ISSN: 2289-4519 Page 202

International Journal of Accounting & Business Management

www.ftms.edu.my/journals/index.php/journals/ijabm

Vol. 7(No.2), Nov, 2019

ISSN: 2289-4519 DOI: 10. 24924/ijabm/2019.11/v7.iss2/202.217

This work is licensed under a Creative Commons Attribution 4.0 International License.

Research Paper

FACTORS INFLUENCING THE EFFECTIVENESS OF OUT OF HOME (OOH) ADVERTISEMENT IN MALAYSIA

Elhadj Ibrahima Bah Asia Pacific University of Technology and

Innovation (APU)

Herman Fassou Haba Lord Ashcroft International Business

School, Anglia Ruskin University, Cambridge, United Kingdom

Fassou200@gmail.com

Abstract The aim of this to determine factors affecting the effectiveness of out of home (OOH) advertising in Malaysia, the adapted framework has three independent variables which are creative ad design, geo-location and consumer perception and one dependent variable which is car ads effectiveness. Quantitative Research method was used in this study with a convenient sampling technique and a sample size of 300 respondents done with primary data collection. Descriptive statistics, Pearson correlation and linear regression analysis were used in order to analyze the data of the research study. The findings of the study demonstrated that consumer perception and geo-location have significant impact on car ads effectiveness but creative ad design does not have significant impact on car ads effectiveness. This research study is a great contribution and very important for practitioners in the field of marketing while doing out of home marketing campaigns for products and services of companies in Malaysia.

Key Terms: Geo-location, Creative Ad Design, Consumer Perception, Car ads effectiveness, out of home (OOH) advertisement 1. Introduction Out of home (OOH) advertising had been one of the most popular forms of advertising in this new era which is based on visual displaying of products and services ads to consumers while in the move and out of their home (Bauer & Lasinger, 2014). The term outdoor advertising is now considered obsolete as a new concept, OOH advertising media, is now preferred (Belch & Belch, 2013). This is to achieve the contrariety of

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internal and external, indoor and outdoor, and in-home and out-of-house when identifying and distinguishing between different formats in this class. Hence, OOH advertising not only refers to outdoor advertising in the public domain such as advertising on boards next to a highway, but it also encompasses other non-domestic OOH advertising, not necessarily outdoor advertising, such as advertising at airports, trains and subway stations, and entertainment or retail venues, such as shopping malls (Kotler, Armstrong, Harris, & Piercy, 2005). Recently, Brands are facing several hurdle challenges of attracting consumers or reaching out to their target audience because the advertisement market had changed dramatically during the past decades with several forms of advertisement and growing change in consumers’ needs and technological advancement. Vehicle wraps, a rising trend in out of home advertising is expanding fast and rapidly in the sector but due to competition with other forms of advertisement such as social media advertisement and TV ads, the question is in suspense in terms of knowing what can make out of home advertisement very effective Brands in Malaysia due to the growing market of advertisement (Pieters et al, 2010). According to Antonelli (2013), one of the reasons why so many wraps failed from marketing brands is due to their poor brand identity and the meaningfulness of their logo. The aim of this research paper is to understand the factors which may influence the significance of out of home (OHH) advertisement in Malaysia. This research paper is going to be very significant for the advertisement industry and the advertisers in Malaysia because car wraps and out of home (OHH) advertisement is becoming very popular in the country which had been attracting the attention of scholars, practitioners and also companies because of the ever growing industry today. 1.1 Research Objectives

To identify the impact of creative ad design on out of home (OHH) advertisement in Malaysia To identify the impact of geo-location on out of home (OHH) advertisement in Malaysia To identify the impact of consumer perception on out of home (OHH) advertisement in Malaysia 1.2 Research Questions

What is the impact of creative ad design on out of home (OHH) advertisement in

Malaysian?

What is the impact of geo-location on out of home (OHH) advertisement in Malaysian?

What is the impact of consumer perception on out of home (OHH) advertisement in

Malaysian?

