Mobile Advertising Modelling for Telecommunications Industry: Focusing on the Boosting of Value Co Creation
Main Article Content
Keywords
mobile advertising, service-dominant logic, Structural Equation Modelling (SEM), telecommunication, value co-creation
Abstract
The telecommunications industry has turned into social and communication-oriented services, along with declining voice services. In line with these changes, the telecommunications industry must adjust to market changes. One of the service changes that occurred was the emergence of mobile advertising services. The aim of this research is to build a mobile advertising service model that serves to form value co-creation for the industry of mobile telecommunications in Indonesia. The study used a sample of the broadband community of users from the largest mobile telecommunications provider in Indonesia. They involved their customers as part of service delivery in the company to co-create the value. The number of participants was 284. The sampling technique that was used was non-probability sampling. The data analysis was carried out using Structural Equation Modelling (SEM). The result of this study is to find a mobile advertising model for the formation of value co-creation for the industry of mobile telecommunications.
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References
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Ju, B. (2013). A Proposed Cross-Cultural Examination of Online Advertising Effectiveness in China and the UK, International Journal of Business and Management, 8(6), 34–39. https://doi.org/10.5539/ijbm.v8n6p34
Kim, N. Y., & Sundar, S. S. (2010). Relevance to the rescue: can ‘Smart Ads’ reduce negative response to online Ad clutter? Journalism & Mass Communication Quarterly, 87(2), 346–362. https://doi.org/10.1177/107769901008700208
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Lim, Y. M., Yap, C. S., & Lau, T. C. (2011). The Effectiveness of Online Advertising in Purchase Decision: Liking, Recall and Click. Australian Journal of Basic and Applied Sciences. 5(9), 1517–1524.
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Menon, S., & Soman, D. (2002). Managing the Power of Curiosity for Effective Web Advertising Strategies. Journal of Advertising, 31, 1–14. https://doi.org/10.1080/00913367.2002.10673672
Mobile Marketing Association. (2018). Holiday Advertising Forecast. https://www.mmaglobal.com/files/casestudies/reveal-mobile-holiday-advertising-survey-2018.pdf, accessed 20 February 2022.
Moncrief, W. C. (2017). Are sales as we know it dying … or merely transforming? Journal of Personal Selling and Sales Management. 37(4), 271–279. http://doi.org/10.1080/08853134.2017.1386110
Muk, A., & Chung, C. (2015). Applying the technology acceptance model in a two-country study of SMS advertising. Journal of Business Research, 68(1), 1–6. https://doi.org/10.1016/j.jbusres.2014.06.001
Murillo, E., Merino, M., & Núñez, A. (2016). The advertising value of Twitter ads: A study among Mexican Millennials. Revista Brasileira de Gestão De Negócios, 18(61), 436–456. Available at https://rbgn.fecap.br/RBGN/article/view/2471/pdf_2, accessed 25 March 2022.
Narayen, S. (2007). Q2 2007 Adobe Systems Earnings Conference Call – Final. Available at https://www.proquest.com/wire-feeds/q2-2007-adobe-systems-earnings-conference-call/docview/465784237/se-2, accessed 25 February 2022.
Nihel, Z. (2013). The Effectiveness of Internet Advertising through Memorization and Click on a Banner. International Journal of Marketing Studies, 5(2), 93–101. https://doi.org/10.5539/ijms.v5n2p93
Prahalad, C. K., & Ramaswamy, V. (2004). The Future of Competition, Co-Creating Unique Value with Customers. Boston (US): Harvard Business School Press.
Schlosser, A. E., Shavitt, S., & Kanfer, A. (2009). Survey of Internet users' attitudes toward Internet advertising. Journal of Interactive Marketing, 13(3), 34–54.
