Needs of Users From Mobile Location-Based Advertising Services - Literature review Example

What users want from mobile location-based advertising services Introduction Location-based advertising refers to the type of advertising that utilises consumer’s real world position (Ickin et al., 2012). The initiative uses real world position to deliver relevant adverts for different products and services within the closest proximity of customers. For instance, if a customer uses a smart phone next to a restaurant, it is possible for advertisers to identify the person’s locality and therefore send them an instant relevant advert or coupon. The advert entices the customer to make purchases based on the discount from the advert they just got. It is important for businesses to identify a customer in close proximity to their premises, hence offering them incentives that enable them to identify the selected shops. Tsai et al. (2009) concur with the fact that location awareness brings an interesting aspect to customers since the majority of their purchase decisions are usually made within stores. The finding is in line with the idea that location-based adverts address consumers at the point of purchase decisions while at the same time holding potential results for entrepreneurs. Moreover, there are possibilities of integrating personalised offers and advertisements within the applications (Mobile Marketing Association, 2011). However, this study reviews numerous studies and models that focus on detailed variables influencing consumers’ intention towards mobile location-based advertising services. Review of Literature According to Ickin et al., (2012) the introduction of smart phones with GPS receivers has made marketers to be vigilant on the use of technology. In this case, marketers utilise locations to target customers sending them messages on company location alongside products and services offered. Improvement in technology drives the capabilities of Location Based Advertising granting marketers opportunity of creating clever techniques of selling their brands to customers. However, consumers are trying to gain composure on the idea that advertisers are able to locate them, implementation of such services as Foursquare focuses on delivering large consumer base for band advertisers. On the other, hand Wac et al. (2011) assert that some of the new technology initiatives, business models alongside willingness of consumers to accept the technology make mobile location one of the important elements of marketing. The failure associated with many location initiatives results from most marketers ignoring the actual consumer wants. One of the most important considerations is ensuring that services utilizing mobile location incorporate attributes beyond just location. The idea involves incorporation of location, profile as well as content. Geo-location service working alongside new concepts entering the market enables consumers to keep track of goods and services. The inclusion of Wi-Fi also serve consumers with location-based strategy (Dhar and Varshney, 2011). According to Agger (1991) consumers within the global market make purchases after obtaining enough information on products. The process deemed necessary by consumers since it helps in reduction of perceived risks. Mobile location-based advertising is one of the potential sources of information having tremendous impact on consumer attitudes, choice and purchase decisions (Bearden and Netemeyer, 1999). However, research by Nail (2005) reveals that print media advertising is continually becoming outdated in marketing communication since consumers doubt the extent of reliability and trustworthiness associated with them. Such considerations make mobile location-based advertising popular owing to its influence on consumer choices. The technology can be compared to Word of Mouth advertisements which take different forms that include face-to-face communication and internet-based information. Moreover, Kliatchko (2008) noted that the use of internet enables real-time communication due to involvement of inter-activity and receiving of immediate responses. Application of internet-advertising enables consumers to obtain and access diverse information and unlimited access to available contents. According to Lee (2010), mobile location-based services should provide users with access to online communities that enable them to share experiences, opinions as well as diversified knowledge with other consumers. In this case, online communities refer to internet forums, bulletin boards alongside newsgroups. Such instances grants consumers the opportunity of participation on different promotional activities and games, and through such opportunities consumers are guaranteed rights of creating media contents through texts, pictures, videos and pictures of products alongside company services available within their locality. However, Keller and Berry (2006) argues on the fact that a bigger percentage of consumers prefer the use of new technology initiatives rather than offline Word of Mouth. Currently, online adverts are on the increasing trend since consumers currently consider internet to be a source of reliable information. Consumer Requirements on location-based advertising services Generally, consumers require services that would enable them access and purchase a wide range of goods and services from any location coupled with efficient delivery services (Keegan and Green, 2002). The technology initiative provides substantive benefits to consumers on the basis of costs, since they eliminate the stress of having to scramble for parking spaces at shopping malls and retail shops (Green, 2012). Despite the conveniences, several barriers are associated with online shopping some of which include security of search engines, privacy and trust. However, the trend on mobile location-based advertising services brings complete changes within the distribution channels of businesses. Location Based Adverts for Consumers The rise in vouchers and technological know-how amongst consumers makes them eager to receive relevant information on