An Evaluation of Effectiveness of Advertising in Mobile Telecommunication Industry

(With Special Reference to Students of Rajarata University of Sri Lanka)

REG. NUMBER: MGT/2007/2008/004

A research report submitted to the IT Unit, Department of Business Management in the Faculty

of Management Studies, Rajarata University of Sri Lanka in partial fulfillment of the

requirement for the B.Sc. (Business Information Technology Management) Special Degree

Information Technology Unit

Department of Business Management

Faculty of Management Studies

Rajarata University of Sri Lanka

Mihintale

2014

ACKNOWLEDGEMENT

This research has been inspired and fostered by several people, without whom my effort would

not have a success.

I wish to begin thanking my supervisorMr.GPHKandambi, lecture of the Department of Business

Management, Rajarata University of Sri Lanka, that you for the wisdom, understanding, and

compassion that you have imparted to me and my ideas. You have offered guidance, support, and

unwavering patience throughout this process.And also I would like to

thanksDr.PMBJayathilakehead of Department, Department of Business Management, Rajarata

University of Sri Lanka. He inspired us greatly to make this study a reality.

Special thanks and heartfelt gratitude also go to the executive grade associates of all faculties’

students of Rajarata University of Sri Lanka for the enormous support and guidance.

WGACK Abeysekara

ABSTRACT

This paper empirically investigates an evaluation of effectiveness of advertising in mobile

telecommunication industry with special reference to students of Rajarata University of Sri

Lanka.Sri Lankan mobile telecommunication industry an efficient telecommunications

infrastructure is a prerequisite to facilitate the changing needs of the

economy,effectiveadvertising strategy system must need to the industry. Effective advertising

strategy handling has become a vital aspect in maintaining a productive customer Relationship.

The objectives of the study are, to find out factors affecting to occur effectiveness of advertising

in mobile industry to find out the current situation of advertising strategy in the

telecommunication industry and to make recommendations that need to betterment of advertising

strategy within an organization.

The data was collectedfrom a clustered sample method and 120 students were selected to the

sample in Rajarata University of Sri Lanka. A structured questionnaire was administered to

collect data. The research conclude that of the study is that evaluation of effectiveness of

advertising in mobile telecommunication industry is significantly affected thefour variables were

affected to make customer Attention and buying decision. Topic variable were most of the

students concern rather than other variable. Secondly affected variable was advertising

framework, thirdly affected variable was advertising ethics and finallymassage idea affected to

effectiveness of advertising in mobile telecommunication industry.

Key words: Advertising, Mobile telecommunication, Rajarata University of Sri Lanka

CHAPTER ONE–INTRODUCTION

1.1 Background of research

In current world most of the countries are engaging pattern of liberal economic. Fundamentally

this situation increased with large development of the technology such as transportation,

communication. So with this huge development any country can’t be alone. Actually that caused

all countries to engage with liberal economic. According to this condition the day by day human

wants and productions are increased in parallel. Ultimately rapidly develop the marketing

competition among the competitors. With this marketing competition advertising has become

major way to reach to the customer. Financial value has become one of the important factors in

every decision not only in business world but also social relationships. This situation explains the

important of advertising in business world.

Advertising can directly affect to the economic, social and culture of a country. As an example

advertising has changed some core value or some cultural limitation of some natures.

If describe further more. When consider about worldwide market advertising we can see some

features advertising are not only use in marketing but also use at the farewell tasks, political

tasks and at the social tasks. As an example, for the prevention of aids, blood donations, period

of elections and for the sport tasks.

Normally we need information when deciding whether buy or not the particular good or service.

For like that buying decision mostly depends on the information given through the advertising.

So with the new technological development advertising has become most important thing to win

the market competition. Because now businessmen can advertise their products by using Social

networks, Emails, Websites, Satalight TVs, mobiles within a limited period of time and at a low

cost.

Here explain some countries allocation on the advertising. It will help to identify importance of

the advertising. America has expended 2% of their GDP, Switzerland has expended 2.87% and

Germany amounted to 2.42% of their GDP. And also America has made $450 of advertising

expenditure for one person. If mention multinational company wise Unilliver, Toyota are also

expanding large amount from their income for advertising expenditure.

The mobile telecommunication industryan efficient telecommunications infrastructure is a

prerequisite to facilitate the changing needs of the economy. Industry provides

telecommunication service over 18,176,000 (mobile) and 3553000 (fixed) in Sri Lanka. Further,

telephone density (telephones per 100 persons), including mobile phones, increased to 112 by

end June 2012 from 105.1 at end 2011. The mobile phone density alone stood at 95 by end June

2012.