1.3 Research Hypothesis

H1: Creative ad design has a significant impact on out of home (OHH) advertisement in

Malaysia

H2: Geo-Location has a significant impact on out of home (OHH) advertisement in

Malaysia

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H3: Consumer perception has a significant impact on out of home (OHH) advertisement

in Malaysia

This paper will be divided into five parts which includes the introduction, literature review, the methodology followed by the research to analyze the data, the interpretation of the findings to answer the research objectives and questions and finally the conclusion and recommendation. 2. Literature Review

2.1 Definition of Key Terms

Out-of-home (OOH) advertising has presently evolved from being static outdoor displays next to the road to emphasis larger-than-life advertising on walls, buildings, moving transit advertising, stationary transit advertising usually placed in common area of train stations, advertising on public facilities and structures such lifts and kiosks. The out-of-home market includes the digital advertising market which has become key growth area for the overall OOH market (Sheth, 2015).

Geo-location in marketing, is a discipline that uses geographic information in the process of planning and implementation of marketing activities. It can be used in any side of the marketing mix; the product, price, promotion, or place (geo-targeting). Market segments can also match up with the location, and it can be advantageous in targeted marketing (Chamberlain, 2016).

Creative Ad Design, according to Bradley (2010): “It is a big idea behind a design. It’s how you plan on solving the design problem. It is how the underlying logic thinking, and reasoning for how you will design an advertisement.

Customer perception refers to how a customer makes a selection, organizes and interprets captured information into forming a significant image of the brand or product (Kazmi, 2016).

2.2 Empirical Evidence

The study of Roux, (2014) explores the effectiveness of car advertising from the perspective of Generation Y consumers. The target audience includes students between 18 to 30 years old at two of the biggest known universities in South Africa. Convenience sampling was applied and a total of 400 surveys were completed. The results indicated that there is a positive correlation between recall and attention paid to car advertising; between attitudes towards advertising on cars and the recall, consumers’ general attitude towards advertising and their attitude towards car advertising. Based on the study, it is found that car advertising is far from being ignored by Generation Y, who, in fact, accepted it better than was expected. The outcome of the survey suggested that the medium is more effective when the respondents have a more positive attitude towards advertising in general.

The study of Chan & Fung, (2013) is to examine the passengers’ awareness and attitudes toward subway advertising. The survey sampled 408 residents and tourists aged 16 years old and above. The response of the 16 advertisements (ads) ranged between 18 to 80 percent with an average of 43.5 percent. The arrangements of the two subway ads which received highest awareness were focused and had a clear division

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between foreground and background. The average ad awareness can be compared with two similar studies of subway ads that were conducted in the 1990s. In 2010s, the average ad awareness of subway ads was well-received than that of outdoor advertising measured using similar approach. Respondents demonstrated positive attitudes toward subway advertising and reported that subway ads that drew their attention were those with creative ideas, vivid colors and large-than-life size execution.

According to Gurumoorthy (2015) in today’s media landscape where it’s very difficult to shape consumers attitude and intentions and move them to next level of buying process, advertisers find it more challenging to break through the competitiveness in the advertising industry. The advertising industry has undergone vigorous changes over the last several decades. The transformation has been good in terms of technology advancement, and mediums and more creative techniques are utilized to attract consumers. His study proves that creativity have an effect on advertising, also having understand the value of creativity in advertising through the review of various literatures. The importance of creativity factor in advertising has got wide recognition by many researchers and practitioners, but there is a lack of accuracy and systematic research to define advertising creativity and how it affects the effectiveness of an ad. The evaluation discusses some campaigns that have impacted strongly on the consumers. This evaluation tries to produce some evidence of creativity by reviewing expert views, past literature in advertising, studied advertising campaign and marketing activities. The study reviews different ideas on how creativity works, and what makes an ad more effective. It summarized the importance of the creativeness in advertising through expert interviews, published material and related secondary data to comprehend the rationality of the ad.

