Behaviorally targeted location-based mobile marketing

Abstract

Marketers increasingly use behavioral targeting in location-based mobile marketing (LBMM). However, highly personalized marketing messages like this may backfire by eliciting consumer reactance. We suggest that LBMM efficacy depends on its potential to minimize consumer reactance, which can be achieved by effectively combining location targeting (in-store vs. out-store), behavioral targeting (based on consumers’ product category involvement [PCI]), and the type of promotion offered (price vs. non-price promotion). Results of a field study, a virtual reality experiment, and two online experiments show that although in-store mobile ads are generally more effective in increasing sales than out-store mobile ads, this is only the case if consumers have low PCI with the advertised product category, because this decreases their reactance. To attract consumers to stores by out-store LBMM, we show that firms should offer price promotions to consumers with low PCI and non-price promotions to consumers with high PCI, because these combinations of location targeting, behavioral targeting, and type of promotion elicit the least reactance and therefore result in a higher probability to buy.

Evaluation Expediency of Eco-Friendly Advertising Formats for Different Generation Based on Spanish Advertising Experts

“…Currently, there is 50% off on Your favorite drink: Vanilla Latte!'" [39] (p. 677). As we can see in this case, location-based services work with situational variables and directly impact users through their smartphones.…”

Values that drive desire: examining determinants of mobile promotion satisfaction

“…, 2021). Retailers can offer price promotions to low involved consumers and non-price promotions to high involved consumers, leading to a higher purchase probability (Bernritter et al. , 2021).…”

“…Promotion lead time influences consumers' attitudes toward targeted mobile promotions, with individuals with high group cohesion preferring a short lead time for promotion (Gupta et al, 2021). Retailers can offer price promotions to low involved consumers and non-price promotions to high involved consumers, leading to a higher purchase probability (Bernritter et al, 2021). Locational effects have also been examined; for instance, the combination of geographical, behavioral and temporal targeting can have a maximized positive effect on mobile promotion (Lian et al, 2019); competitive locational targeting, such as marketers sending offensive promotional messages to consumers as they approach a competitor's store, can adversely affect firms' profits because of price competition (Luo et al, 2021).…”

“…Mobile promotions connect the mobile channel and the consumer's in-store experience, providing a consumer planning tool to assist consumers in making purchasing decisions and retailers in generating in-store traffic . Mobile apps can capture rich personal information, with retailers able to view users' daily commuting patterns, recurring shopping habits, product preferences and online searching and shopping behaviors; these data assist retailers in sending personalized promotional content and marketing information to nearby consumers (Bernritter et al, 2021). Marketers can use mobile app promotions to pinpoint users' current location and deliver instant, interactive, highly personalized and location-specific advertising to users' mobile devices (Le and Wang, 2020;Ryu and Park, 2020).…”

Leveraging the Characteristics of Location-Based Communication in Online Marketing

“…Moreover, when choosing a specific category of the segment, location is not the only aspect for targeting. Marketers can target consumers inside or outside a store, on the basis of their previous consumption behavior, or deliver specific promotions to specific consumer segments (Bernritter et al, 2021). This feature allows marketers to differentiate consumers despite their similarity in location context.…”