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TapUnlocking the Mobile Economy$
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Anindya Ghose

Print publication date: 2017

Print ISBN-13: 9780262036276

Published to MIT Press Scholarship Online: January 2018

DOI: 10.7551/mitpress/9780262036276.001.0001

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Location: Why Geography Matters

Location: Why Geography Matters

(p.59) 5 Location: Why Geography Matters

Anindya Ghose

The MIT Press

This chapter examines one of nine critical forces behind purchase decisions that make mobile advertising so powerful: location. For many decades, location-based marketing usually meant being able to target users at the level of ZIP codes. Every consumer in the same ZIP code received the same offer, presumably because they had homogeneous preferences stemming from similar socioeconomic and demographic backgrounds. However, in today's mobile economy, firms can know in real time which store someone is visiting, which aisle in the store someone is standing in, and in some cases estimate shelf location of the product someone is staring at. Consumers' location histories are very predictive of their product preferences. This means their locations will influence their responses to marketing offers.

Keywords:   location, mobile economy, mobile advertising, marketing, consumer behavior, purchase decisions

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