As per early mention advertising has become very important thing to the every country, every

businessmen and to the every customer. So studying of the effectiveness of advertising to the

telecommunication industry will be important topic.

When consider about early thesis had completed their researches with varies conclusion. So that

effort will be important to confirm value of effectiveness of advertising in mobile

telecommunication industry.

1.2 Objectives of the research

1.2.1 Main objective

To find out factors affecting to occur effectiveness of advertising in mobile industry.

1.2.2 Specific objectives

To make recommendations that need to betterment of effectiveness of advertising.

1.3 Problem statement of research

Mobile telecom industry in Sri Lanka is one of main industries in Sri Lanka economy and the

industry provides so many services to peoples.And also there are problems regarding the

effectiveness of these advertising. And also previous research findings have noticed that

important of the advertising methods in business. Therefore this research will be carried out very

important findings and solutions for the existing barriers in the current business.

1.4 Research Methodology

The study needs more reliable and original data to test that problem therefore the study

population was limited to Rajarata University of Sri Lanka and students of the university have

been selected as the sample of the study. The data collected by using random sample

method.Then 116 students selected from five faculties. The study adopted several approaches for

collection primary data from use open end questionnaire. The secondary data collected from

research article, websites, some newspapers, magazines and central bank annual reports.

1.5 Limitation of research

The limitation of experienced in the compilation of this report relate to the following;

12 weeks is not enough for the researcher to do the research. It would be better if it was

done in longer time.

The population of experimental group is small, only 100 students and might not represent

the majority of the customers of the mobile telecommunication services.

Society included various social levels in education. But this research consider only about

university students.

1.6 Significant of research

There is a concept of Western people “without a market advertising money can earn only to

companies of money printers”. But now those companies also use the advertising. That shows

important and unbreakable relationship of Advertising with profit.

Successful business man is to create peoples’ needs advertising process used to inform to society

about new creations of a business. Hence it is common to the modern telecommunication

industry.

In modern world how important received to the advertising some developed countries count their

advertising cost according to GDP of the country. Following chart shows the cost expenses by

few countries for their advertising. Thisinformationalso shows the important of advertising in the

business world.

In the present we can see a hand phone, from poor man live in the rural house to the rich man

and also school children. It is a common thing. In other hand, a big competition has been created

in the Sims selling companies. In this competition, the advertising plays a huge role and this

research focus on the effectiveness of Advertising in Mobile Telecommunication Industry.

Table1.1. Advertising cost in the world

Country 2009

US $ million

2010

US $ million

2011

US $ million

North America 162 709 158 797 161 229

Weston Europe 112 223 112477 115374

Asia Pacific 103 013 107 810 114561

Central & Eastern Europe 29826 30837 33 861

LatinAmerica 30405 32 674 35 269

Africa/Middle East/Row 18 302 21 226 23 476

World 456 479 463 822 483 770

Source:www.marketingprofs.com

1.7Conceptual framework

Several researchers have identified factors affecting to effectiveness of advertising in mobile

industry. By reviewing that the researcher has ideated the following factors to affect to

effectiveness of advertising. The factors were Causes relating to the massage theme, Head line &

words, Advertising Media, Advertising Executional Frame work and Advertising Ethics.

Figure 1.1 Conceptual framework

Source: Developed by Researcher

Effective Advertising

Attention and Buying decision

Advertising Media

Advertising Ethics

Message idea

Advertising Executional Framework

Topic (Head line & words)

1.8 hypostasis of research

H1: There is effect massage idea for the Attention and buying decision

H2: There is effect topic (Head line & words) for the Attention and buying decision

H3: There is effect Advertising Media for the Attention and buying decision

H4: There is effect Advertising Frameworkfor the Attention and buying decision

H5: There is effect Advertising Ethics for the Attention and buying decision

1.9 Structure of research theses

The thesis comprises five chapters and Chapter one discusses introduction to the topic with

background of the study, Significance, Objectives, and Scope of the study.The Chapter two

discusses the prior literature in relation to the Study of the Effectiveness of Advertising in

Mobile Telecommunication Industry. The Chapter three explains the methodology used in this

study, which includes selection of the sample and the data collection methods. This chapter also

discusses the variables used and the measurement used to measure the performance hypothesis,

and includes a discussion of the statistical techniques use to analyze the data.The Chapter four

discusses the results of the statistical analysis of the data. Here, descriptive statistics. The last

chapter discusses the findings of the study, conclusion and recommendations based on the study

by the researcher.

DATA PRESENTATION AND ANALYSIS

4.1. Chapter Introduction

In this study researcher identified an Evaluation of Effectiveness of Advertising in Mobile

Telecommunication Industry. This chapter consists of presentation of collected data in an

efficient manner and analysis of the data in number of possible ways related with the study.

