KOREASCHOLAR

Purpose – This paper holds a purpose to examine the influence of perceived utility, contextual relevance and lifestyle on the acceptance of mobile advertising among millennials in Indonesia (specifically in Bandung). The three factors represent an extension of the general model of mobile advertising which is largely influenced by the Theory of Reasoned Action (TRA). The factors are proposed to extend the model to include factors at individual (receiver), object (message) and contextual levels. Lifestyle, Perceived Utility, and Contextual Relevance are factors at individual, object and context that are posited to influence the acceptance of mobile advertising in this study. Specifically, the current study is aimed at elaborating the role of those factors in influencing the acceptance of mobile advertising among millennials in Bandung, Indonesia.
Relevant theories – mobile marketing definition and scope from various literature, Theory of Reasoned Action (TRA), theory of perceived utility, consumers’ utilization of contextual information in mobile advertising, and the influence of lifestyle – as representation of individual factor – on mobile advertising acceptance are the most relevant theories for the current paper.
Design/methodology/approach – The research was conducted by devising a new model that includes acceptance of mobile advertising, attitude toward mobile advertising, subjective norm in relation to mobile advertising, perceived utility of mobile advertising, contextual relevance of message and income (as representation of individual lifestyle). The questionnaires distributed to young adults segment within varsity area. The data is then examined and evaluated through structural equation modelling (SEM) which requires analysis on measurement and path model.
Findings – The study resulted in several findings, mostly confirming proposed hypotheses in varying degrees. The results conclude that attitude is of great importance in the acceptance of mobile advertising. Subjective norms and contextual relevance are positively related to attitudes — which lead to acceptance, while both perceived utility and income in negative relations to attitude and acceptance consecutively.
Research implications and limitations – This study adds up to the growing amount of related research in various countries. Companies making use of the mobile advertising as part of their promotional strategies should always think of the manner and matter by which the advertisements arrive while serving as benefit for marketers and consumers. A good mobile advertising strategy will put more effort into giving useful information that is appropriate to the context and consumer segments it targeted. This research is conducted on respondents from Indonesian consumers, specifically in the area of Bandung, which may not represent the other segments of users of mobile advertising. In addition, the case covers a convenience sample of consumers that may again impact the representativeness of the research findings.
Originality/value – This study provides findings on the effects of contingency factors that have been missing in the previous research on the acceptance of mobile advertising.
Paper type – Applied research

• Reza Ashari Nasution(Institut Teknologi Bandung, Indonesia)
• Aghniadi(Institut Teknologi Bandung, Indonesia)
• Devi Arnita(Institut Teknologi Bandung, Indonesia)