A Framework of Location-Based Advertising Effectiveness: Perspectives of Perceived Value and Satisfaction

Abstract

The power of innovative positioning technology and the prevalence of mobile handheld devices have benefited prominently the interactions between businesses and consumers via modern interactive marketing channels. Location-based advertising (LBA) is a salient instance. It is imperative for marketers to understand thoroughly a mechanism of consumers’ value perceptions in LBAs and the motivations for their buying decisions to advertised brands. A research model is constructed based on the Choice Value Model (CVM) to identify a range of important factors navigating perceived value, satisfaction and behavioral intentions toward LBAs. A survey of 306 mobile users in Vietnam was gathered. The findings revealed that content quality generates the strongest signal for predicting perceived value, whereas advertising perception is investigated to be the lowest indicator. Moreover, perceived value closely relates to satisfaction, continuance intention and buying inclination. Otherwise, satisfaction is unveiled as a necessary catalyst to quicken buying inclination in LBAs. Finally, theoretical implications and hints for Asian business are discussed.