Sinclair, S. A., & Seward, K. E. (1988). Effectiveness of branding a commodity product. Industrial Marketing Management, 17(1), 23–33. https://doi.org/10.1016/0019-8501(88)90023-5
Steward, M., Narus, J., Roehm. M., & Ritz, W. (2019). From transactions to journeys and beyond: the evolution of B2B buying process modeling. Industrial Marketing Management. 83(11), 288–300. https://doi.org/10.1016/j.indmarman.2019.05.002
Smith Ducoffe, S. J., Tromley, C. L., & Tucker, M. (2006). Interdisciplinary, team taught, undergraduate business course: The impact of integration. Journal of Management Education, 30(2), 276–294. https://doi.org/10.1177/1052562905284663
Tassi, P. (2013). Facebook’s advertising is starting to spiral out of control. Forbes. Available at https://www.forbes.com/sites/insertcoin/2013/07/01/facebooks-advertising-is-starting-to-spiral-out-of-control/
Vivek, S. (2009). A Scale of Consumer Engagement. [Dissertation]. Department of Management and Marketing in the Graduate School of The University of Alabama (US).
Wagner, C., & Majchrzak, A. (2006). Enabling Customer-Centricity Using Wikis and the Wiki Way. Journal of Management Information Systems, 23(3), 17–43. https://doi.org/10.2753/MIS0742-1222230302
Williams, L. (2013). A Study of the Relationship Between Levels of Online Student Engagement and Date of Course Registration. [Dissertation]. Capella University (US). https://doi.org/10.1108/QMR-06-2013-0041
Zhang, K., & Katona, Z. (2015). Contextual advertising, Marketing Science, 31(6), 980–994. https://doi.org/10.1287/mksc.1120.0740
Akaka, M. A., & Vargo, S. L. (2014). Technology as an operant resource in service (eco)systems, Information Systems, and e-Business Management, 12(3), 367–384. http://doi.org/10.1007/s10257-013-0220-5
Auh, S., Bell, S., McLeod, C., & Shih, E. (2007). Co-Production and Customer Loyalty in Financial Services. Journal of Retailing, 83(3), 359–370. https://doi.org/10.1016/j.jretai.2007.03.001
Bae, I., & Zamrudi, M. F. (2018). Challenge of social media marketing & effective strategies to engage more customers: Selected retailer case study. International Journal of Business and Society, 19(3), 851–869.
Baltas, G. (2003). Determinants of internet advertising effectiveness: An empirical study. International Journal of Market Research, 45(4), 505–513.
Bauer, H. H., Barnes, S. J., Reichardt, T., & Neumann, M. M. (2005). Driving consumer acceptance of mobile marketing: A theoretical framework and empirical study. Journal of Electronic Commerce Research, 6(3), 181–192.
Breazeale, M. (2010). Three Essays on Customer Chemistry. [Dissertation]. Mississippi State University. Mississippi (US). https://scholarsjunction.msstate.edu/td/4722
Brynjolfsson, E., Hu, Y. J., & Rahman, M. S. (2013). Competing in the age of omnichannel retailing. MIT Sloan Management Review, 54(4), 23-29.
Chung, K. C., & Holdsworth, D K. (2012). Culture and behavioral intent to adopt mobile commerce among the Y Generation: comparative analyses between Kazakhstan, Morocco, and Singapore. Young Consumers Journal, 13(3), 224–241. https://doi.org/10.1108/17473611211261629
Creswell, J. (2015). Educational Research: Planning, Conducting, and Evaluating Quantitative and Qualitative Research. New York: Pearson.
Dreze, X., & Hussherr, F. X. (2003). Internet advertising: Is anybody watching? Journal of Interactive Marketing, 17, 8–23.
Erat, P., Desouza, K., Jugel, A., & Kurzawa, M. (2006). Business Customer Communities and Knowledge Sharing: Exploratory Study of Critical Issues. European Journal of Information Systems, 15(5), 511–524.
Faber, R. L., Lee, M., & Nan, X. (2004). Advertising and the Consumer Information Environment Online. American Behavioral Scientist, 48, 447–466. https://doi.org/10.1177/0002764204270281.
Fremlin, J. (2012). Sense of Community in a Mediated World. [Dissertation]. The Faculty of Fielding Graduate University (US).
Gaber, H. R., Wright, L. T., & Kooli, K. (2019). Consumer attitudes towards Instagram advertisements in Egypt: The role of the perceived advertising value and personalization. Cogent Business & Management, 6, 1. https://doi.org/10.1080/23311975.2019.1618431
Garman, A. (2013). Increasing the Effectiveness of Sexual Harassment Prevention through Learner Engagement. [Thesis]. Department of Psychology, California State University, Long Beach.
