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“Opening” location-based mobile ads: How openness and location congruency of location-based ads weaken negative effects of intrusiveness on brand choice

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  • Ketelaar, Paul E.
  • Bernritter, Stefan F.
  • van Woudenberg, Thabo J.
  • Rozendaal, Esther
  • Konig, Ruben P.
  • Hühn, Arief Ernst
  • Van Gisbergen, Marnix S.
  • Janssen, Loes

Abstract

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.

Suggested Citation

  • Ketelaar, Paul E. & Bernritter, Stefan F. & van Woudenberg, Thabo J. & Rozendaal, Esther & Konig, Ruben P. & Hühn, Arief Ernst & Van Gisbergen, Marnix S. & Janssen, Loes, 2018. "“Opening” location-based mobile ads: How openness and location congruency of location-based ads weaken negative effects of intrusiveness on brand choice," Journal of Business Research, Elsevier, vol. 91(C), pages 277-285.
    • Handle: RePEc:eee:jbrese:v:91:y:2018:i:c:p:277-285
    DOI: 10.1016/j.jbusres.2018.06.018
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    Cited by:

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    2. Mohammad Hazimeh, 2021. "Defining Location Based Marketing and Identifying the Benefits of this Strategy," Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, Union of Scientists - Varna, Economic Sciences Section, vol. 10(3), pages 122-126, December.
    3. Sung, Eunyoung (Christine), 2021. "The effects of augmented reality mobile app advertising: Viral marketing via shared social experience," Journal of Business Research, Elsevier, vol. 122(C), pages 75-87.
    4. Li, Qi & Wang, Quansheng & Song, Peijian, 2022. "Do customers always adopt buy-online-and-pick-up-in-store service? Consideration of location-based store density in omni-channel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    5. Azemi, Yllka & Ozuem, Wilson & Wiid, Ria & Hobson, Ana, 2022. "Luxury fashion brand customers’ perceptions of mobile marketing: Evidence of multiple communications and marketing channels," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    6. van de Sanden, Stephanie & Willems, Kim & Brengman, Malaika, 2020. "How do consumers process digital display ads in-store? The effect of location, content, and goal relevance," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).
    7. Wedel, Michel & Bigné, Enrique & Zhang, Jie, 2020. "Virtual and augmented reality: Advancing research in consumer marketing," International Journal of Research in Marketing, Elsevier, vol. 37(3), pages 443-465.
    8. Stefan F. Bernritter & Paul E. Ketelaar & Francesca Sotgiu, 2021. "Behaviorally targeted location-based mobile marketing," Journal of the Academy of Marketing Science, Springer, vol. 49(4), pages 677-702, July.
    9. Palos-Sanchez, Pedro & Saura, Jose Ramon & Reyes-Menendez, Ana & Esquivel, Ivonne Vásquez, 2018. "Users Acceptance Of Location-Based Marketing Apps In Tourism Sector: An Exploratory Analysis," Journal of Tourism, Sustainability and Well-being, Cinturs - Research Centre for Tourism, Sustainability and Well-being, University of Algarve, vol. 6(3), pages 258-270.
    10. Banerjee, Syagnik & Xu, Shichun & Johnson, Scott D., 2021. "How does location based marketing affect mobile retail revenues? The complex interplay of delivery tactic, interface mobility and user privacy," Journal of Business Research, Elsevier, vol. 130(C), pages 398-404.

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