Case Study: Mobile Commerce, Location-Based Marketing, and Ethics

This case study examines the rise of mobile commerce (m-commerce) and its impact on marketing strategies. It explores the use of location-based advertising, highlighting its advantages like personalized messaging and higher conversion rates, as well as disadvantages such as privacy concerns and screen size limitations. The study compares m-commerce to e-commerce, emphasizing m-commerce's security features, mobility, and location tracking capabilities. It also details the benefits of location-based services for businesses, including cost-effectiveness, targeted marketing, and improved search engine rankings. Finally, the case study addresses ethical considerations in using location-based marketing, emphasizing the importance of consumer privacy and responsible data handling to maintain trust and ensure sustainable business practices. The analysis concludes that ethical values should never be compromised to serve consumers.

Case Study 2 on
Mobile Commerce

Table of Contents
MAIN BODY...................................................................................................................................3
Location based advertising communication...........................................................................3
Comparison of M- commerce and E-commerce....................................................................4
The benefits of the location based services on the business organisation..............................5
Ethical considerations in using the location based marketing................................................6
REFERENCES................................................................................................................................8

MAIN BODY
The Mobile commerce or m-commerce refers to the use of the mobile for providing the services.
The rise of internet and technology gave rise to e-commerce with increased use of mobile the m-
commerce taken the pace. The inventions of various services are being innovated to provide
seamless experiences to user are evolving. The use of location to target advertisements and based
on that providing services is also one such revolution. In this big world the location is being used
as a key data driver to increase the engagement. The location acts as the big data in analysing the
customer preferences and activities (Simona, Bianca and Adela, 2017). The aim of this report is
to highlight the importance of location in increasing the communication effectiveness. The
comparison of e-commerce and m- commerce is also being analysed in order to understand the
effectiveness of both platforms. Lastly, the ethical consideration is also being highlighted while
using the access to location.
Location based advertising communication
The location based advertising is the effective marketing tool that uses the access to
consumer’s location and based on that it places the advertisement. This technique takes the
permission of location and uses it to place the location directed advertisements on mobile
devices. The following advantages and disadvantages of this technology are as follows;
Advantages Personal Touch : In location based advertising the brand get the benefit of creating
personalised messages for the target segment. The option by getting the allow in request
gives the brand crafting out for the personalised messages (Attimani, 2020). These
personalised and customised messages develop the bond between the brand and
consumer. Higher conversion rate : The location based advertising uses the specific target segment
to target the demographics. By correctly targeting them the conversion rates can be built
more effectively. The clearest advantage of this technique is that the push notifications
make the effectiveness of conversion more effective, rather than placing ads on banners.
Disadvantages

 Privacy concerns : The consumers are constantly worried that the company will misuse
or will share the further personal information being shared. This gives the rise of the
privacy concerns.
 The small screen size of the mobile devices is also an problem for providing full
information clearly (Bang and et. al., 2017). The banners so designed are not easily
navigational on the screens. Therefore, it needs to be in proper alignment by highlighting
full information and should not hang on the mobile speed.
Comparison of M- commerce and E-commerce.
The M-Commerce refers to the use of hand held devices to surf the websites whereas E-
commerce refers to the use of laptops and computers to shop and transact the services. The
connection of internet is being the primary point of connection in both the system.
Comparison of M-commerce and E-commerce Security : The M-commerce provides the added benefit of the security shield in the
mobile in comparison to the e-commerce platform. In m-commerce the double layer
being linked with the mobile number decreases the chances of fraud and misleading. In e-
commerce the chances of fraud are high while doing payments (Chaudhari, Rupade and
Talele, 2019). With the information of location sharing in e-commerce the username and
passwords the risk of security high as compared with m-commerce. Mobility : The ease in use of the handheld devices is more comfortable as compared with
e-commerce. The e-commerce access needs use of computers and laptops to access the
website and then log in. Whereas in the m-commerce the sites can be remained logged in
and easily the tracking can be done. Location Tracking : In e-commerce the IP address is the only tracking source. While in
m-commerce there are many sources to track the information and based on that the brand
targets more notification using is to their advantage.
 Going Omni channel : The e-commerce provides the same experience online and in
offline mode. The reduced bridge between the online an offline experience is best utilised
by the m-commerce. The m-commerce provides the seamless experience by rightly
personalising and customising the experience.
Therefore, the m-commerce is way ahead effective than e-commerce platform. The ease in use
and reliability of the m-commerce is winning battle than e-commerce (Malathy, Smilee and