their smart phones. According to a research study done by IAB Mobile (2010), it was noted that close to 50% of consumers were found to be using LBA in the event that information received had some level of relevance and was considered useful. The idea has been encouraged through the use of social media, which makes it easier for consumers to be receptive to additional features such as location (Egan, 2007). Mobile location-based advertising services should enable consumers to create fully formed impressions of products, services and people through written and pictorial content. In this case, the services should also incorporate theory of social comparison and reasoned action for the purposes of giving details on company functions and influences on purchase intentions for different products. Mobile location-based advertising services should consider having operations in all online environments where the real context is portrayed as a variable in the application of the theory (Curasi, 2001). Network-based technology Consumers prefer the use of network-based technique that uses service providers’ infrastructure to identify location and handset. This is since utilization of such procedure would enable customers to be identified without necessarily adding any software to the handset. The technology also enhances privacy concerns about the use of LBS. Privacy on consumer data information can have negative influence on consumer’s level of acceptance. According to Xu et al., (2011) privacy of information is directly related to personalization since both factors influences degree of consumer acceptance. According to Shankar et al., (2011) mobile location-based advertising services should as well allow use of other internet applications with the same technology as instagram. These may include Pixlr, Snapsed, Picplz, Streamzoo, Picmonkey and Camera+. Such mobile applications enable users to take photographs through their Smartphone and tweak colors, a process that enhances postings on social networks such as Facebook and Twitter (Keller and Berry, 2006). The services should enable use of different search engines through smart-phones and at the same time enable purchasing of various mobile applications. For instance, AOL Inc purchased Hipster which is an application that provides photo-sharing services on mobile devices. Such technology initiative has the capability of enabling consumers to edit photos of products taken from application installed within phone’s camera. The other example is Yahoo Inc, which acquired flickr that enables consumers to use mobile application that enables direct uploading and geo-tagging from smart phones. In such instances, location-based adverts enable consumers to easily access new products through their mobile phones. The current market environment that is technology-oriented guarantees high potential for each application yet to be exploited for mobile location-based advertising (Gruber, 2008). Handset-based According to Bruner II and Kumar (2005) consumers prefer installation of necessary software on their smart-phones for easy identity of location. The process is enabled through computation of the phone’s identity and use of GPS for conveying precise information on location from the handset. Further, customers prefer use of hybrid system where network and handset technologies are combined for purposes of identifying location. The initiative requires inclusion of some models such as Assisted GPS with capabilities of utilizing GPS and network information for location identification. The nature of usefulness associated with the system is recognized across various literatures as a critical variable despite the concept being presented in different terms. From the perspective of motivational theory, some aspects of usefulness are either intrinsic or extrinsic (Davis, 1985). Location Based Banner Advertising According to IAB Mobile (2010) mobile display advertising is a growing industry due to increase in inventory. The technology has been made easier due to the rise in mobile networks as well as agency trading desks that has made it easier the process of making business transactions over phones. Use of expandable banners makes interactions easier through models that can play video. The creative adverts should have the ability of stating user location in terms of place name or the environment. Further, utilization of mobile maps makes creative more appealing to customers. This is since the maps shows consumers exact direction to the location where they can interact with company’s brand. The process increases level of engagement over regular banner adverts. Application of geo-fencing enables wider range attraction of customers not necessarily those walking past your store (Mobile Marketing Association, 2011). From the perspective of Kotler (2006), consumers seem encouraged by free in-store Wi-Fi network services, this technology enables retailers to locate consumes through specific landing pages. Application of geo-fencing technology enables companies to make offers in-store to specific individuals. Same view is shared by Kliatchko (2008) stating that consumers are able to receive different messages based on their specific locations whether at the counter o point of sale. For instance, Best Buy electronics retailer in the US adds value to consumer experiences in-store since they no longer look at a product then later buy it online. Allowing consumers on company’s network enables easy identification of consumer habits. Therefore, retailers are able to check when buyers are comparing prices online hence providing necessary information that can be utilised to improve on their competition (IAB Mobile, 2010). Location Based text Messaging According to Dhar and Varshney (2011) location based adverts can also utilise text messages to consumers through opt-in database. Mobile Network Operators can utilise the rich database of consumers to allow consumers to opt into text messages. Text messages are sent to ring fenced locations enhancing accuracy of data used in advertising campaigns. In this case, consumers are identified earlier