The study of du Plooy (2011) explored the effectiveness of minibus taxi advertising in South Africa by interviewing regular minibus taxi commuters about their attitudes, understanding and awareness of minibus taxi advertising. Survey was obtained from 360 commuters in Tshwane, one of the largest metropolitan areas in South Africa. A stratified sample was used by intercepting minibus taxi commuters at the eighteen formal and semi-formal taxi facilities. A structured survey, with 5-point Liker scales, was carried out to compute the different theories. The outcome reveals that the involved audience had remarkable impression towards advertising in general and they found joy in looking at advertisements and found it entertaining. It is also proved that there is a positive perception towards taxi advertising and that it is noticeably eye-catching. An integrated approach should be followed utilizing traditional advertising mediums combined with out of home media and specifically taxi advertising to reach the emerging market.

The study of Veloutsou & O’Donnell, (2005) demonstrated that traditional media and advertisement methods are losing ground to new forms of advertisement which are currently impacting the selected target audience. Therefore, their effectiveness is diminishing. Using data collected from a sample of 425 people living in two cities and one rural area in Scotland, this exploratory study investigates the perceptions towards a non-traditional, outdoor, transit advertising on traditional black cabs that has not been researched previously. It shows that the medium is far from being overlooked by the respondents, who accept it, better than anticipated. In addition, the findings imply that the extent to which the medium is consciously noticeable very much depends on the perceived contact with outdoor advertising, the region in which the participants live, and their attitude towards outdoor advertising and advertising in general.

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2.3 Literature Gap

Around the world, there are a lot of studies done in field of out of home (OHH) advertisement. Nevertheless, in Malaysia there is lesser literature contribution in the field of out of home advertisement (OHH) by researchers and scholars. However, this paper is going fill up the gap in this field of marketing science in Malaysia.

2.4 Conceptual Framework

Figure 1: Factors influencing out of home (OHH) advertisement

Source: Researchers’ own framework

3. Research Design and Methodology

The research design of this study is based on quantitative research method with primary data collection technique by using Google survey questionnaire in order to collect data. The researcher has used descriptive and exploratory research designs to undertake the analysis of the findings (Ghofar & Islam, 2015).

Moreover, the questionnaire of the research study is designed as followed with English

language and a liker scale of 5. The questionnaire will be having 3 parts; the first part is

regarding the demographic profile of the respondents, the second part deals with the

independent variables which are creative ad design, geo-location and consumer

perception and lastly the third part of the questionnaire deals with out of home

advertisement as dependent variable.

Table 1: Questionnaires Design

Part 1 Demographic Profile Gender, Race, Profession & Income level

Part 2 Creative Ad Design 4 dimensions of the questionnaire

Geo-location 4 dimensions of the questionnaire Consumers perception 4 dimensions of the questionnaire

Part 3 Out of home advertisement 3 dimensions of the questionnaire

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Table 2: Liker Rating Scale

Liker Rating Scale

Point-ratings Agreement Satisfaction Evaluation Preference Likelihood

5 Strongly agree Very satisfied Excellent Most

preferred Very likely

4 Agree Satisfied Good Preferred Likely

3 Neither agree or

disagree Neither satisfied or

dissatisfied Average Neutral Not sure

2 Disagree Dissatisfied Poor Not

preferred Unlikely

1 Strongly disagree Very Dissatisfied Very poor Least

preferred Very

unlikely

Sampling Technique, Sample size and Targeted Population

Convenience sampling technique is used in this research study in order to collect the data because it is done at the respondents’ availability and time freeness to take part of the survey. Thus, the sample size of this research study 300 respondents out of 500 questionnaires that were distributed to the targeted population of brand ads ‘ consumers in Malaysia. In order to prove the objectives of this study by using descriptive statistics and linear regression model to test the hypotheses of the study, the conceptual framework of the research study will be following the below baseline model equation for model summary. The similar methodological approach was previously used in Malaysia in previous researches (Jallow & Dastane, 2016; Wahid & Dastane, 2016).

