MOBILE	
  DIGITAL	
  MARKETING	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	...
 
MOBILE	
  DIGITAL	
  MARKETING	
  AND	
  THE	
  FUTURE	
  OF	
  HOTELS	
  
THESIS	
  
Submitted	
  in	
  Partial	
  Fulf...
iii	
  
	
  
	
  
VITA	
  
Charisma Aggarwal
LaCharismae@Gmail.com	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
1. NEW YORK...
iv	
  
	
  
	
  
FERRARI SUPER CARS, INDIA: Market launch of Ferrari and Maserati in India
Activities: Created and managed...
v	
  
	
  	
  
	
  
	
  
Acknowledgements	
  
	
  
	
  
Firstly,	
   I	
   would	
   like	
   to	
   acknowledge	
   the	
...
vi	
  
	
  
	
  
	
  
	
  
Dedication	
  
	
  
To	
  my	
  parents:	
  Vimal	
  &	
  Neeta	
  	
  
	
  
	
  
vii	
  
	
  
	
  
	
  
ABSTRACT	
  
MOBILE	
  DIGITAL	
  MARKETING	
  AND	
  THE	
  FUTURE	
  OF	
  HOTELS	
  
by	
  
Kari...
viii	
  
	
  
	
  
habits,	
  how	
  smart	
  phones	
  and	
  tablets	
  are	
  used	
  to	
  book	
  hotel	
  and	
  use...
ix	
  
	
  
	
  
	
  
TABLE	
  OF	
  CONTENTS	
  
ABSTRACT	
  ...............................................................
x	
  
	
  	
  
	
  
CHAPTER	
  3	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
...
xi	
  
	
  
	
  
M.	
   Results	
  of	
  Mobile	
  Advertising	
  Scenario	
  Question	
  ...................................
xii	
  
	
  
	
  
	
  
LIST	
  OF	
  FIGURES	
  
Figure	
  1:	
  Mobile-­‐Cellular	
  Penetration	
  in	
  2013	
  ..........
xiii	
  
	
  
	
  
Figure	
  25:	
  Affluent	
  Travels	
  in	
  USA	
  using	
  more	
  Hotel	
  Sites	
  vs.	
  OTAs	
  ...
xiv	
  
	
  
	
  
	
  
LIST	
  OF	
  TABLES	
  
	
  
Table	
  1:	
  Mobile	
  email	
  opens	
  are	
  significant,	
  on	...
  	
   1	
  
	
  
	
  
	
  
	
  
	
  
	
  
CHAPTER	
  1	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
 ...
  	
   2	
  
	
  
	
  
looking	
  forward,	
  I	
  impatiently	
  asked	
  the	
  question,	
  “How	
  are	
  smart	
  pho...
  	
   3	
  
	
  
	
  
community,	
   and	
   self-­‐identifications	
   are	
   related	
   to	
   new	
   and	
   innova...
  	
   4	
  
	
  
	
  
penetration	
   rates	
   stand	
   at	
   96%	
   globally;	
   128%	
   in	
   developed	
   coun...
  	
   5	
  
	
  
	
  
	
  
Figure	
  2:	
  Mobile-­‐Cellular	
  Subscription	
  Growth	
  Rates	
  2005-­‐2013	
  
Source...
  	
   6	
  
	
  
	
  
messaging,	
   e-­‐mail,	
   Web	
   browsing,	
   still	
   and	
   video	
   cameras,	
   MP3	
  ...
  	
   7	
  
	
  
	
  
	
  
Figure	
  3.	
  Mobile	
  Phone	
  Users	
  Worldwide,	
  2012-­‐2017	
  
(Billions,	
  %	
  o...
  	
   8	
  
	
  
	
  
end	
   manufacturers	
   like	
   Apple	
   and	
   Samsung.	
   This	
   market	
   is	
   especi...
  	
   9	
  
	
  
	
  
F. Tablets	
  usage	
  and	
  Marketing	
  
	
  
“One	
  in	
  every	
  5	
  people	
  in	
  the	
 ...
  	
   10	
  
	
  
	
  
	
  
Table	
  1:	
  Mobile	
  email	
  opens	
  are	
  significant,	
  on	
  phones	
  and	
  tabl...
  	
