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Benefits and challenges of proximity marketing through beacon technology adoption - an exploratory investigation in a retail context
KTH, School of Industrial Engineering and Management (ITM).ORCID iD: 0000-0002-8528-4828
(English)In: Article, review/survey (Refereed) Submitted
Abstract [en]

Proximity marketing assists retailers in gaining customer insights, tailoring customer communication and maximizing their profit. Adoption of beacon technology is a recent approach to establish proximity marketing. Although much research has discussed proximity marketing through the adoption of beacon technology, actual adoption has not grown significantly in recent years. Practitioners are still reluctant to utilize and integrate proximity marketing through beacons in their digital communications system. 

The existing academic studies on adoption of beacons in proximity marketing mainly highlight the benefits provided. The challenges and barriers that emerge through the adoption process have not yet been fully addressed. This article attempts to explore the challenges of adopting beacon technology, as well as discussing the usage and the benefits of the technology for proximity marketing.

By using a multiple case analysis of actual retail stores, we demonstrate that the benefits and the advantages discussed by previous studies may not be easily achieved. This is because of challenges the retail managers face through the actual adoption process. 

The article classifies different usages of beacons in proximity marketing including close tap, walk past and walk in methods. It refers to the benefits gained, and discusses challenges faced under technical, human factor, perception, resource and privacy classification.  

Keywords [en]
Proximity marketing; Mobile marketing; Bluetooth beacons; Retail; Adoption
National Category
Media and Communications
Identifiers
URN: urn:nbn:se:kth:diva-220401OAI: oai:DiVA.org:kth-220401DiVA, id: diva2:1167827
Note

QC 20171220

Available from: 2017-12-19 Created: 2017-12-19 Last updated: 2017-12-20Bibliographically approved
In thesis
1. Digital Marketing Strategy: B2B and Stakeholders Communication
Open this publication in new window or tab >>Digital Marketing Strategy: B2B and Stakeholders Communication
2018 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Since digital media entered the business domain, many different tools and platforms have transformed the nature of business communications. This transformation has not been easy, since the journey has been accompanied by challenges from the marketers’ side against the adoption of the new platforms into the firm’s communication channels. Business to business marketers have also been engaged in such challenges by maintaining a slow adoption, which has motivated the researchers to study the adoption of different means and tools of digital communication in a business context.

Through this research, I contribute by exploring the adoption strategies of digital platforms in the B2B supply chain including B2B firms, retailers and end users. By digital media, I mainly refer to social media and beacon technology. First, I begin this thesis by identifying the adoption and integration strategies of social media and digital marketing into traditional marketing channels in a B2B context. In this part, I identify the B2B firms’ target audience and propose a model facilitating a B2B firm’s practical social media adoption strategies.

Second, to explore the benefits of different social media content sharing approaches derived from information accessibility resulted in the prior study of this thesis, I introduce and examine Public and Gated-Content sharing approaches. Thereafter, assisted by Social Power Theory and Resource Dependence Theory, I examine the effect of Public and Gated-Content sharing approaches on the target audience’s willingness to interact with the firm. The findings of this study reveal that Gated-Content approach can help the firms build closer relationship with the target audience and engage them in a co-creation process.

Third, by studying proximity marketing through the adoption of beacon technology in the retail context, I explore the current methods of usage, as well as the benefits and challenges of in-store proximity marketing adoption for content sharing purposes. I complete the thesis by presenting the different challenges of such adoption, which consist technical, human behavior, managerial perception, resource and privacy factors. Finally, I identify the need to integrate the physical aspect of place and location back again into the online digital communication channels within a retail context.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2018. p. 63
Series
TRITA-IEO, ISSN 1100-7982 ; 2017:13
Keywords
Digital Media, Proximity Marketing, Beacon Technology, Social Media
National Category
Media and Communications Information Systems, Social aspects
Research subject
Industrial Economics and Management; Media Technology; Information and Communication Technology
Identifiers
urn:nbn:se:kth:diva-220144 (URN)978-91-7729-639-3 (ISBN)
Public defence
2018-01-15, F3, Lindstedtsvägen 26, Stockholm, 13:00 (English)
Opponent
Supervisors
Funder
Swedish Retail and Wholesale Development Council
Note

QC 20171219

Available from: 2017-12-19 Created: 2017-12-16 Last updated: 2018-02-23Bibliographically approved

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