Content area
Full Text
Introduction
The significant increase in the use of mobile devices over the past decade has changed the ways that retailers reach and interact with consumers and continue to shape the future of retailing (Fulgoni and Lipsman, 2016). Forbes Insights (2016) predicted that, by 2018, more than 2.5 billion people worldwide would own and use a mobile device, and that location-aware mobile applications were expected to triple by 2019. Markets and Markets™ (2018), in a study in which the base year was 2017 and the forecast period was from 2018 to 2023, found that the location-based services and real-time location systems market size were valued at US$17.38bn in 2017 and are projected to reach US$68.85bn by 2023, at a compound annual growth rate of 25.4 per cent during the forecast period.
Retailers have started using location-based technology to personalise marketing communication with target consumers (Grewal et al., 2017). Location-based advertising (LBA) offers a powerful channel to enable marketers to reach and engage with individual consumers in innovative ways whenever and wherever they are ready to buy (Kenny and Marshall, 2000). The click aspect of LBA indicates that it has the potential to elicit the consumer’s interest and to encourage the consumer to look for the offer in the store and purchase the advertised item (Fulgoni and Mörn, 2009). Although clicking the LBA message might not ensure in-store purchase (Fulgoni, 2016; Fulgoni and Lipsman, 2016; Fulgoni and Mörn, 2009), it is crucial for retailers to understand how click intention, as triggered by LBA, affects in-store sales.
LBA uses two approaches to deliver messages, push and pull, which depend on whether the consumer initiates the request for information about preferred product categories close to his or her location (Paavilainen, 2002). The consumer’s evaluation might differ for these two approaches based on the perceived value of LBA, including its benefits, perceived risks, and the level of intrusiveness associated with push- or pull-based advertising messages (Unni and Harmon, 2007). Perceived risks, such as privacy concerns, and associated intrusiveness have drawn increasing attention in examinations of value perceptions of LBA in the field of mobile marketing (Čaić et al., 2015; Limpf and Voorveld, 2015; Zhou, 2017). The time-saving benefit of LBA and its effect on click intention, however, have...