The Impact of Proximity Marketing On Consumer Reaction and Firm Performance: A Conceptual and Integrative Model

Proximity marketing is an emerging form of marketing that uses advances in wireless and social technology to target potential consumers with advertising content based on their current location. It is facilitated using technology such as Bluetooth beacons, Wi-Fi, geofencing, near-field communications (NFC), and QR codes. Proximity marketing campaigns work through a small and wireless device that transmits signals to mobile devices. The impact of proximity marketing from a marketing perspective has not been widely studied, and none have combined the inherent technological characteristics of automatic identification technology with individual consumer traits such as their values. The proposed integrative research model combines technological and consumer characteristics in an adoption model that draws heavily on consumer values as an important antecedent of Proximity Marketing adoption. The model also contributes by simultaneously proposing adoption consequences both for the consumer and the firm. Proximity marketing allows marketers to target a customer at the right place at the right time with highly personalized content, increasing the likelihood of converting them. It builds strong connections between customers and brands by sending personalized and relevant content to customers, making them more likely to remain loyal. Many types of businesses use proximity-based marketing, including major retailers who show proximity ads to potential consumers who are near their premises.