   11	
  
	
  
	
  
Figure	
  7:	
  Global	
  Device	
  Penetration	
  per	
  Capita	
  
Source:	
  	
  (Business	
  I...
  	
   12	
  
	
  
	
  
2014).	
   	
   The	
   	
   Goldman	
   Sach	
   2014	
   report	
   divides	
   the	
   revenues...
  	
   13	
  
	
  
	
  
Even	
  though,	
  mobile	
  advertising	
  is	
  still	
  catching	
  up	
  with	
  traditional	
...
  	
   14	
  
	
  
	
  
The	
   rate	
   of	
   technology	
   adoption	
   among	
   consumers	
   is	
   speeding	
   up...
  	
   15	
  
	
  
	
  
There	
  are	
  many	
  activities	
  that	
  a	
  mobile	
  user	
  performs	
  via	
  their	
  h...
  	
   16	
  
	
  
	
  
The	
   research	
   provided	
   by	
   InsightsNow	
   (2012)	
   was	
   conducted	
   in	
   t...
  	
   17	
  
	
  
	
  
	
  
Figure	
  9:	
  Seven	
  Primary	
  Reasons	
  that	
  People	
  use	
  their	
  Smart	
  Pho...
  	
   18	
  
	
  
	
  
The	
  next	
  most	
  frequent	
  activity	
  was	
  socializing	
  with	
  their	
  peers	
  bei...
  	
   19	
  
	
  
	
  
retailing	
   targets	
   customers	
   via	
   many	
   channels	
   like	
   digital:	
   mobile...
  	
   20	
  
	
  
	
  
phone	
  from	
  more	
  trusted	
  sources	
  provides	
  more	
  influential	
  information	
  f...
  	
   21	
  
	
  
	
  
	
  
Omni-­‐channel	
  retailing	
  presents	
  the	
  opportunity	
  of	
  an	
  integrated	
  sa...
  	
   22	
  
	
  
	
  
coupons	
  and	
  promotions,	
  social	
  media	
  two	
  way	
  dialogue,	
  option	
  of	
  a	
...
  	
   23	
  
	
  
	
  
much	
   timely	
   or	
   financial	
   resources	
   especially	
   after	
   many	
   were	
   ...
  	
   24	
  
	
  
	
  
average	
   for	
   discount	
   and	
   department	
   stores;	
   but	
   with	
   faster	
   in...
  	
   25	
  
	
  
	
  
	
  
This	
   integration	
   of	
   offline	
   and	
   online	
   retail	
   has	
   been	
   a	...
  	
   26	
  
	
  
	
  
	
  
Figure	
  11:	
  Advertisement	
  Offering	
  delivered	
  via	
  a	
  RFID	
  Beacons	
  and...
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)
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Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)

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The Maters Thesis is an in-depth study on the latest trends on mobile advertising and digital strategy. It also talks about application on hospitality industry where brand and customer loyalty can be increased through mobile websites and apps rather than just losing profits to online travel agents such as priceline etc.

Published in: Mobile, Technology, Business

Masters Thesis New York University: Mobile Digital Marketing & Future of Hotels (2014)

