GSEP15CM39Kim Hong Rak

1

Global Immersion Project

Study on effectiveness of Location-based advertising on food service industry

in Sydney

2

001 Introduction

002 Literature review

003 Conceptual review,

Hypothesis

004 Research methodology,

Data collection

005 Research findings

006 Recommendation,

Limitation

2

CONTENTS

1Global Immersion Project

Introduction

3

What is Location based advertising ?

“Location based advertising is the process of personalizing a marketing message to a consumers based on their geographical location”

4

LBA

Geo Aware Ads

Geo Con-

questing

Geo Fencing

sends location appropriate messages to the mobile user by sensing his/her real time location.

Aids mobile ads to mobile users in a specific perimeter around a physical location.

Similar to geo-fencing, but the perimeter is established across a competitor’s location. Ads are aided to mobile users

Geo Targeting

1. facebook places 2. FOURSQUARE 3. Food service industry

From facebook places, share where you visit and get deal with owner of where you visit.

Share where you visit to friend and awarded with badge. Search restaurant around you.

Send notification and mobile coupons based on where you are.

5

Why is food service industry chosen ?

6

Research problem

• Even if LBA market prospect is bright, why is there no successful company among companies that provides Location based advertis-ing in marketing strategy ?

• What needs to convince consumer purchase products, receiving and accepting notification or coupon on mobile based on location based advertising ?

7

Research question

• Are there specific factor from LBA to influence consumers` behavior ?

• Are there any differences between traditional advertising and location based advertising to influence consumers` behavior ?

• How location based advertising benefits consumers ?

8

Research objective

As using LBA, what factors impact on customer making a purchase?

2Global Immersion Project

Literature review

9

Location based advertising Market

10

Willingness to share location

70%

30%

YES NO

39%

61%

YES NO

Marketing agencies using location totarget consumers.

2X industry average

Geo fencing Normal ad

0.84%

0.40%

11

$6 $18 5% 11%Geo targeting Mobile ad Revenues US ($billions) Mobile share in total local media

2015 2019 2015 2019

Location based advertising Market

12

offline

online

“ Online-to-Offline(O2O) Spending 10X Larger than E-commerce “ - Marketing land

Location based advertising Market

iBeacon• Apple service• Low energy Bluetooth signal• Higher accuracy than GPS• Enhances instore experience

13

iBeacon

Literature review

14

Companies extremely compete to obtain more customer`s information (Song Yu Jin 2005).

eMakter(2009) stated that in the U.S, 50percen of non-LBS users mentioned privacy could be ex-posed.

• Proper place • Proper time • Customization • Innovativeness• Privacy risk

Lee sang moon(2007) mentioned that informa-tion requires effective util-ity of time and if there is no proper timing in infor-mation, no more the in-formation is worthy.

Purchase different brand product comparing what they want to buy in nearby shops around them or from nearby shops, consumers pur-chase what they want if the product is slightly ex-pensive.

Given unique messages or information for specific person, the customer could feel VIP(very impor-tant person) or special person

Individual innovativeness is an aspect that attempt-ing new experience and using new product are by voluntary motivation de-spite taking risk(Flynn & Goldsmith 1993).

3Global Immersion Project

Conceptual reviewHypothesis

15

Conceptual framework

16

Privacy Risk

Proper Time

Proper PlaceMaking a Decision On Purchasing a

Product

Innovativeness Of User

Customization

I.V D.V

Hypothesis

17

H1 H2

H3 H4 H5

4Global Immersion Project

MethodologyData collection

18

Methodology

19

Data sources

Primary data

Quantitative method Questionnaire

Qualitative methods

Interview with experts

Secondary data Previous re-search study

• Method of analysisSimple Regression for each variable

• Data sources

20

Data collection

• Online questionnaire by Google survey

• 22nd March ~ 6th April

• Minimum 2 question for each variable

• 5-point Likert scale, rated from "strongly agree" through "strongly disagree".

• Collected 100 responses.

5Global Immersion Project

Findings

21

Demographic data

22

5535

10

Age group

20~29 30~39 40~49

26

36

15

23

Period of use of smartphone

25~48M 49~72M 73~96M EtcStudent 69%

Technicians 10%

Professionals 8%

Etc 13%

Female 45% Male 55%

Gender Occupation

69%

13%10%8%

Regression outcome

23

H no. Hypothesis Coefficients Standard Error t Stat P-value Support ?

H1 Ris -> DV 0.3620 0.0955 3.7890 0.0003 No

H2 Tim -> DV 0.1189 0.0838 1.4200 0.1588 No

H3 Pla -> DV 0.3590 0.0903 3.9746 0.0001 Yes

H4 Inn -> DV 0.1716 0.1112 1.5436 0.1259 No

H5 Cus -> DV 0.2523 0.0925 2.7289 0.0075 Yes

24

Privacy Risk

Proper TimeMaking a Decision

On Purchasing a Product

Innovativeness Of User

H1

H2

H4

H1 P-value = 0.0003

H2 P-value = 0.1588

H4 P-value = 0.1259

• Privacy risk – even if privacy exposure by LBA take places, the users are willing to make a purchase.

• Proper time – even if consumers receive coupon in not proper timing to use it, they tend to keep it and use later.

• Innovativeness of user – LBA looks like cutting edge technology but consumers tend to consider just one of advertising like traditional advertising (TV, newspaper..)

Regression outcome

25

Proper Place

Making a Decision On Purchasing a

Product

Customization

H3

H5

H3 P-value = 0.0001

H4 P-value = 0.0075

• Proper Place – consumers tend to visit nearby restaurant or shop from where they are.

• Customization – given customized advertising to consumers is more effective.

Regression outcome

6Global Immersion Project

RecommendationLimitation

26

Recommendation

27

1. Targeting at specific consumers and con-vey coupon based on consumers` prefer-ence.

2. Targeting at consumers nearby restaurant or shop that send coupon and notification.

3. Consumers does not concern about proper ti ming thus according to consumers` dis-tance, various coupon valid date need to be given.

4. Targeting at more broad age group because how innovative is consumers does not affect making a purchase.

28

Limitation

67 %

People who do not purchase a product using coupon given by LBA.

Should have given more numbers questions.

Did not work on Reliability and validity test.

Not all of the respondents areAustralians.

29

Thank you

Global Immersion Project