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.

Title: A study of how the Brick and Mortar business can utilize Location-based Marketing in Sweden. - Technologies, Strategies, Privacy & Integrity and Receptiveness from a consumer and expert perspective. Date: 2014-05-20 Level: Bachelor Thesis in Marketing Authors: Philip Lagström and Gustaf Stenlund. Supervisor: Klaus Solberg Søilen. Purpose: The purpose of this research is to create an understanding of what location-based marketing is and how brick and mortar businesses in Sweden can use this type of marketing, and how it affects sales and the customer experience. The objective is also to find out how consumers percept location-based marketing and possible privacy and integrity concerns. Theoretical framework: The theoretical framework begins with theory regarding Smartphone usage in Sweden and privacy & integrity concerns. The theory also discusses the brick and mortar business. Further, it discusses what kinds of techniques and methods that are used by location-based marketing today is, and how push and pull strategies can be used within location-based marketing. Method: The research is based on a combination of a qualitative and quantitative study. This was made to get the experts point of view and also the consumers’ perspective. The qualitative part consisted of three interviews with experts in the field of location-based marketing, mobile applications, Smartphone marketing and digital marketing. The quantitative part consisted of a survey with 357 participants Empirical framework: The empirical study consists of interviews and a survey. It begins with the interviews with the three experts; this part involves thoughts regarding location-based marketing within brick and mort, best method of LBM, consumer receptiveness, negative/positive aspects, privacy and integrity and future prospects for location-based marketing. This followed by the results from the quantitative survey with our 357 respondents; the survey gives a consumer point of view on important factors such as Smartphone use, consumer interest regarding LBM, receptiveness, privacy and integrity concerns and loyalty. Conclusion: The conclusion made in this dissertation is that location-based marketing is a great part of the digital marketing mix, and could potentially work well for Swedish brick and mortar businesses. It has potential to create increased value for consumers, which in turn can develop into a loyal customer base. The respondents of our survey are not concerned about their privacy and integrity. However, it could be a devastating blow for retailers if dealt with incorrectly.

The brick and mortar stores are decreasing their field of activity meanwhile online retail is increasing. Hence the purpose of this bachelor thesis is to examine if the clothing industries’ brick a nd mortar stores could change their down going trend by using both location-based marketing and the digital footprints of a customer as part of their strategy.

[pt] O varejo se depara hoje com a crescente onipresença de tecnologias móveis digitais. No entanto, a maioria das compras ainda é concluída em lojas físicas. Muitas questões surgem então com relação à conexão do digital com o físico, do online e do offline, sendo a proximidade do consumidor com relação ao ponto de venda um aspecto instigante do contexto estratégico do mobile marketing. Pouco se sabe ainda sobre os efeitos do marketing baseado em localização nas visitas à loja. O objetivo desta tese é então examinar os efeitos do conteúdo de mensagens mobile e dos dados de geolocalização nas visitas às lojas, conectando os esforços online ao comportamento offline, em uma perspectiva cross-channel. O método consiste em um estudo qualitativo, um estudo de dados secundários (estudo 1), experimentos de campo (estudos 2 e 3) e um experimento online (estudo 4), em uma abordagem de método misto. O estudo qualitativo envolveu entrevistas em profundidade com gerentes de nível C e especialistas em mobile de importantes empresas da indústria digital. O estudo 1 analisou quais elementos visuais e textuais são preditores de taxas mais altas de visitação (VTR) em campanhas mobile, usando visão computacional e aprendizado de máquina em uma amostra de 640 campanhas de celular baseadas em localização. Os resultados mostram que anúncios mobile com apelo de marca tendem a gerar mais visitas ao ponto de venda do que aqueles com apelo de compra. Um anúncio mobile exibindo uma pessoa / pessoas tende a gerar mais visitas ao ponto de venda do que um sem pessoa. As palavras black, desconto e participar tiveram um efeito positivo nas visitas. O Estudo 2 testou o efeito da proximidade do consumidor ao local em resposta a notificações push mobile. O Estudo 3 testou os efeitos do conteúdo de mensagens mobile (prompts promocionais, de marca ou personalizados) combinados com dados de geolocalização em visitas a lojas. Ambos os estudos foram realizados em um experimento de campo em um grande shopping center, com os usuários do aplicativo do shopping. Dadas as limitações dos dados dos estudos 2 e 3, devido à pandemia de Covid-19, foi realizado um quarto estudo experimental online, com 1.534 participantes. Como contribuição teórica, os estudos forneceram novas perspectivas sobre mobile marketing, comunicação baseada em localização e efeitos de notificação push sobre as atitudes e comportamento dos clientes, trazendo mais insights sobre a era do marketing de marca na mão. Os resultados ajudam a direcionar decisões estratégicas de mobile marketing, impulsionando ações de menor alcance, mas maior precisão, com expectativa de taxas de conversão mais altas. / [en] The retail context faces an increasing omnipresence of mobile technologies. Yet, most purchases are still concluded in brick-and-mortar stores. Many issues arise regarding connecting digital with physical, online and offline, with the consumer proximity to physical locations as an important aspect of the mobile marketing strategic context. Little is known about the effects of mobile location-based marketing on store visits. The objective of this dissertation is to analyze which visual and textual features of push online mobile messages generate more visits to brick-and-mortar stores, connecting online efforts to offline behavior, in a cross-channel perspective. The method consists of a qualitative study, a secondary data study (study 1), field experiments (studies 2 and 3) and an online experiment (study 4), in a mixed-method approach. The qualitative study involved in-depth interviews with C-level managers and mobile experts from major companies in the digital industry. Study 1 analyzed which visual and textual features are predictors of higher visit through rates (VTR) in mobile campaigns, using computer vision and machine learning in a sample of 640 location-based mobile campaigns. The findings show that mobile adds with branding appeal tend to drive more visits to the offline point of sale than those with purchase appeal. A mobile add displaying a person / people tends to drive more visits to the offline point of sale than one with no person. Words black, discount and participate displayed a positive effect. Study 2 tested the effect of the proximity of the consumer to the location in response to mobile push notifications. Study 3 tested the effects of mobile message content (promotional, branded or personalized prompts) combined with geolocation data on store visits. Both studies were conducted in a field experiment in a large shopping mall, with the mall app users. Given the limitations of the data from studies 2 and 3, due to Covid-19 pandemic, a fourth online experimental study was conducted, with 1.534 participants. As theoretical contribution, it provided new perspectives on mobile marketing, location-based communication and push-notification effects on customers attitudes and behavior, bringing further insights into the brand in the hand marketing era. The results help directing mobile marketing strategic decisions, driving actions of smaller reach but greater precision, with expected higher conversion rates.