The effects of brand trustworthiness and credibility on location-based advertising: moderating effects of privacy concern and social influence

Abstract

Location-based advertising (LBA) allows consumers to access customized advertising messages on their mobile devices, regardless of their geographic location. This study examines how brand trustworthiness and credibility drive LBA function acceptance and the relationship between LBA function and advertisement acceptance, and behavioral intentions for promotion engagements. Privacy concerns and social influence are employed as the moderating variables in the brand-technology-promotion acceptance model (BTPAM). The results from an online survey of 277 respondents in Vietnam, which were analyzed by CB-SEM and multiple group analysis, indicate that the proposed relationships in the BTPAM are all significant. Moreover, social influence and privacy concerns moderate the relationship between customers’ mobile function acceptance, advertisement acceptance, and engagement behaviors. The implications for retailers are discussed for effective location-based advertising strategies.