PurposeThis study aims to develop an understanding of how customers of a physical retail store valuate receiving location-based mobile phone messages when they are in proximity of the store. It proposes and tests a model relating two benefits (personalization and location congruency) and two sacrifices (privacy concern and intrusiveness) to message value perceptions and store visit attitudes.Design/methodology/approachThe study uses a vignette-based survey to collect data from a sample of 1,225 customers of a fashion retailer. The postulated research model is estimated using SmartPLS 3.0 with the consistent-PLS algorithm and further validated via a post-hoc test.FindingsThe empirical testing confirms the predictive validity and robustness of the model and reveals that location congruency and intrusiveness are the location-based message characteristics with the strongest effects on message value and store visit attitude.Originality/valueThe paper adds to the underexplored field of store entry research and extends previous location-based messaging studies by integrating personalization, location congruency, privacy concern and intrusiveness into one validated model.
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Smartphone apps allow retailers to track the location of their customers and provide the opportunity to reach them with location-based mobile ads. However, the efficacy of these ads often suffers from consumers’ feelings of intrusiveness. Little research has investigated how location-based mobile messages should be designed to maximize their effectiveness and avoid undesired outcomes such as feelings of intrusiveness. The present study tested the effect of openness in ad design, in interaction with location congruency of mobile advertising, using a virtual reality supermarket setting. A process of moderated serial mediation demonstrates indirect positive effects of ad openness on brand choice (via intrusiveness and Aad), moderated by location congruency. Specifically, openness in mobile ad design lowers perceived ad intrusiveness, which positively affects consumers’ brand choice (via Aad). This effect is stronger for ads that are presented in a location-congruent situation than for location-incongruent ads.
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Although it appears increasingly important yet potentially challenging to attract customers to physical stores, location-based messaging, i.e., delivering mobile phone messages using data about the recipient's location when that recipient is near the sender, has been said to enable such attraction. Still, existing studies offer very limited insight into which particular location-based persuasion approach retailers should use. Drawing on persuasion theory, this exploratory study aims to investigate and compare the potential of two discrepant persuasion techniques (scarcity and social proof) to influence customers' experiences and thereby stimulate them to visit the retailer's physical store. A factorial survey design was applied to test the research model. Data were collected from a sample of actual customers of a Dutch fashion retailer (n = 579). The results suggest that scarcity is a more effective persuasion technique in the studied context than social proof; scarcity-focused messages appear to be experienced as more informative, more entertaining and less irritating, seem to be valued more because of this, and are thus more likely to incline customers to visit the store. We discuss these findings and their implications for theory as well as for practice.
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1e alinea column: Internet, social media, en al dan niet location based mobiele data hebben impact op de zichtbaarheid van de burger als consument, op business logica modellen en op hoe organisaties eruit gaan zien qua inrichting om in deze veranderende markt te overleven. In deze column de veranderingen in vogelvlucht en in onderling verband.
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Although it appears increasingly important yet potentially challenging to attract consumers to physical stores, location‐based messaging has been said to enable such attraction. Still, existing studies offer very limited insight into which particular location‐based persuasion approach retailers should use. This study aimed to establish and compare the potential of two discrepant persuasion strategies to influence consumers’ experiences and thereby stimulate them to visit the retailer's physical store. Drawing on persuasion theory and construal level theory, and using a vignette‐based online survey method, we determined that scarcity is a more effective persuasion strategy in the studied context than social proof; scarcity‐focused messages are experienced as more informative, more entertaining and less irritating, are therefore valued more, and are thus more likely to induce store visits. We discuss these findings and their implications for theory as well as for practice.
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The goal of this research was to investigate the perceived risk of purchasing condoms and the risk-reducing effects of location-based advertisements. For the research, a quantitative approach was used. A questionnaire was distributed to 238 participants, using the Internet and physical distribution. This study found that 66% of the sample perceived social risk during the purchase of condoms. Of this percentage, 39% stated that embarrassment has stopped them from purchasing the product. Location-based advertisements were perceived negative, however also perceived informative by almost half of the sample. This study implies that advertisements have a positive effect on the perceived risk since the majority of the sample stated that their perceived purchase embarrassment was reduced after seeing the sensual (65%) and fearful (59%) advertisement.
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User experience (UX) research on pervasive technologies faces considerable challenges regarding today's mobile context-sensitive applications: evaluative field studies lack control, whereas lab studies miss the interaction with a dynamic context. This dilemma has inspired researchers to use virtual environments (VEs) to acquire control while offering the user a rich contextual experience. Although promising, these studies are mainly concerned with usability and the technical realization of their setup. Furthermore, previous setups leave room for improvement regarding the user's immersive experience. This paper contributes to this line of research by presenting a UX case study on mobile advertising with a novel CAVE-smartphone interface. We conducted two experiments in which we evaluated the intrusiveness of a mobile locationbased advertising app in a virtual supermarket. The results confirm our hypothesis that context-congruent ads lessen the experienced intrusiveness thereby demonstrating that our setup is capable of generating preliminary meaningful results with regards to UX. Furthermore, we share insights in conducting these studies.
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Today, consumers expect companies to be socially responsible. However, the literature is undecided about the effects of communicating one's corporate social responsibility activities to consumers. This raises the question of how sustainability-driven companies can best advertise their products to stimulate ethical consumption: using self-benefit frames, where the main beneficiary is the consumer, or using other-benefit frames, where the main beneficiary is a third party. Using three experiments, this study examines the effect of other-benefit (vs. self-benefit) advertising frames on consumers' impulse purchases from sustainability-driven companies. Increasing impulse purchases can help such companies to strengthen their competitive positions. Additionally, it is studied to what extent two types of justification (moral versus deservingness) explain the proposed effect of advertising frames. The results show that only other-benefit frames affect impulse buying behavior, both directly, as mediated by moral justification. This study's insights may help sustainability-driven companies to decide on their advertising strategies by providing evidence that other-benefit-framed advertisements are more effective in enhancing impulse purchases than self-benefit-framed advertisements.
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