Linking perceived value and loyalty in location‐based mobile services

TLDR

The study analyzes how monetary, convenience, social, emotional, conditional, and epistemic perceived value dimensions influence loyalty to location‑based mobile services, proposes a multidimensional value–loyalty model, and calls for further research on their relative importance in global markets. An online survey of users of the “Where is the nearest?” directory service was used to collect data for developing the multidimensional perceived value and loyalty model. Conditional value most strongly drives behavioral intentions, with context, commitment, and monetary value also influential, while social and epistemic value had no effect; enhancing emotional and conditional value in fun contexts can boost commitment, and marketing should emphasize convenience or emotional value to raise realistic awareness of LBS value.

Abstract

Purpose To analyze the direct effect of perceived value dimensions (monetary, convenience, social, emotional, conditional and epistemic value) on attitudinal and behavioral components of loyalty: commitment and behavioral intentions to use location‐based mobile services. Design/methodology/approach An online survey for users of a mobile location‐based directory service “Where is the nearest?” Findings The behavioral intentions were most influenced by conditional value; the context, in which the service is used, followed closely by commitment and to some extent monetary value. Commitment can be enhanced through building emotional value and conditional value by focusing on offering fun service experiences in the right context. The influence of social and epistemic value was not significant. Research limitations/implications Further research is encouraged on the relative importance of the value dimensions' influence on loyalty in global markets. Practical implications The minor influence of monetary value as well as the high influence of conditional value implies that the one‐dimensional value measures are not applicable in a mobile context where decisions are often made spontaneously and based on situational needs. Effective marketing strategies need to take into account the contextual use and emphasize either convenience or emotional value. Originality/value The paper introduces new context relevant concepts and develops a multidimensional perceived value and loyalty model. Results give practical implications on how to increase awareness of location‐based services (LBS) in a way that gives a realistic picture of how LBS create value for customers.