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PurposeThis study aims to develop an understanding of how customers of a physical retail store valuate receiving location-based mobile phone messages when they are in proximity of the store. It proposes and tests a model relating two benefits (personalization and location congruency) and two sacrifices (privacy concern and intrusiveness) to message value perceptions and store visit attitudes.Design/methodology/approachThe study uses a vignette-based survey to collect data from a sample of 1,225 customers of a fashion retailer. The postulated research model is estimated using SmartPLS 3.0 with the consistent-PLS algorithm and further validated via a post-hoc test.FindingsThe empirical testing confirms the predictive validity and robustness of the model and reveals that location congruency and intrusiveness are the location-based message characteristics with the strongest effects on message value and store visit attitude.Originality/valueThe paper adds to the underexplored field of store entry research and extends previous location-based messaging studies by integrating personalization, location congruency, privacy concern and intrusiveness into one validated model.
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Smartphone apps allow retailers to track the location of their customers and provide the opportunity to reach them with location-based mobile ads. However, the efficacy of these ads often suffers from consumers’ feelings of intrusiveness. Little research has investigated how location-based mobile messages should be designed to maximize their effectiveness and avoid undesired outcomes such as feelings of intrusiveness. The present study tested the effect of openness in ad design, in interaction with location congruency of mobile advertising, using a virtual reality supermarket setting. A process of moderated serial mediation demonstrates indirect positive effects of ad openness on brand choice (via intrusiveness and Aad), moderated by location congruency. Specifically, openness in mobile ad design lowers perceived ad intrusiveness, which positively affects consumers’ brand choice (via Aad). This effect is stronger for ads that are presented in a location-congruent situation than for location-incongruent ads.
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