Gong, W., & Maddox, L. (2003). Measuring Web Advertising Effectiveness in China. Journal of Advertising Research, 43, 34–49. https://doi.org/10.1017/S002184990303006X
Gustafsson, A., Kristensson, P., & Witell, L. (2012). Customer co-creation in service innovation: a matter of communication? Journal of Service Management, 23(3), 311–327. https://doi.org/10.1108/09564231211248426
Hair, J. F., Babin, B. J., Anderson, R. E., & Black, W. C. (2019). Multivariate Data Analysis. 8th ed. Hampshire (GB): Cengage Learning.
Hartmann, N. N., Wieland, H., & Vargo. S L. (2018). Converging on a new theoretical foundation for selling. Journal of Marketing. 82(2), 1–18. http://doi:10.1509/jm.16.0268.
Jacobson, M. (2015). The Relationship Between Interaction Patterns on An Online Idea Generation Community and The Implementation of Ideas. [Dissertation]. The Faculty of the School of Education, Department of Leadership Studies Organization and Leadership Program, The University of San Francisco (US).
Jayawardhena, C., Kuckertz, A., Karjaluoto, H., & Kautonen, T. (2009). Antecedents to permission based mobile marketing: An initial examination. European Journal of Marketing, 43, 473–499. https://doi.org/43. 473-499. 10.1108/03090560910935541.
Jin, C., & Jun, J. (2011). Consumer Responses to Creative Platform of the Internet Advertising, The Web Journal of Mass Communication Research. Available at https://wjmcr.info/2007/04/01/consumer-responses-to-creative-platform-of-the-internet-advertising/
Johansen, T. S., & Andersen, S. E. (2012). Co-creating ONE: rethinking integration within communication. Corporate Communications: An International Journal, 17(3), 272–288. https://doi.org/10.1108/13563281211253520
Joshi, A., & Sharma, S. (2004). Customer Knowledge Development: Antecedents and Impact on New Product Performance. Journal of Marketing, 68(4), 47–59. https://doi.org/10.1509/jmkg.68.4.47.42722
Ju, B. (2013). A Proposed Cross-Cultural Examination of Online Advertising Effectiveness in China and the UK, International Journal of Business and Management, 8(6), 34–39. https://doi.org/10.5539/ijbm.v8n6p34
Kim, N. Y., & Sundar, S. S. (2010). Relevance to the rescue: can ‘Smart Ads’ reduce negative response to online Ad clutter? Journalism & Mass Communication Quarterly, 87(2), 346–362. https://doi.org/10.1177/107769901008700208
Kotler, P., & Keller, K. L. (2015). Marketing Management. 15th ed. England: Pearson Education.
Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout the customer journey. Journal of Marketing, 80(6), 69–96. https://doi.org/10.1509/jm.15.0420
Lim, Y. M., Yap, C. S., & Lau, T. C. (2011). The Effectiveness of Online Advertising in Purchase Decision: Liking, Recall and Click. Australian Journal of Basic and Applied Sciences. 5(9), 1517–1524.
Lin, S., Yang, S., Ma, M., & Huang, J. (2018). Value co-creation on social media examining the relationship between brand engagement and display advertising effectiveness for Chinese hotels. International Journal of Contemporary Hospitality Management, 30(4), 2153–2174. https://doi.org/10.1108/IJCHM-08-2016-0484
Menon, S., & Soman, D. (2002). Managing the Power of Curiosity for Effective Web Advertising Strategies. Journal of Advertising, 31, 1–14. https://doi.org/10.1080/00913367.2002.10673672
Mobile Marketing Association. (2018). Holiday Advertising Forecast. https://www.mmaglobal.com/files/casestudies/reveal-mobile-holiday-advertising-survey-2018.pdf, accessed 20 February 2022.
