Mobile marketing: A literature review on its value for consumers and retailers

Abstract

The article describes the existing knowledge of how mobile marketing can increase value for consumers and retailers. Mobile device shopping, and consumers' use of mobile devices while shopping is shown to be both an extension of consumers' shopping behaviours developed on Internetconnected desktop and laptop computers (PC), and potentially new behaviours based on a mobile devices' uniquely integrated features such as camera, scanners and GPS. The article focuses on how mobile marketing creates value for consumers and retailers, enabling more precise research and development of managerial concepts and tools while providing both managers and academics with increased understanding of mobile marketing and it's value outcomes for retailers. Keywords:Mobile marketing, integration, and value creation. 3 1.0 INTRODUCTION Mobile devices and mobile applications offer retailers more than just the opportunity to exploit a new channel to reach customers. Mobile devices offer opportunities to combine information search, phone functionality and interaction while shopping in-store or using a product. A mobile device is a constant companion to the consumer, a gateway to a relationship between the consumer and the retailer, making it an ideal supplementary channel for distance selling and physical retailing (Shankar, Venkatesh, Hofacker et al, 2010). An industry study showed that half of US mobile consumers The major impacts of the Internet on retailing are the reduced search costs for the consumer (Bakos, 1997, Lynch & Ariely, 2000, an increasing variety of products offered (Brynjolfsson, Hu & Smith, 2003) lower prices (Brynjolfsson & Smith, 2000), empowering consumers to make better choices for themselves, and increasing the relationship with the purchased brand after purchase (Edelman, 2010). As an example, Court, Elzinga, Mulder et al, (2009) found that 60% of consumers of facial skin care products conducted online research after purchase. But in purchasing situations when consumers want an experience, a product trial, in-store atmosphere, or interaction with a salesperson, the Internet distance selling falls short of expectations (Daugherty, Li & Biocca, 2008).In conceptual studies, the additional value created by mobile services for consumers derived from being accessible independent of time and place (Balasubramanian, Peterson & Jarvenpaa, 2002, 4 Chen & Nath, 2004), and being customized based on time, location and personal profile (Figge, 2004), self-ascribed roll categories (Professional (on duty), private (off duty)) and stance categories (busy, time on hand, waiting) (Dholakia & Dholakia, 2004). According to Kumar and Zahn (2003), the real business drivers for mobile technology were customer interaction and operational efficiency, potentially increasing retailer effectiveness and efficiency. Conceptual studies presented suggestions on mobile marketing value chains consisting of several activities performed by multiple actors (Barnes, 2002, Buellingen & Woerter, 2004, improving communication and sales (Mama...

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