Not Available for Download

Location-Based Advertising: Measuring the Impact of Context-Specific Factors on Consumers’ Choice Behavior

Posted: 24 Jul 2012 Last revised: 13 Sep 2013

Dominik Molitor

Gabelli School of Business, Fordham University

Philipp Reichhart

Ludwig Maximilians University of Munich - Faculty of Business Administration (Munich School of Management)

Martin Spann

Ludwig Maximilian University of Munich - Faculty of Business Administration (Munich School of Management)

Date Written: July 24, 2012

Abstract

We investigate how location-based services (LBS) influence consumers’ choice behavior in the mobile Internet. LBS are able to make use of the users’ location by the means of GPS-enabled smartphones. Further, the ubiquitous nature of smartphones increases the importance of additional contextual factors such as time and weather. Using unique GPS data on location-based coupons and consumer choice behavior, we analyze when, where and how location-based advertising works. We particularly examine the underlying impact of context-specific factors (e.g., physical surroundings and temporal perspective) on consumers’ coupon choice behavior. Our analyses reveal that consumers’ choices are affected by their geographical location and its characteristics, as well as that consumers’ mobility has an impact on their coupon preferences. We conclude with managerial implications following the discussion of our results and propose a broad range of research implications for the use of location data in marketing.

Keywords: Mobile Internet, Location-Based Services, Mobile Commerce

JEL Classification: M31, D83, D12, C23

Suggested Citation

Molitor, Dominik and Reichhart, Philipp and Spann, Martin, Location-Based Advertising: Measuring the Impact of Context-Specific Factors on Consumers’ Choice Behavior (July 24, 2012). Available at SSRN: https://ssrn.com/abstract=2116359 or http://dx.doi.org/10.2139/ssrn.2116359

Dominik Molitor

Gabelli School of Business, Fordham University

113 West 60th Street
Bronx, NY 10458
United States

Philipp Reichhart

Ludwig Maximilians University of Munich - Faculty of Business Administration (Munich School of Management) ( email )

Ludwigstr. 28
Munich, 80539
Germany

Martin Spann (Contact Author)

Ludwig Maximilian University of Munich - Faculty of Business Administration (Munich School of Management) ( email )

Ludwigstr. 28
Munich, 80539
Germany

Paper statistics

Abstract Views
2,393