When location and content matter: effects of mobile messages on intention to redeem

Abstract

Purpose The purpose of this paper is to examine the effect of mobile messages on intention to redeem a coupon or promotional offer, depending on location and content. Location (home, city, shop) and content (coupon, promotional message) were used as independent factors. Design/methodology/approach Participants in two online surveys (using 3×3 and 3×2 between-subjects factorial designs) received both simulated and real application smartphone messages and they got the location where the smartphone shopping message scenario is located. The surveys produced 528 responses for analysis in the first study and 146 answers for the second study. Findings The results indicate that mobile messages can be highly effective for users of discount apps when the consumer is near the shop. However, the high perceived risk associated with such a message could deter potential customers from using mobile coupons. Research limitations/implications The main limitation of this study is that few consumers used the discount mobile applications examined. Future research should implement field experiments with real and potential users to investigate this low usage rate. Practical implications Brick-and-mortar retailers can compete with digitization by using mobile messages, as users’ intention to redeem is quite high. However, they should be aware of the privacy concerns preventing some customers from using these apps. Originality/value Current research highlights the importance of digitization in retailing by using new technologies for brick-and-mortars, e.g., mobile messages as part of mobile targeting. This study provides evidence of the potential risks and benefits of sending mobile messages to customers in a different context.