How Mobile In‐Store Advertising Influences Purchase Intention: Value Drivers and Mediating Effects from a Consumer Perspective

TLDR

Mobile in‑store advertising is increasingly important as it provides retailers with new ways to communicate with customers at the point of sale. The study examines how to design mobile in‑store advertising to maximize effectiveness. The authors identify price promotion, location, and personalization as value drivers and test their effects on purchase intention in a large‑scale laboratory experiment. All three drivers raise purchase intention, but location is the strongest, price promotion the weakest, and an interaction between location and personalization is significant while personalization near the product has little impact, offering guidance for researchers and managers.

Abstract

ABSTRACT Mobile in‐store advertising is becoming increasingly important, as it offers new options for retailers to communicate with customers at the point of sale. This study investigates how mobile in‐store advertising should be designed in order to be most effective. The authors identify three value drivers (price promotion, location, and personalization) and examine their effect on customers’ purchase intention. The influence of the three value drivers was tested in a large‐scale representative study with a laboratory experimental design. The findings indicate that all three value drivers increase purchase intention. Surprisingly, the authors find that price promotions are the least important value driver, whereas the location of receiving a mobile ad is the strongest driver of purchase intention. An interaction effect between location and personalization was also found to be significant. Personalization close to the product has little impact on purchase intention. The findings have important implications for researchers and retail managers, particularly when designing mobile in‐store advertising campaigns.