With the development of location-based services and mobile phones, local retailing stores have the opportunity to send location-based advertisings (LBAs) to consumers at a right time and right place. However, knowledge about the influence of LBAs on consumers’ store patronage is limited. The purpose of this paper is to understand how the content of LBAs influences consumers’ store patronage intention. In particular, the paper investigates the influence of perceived accuracy and transaction cost reduction from the content of LBAs on consumers’ store patronage intention through the emotional reactions of pleasure and arousal.
This study developed a theoretical model to examine how the content of LBAs influences the store patronage intention of consumers. Empirical data were collected from 351 undergraduate and graduate students. The partial least squares technique was used to test the research model.
Perceived accuracy and transaction cost reduction from the content of LBAs have a significant influence on the store patronage intention of consumers through pleasure and arousal. Brand image and purchase plan are control variables.
Knowledge about the influence of LBAs on consumer store patronage is limited. This study provides empirical evidence about how perceived accuracy and transaction cost reduction from the content of LBAs affect the emotional reactions of consumers and then determine their store patronage intention.
