What Makes Consumers Engage? The Effects of Mobile Location-Based Advertising (MLBA) Messages on Consumers’ Engagement with a Retailer on a Location-Based Social Commerce Application (LSCA)
Type of DegreeMaster's Thesis
Consumer and Design Sciences
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The rapid advancement of mobile and internet technology has changed the landscape of mobile marketing revolutionarily. The customization-focused contemporary retail trends have heightened the need for applications of location-based services (LBS) in retail marketing. Mobile location-based advertising (MLBA) is one of the ways to utilize LBS in retail marketing. However, very limited research has been conducted on the influences of consumer motivations in MLBA messages evoke and how these message motivations drive consumers’ value perceptions with regard to engagement with retailers. This study aimed to examine the effects of different types of MLBA messages on consumers’ perceived values, attitudes, and intentions towards engagement with a retailer on location-based social commerce applications (LSCA), applying the uses and gratification (U&G) theory and theory of reasoned action as the theoretical framework. This study utilized an experimental design to investigate how different motivational messages addressed in MLBA (functional message vs. symbolic message vs. hedonic message vs. no motivational message [control] conditions) stimulate consumers’ perceived values (economic, social, and entertainment values) of engagement with a retailer on a LSCA, and how these perceived values lead to consumers’ attitude and intention with regard to engagement with retailers on LSCAs. Chili’s and Yelp were used as the retailer and the LSCA, respectively, for the experimental context. Results revealed that participants tended to perceive a higher economic value of engaging with retailers on LSCAs upon receiving a functional motivation message in MLBA. Participants’ perceived economic and entertainment values positively predicted their attitude towards engagement with a retailer on a LSCA. Finally, participants’ engagement attitudes positively predicted their engagement intentions, while privacy risk had no significant moderating effect upon this relationship. The current study provides a conceptual basis for further empirical research on MLBA and consumers’ engagement with retailers on LSCAs, by revealing a more concrete framework of MLBA-driven consumer engagement. Furthermore, by presenting a unique perspective of MLBA messages regarding their role in promoting consumers’ engagement with a retailer on a LSCA, it shows the potential to enhance consumer-retailer interaction. Additionally, this study provides meaningful implications to retailers that sought to utilize MLBA in their mobile marketing and encourage consumers’ engagement with retailers on LSCAs. Future research could utilize distinct product and service retail categories to augment the external validity of the findings. Finally, further investigation into the modes of the message (e.g., text vs. multimedia) and the types of content shared in connection to the message (e.g., geo-specific location, comments, images, and videos) is recommended.