Mobile location-based advertising(LBA) effectiveness: Analyzing consumers’ perception of perceived usefulness, personalization, immediacy, interactivity, and privacy risk

Abstract

This research was conducted under the assumption that consumers' perception tends to differ via LBA and that evaluation elements would detrimentally affect the persuasiveness of an advertising campaign. These indicators, the perceived usefulness, personalization, immediacy, interactivity, and privacy risk as evaluation elements of LBA were derived based on the result of previous scholarly studies, with a particular focus on group interviews and in-depth interviews as a foundation. A research of advertising effect(attitude toward advertising, purchase intention) on consumers' perception differences on these elements were carried out. The results of the present study first shows that the consumer groups who perceived usefulness, personalization, immediacy and interactivity of LBA in the high level appeared to have higher attitude toward advertising and purchase intention than those in the low level. However, the consumer groups with privacy risk in high and low level did not show any difference in attitude toward advertising and purchase intention. Second, it was confirmed that there hadn't been any moderating effect of the reward program(economic and noneconomic benefits) in an attitude toward advertising and purchase intention. Third, the attitude toward LBA was identified to positively affect the purchase intention. Since LBA is conducted as a form of consumers’ voluntary participation, the perception of privacy risk on providing location information should be lowered, and an advertising and marketing strategy to higher the perception of usefulness is needed.