Article

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

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Abstract

Purpose Due 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/approach Based 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. Findings The 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 implications The 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/value As 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.

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Purpose–This study explores consumers’ profiles for and purchase intentions toward smart environmental objects. It segments consumers according to two apparently contradictory dimensions of smart environmental objects: environment (i.e., environmental concern and environmental beliefs) and technology (i.e., materialistic values and technological beliefs). Design/Methodology/Approach–A cluster analysis of 658 French consumers involves their environmental concern, environmental beliefs, materialistic values, perceived usefulness, and perceived ease of use. A regression analysis identifies the variables with the greatest influence on purchase intentions in the entire sample. Findings–Four segments result from the analysis: unconcerned, retro eco-friendly, non-materialistic converted, and converted. The converted consumer segment had the highest parchase intentions and exhibited high levels of both environmental beliefs and perceived usefulness compared with the other segments. Both environmental and technological beliefs and environmental concern influence purchase intentions more broadly. Research implications–A combined consideration of both environmental and technological beliefs is necessary to influence purchase intentions toward smart environmental objects. This study challenges some previous research that assumes a clear opposition between materialism and environmentalism. Practical implications–The results support tailored managerial recommendations for appealipng to each of the four segments of consumers interested in smart environmental objects. Originality/value–This study provides novel insights into consumers’ concerns, beliefs, and values in the rapidly expanding context of smart environmental objects.
Article
Location-based advertising is an entrepreneurial and innovative means for advertisers to reach out through personalised messages sent directly to mobile phones using their geographic location. The mobile phone users’ willingness to disclose their location and other personal information is essential for the successful implementation of mobile location-based advertising (MLBA). Despite the potential enhancement of the user experience through such personalisation and the improved interaction with the marketer, there is an increasing tension between that personalisation and mobile users’ concerns about privacy. While the privacy calculus theory (PCT) suggests that consumers make privacy-based decisions by evaluating the benefits any information may bring against the risk of its disclosure, this study examines the specific risks and benefits that influence consumers’ acceptance of MLBA. A conceptual model is proposed based on the existing literature and a standardised survey was developed and targeted at individuals with known interests in the subject matter. From these requests, 252 valid responses were received and used to evaluate the key benefits and risks of MLBA from the users’ perspectives. While the results confirmed the importance of internet privacy concerns (IPC) as an important determinant, they also indicate that monetary rewards and intrusiveness have a notably stronger impact on acceptance intentions towards MLBA. Intrusiveness is the most important risk factor in determining mobile users’ intentions to accept MLBA and therefore establishing effective means of minimising the perceived intrusiveness of MLBA can be expected to have the greatest impact on achieving effective communications with mobile phone users.
Article
Mobile information services have revolutionized business models and service delivery methods by facilitating consumer access to information and order placement via mobile apps. In developed markets, mobile banking (m-banking) and mobile payment (m-payment) applications have replaced text-based mobile services. However, extant research has not addressed these mobile financial services apps (MFSAs) adequately from the perspective of consumer behavior. Thus, the present study developed and tested a series of hypotheses related to the antecedents of perceived value of MFSA use; it also examined how such use affects the development of customers’ overall relationships with banks. Our hypotheses were tested using two samples (N=992; N=524) comprising different types of MFSA end-users in one of the leading countries in digital banking, Finland. The results supported most of the hypotheses and revealed that self-congruence and new product novelty are the principal drivers of perceived MFSA value. In addition, the findings show that the perceived value of MFSAs yields strong positive effects on customers’ overall satisfaction and commitment to their bank. The present study’s key managerial implication is that banks’ investments in developing MFSAs result in improved relationships with customers and increased business.
Article
With the increasing use of handheld digital devices for shopping, retailers are trying to effectively implement mobile applications. Drawing from extant literature on customer value, this research explores the factors that drive customer satisfaction with retailers’ mobile applications (mobile apps) and the subsequent effect on repatronage intentions with the retailer. Data were collected from customers who use retailer mobile apps, and PLS-SEM was used for analysis. We find that the fit between retailer brand image and the mobile application positively affects customer satisfaction with the retailer mobile app. In addition, functional value and hedonic value of retailers’ mobile applications positively influence customer satisfaction with the retailer mobile app. Finally, satisfaction with the retailer mobile app partially mediates the relationships between congruency, functional, hedonic and social values and repatronage intentions towards the retailer. Theoretically, this paper provides a better understanding of how the retail app-brand fit plays a vital role in determining satisfaction and repatronage intentions in an increasingly competitive retail app environment. From a managerial perspective, current paper emphasizes the importance of functional and hedonic values in providing the same experience at each retail touch point for companies that decide to go with omnichannel retailing.
