A Concept of Location-Based Social Network Marketing

Abstract

ABSTRACT A stimulus-response model of location-based social network marketing is conceptualized based on an exploratory investigation. Location-based social network applications are capable of generating marketing stimuli from merchant, competition-based, and connection-based rewards resulted from relevance and connectivity. Depending on consumption situations, consumer characteristics, and social network structure, these rewards lead to actual behavior that manifests in variety behavior (i.e., patronage to new places) and loyalty behavior (i.e., increased frequency of patronage to familiar places). This behavior implies changes in patterns of mobility, making this marketing approach particularly relevant for tourism and hospitality businesses. Managerial implications and recommendations for further studies are provided.