Moncrief, W. C. (2017). Are sales as we know it dying … or merely transforming? Journal of Personal Selling and Sales Management. 37(4), 271–279. http://doi.org/10.1080/08853134.2017.1386110
Muk, A., & Chung, C. (2015). Applying the technology acceptance model in a two-country study of SMS advertising. Journal of Business Research, 68(1), 1–6. https://doi.org/10.1016/j.jbusres.2014.06.001
Murillo, E., Merino, M., & Núñez, A. (2016). The advertising value of Twitter ads: A study among Mexican Millennials. Revista Brasileira de Gestão De Negócios, 18(61), 436–456. Available at https://rbgn.fecap.br/RBGN/article/view/2471/pdf_2, accessed 25 March 2022.
Narayen, S. (2007). Q2 2007 Adobe Systems Earnings Conference Call – Final. Available at https://www.proquest.com/wire-feeds/q2-2007-adobe-systems-earnings-conference-call/docview/465784237/se-2, accessed 25 February 2022.
Nihel, Z. (2013). The Effectiveness of Internet Advertising through Memorization and Click on a Banner. International Journal of Marketing Studies, 5(2), 93–101. https://doi.org/10.5539/ijms.v5n2p93
Prahalad, C. K., & Ramaswamy, V. (2004). The Future of Competition, Co-Creating Unique Value with Customers. Boston (US): Harvard Business School Press.
Schlosser, A. E., Shavitt, S., & Kanfer, A. (2009). Survey of Internet users' attitudes toward Internet advertising. Journal of Interactive Marketing, 13(3), 34–54.
Sinclair, S. A., & Seward, K. E. (1988). Effectiveness of branding a commodity product. Industrial Marketing Management, 17(1), 23–33. https://doi.org/10.1016/0019-8501(88)90023-5
Steward, M., Narus, J., Roehm. M., & Ritz, W. (2019). From transactions to journeys and beyond: the evolution of B2B buying process modeling. Industrial Marketing Management. 83(11), 288–300. https://doi.org/10.1016/j.indmarman.2019.05.002
Smith Ducoffe, S. J., Tromley, C. L., & Tucker, M. (2006). Interdisciplinary, team taught, undergraduate business course: The impact of integration. Journal of Management Education, 30(2), 276–294. https://doi.org/10.1177/1052562905284663
Tassi, P. (2013). Facebook’s advertising is starting to spiral out of control. Forbes. Available at https://www.forbes.com/sites/insertcoin/2013/07/01/facebooks-advertising-is-starting-to-spiral-out-of-control/
Vivek, S. (2009). A Scale of Consumer Engagement. [Dissertation]. Department of Management and Marketing in the Graduate School of The University of Alabama (US).
Wagner, C., & Majchrzak, A. (2006). Enabling Customer-Centricity Using Wikis and the Wiki Way. Journal of Management Information Systems, 23(3), 17–43. https://doi.org/10.2753/MIS0742-1222230302
Williams, L. (2013). A Study of the Relationship Between Levels of Online Student Engagement and Date of Course Registration. [Dissertation]. Capella University (US). https://doi.org/10.1108/QMR-06-2013-0041
Zhang, K., & Katona, Z. (2015). Contextual advertising, Marketing Science, 31(6), 980–994. https://doi.org/10.1287/mksc.1120.0740
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Published
Mar 29, 2022
Article Details
How to Cite
Rurianto, J., Sumarwan, U., Suharjo, B., & Hasanah, N. (2022). Mobile Advertising Modelling for Telecommunications Industry: Focusing on the Boosting of Value Co Creation. Journal of Telecommunications and the Digital Economy, 10(1), 67–91. https://doi.org/10.18080/jtde.v10n1.452
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Section
Telecommunications
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Copyright Telecommunications Association Inc.
Author Biographies
Ujang Sumarwan, IPB University
Ujang Sumarwan is a Professor of Consumer Behavior in the Graduate Program of Management and Business and in the Department of Family and Consumer Sciences, College of Human Ecology, at Bogor Agricultural University (Institut Pertanian Bogor), Bogor Indonesia.
Budi Suharjo, IPB University
Budi Suharjo, Ph.D., is an Assistant Professor of School of Business at Bogor Agricultural University (Institut Pertanian Bogor), Bogor Indonesia.
Nur Hasanah, IPB University
Nur Hasanah, Ph.D., is an Assistant Professor of School of Business at Bogor Agricultural University (Institut Pertanian Bogor), Bogor Indonesia.
