An appraisal of the use of location-based marketing in Nigerian retail businesses: A study of department stores in Sokoto State
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- NGN 5000
Background of the Study
Location-based marketing (LBM) leverages geographic data to deliver targeted promotional messages to consumers based on their physical location. This marketing approach has gained significant traction with the rise of mobile technologies and GPS-enabled devices. Retailers, particularly department stores, use LBM to send personalized offers, promotions, or notifications to potential customers who are in proximity to their store or within a specific geographic area (Jones & Smith, 2023). The use of LBM allows retailers to engage customers at the right time and place, increasing the likelihood of foot traffic and in-store purchases.
In Sokoto State, where a growing number of department stores are focusing on enhancing customer engagement and driving sales, location-based marketing is becoming an essential tool. The retail landscape in Sokoto is competitive, and businesses are exploring innovative marketing strategies to capture the attention of increasingly tech-savvy consumers. Location-based marketing enables department stores to tap into the mobile phone usage habits of their customers, delivering real-time offers and promotions based on consumers' locations, which can increase the relevance and effectiveness of marketing efforts (Akintoye & Olayemi, 2024). Despite its potential, the use of LBM in Nigerian retail businesses, especially department stores in Sokoto State, remains underexplored.
This study aims to appraise the use of location-based marketing in Nigerian retail businesses, with a specific focus on department stores in Sokoto State. The research will examine how LBM strategies are implemented, their effectiveness in attracting customers, and the challenges department stores face in using this technology.
Statement of the Problem
While location-based marketing offers numerous benefits for retail businesses, including increased customer engagement and in-store sales, there is limited research on its use in Nigerian department stores, particularly in Sokoto State. Retailers in Sokoto may struggle with the adoption of LBM due to factors such as technological limitations, privacy concerns, and the cost of implementing location-tracking technologies. Additionally, customer awareness and trust in LBM may be low, affecting its overall effectiveness. This study seeks to fill this gap by exploring how department stores in Sokoto are using location-based marketing and the challenges and opportunities associated with it.
Objectives of the Study
- To assess the adoption and implementation of location-based marketing in department stores in Sokoto State.
- To examine the effectiveness of location-based marketing in attracting customers to department stores in Sokoto State.
- To identify the challenges faced by department stores in implementing location-based marketing in Sokoto State.
Research Questions
- To what extent are department stores in Sokoto State using location-based marketing in their promotional strategies?
- How effective is location-based marketing in attracting customers to department stores in Sokoto State?
- What challenges do department stores in Sokoto State face in implementing location-based marketing strategies?
Research Hypotheses
- H1: The use of location-based marketing significantly increases foot traffic to department stores in Sokoto State.
- H2: Customer awareness and trust in location-based marketing are positively correlated with its effectiveness in attracting customers.
- H3: Department stores in Sokoto State face significant challenges in adopting and implementing location-based marketing strategies due to technological and privacy concerns.
Scope and Limitations of the Study
This study will focus on department stores in Sokoto State that use location-based marketing. Limitations include potential variations in the types of LBM technologies used across different stores and differences in customer willingness to share location data, which may affect the generalizability of the findings.
Definitions of Terms
- Location-Based Marketing (LBM): A form of marketing that uses a consumer’s geographic location to deliver targeted promotional content or advertisements.
- Department Stores: Large retail stores offering a wide range of products, typically organized into various departments such as clothing, electronics, and home goods.
- Customer Engagement: The process of interacting with customers through various channels to build relationships and encourage repeated business.
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