KOREASCHOLAR

By increasing awareness of product offers and availability in the consumer’s proximity, Location Based Marketing (LBM) increases relevance of placed advertisements. However, depending on how it is executed, such advertising can also be perceived as intrusive, irritating, or even violating consumer’s privacy. Existing knowledge does not offer clear directions for retailers, who are keen to know of LBM’s effectiveness on sales. In this paper, authors investigate the effects of LBM on application (app) driven revenues of 116 major mobile retailers from around the globe. In particular, we examine the contingency effects of the roles of device as well as privacy needs of the brand audience. Findings reveal that effects of LBM on app-based revenues vary by tactic (inbound vs. outbound), type of device (Tablet vs. Phone), and user type based on brand of app (Android vs. Apple). Overall, this research identifies critical factors for retailers to consider, in order to best monetize their location based efforts. Contributions of the analysis and managerial implications are discussed.

• Syagnik Banerjee(University of Michigan –Flint, USA)
• Shichun Xu(University of Michigan –Flint, USA)
• Scott D. Johnson(University of Michigan –Flint, USA)