Study considered the factor analysis as per the main analytical tool for the purpose of arriving at

judgments on which the conclusion is based.

In this study select the sample use population as 4731 students from 5 faculties in Rajarata

university of Sri Lanka and select 116 sample but only 100 was respond to the questionnaire.

Table 4.1 Sample

Faculty Issued

Questionnaires

Achieved

Questionnaires

Faculty of Management Studies 34 29

Faculty of Social Science & Humanities 32 27

Faculty of Applied Science 18 16

Faculty of Agriculture 10 9

Faculty of Medicine and Allied Sciences 22 19

Total & Percentage 116 (100%) 100 (87%)

4.2.9 Descriptive

Table4.10 Descriptive StatisticsVariable Mean Std. Deviation Variance

Dependent Variable 3.30 0.893 0.798

Media 3.56 0.468 0.219Idea 3.50 0.540 0.292Topic 3.12 0.623 0.388Ethics 3.29 0.564 0.319Framework 3.23 0.624 0.389Source: Survey data

The above table show that main descriptive statistics mean stranded deviation of sales and other

variables as advertising media, advertisement idea, topic, advertising ethics and framework.

There was 100 questioner and five multiple choice questions. When considering dependent

variable mean value is 3.30 (moderate)and std. deviation is .893. There is 3.56(Agree) mean

and .468 std. deviation on Advertising Media. It is 3.5 (agree) mean value and .540 Std.

deviations in advertising idea. It is 3.12 mean values (moderate) and .623 Std. deviations in

advertisement topic. It is 3.29 mean values (moderate) and .564 Std. deviations in advertising

idea. It is 3.23mean values (moderate) and .624 Std. deviations in advertising idea.

4.3Bivariate analysis

Bivariate analysis involves the analysis of two variables (often denoted as X, Y), for the purpose

of determining the empirical relationship between them. Bivariate analysis involves computing a

simple correlation coefficient (Wikipedia.org).

The bellow core relation table shows Pearson's r value and significant value among variables.

Correlation explains how two variables react to each other e.g. what change will occur in idea

with the change independent variable of Attention and Buying decision.

4.4 Hypothesis Testing

Table 4.12Table of regression Analysis

Variable F Significance Coefficients (B) β Standard Error t

Idea Variable 4.171 0.044 0.334 0.202 0.164 2.042

Topic 7.537 0.007 0.383 0.267 0.140 2.745

Media 2.864 0.094 -0.322 -.168 0.190 1.692

Framework 6.245 0.014 0.351 0.245 0.140 2.499

Ethics 6.181 0.015 0.385 0.244 0.155 2.486

Source: Survey DataConstant : idea (a) = 2.132, topic (a) =2.106 media (a) = 4.446, framework (a)=2.168, ethics (a) = 2.033

4.4.1 There is effect massage idea for the attention and buying decision (H.1)

Thep distribution critical value is 0.05. In the 4.16 table, value of p is 0.044 its show that accept

aria (lower than critical p value)therefore hypothesis accept (There is effect massage idea for the

Attention and buying decision).

4.4.2 There is effect topic variable for the attention and buying decision (H.2)

In the pcritical value is 0.05. In the 4.17 table, value of p is 0.007 its show lower than critical p

value therefore hypothesis accept (There is effect head line & words for the Attention and buying

decision).

4.4.3 There is effect media for the attention and buying decision (H.3)

In the 4.12 table, value of p is 0.094 its show higher than critical p (p<0.05) value therefore

hypothes is reject (There is not effect advertising media for the Attention and buying decision).

Table 4.11Correlations of independent variables and dependent variableVariables Media Idea Topic Ethics Framework

Pearson Correlation (r) -0.168 0.202* 0.267** 0.244* 0.245*

Sig. (2-tailed) 0.094 0.044 0.007 0.015 0.014Source: Survey Data* Correlation is significant at the 0.05 level (2-tailed)**Correlation is significant at the 0.01 level (2-tailed)

4.4.4 There is effect framework for the attention and buying decision (H.4)

In the 4.12 table value, of p is 0.014 its show lower than critical p (p<0.05) value therefore

hypothes is accept (There is effect advertising framework for the Attention and buying decision).

4.4.5 There is effect ethics for the attention and buying decision (H.5)

The p critical value of is 0.05. In the 4.20 table value, of p is 0.015 its show lower than critical f

value therefore hypothesis accept (There is effect advertising ethics for the Attention and buying

decision).