Y = F (X1, X2, X3, X4) this can be specifically stated as follows:

OOH = F (CD, GL, CP) as where the function continues with Y = β0 + β1X1 + β2X2 + β3X3

Where:

OOH = Out of Home (OOH) advertisement (Dependent variable)

CD = creative ad design (Independent variable)

GL = Geo location (Independent Variable)

CP = Consumer perception (Independent Variable)

β0 = constant intercept

β1, β2, β3, β4 = coefficient of the explanatory variables

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4. Findings and Discussion 4.1 Demographic Profile

Gender

Male 113 56.5%

Female 87 43.5%

Age Group

20-24 112 67%

25-29 77 28.4%

30-34 11 4.6%

Education Level

Undergraduate 132 67%

Postgraduate 56 28.4%

PHD 9 4.6%

Race

Malay 47 23.5%

Chinese 39 19.5%

Indian 26 13%

International 88 44%

Monthly Income

RM2,000 - RM3,000 130 65%

RM3,000 - RM5,000 48 24%

R5000 And More 22 11%

Table 3: Demographic Profile The table shows that the sample is dominated by male respondents (56.5%), followed by female (43.5%). The age groups are distributed as followed: 20-24 years old (56%); 25-29 (38.5%) years old; 30-34 (5.5%) years old. Most of the respondents are undergraduate 67%; 28.4% are postgraduate and 4.6% are PHD holders. The race is divided in 4 categories: International 44%, Malay 23.5%; Chinese 19.5% and Indian 13%. Most of the respondents (65%) said that their monthly income is estimated between RM2, 000 to RM3.000; 24% of them earn RM3000 to RM5000 while the rest have an income of RM5000 and above.

4.2 Reliability & Validity Test

Table 4: Reliability and Validity Test

Variables Items Cronbach’s Alpha Validity Test

Creative Ad. Design 4 0.876 100%

Geo Location 4 0.867 100%

Consumer Perceptions 5 0.882 100%

Out of Home (OHH) advertisement 3 0.849 100%

Total variables 16 0.933 100%

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The Cronbach Alpha of each variable follows the term of good. All variables: creative ad design, geo-location, consumer perception and the effectiveness of car advertisement reliability test are considered as very good because they are between 0.8 to 0.9 and lastly the total variables used in this study are considered excellent in term of their internal inconsistency because their Cronbach’s alpha coefficient is above 0.9 in accordance with the rule of thumb.

4.3 Sample Adequacy

It is a measurement test, also known as the Kaiser-Meyer-Olkin (KMO) test which measures the sampling adequacy of each variable and its statistic measures the proportion of variance among variables that might be common variance (Hertzog, 2008).

Table 5: KMO and Bartlett's Test

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling

Adequacy.

Bartlett's Test of Sphericity Approx. Chi-

Square

df

Sig.

.829

699.667

6

.000

According to the measure concerning the KMO and Bartlett’s Test that follow the sampling adequacy measurement of Kaiser-Meyer-Olkin, the result is 0.829 meaning that the sample size collected in this research study is meritorious in accordance with the rule of thumb (Berenson, 2011).

4.4 Descriptive Statistics

Table 6: Descriptive Statistics

Statistics

N

Valid

Missing

Mean

Median

Mode

Std. Deviation

Skewness

Std. Error of Skewness

Kurtosis

Std. Error of Kurtosis

Minimum

Maximum

CAD

300

0

3.6563

3.7500

4.00

.82152

-.573

.172

.768

.342

1.00

5.00

GL

300

0

3.679000

3.800000

4.0000

.7767727

-.638

.172

1.223

.342

1.0000

5.0000

CP

300

0

3.705000

3.800000

4.0000

.7721112

-.565

.172

1.171

.342

1.0000

5.0000

OOH

300

0

3.768333

4.000000

4.0000

.7972577

-.789

.172

1.325

.342

1.0000

5.0000

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Descriptive Statistics is very important to understand the distribution of the data in this research study by taking into consideration the normality test and the central tendency test for each variable (Hair, Jr, 2015). The Skewness of the dataset of each variable falls between -0.565 to -0.789 indicating that the value of the Skewness falls within the acceptable range which is -1 to +1. For the Kurtosis in terms of normality test some values do not fall between -1 to +1 for the following variables geo-location, consumer perception and out of home (OOH) advertisement, only creative ad design falls within the interval in terms of data distribution. Therefore, the central tendency theorem by looking at the mean of the study demonstrates that all the variables have a mean which is between 3.6 and 3.7 roughly. 4.5 Pearson Correlation Analysis

