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A Natural Field Experiment on the Effectiveness of Real-Time Mobile Messaging
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Brand Loyalty
Mobile Advertising
Abstract
Recent developments in mobile technologies like geo-fencing have enabled shopping malls to
incentivize customers in real-time to visit more retail stores and buy more. However, customers’
response to such real-time geo-fencing campaigns can differ markedly. Some customers may
view real-time messages (RTMs) pushed by malls as relevant while others may find it intrusive.
Using data provided by a large retail mall operator in East Asia, our study finds that heavy buyers
and unplanned shoppers who receive an RTM when in shopping mode are 43% more likely to
continue shopping and also spend more after. The findings of this study therefore have important
implications for managers who design geo-targeting campaigns.
First & Corresponding Author
Khadija Ali Vakeel, Northwestern University
Authors in the order to be printed.
Khadija Ali Vakeel, Vijay Viswanathan, Mototaka Sakashita