A location-based application : - From a consumer perspective

Abstract: The rise of mobile phones as the number one leading personal communication device make mobile phones very attractive for marketers, as they are always on, always with the consumer and always connected. Smartphones has the ability to update their location (thus the location of the consumer) by themselves. Through this an automatic location-dependent advertisement, triggered by the location of the mobile device, may be sent to any customer in a predetermined area. However, a current problem is how to not misuse this opportunity. For example, even though a consumer is in the nearby area of a store it does not mean that they are interested in receiving an offer. Consumers are also very keen on feeling in control of the access to their personal information. The purpose of this bachelor thesis is thus to investigate what attributes a location-based application may have to increase customer usage by enhancing, facilitating and developing the customers shopping behaviour. Theories used as a basis for investigation are marketing strategy, marketing innovation, direct marketing, mobile marketing (location-based marketing and permission-based marketing), consumer behaviour (customer value, attitudes and monetary- and non-monetary promotion). A deductive, qualitative research approach was chosen, semi-structured interviews and focus groups were conducted among students at the Linnaeus University in Växjö. The interviews regarded application attributes; the results obtained were used as a base for the focus group studies. In the analysis, the findings from the focus groups linked with theory outlined the attributes and how such an application should be designed. The most important categories are customisation and value, followed in descending order by functional, external, registration and privacy. Also concluded is how the customers shopping experience may be enhanced, facilitated and developed on the basis of these attributes. In the conclusion similarities and differences between the two focus groups were discussed and theoretical and managerial implications were outlined.