Analysis Of Location Based Advertising Towards Purchase Intention. Case Study: Dunkin' Donuts Indonesia

Abstract

In this Digital era, the increase of wireless and mobile communication is very massive and the number of mobile devices will be increasing rapidly. This can be the advantage for mobile operator because the people gives a lot of attention to their gadget every day. It requires mobile operators to look for other marketing method beyond SMS and voice in improving their revenue. The other marketing method that still fresh is mobile advertising.
Mobile advertising is the communication of products or services to mobile device and smartphone consumers which is spectrum ranges from short message service (SMS) text to interactive advertisements. Mobile advertising is a subset of mobile marketing and targets users according to specified location or demographics. Mobile networks identify related mobile profiles and preferences and displays corresponding advertisements when consumers download and uses data services like games and applications. Location Based Advertising (LBA) is one of the mobile advertising type that presented where the advertisement messages sent by location and certain criteria desirable by company itself.
This study aims to examine the Location Based Advertising of the Dunkin’ Donuts based on the Message Type, Customization, Permission, Intrusiveness, Involvement, and Timing. The elements is adopted from the previous study by gazley. The elements also can be use to examine how it is going and the impact of attitude to Purchase Intention of Dunkin’ Donuts’ customers in Bandung, Indonesia. The questionnaire were distributed through 386 respondents as part of population using digital format questionnaire. The researcher used Partial least square (PLS) analysis to explain the results of questionnaire that using SmartPLS software. All the items measured in this study are valid and reliable from the statistical data analysis result. From the partial least square analysis, the model used in this study had passed the outer model and inner model analysis. The result show that there are 3 of 6 elements which are Message Type, Permission, and Involvement are proven to have positive and significance influence towards Attitudes that mediated Purchase Intention.
Keywords: Marketing Management, Advertising, Location Based Advertising, Purchase Intention