Effect Of Mobile Location-based In-store Advertising On Consumer Purchase Intention

Smartphones have become a vital part of our lives,a personal assistant helping us as customers mastering everyday tasks.Mobile devices are a constant companion to consumers,and they are playing an increasingly intimate role in a consumer’s everyday life.They have truly enabled consumers’ ubiquitous access to digital information,anytime and anywhere,which also means that mobile devices allow marketers to reach consumers more directly and constantly.Because consumers use their smartphones to conduct a host of activities,beyond just talking or texting,advertisers also have new opportunities for targeting their communications.Advertising has played a major role in business to consumer marketing,and enabled sellers to meet communication and other marketing objectives.The amount of literature on mobile advertising has been accumulating over the past years.However,the functional practice of mobile advertising based on a consumer’s location is still in an early stage.Mobile advertising allows retailers,service providers,and manufacturers to provide consumers with increasingly relevant offers.The success of such campaigns depends on an ever better understanding of environmental,consumer,and technological context variables;a strong focus on advertising goals;accounting for market factors related to the nature of stakeholders and market environment;and the use of appropriate mobile ad elements to improve relevant outcome metrics.location based advertising(LBA)is not a complete advertising model,it is a strategy or it can also be considered as a new form of advertising as well as a part of location based service(LBS).LBA can integrate “mobile advertising” with “LBS”.It can also be described as “a new form of marketing communication that uses locationtracking technology in mobile networks to target consumers with location-specific advertising on their mobile phones”.LBA is continuously getting more advanced and location-aware mobile applications based on Location Based Services(LBS)techniques as GPS functionality(Global Positioning System)and other sensors to gather location data which integrated with smart mobile devices.So,in recent years,many researchers pay a lot of attention to LBA as a kind of personalized SMS advertisement which is designed based on the location of the consumers.However,most of literatures focus their studying on LBA out-door mobile models,because most techniques based on GPS are more accurate out-door.Recently,with advancements of new in-store Location Based Services(LBS)techniques such as i Beacons,RFID,retailers are recently increasing their attention to mobile in-store advertising,which offers new perspectives to interact with customers at the point of sale with considering his history of purchase.In the specific context of stationary retailing,investigated how mobile in-store advertising influences the customer’s purchase intention in a retail setting.They found that location and personalization interact with each other.Regarding content,retailers have,on the one hand,the possibility to use monetary promotions,which are widely applied in order to attract consumers to the stationary store and to increase the store traffic.Furthermore,the effectiveness of temporal and geographical targeting on consumer responses to mobile promotions have been discussed.In addition,they investigated how mobile in-store advertising influences the customer’s purchase intention in a retail setting.They found that location and personalization interact with each other.However,there is a little work discussed LBA in-store models.So,there is a lack of knowledge about the main factors which significant of LBA in-store models.CLT represents a framework for explaining how psychological distance affects individuals’ behavior.Any action can be mentally construed at different levels.According to CLT,mental construal can be defined as “a representation of something independent of direct experience”(e.g.past,future,other people,and hypothetical events)and is formed on a continuum ranging from high-level construals to low-level construals.Mental construals are considered to transcend the immediate situation and the psychologically distant object.A major determinant of what level of construal is activated is the psychological distance of a specific event or object.Psychological distance is defined as ?a subjective experience that something is close or far away from the self,here,and now” and refers to one owns perception of how distant an object is from the self.Psychological distance can occur in four dimensions,namely: temporal,spatial,social and hypothetical distance.Psychological distance is therefore egocentric.Its reference point is the self in the here and now.A central assumption of CLT is that with increasing psychological distance to an object,individuals construe more abstract representations(high-level construals).Conversely,as psychological distance for the same object decreases,individuals construe more concrete representations(low-level construals).However,the previous work which discussed LBA and in-store advertising models focus on considering spatial distance and ignore others Psychological distance.Retailers and marketers always take the opportunity to reach the consumer at the right time and place.Marketers can promote their products based on Location Based Advertising(LBA)of mobile phone users.Marketers can identify consumer’s favorite products with IBeacon sensors.So,marketers and retailers pay more attention to instore mobile LBA.In this paper,I introduce the present status of development of mobile advertising and analyzes the existing problems of mobile advertising.We identify the main factors that address the effective for in-store mobile LBA in sight of Construal Level Theory(CLT).The current work has