Linking perceived value and loyalty in location‐based mobile services

Abstract

Purpose: To analyze the direct effect of perceived value dimensions (monetary, convenience, social, emotional, conditional and epistemic value) on attitudinal and behavioral components of loyalty: commitment and behavioral intentions to use location‐based mobile services. Design/methodology/approach: An online survey for users of a mobile location‐based directory service “Where is the nearest?” Findings: The behavioral intentions were most influenced by conditional value; the context, in which the service is used, followed closely by commitment and to some extent monetary value. Commitment can be enhanced through building emotional value and conditional value by focusing on offering fun service experiences in the right context. The influence of social and epistemic value was not significant. Research limitations/implications: Further research is encouraged on the relative importance of the value dimensions' influence on loyalty in global markets. Practical implications: The minor influence of monetary value as well as the high influence of conditional value implies that the one‐dimensional value measures are not applicable in a mobile context where decisions are often made spontaneously and based on situational needs. Effective marketing strategies need to take into account the contextual use and emphasize either convenience or emotional value. Originality/value: The paper introduces new context relevant concepts and develops a multidimensional perceived value and loyalty model. Results give practical implications on how to increase awareness of location‐based services (LBS) in a way that gives a realistic picture of how LBS create value for customers.