RIEB Discussion Paper Series No.2022-10

Title

Mobile Targeting: Exploring the Role of Area Familiarity, Store Knowledge, and Promotional Incentives

Abstract

Building on psychological reactance and uncertainty reduction theory, this research addresses how area familiarity, store knowledge, and promotional incentives impact the success of mobile targeting ads. To test our predictions, we conduct randomized field experiments in Japan. In Study 1, customers with different levels of area familiarity and store knowledge receive mobile ads with coupons. In Study 2, we replicate the same experiment in which consumers receive mobile ads without any coupons. The results indicate that whereas lower area familiarity contribute to geo-targeting ads effectiveness only when coupons are affixed, ads of higher store knowledge tend to increase the number of visitors regardless of the coupon attachment. We discuss our mixing results based on the dual-system theory, leading to some managerial implications.

Keywords

Area familiarity; Context-based marketing; Mobile targeting; Psychological reactance; Promotional incentives; Store knowledge; Uncertainty reduction

Inquiries

Ryo KATO
Research Institute for Economics and Business Administration
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: +81-78-803-7036
FAX: +81-78-803-7059

Takahiro HOSHINO
Department of Economics, Keio University
RIKEN Center for Advanced Intelligence Project

Daisuke MORIWAKI
AILab, CyberAgent, Inc.

Shintaro OKAZAKI
King's College London