultimately, a well-structured financial plan is essential for optimizing costs across all marketing activities.
To effectively develop human resources for mobile marketing in retailers, it is essential to involve not only marketing personnel but also information technology staff Currently, Vietnamese universities lack dedicated programs in mobile marketing, highlighting a gap in formal education However, the emergence of the mobile marketing association in Vietnam and various marketing intermediaries offering short-term training services is helping to bridge this gap Additionally, the annual MMA Smarties Award Vietnam recognizes innovative and creative achievements in mobile marketing, promoting excellence in the field.
66 successful efforts in mobile marketing This presents an opportunity for businesses to engage and acquire insights from accomplished mobile marketing campaigns
Choosing the right mobile marketing strategies is essential for retailers, as today's options are incredibly diverse Beyond traditional methods like messaging and direct calls, retailers can explore various internet-based forms, including mobile apps, multimedia, mobile video, display advertising, loyalty programs, and location-based marketing Each method comes with unique characteristics, advantages, disadvantages, and costs Internet-based mobile marketing offers low-cost benefits but can be hindered by technological limitations and poor internet connectivity Therefore, retailers should select the most suitable mobile marketing applications based on their target audience and available resources.
Table 4.1 Advantages and disadvantages of some forms of mobile marketing
Message - Short in 160 characters with SMS
- Savings because it is cheaper than many other digital media
- Easy to use with all mobile users
- Mass reach because of 100% mobile phone users
- Targeting Third-party databases are not a reliable source to reach specific target customers
- Can serve utility or interactive creativity/experience
- Long-term sustainable relationship through content syndication and exchange
- Driving traffic and downloads requires additional marketing budget
- Can drill down to data analysis on metrics that marketers want to know
- Viewers can skip or switch to another video
- High requirements in content creation
Native ads - Native advertising benefits publishers, advertisers and audiences
- Hard to measure performance and evaluate effectiveness
- Spend more to create good content
Multimedia - High interactivity, vivid sound and image
- Strong branding because viewers are still more likely to see and remember ads than traditional display ads
- Heavy size because of taking time to load, needs a good internet connection to work continuously
- High risk of ad blocking
- Need big data to use the map
- Limited market range, not available
(Source: the author compiled by)
Combination of mobile marketing forms In the multi-platform world, applying one marketing channel will be difficult to bring the most optimal effect Therefore,
Some policy recommendations
3.3.1 Legal recommendations to regulate mobile marketing activities
Clear delineation of responsibilities among entities involved in advertising is crucial When false or misleading advertisements occur, it is essential to identify who is accountable This responsibility extends beyond administrative or criminal sanctions to include obligations towards consumers Advertising laws must explicitly define the roles of product suppliers, advertising service providers, and those executing online advertisements, as well as outline joint responsibility for intentional violations by informed parties.
To enhance the effectiveness of the Cybersecurity Law and improve coordination among state agencies in regulating online advertising, it is crucial to balance individual privacy with state management Effective control of online advertising requires collaboration between key ministries, including the Ministry of Culture, Sports and Tourism, the Ministry of Public Security, and local management agencies, to strengthen oversight of advertising activities on websites.
The British Advertising Standards Authority (ASA) serves as a model for regulating advertising practices, particularly in the cryptocurrency sector In 2021, the ASA prohibited Bitcoin advertisements starting May 26, citing concerns over the inherent risks associated with Bitcoin investments They emphasized that such investments are complex and volatile, potentially leading to significant financial losses for investors.
The Advertising Association in Vietnam is enhancing its role and expertise by collaborating with state management agencies to review and regulate online advertising activities This initiative aims to address the misleading impression that investing is simple and commonplace, while also providing recommendations and solutions to improve the online advertising environment.
Current administrative fines for online advertising violations are insufficient and lack deterrent effect, necessitating an increase in sanction levels and the application of criminal penalties for organizations that violate regulations Despite Decree No 38/2021/ND-CP raising fines, they remain low compared to the profits generated from online advertising It is essential to amend Article 11 of the Law on Advertising to ensure that violations lead to more than just administrative penalties and compensation for damages; criminal charges should apply for serious consumer harm This amendment aligns with the 2015 Penal Code, allowing for the criminal prosecution of both individuals and commercial entities responsible for significant advertising violations.
