Abstract

Location-based advertising (LBA) is an effective approach to promote products or services and attract new clients. Nevertheless, the existing research on the efficacy of LBA's, particularly when facilitated by food delivery applications (FDAs) in digital customer engagement (DCE), is still insufficient. This study aims to explore the factors associated with perceived LBA value through the FDA, aiming to discern their influence on DCE. To develop and conceptualize the proposed model, this study employs the Stimulus-Organism-Response (S–O-R) framework as a comprehensive structure along with the Ducoffe (1995) model. Furthermore, Ducoffe's model with additional variables—ad personalization, ad authenticity, ad memorability, and ad deal proneness are integrated to identify distinct characteristics of LBA and their subsequent impact on customer-perceived LBA value driven by FDAs. This study has proposed a conceptual model related to customer-perceived LBA value in the context of FDAs and its effect on DCE. However, future research is needed to empirically investigate the proposed model in this domain. This study enriches the scholarly understanding of the relationships among different variables of the study and the factors that lead to customer-perceived LBA value and substantially contribute to DCE.

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