An investigation into the factors that influence the uptake and use of location-based mobile marketing amongst UK and ROI customers

Abstract

This thesis sets out to investigate the factors that influence the uptake and use of location-based mobile marketing amongst UK and ROI consumers. Rapid advancements in positioning technology coupled with high smartphone penetration rates have presented an innovative solution for businesses to maximise engagement with their consumers and entice them at a point when marketing communications are most effective i.e., in close proximity to avail of information/offers. Leveraging knowledge of their consumers’ geographical position through the use of mobile devices, LBM offers the ultimate level of personalisation for consumers. As famously coined by Peter Drucker:

“Because the purpose of business is to create a customer, the business enterprise has two and only two basic functions: marketing and innovation” (Forbes, 2006).

Arguably, LBM merges these two aspects together and so businesses are keen to take advantage of this technology, with investments already being made to harness the benefits it offers. Yet from a theoretical standpoint, knowledge deficiencies exist in our understanding what factors contribute to the acceptance and use of this marketing medium from a consumer perspective. The research is therefore designed to explore consumers’ experiences of LBM, to uncover consumer motivations and attitudes towards this marcom technology, to examine the impact of LBM on shopping experiences and ultimately, to understand the factors that influence consumer behaviour. This study is broadly underpinned by marketing theory, but more specifically on relationship marketing and real-time marketing; as well as consumer based motivation theory to investigate the phenomenon.

This study employs a sequential mixed method design with three distinct phases to provide a holistic examination and fully address the research problem. Phase One enables macro-level exploration and provides scope through a survey instrument. Following on, Phase Two and Phase Three allow for micro and nano level of investigation to further explore and explain emerging issues and themes. Through the combination of methods, data is triangulated to enhance validity and reliability of findings. In addition, the methodological approach adopted goes some way towards minimising the limitations associated with qualitative and quantitative research that would otherwise exist in mono method studies.

The main findings derived from this research reveal that awareness levels are still relatively low with varying levels of experience. In general, there are mixed attitudes towards LBM however the interest and appeal improve with the provision of personalised offers tailored to an individual’s personal interests, the presence of control mechanisms and obtaining prior permission. The ability to save time and money, as well as receiving incentives/rewards acts XVIII as a driving force, which motivates consumers to avail of this technology. Whilst privacy concerns are a key inhibitor of consumer acceptance and usage, these are not absolute. If consumers perceive LBM to be of value and companies provide them with benefits that enhance their overall experience, then privacy concerns can be overcome. Similarly, trust propensity plays a key role in influencing the uptake of LBM and establishing B2Crelationships. Companies that reward loyalty through relational benefits are of importance to consumers.

The key conclusions drawn from this research confirm, disconfirm and extend existing knowledge in the field making a significant contribution to theory. Furthermore, practical implications are considered, and recommendations are forwarded to key stakeholders including retailers, LBM providers, government and consumers.

Date of Award	May 2024
Original language	English
Sponsors	Department of Employment and Learning
Supervisor	Elaine Ramsey (Supervisor) & Trevor Cadden (Supervisor)