THE EFFECTS OF LOCATION-BASED ADVERTISING AND PRIVACY SELFEFFICACY ON CLICK INTENTION.

Abstract

This study investigates the moderating effects of privacy self-efficacy (PSE) on the relationship between location-based advertisement (LBA) and click intention in Taiwan’s retail shopping context. A 2 (LBA: opt-out push vs. pull) × 2 (PSE: high vs. low) mixed factorial design was adopted to validate H1, H2a and H2b. A total of 141 people participated in this experiment. The final valid sample consisted of 125 participants. The further two-way ANOVA revealed a significant difference in main effect between the two LBA approaches, with pull LBA associated with significantly higher click intentions. H1 was supported. The main effect of PSE was significant, and the interaction effect between LBA and PSE was confirmed. Hence, we moved on to examine the simple main effect of each variable on click intentions. The effects of the two LBA approaches on click intentions were not significantly different for low PSE consumers. H2a was supported. For high PSE consumers, the difference was significant. Pull LBA was associated with higher click intentions as compared with opt-out push LBA. H2b was supported. These findings make a significant theoretic contribution and offer practical implications.