Behaviorally targeted location-based mobile marketing

Abstract Marketers increasingly use behavioral targeting in location-based mobile marketing (LBMM). However, highly personalized messages like this may backfire by eliciting consumer reactance. We suggest that LBMM efficacy depends on its potential to minimize reactance, which can be achieved effectively combining location (in-store vs. out-store), (based consumers’ product category involvement [PCI]), and the type of promotion offered (price non-price promotion). Results a field study, virtual reality experiment, two online experiments show although in-store ads are generally more effective increasing sales than out-store ads, is only case if consumers have low PCI with advertised category, because decreases their To attract stores LBMM, we firms should offer price promotions high PCI, these combinations targeting, elicit least reactance therefore result higher probability buy.