The Effect of Digital Marketing Implementation through Location Based Advertising on Customer’s Purchase Intention

Authors

  • Ivan Wibisurya Universitas Indonesia

DOI:

https://doi.org/10.21512/bbr.v9i2.4618

Keywords:

digital marketing, Location Based Advertising (LBA), purchase intention

Abstract

There were two objectives of the research, those were to find out the effects of Location Based Advertising (LBA) on customer’s attitude and purchase intention. Furthermore, this research sought the enhancement effect of timing in several features on the customer’s attitude toward LBA and purchase intention. The features used were the content appeal, interactivity, control, attitude toward advertising in general, customization, and intrusiveness. This research was a conclusive study with descriptive design. Data collection was done by offline survey with 160 respondents who had ever received LBA in two different conditions. Meanwhile, data analysis was conducted using Structural Equation Modelling (SEM). The research shows several results. First, content appeal, control, and customization have significant and positive effects on attitude toward LBA. Second, attitude toward LBA has significant and positive effect on customer’s purchase intention. Third, timing enhances the positive effect of customization on attitude toward LBA. Last, timing also enhances the positive effect of attitude toward LBA on
customer’s purchase intention.

Dimensions

Plum Analytics

Author Biography

Ivan Wibisurya, Universitas Indonesia

Master of Management, Faculty of Economics and Business

References

Bauer, C., & Lasinger, P. (2014). Adaptation strategies to increase advertisement effectiveness in digital media. Management Review Quarterly, 64(2), 101-124. https://doi.org/10.1007/s11301-014-0101-0

Bauer, H. H., Reichardt, T., Barnes, S. J., & Neumann, M. M. (2005). Driving consumer acceptance of mobile marketing: A theoretical framework and empirical study. Journal of Electronic Commerce Research, 6(3), 181-192. https://doi.org/10.1111/j.1467-9280.2007.01994.x

Belch, G. E., & Belch, M. A. (2015). Advertising and promotion: An integrated marketing communications perspective (10th ed.). New York: McGraw-Hill.

Beneke, J., Cumming, G., Stevens, A., & Versfeld, M. (2010). Influences on attitude toward mobile text message advertisements: An investigation of South African youth. International Journal of Mobile Marketing, 5(1), 77-97.

Bright, L. F. (2014). Taming the information beast: Content customization and its impact on media enjoyment for online consumers. Online Journal of Communication and Media Technologies, 4(3), 143-169.

Buzynna, M., Andriy, L., & Andreea, G. (2014). Mobile advertisements: Millennials’ perspective. Retrieved from http://urn.kb.se/resolve?urn=urn:nbn:se:lnu:diva-35003%0A

Chen, P. T., & Hsieh, H. P. (2012). Personalized mobile advertising: Its key attributes, trends, and social impact. Technological Forecasting and Social Change, 79(3), 543-557. https://doi.org/10.1016/j.techfore.2011.08.011

Chowdhury, F. P., Islam, M. T., & Rana, M. A. (2016). Investigating factors influencing consumer attitude toward SMS advertising: An empirical study in Bangladesh. International Journal of Business and Management, 11(10), 233-251. https://doi.org/10.5539/ijbm.v11n10p233

Dix, S., Jamieson, K., & Shimul, A. S. (2016). SMS advertising the Hallyu Way: Drivers, acceptance and intention to receive. Asia Pacific Journal of Marketing and Logistics, 28(2), 366-380. https://doi.org/10.1108/APJML-09-2015-0146

Drossos, D., Giaglis, G. M., Lekakos, G., Kokkinaki, F., & Stavraki, M. G. (2007). Determinants of effective SMS advertising: An experimental study. Journal of Interactive Advertising, 7(2), 16-27. https://doi.org/10.1080/15252019.2007.10722128

Fill, C. (2013). Marketing communications: Interactivity, communities and content (6th ed.). Harlow: Pearson.

Gazley, A., Hunt, A., & McLaren, L. (2015). The effects of location-based-services on consumer purchase intention at point of purchase. European Journal of Marketing, 49(9/10), 1686-1708. https://doi.

org/10.1108/EJM-01-2014-0012

GSMA Intelligence. (2017). The mobile economy. Retrieved from https://www.gsma.com/mobileeconomy/

Hühn, A. E., Khan, V. J., Ketelaar, P., van‘t Riet, J., Konig, R., Rozendaal, E., … Markopoulos, P. (2017). Does location congruence matter? A field study on the effects of location-based advertising on perceived ad intrusiveness, relevance & value. Computers in Human Behavior, 73(August), 659-668. https://doi.org/10.1016/j.chb.2017.03.003

Humbani, M., Kotzé, T., & Jordaan, Y. (2015). Predictors of consumer attitudes towards SMS advertising. Management Dynamics: Journal of the Southern African Institute for Management Scientists, 24(2),

-19.