Samuel, 2016). The shift from e-commerce to m-commerce is being a giant leap. The companies
which are lagging their m-commerce presence need to be present and grab the opportunity of
being personalised and customised with consumer.
The benefits of the location based services on the business organisation.
The location based services is the use of locations and based on that the services are being
provided by the organisations. The every small and medium enterprise now uses the location
services to provide services more efficiently. The types of location based services are used in
navigation, location based advertising, tracking, gaming and information services.
The navigation is used in searching the nearby facilities. For example;The hospitals,
salons, education institute, restaurants and hotels etc. uses the access to location to provide hassle
free and enhanced services to customer (Zhang and et. al., 2016). Using the data analytics the
location data is being used effectively to target the customer based on their navigation. They just
require the permission to access their location service. The every kind of business irrespective of
industry uses this service. For example; if we search the uniforms shops the website will look out
for listed and nearby uniform shops and searches will appear based on that. Rawlinson is
medium enterprise dealing in uniform and is listed on website. Then the individual will be shown
the name of Rawlinson shop. In tracking service the company send the location access
permission and if consumer allows then the GPS will connect to current location and based on
that it will guide the directions. Based on this how the location tracking services works and
provides ease to people in providing the services. The information services is used in an effective
way by the companies to track the location and based on that it provides the information. The
business just need the location access and based on that it integrates its location services with
other services and provides the best experience to consumer. Such as the Banks require the
location of the consumer to process further the transaction effectively. The gaming and various
other application uses the location to provide the services accordingly. Such as the social
networking sites and various different apps like Facebook, Pokemon Go requires the location
access to show to the nearby same people using the same platform and to connect on the go. The
people globally are connected on the same platform using the same app just based on the their
locations. Such as the travelling apps in pool rides requires the location of all the people on the
same route and based on that it merges the destinations.
The benefits to small and medium in using the location based services area as follows;

The cost of making it an part of business process is really low and business need to bear
the some extra budgeted cost for using this application. The targetting becomes more effective
based on the check-ins the loyalty is being maintained of customer to business. In cafeterias and
shopping largely the people tag the business on their post and this creates the loyalty and rewards
advantage for the consumer. It helps in attracting the large people and the chances of turning
these people into actual consumer are also increased. Such as the business post their
advertisement when the consumer is nearby and there is likelihood that person may visit if the
promotional offer is lucrative enough. The small business with use of this service may also
effectively improve their search engine rankings also. Based on the right keyword selection and
the tagging of the post on other networking sites directly result in good rankings on search
engines. The measurement of results also becomes easy for the small enterprises. The tracking of
conversions can easily be churned by using the location based service for the small enterprises.
The application of this technology is easy and does not require any specialised form of hard core
spending which make sit really easy for the small business to use.
Ethical considerations in using the location based marketing.
The location based marketing is the gaining popularity because of its instant results and
conversion rates. But, this marketing imposes certain ethical considerations. These
considerations need to follow in order to maintain the confidentiality and security of the people.
In order to be effective the breach of personal information should not followed upon. While
developing the apps the proper disclosure of types of the information being used by the
companies should be mentioned clearly. The company should clearly mention on the parties with
whom this information is being shared. Sometimes the use of this information is being misused
by other parties to cease the information for their personal use (Paravastu, Ramanujan and
Ratnasingam, 2016). The rise in crimes and frauds are resultant effects of such technologies
which takes the misuse of information access. Therefore, the organisation should follow on
ethical principles to grow and sustain the business practices. The proper disclose of all facts
pertaining to the location and information access should be clearly disclosed. The consumers
hesitate very much because of all the personal information is being stored in the mobiles and
computers toady. Therefore, the business should follow the ethics and values while continuing
with the business.

The M-commerce is rising at an increased pace and gaining due importance because of its
following advantages it offers as discussed. From the above discussions it can be concluded that
with advent rise of internet and technology the new techniques are being emerging and will
continue on existing. Therefore, the need of effectiveness of upcoming technologies needs to be
analysed while making it as part of business process. The ethical values should never be
compromised upon to serve the consumers.

REFERENCES
Books and Journals
Attimani, M., 2020. M-Commerce: Most Suitable For Online Business-A Study. Journal of
Commerce and Management Thought, .11.(2), pp.146-154.
Bang, Y and et. al., 2017. Drivers and Consequences of M-Commerce Channel Adoption In E-
Marketplace: An Empirical Investigation. Available at SSRN 3029220.
Chaudhari, A.V., Rupade, A.R. and Talele, A.A., 2019. Augmented Reality Application for
Home Shopping in M-Commerce Using Markerless Tracking. International Journal of
Applied Evolutionary Computation (IJAEC), .10.(3), pp.40-48.
Malathy, M., Smilee, S.J. and Samuel, J.N., 2016, February. Secure mobile agent in M-
Commerce over internet. In 2016 International Conference on Emerging Trends in
Engineering, Technology and Science (ICETETS) (pp. 1-5). IEEE.
Paravastu, N., Ramanujan, S. and Ratnasingam, P., 2016. Role of Trust in Ecommerce: A
Comprehensive Model of Interpersonal and Technology Trust Constructs.
In Encyclopedia of E-Commerce Development, Implementation, and Management (pp.
1737-1747). IGI Global.
Simona, S., Bianca, A.P. and Adela, Z.L., 2017. The Impact of the Problems Faced by Online
Customers on Ecommerce. Studia Universitatis Babeș-Bolyai Oeconomica, .62.(2),
pp.77-88.
Zhang, D. and et. al., 2016, December. Continuous User Authentication on Touch-Screen
Mobile Phones: Toward More Secure and Usable M-Commerce. In Workshop on E-
Business (pp. 225-236). Springer, Cham.