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The Impact of Contextual Offer on Purchase Intention Through Consumption Value in Mobile Service

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  • Sung-Hee Jang

    (School of Business Administration, Kyungpook National University, Daegu, Korea)

  • Jae-Ik Shin

    (Dept. of E-Business, Gyeongnam National University of Science and Technology, Jinju, Korea)

Abstract

Location-based services (LBSs) on the basis of the ubiquity and portability in mobile devices can play a useful role in fulfilling user needs such as convenience, social networking, and digital entertainment effectively and efficiently. Users of mobile LBSs filled out a survey, which produced 200 valid samples. The results of this study demonstrated that contextual offer positively informs utilitarian value and hedonic value. Since contextual offers have more influence on utilitarian value than hedonic value, this means that contextual offers should be based on developing a more utilitarian value. Second, consumption value positively affects purchase intentions. Purchase intention is more effected by hedonic value than utilitarian value. This implies that hedonic value is more important predictor of purchase intention in mobile LBSs. Thus, the service providers should put emphasis on strengthening contextual offer to improve purchase intentions through the consumption value of mobile LBSs. This study may deliver some useful implications to both research and practice.

Suggested Citation

  • Sung-Hee Jang & Jae-Ik Shin, 2019. "The Impact of Contextual Offer on Purchase Intention Through Consumption Value in Mobile Service," Journal of Electronic Commerce in Organizations (JECO), IGI Global, vol. 17(1), pages 30-38, January.
    • Handle: RePEc:igg:jeco00:v:17:y:2019:i:1:p:30-38
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