Mobile app localization-based advertising: Effects of spatial and social-cultural distances on consumer behavior

Abstract

This article studies how and why localized mobile applications shape consumer responses toward mobile advertising in the context of ridesharing. Drawing from construal level theory and extant research on cultural customization of website design, we hypothesize that consumers respond more favorably when the app’s design closely matches their immediate social-cultural surroundings, compared to designs that are culturally distant. We conducted a laboratory experiment with a custom-built ridesharing app that manipulated spatial and social-cultural distances in a controlled setting. Findings show that exposure to localized mobile ads on apps that reflect the consumer’s immediate social-cultural environment (near social-cultural distance) enhances app usage intentions and purchasing intentions compared to apps with culturally distant designs. The preference for apps with local design intensifies when the advertised location is closer to the immediate location. We also find that app atmospherics (informativeness, entertainment, and effectiveness) mediate the positive effects of social-cultural distance in application design on consumer reactions in conditions of a low spatial distance to the promoted destination. Considering atmospherics offers a new explanation for why a local application design affects consumer reactions positively, beyond accounts made by construal level theory. We discuss the theoretical implications of our findings, offer managerial insights for developers and designers of geo-localized applications, and outline the study’s limitations along with directions for future research.