In-store shopping with location-based retail apps: perceived value, consumer response, and the moderating effect of flow

Abstract

Bricks-and-mortar retailers have recently begun to utilize mobile applications delivering location-based services (LBS) as part of their omni-channel strategy to provide consumers with new in-store experiences. In light of this trend, this study examined how consumers’ value perception influences their intention to use LBS in the store and their behavioral responses as well as the moderating effect of flow on the relationships between the perceived benefits/costs and the perceived value of LBS usage. The results indicated that benefits (perceived usefulness and perceived enjoyment) and costs (perceived complexity and perceived privacy risk) were influential antecedents shaping consumers’ value perception of LBS, which in turn impacted their intention to use LBS and behavioral responses (search and purchasing using LBS). Also, we found that the negative relationship between the perceived costs and perceived value was attenuated in high flow states than in low flow states