Mobile Targeting: Exploring the Role of Area Familiarity, Store Knowledge, and Promotional Incentives

Ryo Kato, Takahiro Hoshino, Daisuke Moriwaki and Shintaro Okazaki
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Shintaro Okazaki: King's College London, UK

No DP2022-10, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: Building on psychological reactance and uncertainty reduction theory, this research addresses how area familiarity, store knowledge, and promotional incentives impact the success of mobile targeting ads. To test our predictions, we conduct randomized field experiments in Japan. In Study 1, customers with different levels of area familiarity and store knowledge receive mobile ads with coupons. In Study 2, we replicate the same experiment in which consumers receive mobile ads without any coupons. The results indicate that whereas lower area familiarity contribute to geo-targeting ads effectiveness only when coupons are affixed, ads of higher store knowledge tend to increase the number of visitors regardless of the coupon attachment. We discuss our mixing results based on the dual-system theory, leading to some managerial implications.

Keywords: Area familiarity; Context-based marketing; Mobile targeting; Psychological reactance; Promotional incentives; Store knowledge; Uncertainty reduction (search for similar items in EconPapers)
Pages: 39 pages
Date: 2022-03
New Economics Papers: this item is included in nep-exp
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