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Mobile Targeting: Exploring the Role of Area Familiarity, Store Knowledge, and Promotional Incentives

Author

Listed:
  • Ryo Kato

    (Research Institute for Economics and Business Administration and Center for Computational Social Science, Kobe University, JAPAN)

  • Takahiro Hoshino

    (Department of Economics, Keio University and RIKEN Center for Advanced Intelligence Project, JAPAN)

  • Daisuke Moriwaki

    (AILab, CyberAgent, Inc., JAPAN)

  • Shintaro Okazaki

    (King's College London, UK
    Research Institute for Economics and Business Administration and Center for Computational Social Science, Kobe University, JAPAN)

Abstract

Building on psychological reactance and uncertainty reduction theory, this research addresses how area familiarity, store knowledge, and promotional incentives impact the success of mobile targeting ads. To test our predictions, we conduct randomized field experiments in Japan. In Study 1, customers with different levels of area familiarity and store knowledge receive mobile ads with coupons. In Study 2, we replicate the same experiment in which consumers receive mobile ads without any coupons. The results indicate that whereas lower area familiarity contribute to geo-targeting ads effectiveness only when coupons are affixed, ads of higher store knowledge tend to increase the number of visitors regardless of the coupon attachment. We discuss our mixing results based on the dual-system theory, leading to some managerial implications.

Suggested Citation

  • Ryo Kato & Takahiro Hoshino & Daisuke Moriwaki & Shintaro Okazaki, 2022. "Mobile Targeting: Exploring the Role of Area Familiarity, Store Knowledge, and Promotional Incentives," Discussion Paper Series DP2022-10, Research Institute for Economics & Business Administration, Kobe University.
    • Handle: RePEc:kob:dpaper:dp2022-10
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    References listed on IDEAS

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    More about this item

    Keywords

    Area familiarity; Context-based marketing; Mobile targeting; Psychological reactance; Promotional incentives; Store knowledge; Uncertainty reduction;
    All these keywords.

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