Location-based services as Base Factor No. 2 for SoLoMo

It is increasingly becoming clear that smartphone usage provides great opportunities for brick-and-mortar retailing (cf. Haug, Digitalisierung des Handels mit ePace – Innovative E-Commerce-Geschäftsmodelle und digitale Zeitvorteile (Digitalization of commerce with ePace – innovative e-commerce business models and digital time benefits), Wiesbaden, pp. 27–49, 2013). Its (as yet) unchallenged strengths, such as immediate availability of purchased products, the opportunity for a real tactile and visual product inspection and the brick-and-mortar shopping experience, can now be connected – through use of the mobile Internet – with the benefits of digital channels. This primarily relates to “search & browse” opportunities, preparations for buying, and the virtually unlimited choice of products. Furthermore, detailed product information, recommendations and product ratings for making purchase decisions in brick-and-mortar stores can also be made available to customers in digital form. Moreover, customers can be reached in “transfer spaces” while they are on the move, which is a good option if potential buyers have a contextual relationship – e.g. at a sporting event – or local proximity to the product offer. The penetration of smartphones also results in a decoupling of the buying process, which can now be implemented independently of specific stores and/or buying situations. This process is accelerated by mobile applications, which can be subdivided into three areas: “optimization of local search”, “aggregation platforms and offer bundling” and “local referral marketing on social networks” (cf. Haug, Digitalisierung des Handels mit ePace – Innovative E-Commerce-Geschäftsmodelle und digitale Zeitvorteile, Wiesbaden, pp. 27–49, 2013).