Determinants of mobile consumers’ perceived value of location-based mobile advertising and user responses

Abstract

This study examines factors affecting mobile consumers` perceived advertising value of latest location-based mobile advertising (LBA) and its relationship with user responses. Data was collected from a nationally representative web survey of 605 respondents who fit the demographic quotas of mobile consumers in Singapore. Partial least squares results show that privacy concerns have a stronger negative effect on perceived LBA value than perceived sacrifice, while perceived utility, utilisation of contextual information and trust positively predict perceived LBA value. Moreover, perceived LBA value increases consumers` responses to purchase advertised brands, followed by searching for brand information and passing LBA to others. Implications for mobile advertising theories and practices are discussed.