Jin, H. S., & Lutz, R. J. (2013). The typicality and accessibility of consumer attitudes toward television advertising: Implications for the measurement of attitudes toward advertising in general. Journal of

Advertising, 42(4), 343-357. https://doi.org/10.1080/00913367.2013.803184

Kang, S., Hur, W. M., & Son, M. (2014). The moderating role of socio–demographics on smartphone adoption. International Journal of Mobile Communications, 12(5), 532-550. https://doi.org/10.1504/

IJMC.2014.064597

Kim, Y. J., & Han, J. (2014). Why smartphone advertising attracts customers: A model of web advertising, flow, and personalization. Computers in Human Behavior, 33(April), 256-269. https://doi.org/10.1016/j.chb.2014.01.015

Lee, S., Kim, K. J., & Sundar, S. S. (2015). Customization in location-based advertising: Effects of tailoring source, locational congruity, and product involvement on ad attitudes. Computers in Human Behavior, 51(October), 336-343. https://doi.org/10.1016/j.chb.2015.04.049

Li, C. (2016). When does web-based personalization really work? The distinction between actual personalization and perceived personalization. Computers in Human Behavior, 54(January), 25-33. https://doi.org/10.1016/j.chb.2015.07.049

Martí Parreño, J., Sanz-Blas, S., Ruiz-Mafé, C., & Aldás-Manzano, J. (2013). Key factors of teenagers’ mobile advertising acceptance. Industrial Management & Data Systems, 113(5), 732-749. https://doi.org/10.1108/02635571311324179

Media Rating Council (MRC). (2017). MRC location-based advertising measurement guidelines. Retrieved from http://mediaratingcouncil.org/MRC%20Location-Based%20Advertising%20Measurement%20Guidelines%20Final%20March%202017.pdf

Mobile Marketing Association (MMA). (2017). Mobile advertising. Retrieved October 16th, 2017 from http://www.mmaglobal.com/wiki/mobile-advertising

Ofosu, D., Gyanewa, M., & Boadi, I. (2013). The influence of Short Message Service (SMS) advertising on the purchase behaviour of young consumers in a tertiary institution in Ghana. Review of Integrative Business and Economics Research, 2(2), 276-303.

Ratihayu, A. P., Agustina, L., Baihaqi, M. F., & Raharso, A. (2008). An empirical study of the drivers of consumer acceptance of mobile advertising (Short Message Services) in Indonesia. Journal of Business Strategy and Execution, 1(1), 1-21. https://doi.org/10.1002/zaac.200600202

Shan, L. H., Chin, T. A., Sulaiman, Z., & Muharam, F. M. (2016). Effective mobile advertising on mobile devices. Journal of Global Business and Social Entrepreneurship (GBSE), 2(4), 164-177.

Sunaga, T., & Ishii, H. (2014). Effects of predecisional justification toward purchasing on consumers’ attribute weights at the point of purchase. International Review of Business, 14, 1-23.

Tsang, M. M., Ho, S. C., & Liang, T. P. (2004). Consumer attitudes toward mobile advertising: An empirical study. International Journal of Electronic Commerce, 8(3), 65-78. https://doi.org/10.1080/10864415.2004.11044301

Ünal, S., Ercis, A., & Keser, E. (2011). Attitudes towards mobile advertising–A research to determine the differences between the attitudes of youth and adults. Procedia-Social and Behavioral Sciences, 24, 361-377. https://doi.org/10.1016/j.sbspro.2011.09.067

Van der Waldt, D. L. R., Rebello, T. M., & Brown, W. J. (2009). Attitudes of young consumers towards SMS advertising. African Journal of Business Management, 3(9), 444-452. https://doi.org/10.5897/AJBM09.161

Varnali, K. (2014). SMS advertising: How message relevance is linked to the attitude toward the brand? Journal of Marketing Communications, 20(5), 339-351. https://doi.org/10.1080/13527266.2012.699457

Yoon, S., Kim, J., & Connolly, D. J. (2017). Understanding motivations and acceptance of location-based services. International Journal of Hospitality & Tourism Administration, 29(3), 1-23. https://doi.org/10.1080/15256480.2017.1305316

Zauberman, G., & Lynch Jr, J. G. (2005). Resource slack and propensity to discount delayed investments of time versus money. Journal of Experimental Psychology: General, 134(1), 23-37. https://doi.org/10.1037/0096-3445.134.1.23

Downloads

Published

2018-07-31
Abstract 10028  .
PDF downloaded 2957  .