Chih-Hui Shieh, Yingzi Xu and I-Ling Ling
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…
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.
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Chih-Hui Shieh, I-Ling Ling and Yi-Fen Liu
As a smart service, location-based advertising (LBA) integrates advanced technologies to deliver personalized messages based on a user’s real-time geographic location and needs…
Abstract
Purpose
As a smart service, location-based advertising (LBA) integrates advanced technologies to deliver personalized messages based on a user’s real-time geographic location and needs. However, research has shown that privacy concerns threaten the diffusion of LBA. This research investigates how privacy-related factors (i.e. LBA type, privacy self-efficacy (PSE) and consumer generation) impact consumers’ value-in-use and their intention to use LBA.
Design/methodology/approach
This study developed and examined an LBA value-in-use framework that integrates the role of LBA type, consumers’ PSE and consumer generation into the technology acceptance model (TAM). Data were collected through two experiments in the field with a total of 374 consumers. The proposed relationships were tested using PROCESS modeling.
Findings
The results reveal that pull (vs push) LBA causes higher value-in-use in terms of perceived usefulness and perceived ease of use, leading to greater usage intention. Further, the differences in the mediated relationship between pull- and push-LBA are larger among consumers of low PSE (vs high PSE) and Generation Z (vs other generations). The findings suggest that the consumer value-in-use brought about by LBA diminishes when using push-LBA for low PSE and Generation Z consumers.
Originality/value
This research is the first to integrate the privacy-related interactions of LBA type and consumer characteristics into TAM to develop a TAM-based LBA value-in-use framework. This study contributes to the literature on service value-in-use, smart services and LBA by clarifying the boundary conditions that determine the effectiveness of LBA in enhancing consumers’ value-in-use.
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I-Ling Ling, Yi-Fen Liu, Chien-Wei (Wilson) Lin and Chih-Hui Shieh
This study aims to understand the underlying mechanism and boundary conditions of the IKEA effect in self-expressive mass customization (MC). It examines the effect of the extent…
Abstract
Purpose
This study aims to understand the underlying mechanism and boundary conditions of the IKEA effect in self-expressive mass customization (MC). It examines the effect of the extent of choice in MC toolkits in terms of perceived value of self-designed products, as well as how self-expression mediates this effect and what kind of consumers are more inclined to experience such effect.
Design/methodology/approach
Two experiments were conducted, using online MC toolkits. In total, 393 consumers participated in the experiments. Data collected were analyzed using t-tests, analyses of variance, path analyses, bootstrap analyses and spotlight tests.
Findings
The results show that offering a greater extent of choice in MC toolkits to consumers provides a greater opportunity for self-expression, resulting in higher product valuation. Further, consumers who have high romanticism in aesthetic preference and high self-esteem are more inclined to influences associated with this effect.
Originality/value
This research adds to the literature on the IKEA effect in self-expressive MC by identifying a key antecedent (extent of choice), its underlying mechanism (self-expression), and two boundary conditions (aesthetic preference and self-esteem). The results of this study provide firms with a better understanding of how they can improve their self-expressive MC strategies.
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Nicola Bilstein, Alexander P.P. Henkel and Kristina Heinonen