and messages sent regularly prior to events as scheduled, it ensures that all customers both in the location and those regularly found in the vicinity of the event are reached. Consumers prefer the use of geo-fencing for marketing of smaller value items and postcode selections for target location. Additionally, consumers prefer that retailers personalize adverts by making it timely and relevant (Ho, 2012.). For instance, in the event that clothe retailer organizes for campaigns offers, the focus should be at key times and days targeting city centers and shopping mall locations. Personalization of such campaigns can be done through development of higher value prospect group enabling the offer to target those with higher probability of visiting that particular retail outlet. In the same way, events can be used by advertisers for the purposes of creating an audience (Petley, 2003). Location Based Vouchering Consumers prefers the opt-in service to allow them receive relevant offers alongside vouchers through voucher site with capability of locating them. In such instances, companies should allow customers to locate their nearest store and reserve an item through appropriate application (Bruner II and Kumar, 2005). Therefore, the technology requires companies to understand working modules of various platforms. This requires marketers to sign up to different platforms for purposes of gripping the benefits offered before taking advantage of associated opportunities. Research by IAB Mobile (2010) confirms that consumers usually prefer to engage retailers who reward them. Therefore, it is important for marketers to understand level of consumer responsiveness towards the brand. In this case, VoucherCloud and Foursquare are preferable in running promotions that focuses on increasing engagements (Mobile Marketing Association, 2011). Theoretical Framework The study focuses on various point of concern on mobile location-based advertising services. There is elaborate discussion on the application of push and pull models used for sending location based information. Push-based model usually operates on in-direct customer requests while pull-based model conveys information to customer phones after consultation with the customer. In this case, consumer technology acceptance model is necessary for the purposes of identifying consumer context of mobile location-based advertising services (Chin, 2012.). The whole process focuses on smart phone services whereby independent variables influencing consumer acceptance include visual orientation and the device itself. Dependent variables in this case include relevance, ease of use on smart-phones, ability to create fun, consumer attitude and behavior. Bruner and Kumar (2005) elucidates that the nature of mobile phone contributes to customer’s intrinsic motivation and enjoyment of adverts. The assertion reflects opinion of other authors since consumers usually prefer performing tasks on their phones without hindrances from system’s network. Relevance and fun part of the advert determines consumer attitude towards location based advert services. According to Vlachos and Vrechopoulos (2008) the quality of service, level of satisfaction and value obtained influences consumer response to mobile location based adverts. This study relates to other studies on the ground that quality information is considered a priority in increasing consumer knowledge and awareness about products. This makes it easier for consumers to make purchase decisions based on product brands from nearest locations. At the same time, the study identifies mobile location-based advertising services as based on qualities associated with products that can trigger consumer’s level of trust based on brand reputation within the market. However, understanding consumer perceptions based on location-based advertising services proves a little cumbersome calling for further improvement on e-marketing strategies. Figure 1: Theoretical Framework Conclusion Regarding the results from the literature review a big percentage of purchase decisions are usually made in-store. This confirms the importance of usefulness of adverts using location based services. Consequently, there is clear revelation on the fact that reliability as software charactristic accounts for bigger percentage of consumer reaction since it is considered critical to usefulness. From the literature, concepts are found to vary amongst authors in the sense that similar drivers, variable and theoriesThe idea requires market strategies that target consumers at the point of shopping. In this case, mobile location-based adverts can be used to influence different purchase behaviors such as promotional purchase behavior influenced by delivered mobile coupons. Great amount of research evaluates drivers towards behavioral intention that influences purchase behaviors based on technology initiatives. From the study cases concerning mobile location-based advertising services should be utilised on global platform where marketing strategies are implemented based on consumer desires. The idea assists in establishment of various technology initiatives that match current consumers within international market segments. Future research should consider giving detailed information on the extent to which fun and associated social set-up influences the extent to which location-aware applications are utilised by marketers in retail sector. Further, there should also be inclusion on how mobile location-based advertising services affect different age groups. References Agger, B.1991.Critical Theory, Poststructuralism, Postmodernism: Their Sociological Relevance. Annual Review of Sociology, 1(17), 105-131 Bearden, W., & Netemeyer, R, G.1999. Handbook of Marketing Scales: Multi-Item Measures for Marketing and Consumer Behavior Research, Second Edition, Sage, California Bruner II, G.C., and Kumar, A. 2005. Explaining consumer acceptance of handheld Internet devices. Journal of Business Research, 58 (5), 553-558 Chin, N. 2012. Critical Success Factors of Location-Based Services. 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