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Mobile Location-Based Advertising : The effects of Delivery-Method, Information Sensitivity and Promotions on Advertisement Evaluations

Hokse, E. (2016) Mobile Location-Based Advertising : The effects of Delivery-Method, Information Sensitivity and Promotions on Advertisement Evaluations.

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Abstract:The widespread adoption and use of mobile phones presents marketers with new opportunities to reach and serve consumers. This study investigates consumer evaluations of location-based advertising (LBA) on mobile phones. With mobile LBA, marketers can tailor their services, products and content based on the geographical location of mobile phone users, which might be beneficial and convenient for consumers. However, there are downsides such as consumer concern about information privacy and feelings of intrusion when presented with a location-based mobile advertisement. The dilemma of how to react to mobile LBA is explored in an experimental study with Dutch participants (n=218), mainly aged from 18 to 35. In a 2x2x2 between-subjects design, the consumer evaluation of mobile LBA is explored by manipulating the type of delivery-method (push or pull), the level of information sensitivity used for personalizing the advertisement (low or high), and the type of promotion offered in the advertisement (price or premium). The effects are discussed in terms of attitude towards the advertisement and message, perceived benefits, perceived risks, perceived intrusiveness, and intention to use the advertised offer. Consumer characteristics such as general information privacy concern, previous privacy invasion experience and coupon proneness are included as moderating variables. The results indicate that consumer evaluations of mobile LBA are significantly different for the two types of delivery-methods. Pull-based mobile LBA messages are perceived as more beneficial and less intrusive compared to push-based messages. Hence, pull-based mobile LBA messages evoke a more favourable attitude towards the advertisement. The type of personal information used for personalizing the advertisement, nor the type of promotional offering, led to different responses. In addition, no evidence was found for interaction effects of the moderating variables. The results of this study are relevant for marketers who are interested in implementing mobile LBA for their business.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:05 communication studies
Programme:Communication Studies MSc (60713)
Link to this item:http://purl.utwente.nl/essays/71229
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