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

Abstract

PurposeDue to recent developments of indoor location-tracking technologies, brick-and-mortar retailers are now able to add location-based marketing capabilities to their existing retail apps, providing retailers with new opportunities to interact with customers inside of their stores. The aim of this study is to identify factors influencing the customers' adoption intention of location-based retail apps for stationary retailing.Design/methodology/approachBased on the technology acceptance model, a conceptual model was developed. A Web-based survey was conducted in Germany with a final sample of 501 cases. Structural equation modelling was performed to test the hypotheses.FindingsThe results confirmed the positive relationship between attitude and the customers' intention to use location-based retail apps. Perceived usefulness and perceived enjoyment promote a positive attitude toward location-based retail apps, while privacy concerns and fear of spam hinder the formation of a favorable attitude. Subjective norms have a positive effect on customers' usage intention.Practical implicationsThe results help retailers who want to establish location-based retail apps at the point of sale (e.g. in the context of omni-channel strategies).Originality/valueAs previous research about location-based apps has mainly used empirical data from either Chinese or American samples, less is known about the perception of European customers. Research indicates that existing findings might not be transferable to European countries due to differences in values, social norms or regulations. Also, the failure of Shopkick in Germany illustrates the need for more research. Based on this, using a German sample to answer the research question, this study aims to provide a European perspective on location-based retail apps, and thereby extend existing research.