The emergence of mobile phones as the leading personal communications device portends their attractiveness as a potentially lucrative media platform for marketers. This article presents initial consumer evaluations of mobile location-based advertising (LBA). LBA is a new form of marketing communication that uses location-tracking technology in mobile networks to target consumers with location-specific advertising on their cell phones. We use an experimental setting to test the effects of LBA characteristics on privacy concerns about location tracking, perceived benefits, value, and intentions to try LBA. LBA was described as a free, opt-in service from cell phone service providers. Results indicate that privacy concerns are high, and perceived benefits and value of LBA are low. LBA was relatively more effective when it becomes available upon explicit request by the consumer than when consumers are alerted to location-specific advertising or promotions for preferred product categories relevant to a specific location. Implications for marketers are discussed.
This paper examines emerging digital frontiers for service innovation that a panel discussed at a workshop on this topic held at the 48th Annual Hawaii International Conference on System Sciences (HICSS). The speakers and participants agreed that that service systems are fundamental for service innovation and value creation. In this context, service systems are related to cognitive systems, smart service systems, and cyber-physical systems and depend on the interconnectedness among system components. The speakers and participants regarded humans as the central entity in all service systems. In addition, data, they saw personal data in particular as key to service systems. They also identified several challenges in the areas of cognitive systems, smart service systems, cyberphysical systems, and human-centered service systems. We hope this workshop report helps in some small way to cultivate the emerging service science discipline and to nurture fruitful discussions on service innovation.
The persuasive impact of source credibility is examined in two situations. A highly credible source was more effective than a moderately credible source when the communication recommended buying a product, an advocacy which message recipients viewed unfavorably. The moderately credible source was more persuasive when the message advocated leasing the product, a position subjects generally supported.These findings are interpreted in terms of cognitive response theory. Practical implications of the research are suggested.Communication strategists frequently use highly credible individuals as spokespersons for their advocacy. Lawyers recruit expert and trustworthy witnesses to support their clients' positions. Politicians seek highly regarded individuals and groups to endorse their programs and candidacies. Advertisers hire people of high integrity to sponsor their products and services. These strategies are predicated on the belief that highly credible sources are more persuasive than those of lower credibility.Extant research provides qualified support for the belief that highly credible sources enhance persuasion, indicating that this effect is obtained only under certain conditions. Stemthal, Dholakia, and Leavitt (1978) categorized subjects on the basis of their favorability toward the position advocated in a communication. Subjects then were presented a persuasive message attributed to either a highly credible or moderately credible source. The highly credible communicator was found to be more persuasive than the moderately credible source among subjects opposed to the advocacy. In contrast, the less credible source was more influential for subjects favor-
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