Incorporating regulations to protect consumer interests is essential for enhancing accountability in advertising practices The Law on Consumer Protection 2010 grants consumers the right to seek compensation for damages if products fail to meet specified quality and functionality standards (Article 8) Additionally, individuals engaged in independent commercial activities, often without formal business registration, are obligated to exchange goods or refund consumers if the products do not meet the promised quality or specifications However, the prevalence of over-advertising continues to undermine these protections.
The popularity of functional foods and medicines is on the rise, yet proving damages for compensation claims remains challenging To protect consumers, it is essential to establish their right to return products and seek compensation when advertised items do not meet quality and usage standards Consumers should not have to wait for results from using the product; instead, they should be entitled to request a return and refund if the product is found to be misleading and sanctioned by a regulatory agency.
3.3.2 Completing the technology and telecommunications infrastructure system for mobile marketing
To establish a strong foundation for mobile marketing applications in the retail sector, it is essential for departments, agencies, and local governments to develop and swiftly implement comprehensive information technology plans Strengthening cooperation and integration in information technology, particularly in areas like information security and cyberattack prevention, is crucial Additionally, addressing the limitations in online public service indicators, telecommunications infrastructure, human resources, financial mechanisms, and information security will be vital for fostering socio-economic development.
To enhance mobile marketing in the electronics and telecommunications industry, it is crucial to incentivize network operators to expedite the development of a robust 4G and 5G infrastructure Operators should focus on expanding value-added services and tailoring solutions for rural areas to reach a broader audience Additionally, prioritizing information security is essential; both ministries and operators must invest in technology and human resources to improve awareness and skills in information security management, ensuring consumer confidence during modern shopping transactions.
In today's interconnected economic landscape, Vietnamese retailers are presented with significant growth opportunities alongside intense competition The advancements of the 4.0 technology revolution and the impacts of the Covid-19 pandemic have created new avenues for business, while also introducing various challenges To stay competitive, mobile marketing has become essential for retailers, yet its effectiveness as a communication and competitive strategy remains underutilized.
To strengthen mobile marketing, retail businesses need essential knowledge, resources, and skills to effectively implement mobile initiatives while being responsive to consumer needs This article explores mobile marketing theory in retail, examines the actual adoption of mobile strategies, and evaluates the factors influencing their acceptance The author presents five key recommendations for retailers and offers propositions to enhance mobile marketing strategies moving forward.
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(About factors affecting mobile marketing acceptance of retail businesses) To: Gentlemen/Mrs
My name is Vu Tran Phuong Anh, a student at the Hanoi School of Business and Management, Vietnam National University I am conducting research for my graduation thesis on mobile marketing and would greatly appreciate your assistance in completing this topic.
All information you provide is confidential and only for research purposes Thank you!
For questions that have available answers, please circle in the box corresponding to the level of agreement with the opinion you agree with 1 Strongly disagree; 2 Partial disagreement;
3 Normal (Neutral); 4 Partial consent; 5 Totally agree
Could you please agree on the impact of each of the following factors on your acceptance of mobile marketing?
Survey question content Consent level
PE1 Promote products more effectively 1 2 3 4 5
PE2 Reach consumers in a timely manner 1 2 3 4 5
PE3 Develop better customer relationships 1 2 3 4 5
2 The complexity of mobile marketing application
PC1 Apps that make it difficult for businesses 1 2 3 4 5
3 Cost of mobile marketing application
CT2 High cost of support system 1 2 3 4 5
CT3 High cost of staff training 1 2 3 4 5
4 Leadership support to apply mobile marketing
TM1 Provide the necessary resources 1 2 3 4 5
TM2 Support to use mobile marketing 1 2 3 4 5
TM3 Enthusiasm for mobile marketing applications 1 2 3 4 5
5 Competence of information technology staff of enterprises
EC1 Ability to learn mobile marketing technology 1 2 3 4 5
EC2 Ability to perform mobile marketing 1 2 3 4 5
EC3 Ability to provide new ideas about mobile marketing
6 Financial capacity of the enterprise
FC1 Have financial resources for mobile marketing 1 2 3 4 5
FC2 Easy financing for mobile marketing 1 2 3 4 5
FC3 Marketing budget is enough to implement mobile marketing
7 Competitive pressure requires businesses to apply mobile marketing
CP1 Impact of competitors' mobile marketing activities 1 2 3 4 5
CP3 Competitive pressure from potential competitors 1 2 3 4 5
CU1 Consumers' demand for mobile marketing 1 2 3 4 5