established critical findings on understanding the effects of main factors related to content,context and consumers under LBA in-store in sight of CLT on consumer behavior and purchase intention.At the beginning,this research drawn a theoretical framework by highlighted that with advancements of new in-store Location Based Services(LBS)techniques such as i Beacons,RFID,retailers are recently increasing their attention to mobile in-store advertising,which offers new perspectives to interact with customers at the point of sale with considering his history of purchase.Furthermore,CLT theory represents a framework for explaining how psychological distance affects individuals’ behavior especially in the context of mobile technology.Psychological refers to one owns perception of how distant an object is from the self.It can occur in four dimensions,namely: temporal,spatial,social and hypothetical distance.The specific conclusions of the research can be shown as follows:First,this work give an overview of the present status of development of mobile advertising based on LBA and CLT and analyzes the existing findings and problems of mobile advertising.Based on this analysis,this work determine that Context,content and consumer can be considered the main influence factors of LBA.So,this study test the effects of the temporal distance,variety of receivers and type of information on consumer purchase intention in-store of retailers based on LBA and CLT.Second,the modified LBA in-store model and hypothesis development are constructed.This model proposed that the temporal time of in-store advertising(After work,Night),type of information of ads content(Emotional,Rational)and the variety of receiver(Expert,Rookie)in mobile in-store LBA affect the Purchase intention in retail stores.The relationship between the independent and dependent variables are moderated by mobile coupon(Premium,Discount).Then,the modified LBA in-store model is constructed.Finally,by empirical test we examine the main factors that significant of mobile in-store advertising which combination of message content,context and consumer.Through the mobile Location Based Advertising(LBA),Construal Level Theory(CLT),and in-store advertising related literature review.Based on analysis of LBAs’ factors with in-store in the sight of CLT psychological distance,the proposed study constructs a model for evaluate the impact of mobile location-based advertising in retail stores on consumers’ intention to purchase is proposed.Our empirical study tested the main effects of the temporal time,type of information and variety of receivers on consumer purchase intention with a 2x2x2 inter-subject experimental design.Furthermore,the mobile coupon was considered as moderate variable for our study.This work is arranged in a practical experiment,using a simulated formal suit store task explain that mobile coupon in combination with emotional information ads content are most effective for consumer purchase intention when send to the rookie users for in-store mobile LBA.For experimental data,two ways analysis of variance(ANOVA)was used in order to test the main effects and interaction effects of the independent and moderate variables.In addition,an independent sample T-test have been used to indicate the effect of independent variable on moderating variable.Finally,the relations between the independent variables are measured with a regression analysis.The theoretical and practical implications of the modified LBA in-store model is to making the theory of LBA more systematic and helping marketers take specific measures to boost the effect of LBA with in-store.The results of the experiment show that the variety of receivers(expert,rookie)and type of information(emotional,rational)of in-store mobile LBA had a significant main effect on purchase intention.We don’t find significant effect for other independent variable;the temporal type(After work,night).Marginally significant interaction effects were found for temporal time,variety of receivers,and type of information together.Furthermore,no significant were found for the main effect for moderate variable;mobile coupon.In addition,a marginally significant interaction effect of moderate variable was found for the relation between the independent and dependent variables(i.e.(mobile coupon and variety of receivers)and(mobile coupon and type of information)had effects on the purchase intention).The results of this study have several implications for marketers who are interested in implementing LBA in-store mobile advertising for their business.First,the findings suggest that the type of information mobile advertisements is important to consider.The emotional content of ads has significantly higher score on purchase intention compared to the rational content of ads.In addition,marketers should category consumer based on them purchase history for rookie and expert.In particular if the marketers could to determine the rookie users in order to send the in-store mobile LBA for them that may increase them purchase intention.Regarding the interaction effect results,we note significant of temporal time,marketers should take into account.Retailers should note that,emotional content of in-store mobile LBA when send to the rookie users immediately after work are more effective compared to other scenarios.Furthermore,a marginally significant interaction effect was found for the mobile coupon and variety of receivers on the purchase intention.So,marketers need to recognize this fact when designing or implementing mobile LBA in-store.One of the main findings is that coupon premium in combination with emotional information of ads content when send to the rookie users were most effective regarding the choice of the target product.When mobile coupon is combined with rational content(abstract information)the amplifying effect diminishes.