Article
Mobile internet represents a breakthrough technology that has derived much attention from mobile organizations and services providers in the Kingdom of Saudi Arabia (KSA).¹ However, the level of acceptance of mobile internet in the KSA is still below the level of ambition. This is in addition to the fact that there is a considerable need to discover the main factors shaping Saudi customers’ intention and adoption of such a mobile system. For this reason, this study is conducted in the hope of providing further understanding about the adoption of mobile internet in the KSA. The extension version of Technology Acceptance Model TAM² with perceived enjoyment was adopted as a theoretical foundation of the current study model. This was expanded by considering two additional factors: innovativeness and trust. The main empirical data collected through questionnaires was analysed using structural equation modelling (SEM).³ Perceived usefulness, perceived enjoyment, trust, and innovativeness are statistically supported to have a significant impact on the Saudi customer intention to adopt mobile internet. Further discussion regarding the main contribution as well as research limitations and future directions are presented at the end of this paper.
Article
Purpose This study develops the idea of smart retailing, exemplified in innovative, technology-enriched retail services as part of service-oriented strategies. In particular, the purpose of this paper is to provide a new integrated framework to understand the emerging retail scenario based on the smart usage of technologies to improve retail service and develop innovation management strategies. This framework will provide a comprehensive understanding the basic forms of smart retailing as the current competitive scenario. Design/methodology/approach As a viewpoint, this paper employs an interdisciplinary approach, drawing upon the actual challenges in retailing, to propose a new perspective, the smart retailing one, to describe the new competitive scenario and formulates an emerging research agenda. Findings The present paper contributes to research on innovation and technology management for retailing by examining the key dimensions of smart retailing, which aims to enhancing retail service quality and retailers’ performance. Originality/value The paper clearly explains how current retailing is moving to a smart perspective, and how retail management should be adapted to successfully perform in the current service-dominant logic scenario, as consequence of the increasing consumer involvement in service co-production and the rapid growth of digital technologies.
Article
Controversial information technologies, such as biometrics and radio frequency identification, are perceived as having the potential to both benefit and undermine the well-being of the user. Given the type and/or amount of information these technologies have the capability to capture, there have been some concerns among users and potential users. However, prominent technology adoption models tend to focus on only the positive utilities associated with technology use. This research leverages net valence theories, which incorporate both positive and negative utilities, and context of use literature to propose a general framework that can be used for understanding consumer acceptance of controversial information technologies. The framework also highlights the importance of incorporating contextual factors that reflect the nuances of the controversial technologies and their specific context of use. We apply the framework to consumer acceptance of biometric identity authentication for banking transactions through automated teller machines. To that end, we contextualize the core construct of perceived benefits and concerns to this domain in a qualitative study of 402 participants, determine the appropriate contextual factors that are antecedents of the contextualized core constructs by examining relevant past research, and then develop and validate a contextualized research model in a quantitative study of 437 participants. Findings support the validity of our framework, with the model explaining 77.6% of the variance in consumers’ attitudes toward using biometrics for identity authentication at automated teller machines. The online appendix is available at https://doi.org/10.1287/isre.2017.0706 .
Article
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.
Article
The statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined. A drawback of the commonly applied chi square test, in addition to the known problems related to sample size and power, is that it may indicate an increasing correspondence between the hypothesized model and the observed data as both the measurement properties and the relationship between constructs decline. Further, and contrary to common assertion, the risk of making a Type II error can be substantial even when the sample size is large. Moreover, the present testing methods are unable to assess a model's explanatory power. To overcome these problems, the authors develop and apply a testing system based on measures of shared variance within the structural model, measurement model, and overall model.
Article
Despite their generally increasing use, the adoption of mobile shopping applications often differs across purchase contexts. In order to advance our understanding of smartphone-based mobile shopping acceptance, this study integrates and extends existing approaches from technology acceptance literature by examining two previously underexplored aspects. First, the study examines the impact of different mobile and personal benefits (instant connectivity, contextual value, and hedonic motivation), customer characteristics (habit), and risk facets (financial, performance, and security risk) as antecedents of mobile shopping acceptance. Second, it is assumed that several acceptance drivers differ in relevance subject to the perception of three mobile shopping characteristics (location sensitivity, time criticality, and extent of control), while other drivers are assumed to matter independent of the context. Based on a dataset of 410 smartphone shoppers, empirical results demonstrate that several acceptance predictors are associated with ease of use and usefulness, which in turn affect intentional and behavioral outcomes. Furthermore, the extent to which risks and benefits impact ease of use and usefulness is influenced by the three contextual characteristics. From a managerial perspective, results show which factors to consider in the development of mobile shopping applications and in which different application contexts they matter.
