Factors influencing attitude toward advertisements in location-based services and the mediation effect of advertisement context value

Recently, mobile environments and smart devices have become more popular, and thus, location-based advertising (LBA) is increasingly being used in various fields. It enables personalisation, localisation, and immediate service provision. However, existing studies have not considered the effect of location or context based on LBA-specific characteristics. It is not clear how positive these contextual factors are. This study suggests an integrated research model that includes advertising value and context value. This study investigates the factors influencing advertising value (entertainment, informativeness, and irritation) and the mediating effect of the context value between the advertising value and attitude toward the advertisements in LBA. The results show that irritation is not significantly related to advertising value in LBA, which is different from other advertisements. Context value affects attitude toward the advertisements as a mediator for the younger group. This study sheds more light on the LBA research area.