The Influence of Location-Based Characteristics on Advertising Value, Purchase Intention and Word-Of-Mouth
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The purpose of this study is to examine the factors influencing purchase intention and Word-Of-Mouth (WOM) of Location-Based Advertising (LBA) characteristics and value. The study identifies the LBA characteristics as contextual offer, credibility, entertainment, and irritation. This model tests various theoretical research hypotheses relating to LBA, advertising characteristics and value, contextual offer, and purchase intention and WOM. Appropriate measures are developed, tested, and applied to the data from 200 LBA users. The statistical analysis package used in this study was Smart Partial Least Square (PLS) 2.0. The results of hypothesis testing are as follows. First, contextual offer, credibility, and entertainment positively influence LBA value. But irritation does not influence LBA value. Therefore, this study implies that enhancing contextual offer, credibility, and entertainment are critical factors that will lead to more user LBA value. Second, LBA value positively influence purchase intention and WOM. This suggests that LBA value has a strong influence on an user purchase intention and WOM. This study will provide LBA providers with significant and strategic insights for identifying the value of LBA. In conclusion, theoretical and practical implications are discussed.
Abstract
The purpose of this study is to examine the factors influencing purchase intention and Word-Of-Mouth (WOM) of Location-Based Advertising (LBA) characteristics and value. The study identifies the LBA characteristics as contextual offer, credibility, entertainment, and irritation. This model tests various theoretical research hypotheses relating to LBA, advertising characteristics and value, contextual offer, and purchase intention and WOM. Appropriate measures are developed, tested, and applied to the data from 200 LBA users. The statistical analysis package used in this study was Smart Partial Least Square (PLS) 2.0. The results of hypothesis testing are as follows. First, contextual offer, credibility, and entertainment positively influence LBA value. But irritation does not influence LBA value. Therefore, this study implies that enhancing contextual offer, credibility, and entertainment are critical factors that will lead to more user LBA value. Second, LBA value positively influence purchase intention and WOM. This suggests that LBA value has a strong influence on an user purchase intention and WOM. This study will provide LBA providers with significant and strategic insights for identifying the value of LBA. In conclusion, theoretical and practical implications are discussed.
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