The effects of location-based-services on consumer purchase intention at point of purchase

This paper aims to empirically test a conceptual model, analysing the effects that features of mobile phone location-based advertising (MLBA) services (customisation, permission and intrusiveness) have on attitudes and purchase intentions, using the theory of interactive advertising. In addition, the moderating effect of receiving such messages at point of purchase (POP) is assessed.

Scenario-based online surveys were used, which manipulated the timing and levels of customisation of the message. Responses were received from 422 “net generation” consumers.

Customisation, permission and intrusiveness all have a direct effect on consumer attitudes towards MLBA messages, and subsequently purchase intention. In addition, receiving such messages at POP strengthens the relationships between intrusiveness and attitudes, but surprisingly weakens the effect of customisation on attitudes.

Future research could consider more widespread product categories and try to measure actual behaviour. There is also potential to investigate mobile relationship marketing.

Through permission, consumers can control the flow of messages and customise the messages they receive. While consumers benefit greatly, managers also gain opportunities through facilitating co-creative functions. These efforts will be in vain, however, if the consumer perceives the messages to be intrusive.

While there is much research that looks at the impact of interactive advertising features on attitudes and behaviour, research has yet to consider these factors in an MLBA context. In addition, it has not considered how providing such messages at POP can influence these relationships.