4.4.6 Summary of the hypothesis testing

Table 4.13 shows that summary of the hypothesis testing. Hypothesis 01, 02, 04 and 05 was the

accepted and hypothesis 03 was rejected in this research.

Table 4.13 summary of hypothesis testing

Hypothesis

H1: There is effect massage idea for the Attention and buying decision Accepted

H2: There is effect Topic variable for the Attention and buying decision Accepted

H3: There is effect Advertising Media for the Attention and buying decision Rejected

H4: There is effect Framework for the Attention and buying decision Accepted

H5: There is effect Advertising Ethics for the Attention and buying decision Accepted

Source: Survey Data

5.2 Conclusion

This study has attempted to assess three valuation of effectiveness of advertising in mobile

telecommunication industry. The results of this study are importance to plan the advertising

strategies in the business organization and consumers have an ever growing list of entertainment

options. The most interesting result is that evaluate in the study.

The Pearson correlation value (r) between massage idea and Attention, buying decision was

0.202 and that indicated there was positive relationship between idea and customer Attention,

buying decision. According to the multiple regression analysis p value lower than the

0.05(p=0.044), hence it shows there was hypothesis one accept (There is effect massage idea for

the Attention and buying decision).

Advertising ethics for Attention, buying decision Pearson correlation value (r) was 0.267and that

indicated there was positive relationship between headline/words and customer Attention, buying

decision. According to the multiple regression analysis p value lower than the 0.05 (p=0.007),

hence it shows there was hypothesis two accept (There is effect headline/words for the Attention

and buying decision).

The Pearson correlation value (r) of media variable and Attention, buying decision was -

0.168and that indicated there was negative relationship between media and customer Attention,

buying decision. According to the multiple regression analysis p value higher than the 0.05

(p=0.094), hence it shows there was hypothesis threerejected (There is effect media for the

Attention and buying decision).

When consider Pearson correlation value (r) between framework and Attention, buying decision

was 0.245and that indicated there was positive relationship between framework and customer

Attention, buying decision. According to the multiple regression analysis p value lower than the

0.05 (p=0.014), hence it shows there was hypothesis two accept (There is effect framework for

the Attention and buying decision).

Advertising ethics for Attention, buying decision, Pearson’s correlation value (r) was 0.244and

that indicated there was positive relationship between ethics and customer Attention, buying

decision. According to the multiple regression analysis p value lower than the 0.05 (p=0.015),

hence it shows there was hypothesis three accept (There is effect ethics for the Attention and

buying decision).

5.3 Recommendations

The research conclude that of the study is that evaluation of effectiveness of advertising in

mobile telecommunication industry is significantly affected the four variables were affected to

make customer Attention and buying decision. Topic variable were most of the students concern

rather than other variable (r=0.267). Secondly affected variable was advertising framework

(r=0.245), thirdly affected variable was advertising ethics (r=0.0244) and finally massage idea

(0.202) affected to effectiveness of advertising. Media variable were negatively affected

effectiveness of advertising in mobile telecommunication industry (r = -0.168).

Advertisement topic and word were higher relationship with attention and buying decision. After

following bellow strategies can advertisement topic and words related to effectiveness of

advertisement. Organization should Use Positives Words in the advertisement (example: free,

offer) there mean value of positive word ware 3.46, Direct Address to customer as example use

“dear customer, dear students etc.” (Mean=3.37), Use Surprise Words and topic in the

advertisement (mean=3.24).

Secondly, variable of framework was relationship with attention and buying decision. After

following bellow strategies can advertisement framework related to effectiveness of

advertisement. Organization should Use Testimonial advertisement (when a customer is

presented in an advertisement telling about a positive experience with a product)there mean

value were 3.54, Dramatization advertisement (example, excitement and suspense to tell the

story) there mean value were 3.40, animation advertisement (mean=3.29), authoritative

advertisement (example as given information, product is superior to other brands)(mean=3.20)

and fantasy advertisement (example as use romantic, love, sex) (mean=2.72).

Ethic is difficult to evaluate because it is so broadly practiced, and because different countries,

customs, religions will have different ethics. Moreover, whether some advertisements will be

justified as good or bad for the society depends on different backgrounds. This study identifies

some important ethical issues in advertising that provide accurate information to customer

(mean=3.96), insure fair and square in the advertisement (mean=3.83) and assure civilization

values (mean=2.77).

Advertisement massage idea was higher relationship with attention and buying decision. After

following bellow strategies can advertisement massage idea related to effectiveness of

advertisement, organization should provide cultural value in the advertisement (mean=3.97),

deliver social needs advertisement (mean=3.63), create advertisement by using natural

environment location (mean=3.51).