It is an analysis that tries to find the linear correlation between two variables with the measurement of the correlation coefficient which is r (Rumsey, 2007). The value of the Pearson correlation coefficient shall be between -1 to +1 with respectively negative linear relationship which is -1 and positive linear relationship which is +1 (Rumsey, 2007).

Table 8: Pearson Correlation

Correlations

Creative Ad.

design

Geo Location

Consumer Perception

Out of home (OOH)

Advertisement

Creative Ad. Advertisement

Pearson Correlation

1 .

Sig. (2-tailed)

N 200

Geo Location Pearson

Correlation .775** 1

Sig. (2-tailed)

.000

N 200 200

Consumer Perceptions

Pearson Correlation

.753** .823** 1 .

Sig. (2-tailed)

.000 .000

N 200 200 200

Out of home (OOH)

Advertisement

Pearson Correlation

.668** .798** .849** 1

Sig. (2-tailed)

.000 .000 .000

N 200 200 200 200

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Pearson Correlation of this research study demonstrates whether there is a significant impact between the variable X and Y. The findings generated from IBM SPSS Statistics 20 showed that between effectiveness of car advertisement and creative ad design there is a significant positive linear correlation with a Pearson correlation coefficient of 0.668; between Geo location and effectiveness of car advertisement there is a strong linear correlation with a Pearson correlation of 0.798 and lastly between consumer perception and effectiveness of car advertisement there is strong linear correlation with a Pearson correlation coefficient of 0.849.

4.6 Linear Regression Analysis

Table 9: Model Summary

Model Summary Model R R Square Adjusted R Square Std. Error of the

Estimate 1 .867a .752 .749 .3996788

A) Predictors: (Constant), creative ad design, Geo location and Consumer perception

B) Dependent Variable: Out of Home (OOH) Advertisement

R-square in this research study demonstrates the predictability of the independent variables on the dependent variable. Therefore, the r-square in this research study is 0.752 or 75.2%, explaining that the independent variables predict at 75.2% the dependent variable which is a good model fit for this study.

Figure 2: Regression Standardized Residual

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Table 10: Anova

ANOVA Model Sum of Squares df Mean Square F Sig. 1 Regression Residual Total

95.179 31.310 126.488

3 196 199

31.726 .160

198.608 .000b

A) Dependent Variable: Out of Home (OOH) Advertisement

B) Predictors: (Constant), creative ad design, Geo location and Consumer perception

The Anova table tries to understand, the impact of independent variables on the dependent variable by using P-value measurement system which is when the significance level is below 0.05, it means that the independent variables has a significant impact on the dependent variable. The findings of this study demonstrated that all the independent variables have significant impact on the dependent variable which is the effectiveness of car advertisement influenced by creative ad design, geo-location and consumer perception at a P-value of 0.00 which is lower than 0.05.

Coefficients

Model Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

1 (Constant)

Consumer Perception

Geo-Location

Creative ad design

.347

.634

.343

-.052

.146

.068

.071

.058

.614

.334

-.053

2.375

9.286

4.859

-.897

.018

.000

.000

.371

Table 11: Coefficients

A) Dependent Variable: Out of Home (OOH) Advertisement

Creative ad design, according to Bradley (2010): “It is a big idea behind a design. It’s how you plan on solving the design problem. It is how the underlying logic thinking, and reasoning for how you will design an advertisement. Your concept will lead to your choice of color and type. It will choose your aesthetic and determine your grid. Every design you make will fall back on your concept for direction.” The study of Roux, (2014) on exploring the effectiveness of car advertising from the perspectives of Generation Y consumers in south Africa finding that attention paid due to creative design had significant relationship to car advertisement. However, this research study has found out that statistically that creative ad design does not have significant impact on effectiveness of car advertisement with a P-value of 0.371 _> 0.05.

