Retailers' different value perceptions of mobile advertising service

Abstract

Purpose

The purpose of this paper is to examine why retailers' perceptions of the value of a novel technology‐intensive mobile advertising service differ.

Design/methodology/approach

The research design follows an abductive approach. The empirical data were gathered through a field experiment by interviewing retailers who used a mobile advertising service for the first time.

Findings

This study suggests a categorisation of customer‐perceived value sub‐elements in a novel technology‐intensive business‐to‐business (b‐to‐b) service consisting of two outcome‐level benefits, three process‐level benefits, and two types of sacrifices, i.e. monetary and non‐monetary. Furthermore, the study suggests that the value elements are not of equal importance. Different retailers value different threshold benefits that influence their willingness to use the service. Moreover, the retailers' participation in value co‐creation with a service provider influences the value perceived from the service.

Research limitations/implications

This experimental empirical setting involves two limitations. The trial period was relatively short and, due to the development stage of the service, the use of the service was offered free of charge. Therefore, future research should be conducted with commercialised novel technology services.

Practical implications

Retailers differ according to their willingness and ability to use novel technology‐intensive services, which also reflects how they perceive value and what kind of value they perceive. Thus, mobile service providers need to consider offering different service packages to different types of customers. Service providers also need to ensure that retailers are aware of all the commercial and non‐commercial benefits of the novel service. Retailers should realise that the commercial potential of mobile advertising is different from the traditional means of advertising.

Originality/value

For a research audience, the study extends the existing research on value creation by focusing on retailers' different value perceptions of a novel technology‐intensive b‐to‐b service. For developers of an innovative technology‐intensive service, the study shows the different customer types and how they influence buying decisions.

Citation

Komulainen, H., Mainela, T., Tähtinen, J. and Ulkuniemi, P. (2007), "Retailers' different value perceptions of mobile advertising service", International Journal of Service Industry Management, Vol. 18 No. 4, pp. 368-393. https://doi.org/10.1108/09564230710778146