global immersion project
TRANSCRIPT
GSEP15CM39Kim Hong Rak
1
Global Immersion Project
Study on effectiveness of Location-based advertising on food service industry
in Sydney
2
001 Introduction
002 Literature review
003 Conceptual review,
Hypothesis
004 Research methodology,
Data collection
005 Research findings
006 Recommendation,
Limitation
2
CONTENTS
1Global Immersion Project
Introduction
3
What is Location based advertising ?
“Location based advertising is the process of personalizing a marketing message to a consumers based on their geographical location”
4
LBA
Geo Aware Ads
Geo Con-
questing
Geo Fencing
sends location appropriate messages to the mobile user by sensing his/her real time location.
Aids mobile ads to mobile users in a specific perimeter around a physical location.
Similar to geo-fencing, but the perimeter is established across a competitor’s location. Ads are aided to mobile users
Geo Targeting
1. facebook places 2. FOURSQUARE 3. Food service industry
From facebook places, share where you visit and get deal with owner of where you visit.
Share where you visit to friend and awarded with badge. Search restaurant around you.
Send notification and mobile coupons based on where you are.
5
Why is food service industry chosen ?
6
Research problem
• Even if LBA market prospect is bright, why is there no successful company among companies that provides Location based advertis-ing in marketing strategy ?
• What needs to convince consumer purchase products, receiving and accepting notification or coupon on mobile based on location based advertising ?
7
Research question
• Are there specific factor from LBA to influence consumers` behavior ?
• Are there any differences between traditional advertising and location based advertising to influence consumers` behavior ?
• How location based advertising benefits consumers ?
8
Research objective
As using LBA, what factors impact on customer making a purchase?
2Global Immersion Project
Literature review
9
Location based advertising Market
10
Willingness to share location
70%
30%
YES NO
39%
61%
YES NO
Marketing agencies using location totarget consumers.
2X industry average
Geo fencing Normal ad
0.84%
0.40%
11
$6 $18 5% 11%Geo targeting Mobile ad Revenues US ($billions) Mobile share in total local media
2015 2019 2015 2019
Location based advertising Market
12
offline
online
“ Online-to-Offline(O2O) Spending 10X Larger than E-commerce “ - Marketing land
Location based advertising Market
iBeacon• Apple service• Low energy Bluetooth signal• Higher accuracy than GPS• Enhances instore experience
13
iBeacon
Literature review
14
Companies extremely compete to obtain more customer`s information (Song Yu Jin 2005).
eMakter(2009) stated that in the U.S, 50percen of non-LBS users mentioned privacy could be ex-posed.
• Proper place • Proper time • Customization • Innovativeness• Privacy risk
Lee sang moon(2007) mentioned that informa-tion requires effective util-ity of time and if there is no proper timing in infor-mation, no more the in-formation is worthy.
Purchase different brand product comparing what they want to buy in nearby shops around them or from nearby shops, consumers pur-chase what they want if the product is slightly ex-pensive.
Given unique messages or information for specific person, the customer could feel VIP(very impor-tant person) or special person
Individual innovativeness is an aspect that attempt-ing new experience and using new product are by voluntary motivation de-spite taking risk(Flynn & Goldsmith 1993).
3Global Immersion Project
Conceptual reviewHypothesis
15
Conceptual framework
16
Privacy Risk
Proper Time
Proper PlaceMaking a Decision On Purchasing a
Product
Innovativeness Of User
Customization
I.V D.V
Hypothesis
17
H1 H2
H3 H4 H5
4Global Immersion Project
MethodologyData collection
18
Methodology
19
Data sources
Primary data
Quantitative method Questionnaire
Qualitative methods
Interview with experts
Secondary data Previous re-search study
• Method of analysisSimple Regression for each variable
• Data sources
20
Data collection
• Online questionnaire by Google survey
• 22nd March ~ 6th April
• Minimum 2 question for each variable
• 5-point Likert scale, rated from "strongly agree" through "strongly disagree".
• Collected 100 responses.
5Global Immersion Project
Findings
21
Demographic data
22
5535
10
Age group
20~29 30~39 40~49
26
36
15
23
Period of use of smartphone
25~48M 49~72M 73~96M EtcStudent 69%
Technicians 10%
Professionals 8%
Etc 13%
Female 45% Male 55%
Gender Occupation
69%
13%10%8%
Regression outcome
23
H no. Hypothesis Coefficients Standard Error t Stat P-value Support ?
H1 Ris -> DV 0.3620 0.0955 3.7890 0.0003 No
H2 Tim -> DV 0.1189 0.0838 1.4200 0.1588 No
H3 Pla -> DV 0.3590 0.0903 3.9746 0.0001 Yes
H4 Inn -> DV 0.1716 0.1112 1.5436 0.1259 No
H5 Cus -> DV 0.2523 0.0925 2.7289 0.0075 Yes
24
Privacy Risk
Proper TimeMaking a Decision
On Purchasing a Product
Innovativeness Of User
H1
H2
H4
H1 P-value = 0.0003
H2 P-value = 0.1588
H4 P-value = 0.1259
• Privacy risk – even if privacy exposure by LBA take places, the users are willing to make a purchase.
• Proper time – even if consumers receive coupon in not proper timing to use it, they tend to keep it and use later.
• Innovativeness of user – LBA looks like cutting edge technology but consumers tend to consider just one of advertising like traditional advertising (TV, newspaper..)
Regression outcome
25
Proper Place
Making a Decision On Purchasing a
Product
Customization
H3
H5
H3 P-value = 0.0001
H4 P-value = 0.0075
• Proper Place – consumers tend to visit nearby restaurant or shop from where they are.
• Customization – given customized advertising to consumers is more effective.
Regression outcome
6Global Immersion Project
RecommendationLimitation
26
Recommendation
27
1. Targeting at specific consumers and con-vey coupon based on consumers` prefer-ence.
2. Targeting at consumers nearby restaurant or shop that send coupon and notification.
3. Consumers does not concern about proper ti ming thus according to consumers` dis-tance, various coupon valid date need to be given.
4. Targeting at more broad age group because how innovative is consumers does not affect making a purchase.
28
Limitation
67 %
People who do not purchase a product using coupon given by LBA.
Should have given more numbers questions.
Did not work on Reliability and validity test.
Not all of the respondents areAustralians.
29
Thank you
Global Immersion Project