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How location-based advertising elicits in-store purchase

Chih-Hui Shieh (Department of Marketing and Distribution Management, National Kaohsiung University of Science and Technology, Kaohsiung, Taiwan)
Yingzi Xu (Faculty of Business and Law, Auckland University of Technology, Auckland, New Zealand)
I-Ling Ling (Center for General Education, Kaohsiung Medical University, Kaohsiung, Taiwan)

Journal of Services Marketing

ISSN: 0887-6045

Article publication date: 13 May 2019

Issue publication date: 18 September 2019

Abstract

Purpose

This paper aims to investigate how location-based advertising (LBA) elicits in-store purchase intention. To deepen the understanding of LBA’s effect on consumers’ purchase decision, the research examines the role of consumers’ time consciousness in click intention in pull or opt-out LBA approaches. The study also explores how consumers react to LBA with an asymmetric dominance decoy versus a compromise decoy message.

Design/methodology/approach

Two field experiments were conducted, and a total of 363 volunteers within 3 km of a shopping mall participated. The participants were asked to turn on their global positioning system and then informed that a convenience store was planning to launch a mobile coupon subscription service. Data collected were analysed using analysis of variance, regression analysis, bootstrapping and spotlight tests.

Findings

The results demonstrate that consumers had a higher intention to click pull LBA than to click opt-out push LBA. Consumers with high time-consciousness had greater click intentions for pull LBA than for opt-out push LBA. Consumers with low time-consciousness, however, showed no difference in click intention for either LBA approach. Further, click intention mediates the effect of LBA on in-store purchase intention, and the asymmetric dominance decoy message is a more powerful strategy for LBA to increase the likelihood of in-store purchase.

Originality/value

This research provides insight into location-based services marketing by revealing how time-consciousness and decoy promotional messages affect consumers’ reaction to LBA and in-store purchase intentions. The findings offer practical suggestions for retailers on how to reach and engage with consumers more effectively through the use of LBA.

Keywords

Citation

Shieh, C.-H., Xu, Y. and Ling, I.-L. (2019), "How location-based advertising elicits in-store purchase", Journal of Services Marketing, Vol. 33 No. 4, pp. 380-395. https://doi.org/10.1108/JSM-03-2018-0083

Publisher

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Emerald Publishing Limited

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