Consumers’ Adoption and Acceptance on Location-based Advertising (2012/10/18)

Consumers’ Adoption and Acceptance on Location-based Advertising (2012/10/18)

This post gives a summary of Milliya’s presentation — Consumers’ Adoption and Acceptance on Location-based Advertising: An Explorative Study in Tokyo

Along with the evolution of mobile communication and the population of Global Positioning System(GPS), Location-Based Services(LBS) have attracted considerable attention due to its ability to create timely and personalized information for users to make optimized decisions. With its unique features, LBS has been widely applied in many fields from emergency, navigation, entertainment, social, and so on geo-content related services. The value of LBS is unquestionable; a Microsoft report shows that LBS give users more control to help reduce concerns, and Location-based advertising(LBA) can motivate consumers to take action. However, being one of newest technologies and marketing strategies, LBS still lacks of related studies, especially in Eastern countries.

The value of LBS is unquestionable and there is considerable interest in understanding factors that influence adoption of mobile services(Okazaki 2005). My research questions are listed below:

  • How user perceives the value of LBA?
  • Which factors affects the acceptance on LBA?
  • Which factors affect the intention to use LBA?

The research aims to understand how consumers’ attitude towards LBS affects their adoption and acceptance. Furthermore, to explore how consumers’ attitude towards LBS affects their acceptance and intention behavior on LBA. By employing the Theory of Reasoned Action (TRA) model, the study analyzes consumers’ perceived value on LBS and LBA, and identify influencing factors and relation between LBS and LBA. The research adopts quantitative method to obtain users information, and analyze it supported with literature reviews. Here is the first draft model:

A quantitative research will be conducted to collect data. The survey will be conducted in Tokyo, Japan. The content will be translated into both Japanese and English.

Thank you!

Seminar Meeting 2011.10.27

Today we have three students to continue the presentation and illustrate their main interest on their thesis.

1. Riyoung Chang

The main interest was on the regulation, marketing , expenditure of telecom business.

Chang discussed the necessity to regulate telecom industries by showing the MNP(mobile number portability) usage in Korea  during 2006-2010 which was gradually arising. Chang considered that  customers go back and forth among the operators due to companies’ price competition. This has become a vicious cycle that should be concerned. Whether adopt regulation on telecom industries was what Chang will focus on.

Chang will search for further data for statistic analysis of MNP and market share in Korea, actual proofs on the price gap also make comparison with other countries as his future work.

2. Wenji Li

3G, new type of advertising based on customers acceptance.

Despite the application of mobile phone in China is increasing, consumer beavior is not yet sufficient. Li decided to focus on consumer behavior  by investigating why, how, when and where people access mobile advertisement. She will find proper approaches and give a clue to mobile advertisement.

In her future work, Li will do more literature review, design questionnaires, conduct interview, and do case study in Japan.

3. Milliya Tsai

Location based Service and Regional Tourism Development.

According to Milliya’s explaination, LBS identify people’s geographical position, and people can use it as navigation, request the nearst business or service (e.g. ATM or restaurants.) or find whereabouts of friends, emploees…etc.

Milliya will focus on whether the LBS will facilitate the touring development of an area, and whether LBS provides useful information and change consumers’ consuming behavior.

Milliya also discussed the difficulties that companies will have to conquer while developing LBS. For example, How to make users provide more information? How to provide right information at right time? How to make interface intuitively? On customers’ side, what is the most concerned will be the privacy problem.

In her future work, she will try to understand consumers satisfaction and consumers behavior by interviewing /taking survey on both Japanese and foreign students.