User Acceptance of Location-Based Mobile Advertising: An Empirical Study in Iran

User Acceptance of Location-Based Mobile Advertising: An Empirical Study in Iran

Kiyana Zolfaghar (K. N. Toosi University of Technology, Iran), Farid Khoshalhan (K. N. Toosi University of Technology, Iran) and Mohammad Rabiei (K. N. Toosi University of Technology, Iran)
DOI: 10.4018/978-1-4666-0041-6.ch005
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Abstract

Location-based advertising (LBA) opens up new frontiers for marketers to place their advertisements in front of consumers. LBA is a new form of marketing communication that uses location-tracking technology in mobile networks to target consumers with location-specific advertising on their cell phones. It provides more targeted communication and interaction between the marketer and its potential customers. This paper reviews different aspects of LBA advertising and investigates the drivers of consumer acceptance toward it. Achieving this, a research framework is developed to explore the factors influencing consumer intention for using LBA in Iran. Individuals’ responses to questions about intention to accept/use of LBA advertising were collected and analyzed with various factors modified from UTAUT with main constructs of utility expectancy, trust, effort expectancy, and control. While the model confirms the classical role of utility expectancy and effort expectancy as the key factors in technology acceptance, the results also show that users’ behavioral intentions are influenced by trust and their control on ads flow.
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Location-Based Advertising

With the emergence of high speed wireless network technologies and the increasing market penetration of mobile phones the global advertising industry’s interest in using this medium as a means of marketing communication is rising. Mobile advertising can be more personalized and different forms such as permission-based, incentive-based, or location based (He & Lu, 2007). Researches related to mobile advertising have shown that this marketing instrument is very effective as a branding vehicle and in stimulating a response, thus increasing brand attitude and purchase intentions (Rettie, Grandcolas, & Deakin, 2005). In this regard, LBA refers to marketer-controlled information specially tailored for the place where users access an advertising medium (Bruner & Kumar, 2007). Marketers can entertain, inform, build brand awareness, create loyalty, and drive purchase decision among their target consumers through LBA. LBA can be defined as a subset of location-based marketing (LBM which includes all aspects of the marketing mix in the mobile location-based setting, whereas LBA is a narrower concept focused on the advertising strategy and communications elements of LBM.

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