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Attitudes toward location-based advertising on Social Media platforms

Written by J. Nyberg, L. Czarnecki

Paper category

Bachelor Thesis


Business Administration>Marketing & Sales




Thesis: The purpose of using social media Since the invention of social media, the purpose of online has changed from merely consuming content to also including sharing and creating content with each other. People discuss, share their videos and pictures and write their own content on various online platforms (Kietzmann, Hermens, McCarthy & Silvestre, 2011). This allows users to satisfy their needs and desires for interpersonal interaction in a way that is different from what traditional media has always tried to do in the past (Urista, Dong, and Day, 2008). In addition, Urista et al. (2008) proposed that social media can also be used as “a way to seek recognition and support from others” (page 216). In order to have a deeper understanding of the reasons why people choose, and continue to use social platforms, the theory of social existence is proposed. The theory of social existence in the context of virtual social networks (Short, Williams & Christie, 1976) implies that the degree of social existence on the platform determines the individual’s perception of “social” on the platform. Most social media platforms rely on the participation of others to facilitate communication on the Internet. You can notice the presence of other users in the news feed or chat on the network. If the social media platform has a high perception of social presence, it means that it has a greater impact on influencing others to join and continue to use social networking sites. The reason is that people tend to choose platforms based on the platforms they consider to have the highest social influence (Cheung, Chiu & Lee, 2011). The theory of social existence is related to the theory of Nadkarni and Hofmann (2012), which shows that the use of Facebook has two motivations: a sense of belonging and the need for self-expression. For example, the need to belong can be in the form of joining other people's active social networks. When comparing the general motivations for using Facebook and Snapchat, it is found that due to the nature of the application, people generally believe that they have the most privacy on Snapchat (Utz, Muscanell, and Khalid, 2015). Snapchat users will share more sensitive content, such as drunken photos, snapshots of activities with legal issues, or participating in sex messages (Roesner, Gill, and Kohno, 2014). One of the reasons for bolder sharing is that the Snapchat network is generally smaller than the Facebook network, which means that Snapchat users can worry less about the reaction of their parents, potential employers or teachers. It was also found that when receiving posts from unknown people (as opposed to sending), threats from third parties are considered more threatening on Facebook because it is a more public space (Utz et al., 2015). 2.2 Attitudes to general advertising According to Lutz (1985), the definition of attitudes to advertising is "a learned tendency to respond in a consistently favorable or unfavorable manner to general advertising" (p. 53). In order to further investigate consumer acceptance of advertising, it is important to clarify this definition. Nevertheless, the overall attitude towards advertising is still affected by different variables (Shin & Lin, 2016). These variables will affect consumers' acceptance of specific advertisements as well as general advertisements. Generally speaking, the strongest drivers for the acceptance of mobile advertising are utility and context. Privacy issues have been shown to affect the acceptance of mobile advertising, although it turns out that this is not the most important factor (Merisavo, Kajalo, Karjalouto, Virtanen, Salmenkivi, Raulas and Leppäniemi, 2007). Other studies have shown that the acceptance of mobile advertising is also affected by credibility, information content, and incentives (Kolsaker and Drakatos, 2009). It is also necessary to segment the target group according to needs, activities and interests (Yuan & Tsao, 2003). Consumers expect the information they receive from the company to be relevant to their interests and contain content they think is relevant (Milne & Gordon, 1993). In addition, many consumers have a personal and emotional attachment to their mobile device (Kolsaker and Drakatos, 2009) and consider it a very private item (Haghirian and Madlberger, 2005). It has been observed that there is a positive correlation between the level of emotional attachment to devices and the acceptance of advertisements in mobile devices. However, it also shows that overall users generally believe that mobile advertising is stimulating (Kolsaker & Drakatos, 2009). 2.3 Attitudes towards social media advertising Lee and Hong (2016) found in their research that there are two important predictors of positive attitudes towards advertising on social media platforms: the amount of information and advertising creativity. The information aspect is based on the utilitarian value of advertising, which will enhance the user's positive attitude towards the brand (Muk & Chung, 2014). At the same time, advertising creativity is related to the basic human needs of consuming original, imaginative, novel and innovative things. A creative and entertaining advertisement attracts the attention of users and guides them to make a positive response to the advertisement (Haberland & Dacin, 1992). However, users are easily distracted by other content on social networks. Hadia, Barnes and Hair (2012) Read Less