The Impact of Contextual Offer on Purchase Intention Through Consumption Value in Mobile Service

The Impact of Contextual Offer on Purchase Intention Through Consumption Value in Mobile Service

Sung-Hee Jang (School of Business Administration, Kyungpook National University, Daegu, Korea) and Jae-Ik Shin (Dept. of E-Business, Gyeongnam National University of Science and Technology, Jinju, Korea)
Copyright: © 2019 |Pages: 9
DOI: 10.4018/JECO.2019010103


Location-based services (LBSs) on the basis of the ubiquity and portability in mobile devices can play a useful role in fulfilling user needs such as convenience, social networking, and digital entertainment effectively and efficiently. Users of mobile LBSs filled out a survey, which produced 200 valid samples. The results of this study demonstrated that contextual offer positively informs utilitarian value and hedonic value. Since contextual offers have more influence on utilitarian value than hedonic value, this means that contextual offers should be based on developing a more utilitarian value. Second, consumption value positively affects purchase intentions. Purchase intention is more effected by hedonic value than utilitarian value. This implies that hedonic value is more important predictor of purchase intention in mobile LBSs. Thus, the service providers should put emphasis on strengthening contextual offer to improve purchase intentions through the consumption value of mobile LBSs. This study may deliver some useful implications to both research and practice.
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Literature Review

LBSs generally play a role as a new coupon delivery channel and a new information provider for price and product comparison. These two features of LBSs have played a role in facilitating the transition from desktop e-commerce to mobile e-commerce. Thus, recommendation based on users’ context is a key service of mobile applications. People can acquire specific information from recommendations based on mobile applications (Shen et al., 2013). The nature of a mobile setting can be seen as spatiality, temporality, and contextuality and previous studies have named this phenomenon as situational dependency (Figge, 2004) or contextual offer (Lee, 2005). Contextual offer often signifies the received recommendation based on users’ position, time, and profile information (Lee, 2005). Thus, this study employs contextual offer as a recommendation based on mobile LBSs.

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