Geo-location, in marketing, is a discipline that uses geographic information in the process of planning and implementation of marketing activities. It can be used in any side of the marketing mix; the product, price, promotion, or place (geo-targeting). Market segments can also match up with the location, and it can be advantageous in targeted marketing (Chamberlain, 2016). There are not much study in the academic literature used by researchers in order to find out that geo-location might have

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significant impact on the effectiveness of car advertisement. However, this research study had found that geo-location has significant impact on the effectiveness of car advertisement in Malaysia statistically with a P-value of 0.00 <_ 0.05 with a beta coefficient of 0.334 which is a positive influence on the effectiveness of car advertisement in Malaysia. Using geographic information comes with the acceptance of technology which had been explored by researchers such as Venkatesh, Morris, Davis, & Davis, (2003) for unified theory of acceptance and use of technology model, which was later supported by the study of Haba & Dastane (2018) for the adaptation of technology in the transportation industry.

Consumer perception referring to how a customer selects, organizes and interprets captured information into forming a significant image of the brand or product. This is a three-stage process that transforms raw stimuli into significant information (Kazmi, 2016). This variables had been used by several scholars for the purpose of understanding purchase intention or the behaviour of consumers and in the context of car advertisement, the study of Veloutsou and O’Donnell (2005) demonstrated that consumer perception is a very important variable for car advertisement which can support the findings of this research study, finding out that it has an significant on the effectiveness of car advertisement statistically with a P-value of 0.000 _< 0.05 and a beta coefficient of 0.613 which is a positive influence to the effectiveness of car advertisement in Malaysia. Consumer perception is very important in advertisement because it can demonstrate the intention of consumers in terms of purchase intention and measure the value proposition of a product or service which can be supported by the study of Haba, Hassan and Dastane (2017) in consumer perceived value and purchase intention based on the evidence of Zeithaml, (1988) study on consumer perception of price, quality and value.

Summary of Key Findings

Hypothesis P-value Decision making

H1: Creative ad design has a significant impact on out of home (OHH) advertisement in Malaysia

0.371 Rejected

H2: Geo-Location has a significant impact on out of home (OHH) advertisement in Malaysia

0.000 Accepted

H3: Consumer perception has a significant impact on out of home (OHH) advertisement in Malaysia

0.000 Accepted

Table 12: Summary of Key Findings

5. Conclusion & Recommendation This research study had been in great amplitude in terms of understanding out of home (OOH) advertisement and the factors which are affecting its effectiveness. With a conceptual framework initiated by the researchers, the result of the study demonstrated clearly that geo-location and consumer perception has significant impact on out of home (OOH) advertisement statistically supported with empirical evidence. However, creative ad design does not have significant impact on out of home (OOH) advertisement in Malaysia. Out of home (OOH) advertisement offers advertisers a new and creative way to get their

advertising messages across, however it might not be a particularly good advertising

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medium for smaller, more private businesses or B2B business. These companies are

more inclined to exposing very detailed information such as phone numbers, addresses

and business information. Another assumption made is that, with this advertising

medium often ‘in motion’, the advertising messages of OOH should be kept simple in

order to ensure effective delivery. Advertisers should avoid confusion and should

instead provide minimal detail related to the advertising brand.

5.1. Future Research Scope

Another beneficial future research agenda would be to examine the effectiveness of out

of home (OOH) advertisement in achieving different marketing communication

objectives, such as the introduction of new brand versus reiteration of established

brands; or the integration of car advertising with other media in an integrated

marketing communication campaign. A suggestion on the future studies on this topic

would be to closely explore which individual elements make car advertising and out of

home (OOH) advertisement effective. This would provide advertisers and practitioners

with valuable information as to what works and what not to do.

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