Title: An empirical examination of location-based mobile advertising effectiveness from value perspective

Authors: Liming Wang; Yanni Liu; Jicheng Wu

Addresses: Hangzhou College of Commerce, Zhejiang Gongshang University, No. 18, Xuezheng Str., Xiasha University Town, Hangzhou, China ' School of Foreign Languages, Zhejiang Gongshang University, No. 18, Xuezheng Str., Xiasha University Town, Hangzhou, China; School of Computer Science and Information Engineering, Zhejiang Gongshang University, No. 18, Xuezheng Str., Xiasha University Town, Hangzhou, China ' Hangzhou Sunyard Digital Technology Co. Ltd., No. 3888 Jiangnan Road, Hangzhou, China

Abstract: With the development of mobile technology, location-based mobile advertising has become worldwide. The development of effective advertising strategies is critical. Extant researches mainly focus on attitude and behaviour intention as the measures of advertising effectiveness, overlooking the important role of individual perceived value which is related to trade-off between benefits and sacrifices. So this study proposes a model to measure LBA effectiveness from the perspective of value and the relationship with user responses. This research model is empirically tested using survey data collected from 301 receivers of LBA in China. The results show that perceived LBA value is positively related to purchasing intention on advertised brands. In addition, perceived benefits including entertainment, convenience, and personalisation have direct positive effects on consumers' perceived LBA value. Privacy risk and irritation, as perceived sacrifices, have negative effects on consumers' perceived LBA value.

Keywords: LBA; location-based mobile advertising; perceived value; perceived benefit; perceived sacrifices; purchase intention.

DOI: 10.1504/IJWMC.2017.084178

International Journal of Wireless and Mobile Computing, 2017 Vol.12 No.2, pp.198 - 206

Received: 22 Sep 2016
Accepted: 22 Dec 2016
Published online: 16 May 2017 *

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