An Empirical Study on Effectiveness of SMS Marketing in Developing Countries with Special Focus on Pakistan

Abstract

Mobile marketing also known as wireless marketing is a model of advertising that targets users of handheld mobile instruments like cell phones and Personal Digital Assistants (PDAs). Mobile or SMS Marketing allows direct communication with the consumers, targeted audience and potential market of the company with much ease and in less time. [1] (Haghirian, 2001). SMS marketing can be more cost effective than other medium as its main cost is just buying or collecting cell phone numbers. In developed countries it is very common exercise and also considered as highly effective tool but in developing this subject is still in its experimental phase [2] (Dickinger, Haghirian & Murphy, 2004). Keeping in view this status, an empirical study to identify the Effectiveness of SMS marketing in developing countries especially in Pakistan is conducted.

This study identifies pattern of influences on consumer behavior in terms of recall, recognition, reception and expected action towards marketing messages in the most cost effective and time saving manner. In addition, the research also unveils associated challenges in terms of consumer privacy, spam or bulk messages, undesired information, clutter and breach of consumer space and identifies ethical landscape of using this significantly important and prompt marketing tool.

Keywords: Consumer Behavior, Consumer Privacy, Ethical Landscape, Mobile Devices, SMS Marketing.