Behaviorally targeted location-based mobile marketing

Stefan F. Bernritter*, Paul E. Ketelaar, Francesca Sotgiu

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

Marketers increasingly use behavioral targeting in location-based mobile marketing (LBMM). However, highly personalized marketing messages like this may backfire by eliciting consumer reactance. We suggest that LBMM efficacy depends on its potential to minimize consumer reactance, which can be achieved by effectively combining location targeting (in-store vs. out-store), behavioral targeting (based on consumers’ product category involvement [PCI]), and the type of promotion offered (price vs. non-price promotion). Results of a field study, a virtual reality experiment, and two online experiments show that although in-store mobile ads are generally more effective in increasing sales than out-store mobile ads, this is only the case if consumers have low PCI with the advertised product category, because this decreases their reactance. To attract consumers to stores by out-store LBMM, we show that firms should offer price promotions to consumers with low PCI and non-price promotions to consumers with high PCI, because these combinations of location targeting, behavioral targeting, and type of promotion elicit the least reactance and therefore result in a higher probability to buy.

Original languageEnglish
Pages (from-to)677-702
Number of pages26
JournalJournal of the Academy of Marketing Science
Volume49
Issue number4
Early online date21 Jun 2021
DOIs
Publication statusPublished - Jul 2021

Bibliographical note

Funding Information:
We thank Stephanie Immerzeel for her invaluable support in collecting the field data and Nishant Dogra from TBWA\NEBOKO for enabling us to conduct the field study. We further would like to thank Peter Cole from X Ingredient and Marnix van Gisbergen for their support in setting up the Virtual Reality Study and Arief H?hn from FreedomLab for his support in designing the field study. We are also thankful for the constructive feedback by the guest editor, editor, and three anonymous reviewers, and the helpful suggestions from participants at the 2019 JAMS Thought Leaders? Conference on Innovating in the Digital Economy.

Publisher Copyright:
© 2021, The Author(s).

Copyright:
Copyright 2021 Elsevier B.V., All rights reserved.

Keywords

  • Behavioral targeting
  • Location-based advertising
  • Mobile marketing
  • Price promotions
  • Product category involvement
  • Reactance

Fingerprint

Dive into the research topics of 'Behaviorally targeted location-based mobile marketing'. Together they form a unique fingerprint.

Cite this