Content is King? The Effectiveness of Message Content, Personalization, and Location in Mobile In-Store Advertising

Abstract

Smartphones have become a vital part of our lives, a personal assistant helping us as customers mastering everyday tasks. For example, the new stationary supermarket Amazon Go implements customers' smartphones as an integral part for completing the grocery shopping process (e.g. used to check-in, for payment). As in-store communication over smartphones becomes increasingly important, retailers pay their attention to mobile in-store advertising, which offers them new perspectives to interact with customers at the point of sale. In this study, we therefore investigate the effectiveness of mobile in-store advertising by empirically examining which combination of message content is most effective for different in-store locations. Drawing on Construal Level Theory, we conduct an online choice experiment, using a simulated supermarket shopping task. Results show that personalization in combination with price promotions are most effective regarding the choice of the target product when spatially close to the product. Moreover, personalization strengthens the impact of ad content at the shelf, representing an amplifying effect on product choice.

An In-store Recommender System Leveraging the Microsoft HoloLens

“…The model can be trained by minimizing the loss function using stochastic gradient descent [17]. As recommendations are known to be more relevant when customers are close to the recommended product [28], we propose to use the location of the user in post-context filtering [1].…”

Acceptance of in-store apps: factors that influence the intention to adopt location-based retail apps – insights from Germany

“…The current issue and full text archive of this journal is available on Emerald Insight at: https://www.emerald.com/insight/0959-0552.htm new tool to access personal information about their in-store customers which can be used to improve the efficiency of existing loyalty programs (Roggeveen and Sethuraman, 2020;Taylor and Levin, 2014). However, retail apps are associated with several more positive outcomes for retailers such as increased customer purchase intentions (Schrage et al, 2019) or higher spendings (Kim et al, 2017). Gupta (2013) argued that retail apps even provide retailers with the opportunity to revamp their competitive position in the face of the increasing threat of online retailers (such as Amazon).…”

“…At the same time, retail apps provide brick-and-mortar retailers with a new tool to access personal information about their in-store customers which can be used to improve the efficiency of existing loyalty programs (Roggeveen and Sethuraman, 2020; Taylor and Levin, 2014). However, retail apps are associated with several more positive outcomes for retailers such as increased customer purchase intentions (Schrage et al. , 2019) or higher spendings (Kim et al.…”