Article
Earlier mobile game studies have largely focused on the pre-adoption phase while ignoring the post-adoption behaviors. Additionally, while the intrinsic factor of enjoyment is often considered important in affecting game play, little research has attempted to understand its drivers. To fill these gaps, we examine the role of enjoyment as a motive for continual mobile game use, and the key antecedents of enjoyment. Applying our two-dimensional classification of artifact-related attributes, we adopt game design attributes of challenge, variety, novelty, and design aesthetics; and playability attributes of ease of use, and interactivity, and measure their impact on enjoyment, and its effect on continuance intention. The model is tested against 207 actual users of various mobile games. Structural equation modeling (SEM) is employed for data analysis. The findings put ease of use, novelty, design aesthetic, and challenge under the spotlight. We conclude that continual mobile game use is strongly driven by enjoyment, which in turn is primarily driven by the system's capacity of regeneration and visually attractive and easy-to-use interface. The implications are discussed in the paper.
Article
Mobile in-store advertising is becoming increasingly important, as it offers new options for retailers to communicate with customers at the point of sale. This study investigates how mobile in-store advertising should be designed in order to be most effective. The authors identify three value drivers (price promotion, location, and personalization) and examine their effect on customers’ purchase intention. The influence of the three value drivers was tested in a large-scale representative study with a laboratory experimental design. The findings indicate that all three value drivers increase purchase intention. Surprisingly, the authors find that price promotions are the least important value driver, whereas the location of receiving a mobile ad is the strongest driver of purchase intention. An interaction effect between location and personalization was also found to be significant. Personalization close to the product has little impact on purchase intention. The findings have important implications for researchers and retail managers, particularly when designing mobile in-store advertising campaigns.
Article
Recently, there has been a dramatic proliferation of mobile apps, many of which allow for in-app purchases; however, little research has focused on what motivates a user to make such purchases. Based on the Affect-Behavior-Cognition model (ABC model) of attitudes, we developed a model involving perceived value and social influences. The model is then empirically evaluated using survey data collected from 485 users regarding their perception of mobile apps. The findings indicate that stickiness and social identification significantly influence a user's intention to make in-app purchases. Specifically, significant differences were found between users and potential users in terms of antecedents to forming stickiness and making in-app purchases. The results may provide further insights into the development of effective mobile app business models and adoption strategies.
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Interest in the problem of method biases has a long history in the behavioral sciences. Despite this, a comprehensive summary of the potential sources of method biases and how to control for them does not exist. Therefore, the purpose of this article is to examine the extent to which method biases influence behavioral research results, identify potential sources of method biases, discuss the cognitive processes through which method biases influence responses to measures, evaluate the many different procedural and statistical techniques that can be used to control method biases, and provide recommendations for how to select appropriate procedural and statistical remedies for different types of research settings.
Article
Social Network Sites (SNSs) rely exclusively on user-generated content to offer engaging and rewarding experience to its members. As a result, stimulating user communication and self-disclosure is vital for the sustainability of SNSs. However, considering that the SNS users are increasingly culturally diverse, motivating this audience to self-disclose requires understanding of their cultural intricacies. Yet existing research offers only limited insights into the role of culture behind the motivation of SNS users to self-disclose. Building on the privacy calculus framework, this study explores the role of two cultural dimensions - individualism and uncertainty avoidance - in self-disclosure decisions of SNS users. Survey responses of US and German Facebook members are used as the basis for our analysis. Structural equation modeling and multi-group analysis results reveal the distinct role of culture in the cognitive patterns of SNS users. The authors find that trusting beliefs play a key role in the self-disclosure decisions of users from individualistic cultures. At the same time, uncertainty avoidance determines the impact of privacy concerns. This paper contributes to the theory by rejecting the universal nature of privacy calculus processes. The findings provide for an array of managerial implications for SNS providers as they strive to encourage content creation and sharing by their heterogeneous members.
Article
This study explores the psychological effects of information tailoring, locational congruity, and product involvement on user attitudes toward location-based advertising (LBA) on mobile devices. Results from a 2 (type of information tailoring: personalization vs. customization) × 2 (level of locational congruity: high vs. low) × 2 (level of product involvement: high vs. low involvement) between-subjects experiment (N = 115) showed that customization and locational congruity were effective strategies for inducing positive attitudes about LBA and its service quality. In addition, the ad’s perceived intrusiveness was found to mediate the effects of product involvement on participants’ attitudes toward LBA. Implications of the findings are discussed.