  1. 1.     MOBILE  DIGITAL  MARKETING                                                                                             AND  THE  FUTURE  OF  HOTELS     THESIS   Submitted  in  Partial  Fulfillment  of                                                                                               the  Requirements  for                                                                                                                     the  Degree  of   MASTER  OF  SCIENCE  IN  MANAGEMENT  OF  TECHNOLOGY     at   NEW  YORK  UNIVERSITY     POLYTECHNIC  SCHOOL  OF  ENGINEERING     by   Karishma  Aggarwal     May  2014  
  2. 2.   MOBILE  DIGITAL  MARKETING  AND  THE  FUTURE  OF  HOTELS   THESIS   Submitted  in  Partial  Fulfillment  of                                                                                                                               the  Requirements  for                                                                                                                                                       the  Degree  of   MASTER  OF  SCIENCE  IN  MANAGEMENT  OF  TECHNOLOGY   at   NEW  YORK  UNIVERSITY     POLYTECHNIC  SCHOOL  OF  ENGINEERING     by   Karishma  Aggarwal     May  2014     Approved:   Advisor  Signature   Date   Department  Head  Signature   Date   Copy  No.       #   Student  ID#:      
  3. 3. iii       VITA   Charisma Aggarwal LaCharismae@Gmail.com                   1. NEW YORK UNIVERSITY, COLLEGE OF ENGINEERING & NYU STERN New York City, New York Masters in Technology Management & Innovation Jan 2013 – May 2014 Masters Degree in Technology Management (deployment & digitalization of businesses) and Innovation. Luxury marketing course from NYU Leonard N. Stern School of Business. 2. NEW YORK UNIVERSITY, COLLEGE OF PROFESSIONAL STUDIES New York City, New York Professional Certificate in Digital Marketing 2014 Digital Marketing, Online Strategy, Multi-Channel Marketing, Analytics 3. UNIVERSITY OF DELHI New Delhi, India Bachelors of Commerce (Business) 2005-2008 4. THE BRITISH COUNCIL HND Business & Computing Applications, UK, New Delhi Associates equivalent in E-commerce and online Business Applications 2003-2005   1. Giorgio Armani Corporation, USA Feb – May 2014 CRM, E-Commerce & Trade Marketing Contract position where my role includes planning for Armani events for all brands in the portfolio, strategy to increase footfall at retail locations, Brand's e-commerce initiatives and external partnerships. 2. Omni-Channel Marketing, Branding, and Promotions, New Delhi, India 2010 –2013 Business Development Consultant: Specialized in collaborations, events and launching Luxury Brands into India’s Ultra Wealthy Marketplace 3. GLOPLAST Manufacturing and Design, New Delhi India 2002 – 2010 Head of Business Development and Customer Relationships for manufacturing large LED signs and displays main clients include multi-national corporations. CONSULTING PROJECTS:
  4. 4. iv       FERRARI SUPER CARS, INDIA: Market launch of Ferrari and Maserati in India Activities: Created and managed various events and marketing campaigns including F1 track events, Ferrari Ezperienza, the launch of Ferrari FF with F1 driver Fernando Alonso etc. Personally promoted to a network of billionaires, ambassadors, and politicians as prospective buyers GENESIS LUXURY, INDIA: Market Research, Strategic and Acquisition Consulting Activities: Consulted on various projects, including luxury retail locations based on research, reporting on collaborating with international luxury brands ESSEC BUSINESS SCHOOL, PARIS: Promoted renowned MBA in Luxury Marketing via Round Table Conferences in India to connect the alumni and luxury industry professionals HOTEL GRAND, NEW DELHI: Instrumental in re-positioning the luxury hotels chain formerly Grand Hyatt target towards the India’s ultra-wealthy market.    
  5. 5. v           Acknowledgements       Firstly,   I   would   like   to   acknowledge   the   contribution   of   Dr.   Brian   Glassman,   PhD.,   Technology  Management,  Product  Development,  &  Innovation  for  motivating  me  and   being  a  mentor.  Without  his  constant  moral  support,  this  research  would  not  have  been   completed.     I  would  also  like  to  express  my  appreciation  to  Dr.  Bharat  Rao,  Department  Chair  for  the   Management  of  Technology  Program.  The  knowledge  he  conveyed  to  me  through  his   course  on  marketing  was  directly  applied  to  create  this  thesis’s  primary  and  secondary   research  studies.       I   would   like   to   thanks   to   Professor   Jonatan   Jelen,   my   advisor   for   teaching   the   entrepreneurship   course   and   Professor   Mike   Driscoll   both   of   who   strengthen   my   enthusiasm  for  technology.  Professor  Driscoll’s  course  on  Advance  Trends  in  Technology   and   Global   Innovation   demonstrated   his   immersion   passion   for   business   and   technology,  which  played  strongly  into  the  formation  of  this  thesis.       I  further  extend  my  personal  gratitude  to  the  interviewees  Mr.  Amit  Modi,  Mr.  Maurizio   Bonivento,   Mr.   Arjun   Channa   and   Mr.   John   K.   Knowles   for   their   time   and   replying   candidly  to  questioning  shown  herein.     Lastly,  I  would  like  to  give  a  strong  thanks  to  Mr.  Vivek  Veeriah,  Administrative  Director   of  Management  of  Technology  Program  for  being  prompt  and  supportive  at  all  times.  
  6. 6. vi           Dedication     To  my  parents:  Vimal  &  Neeta        
  7. 7. vii         ABSTRACT   MOBILE  DIGITAL  MARKETING  AND  THE  FUTURE  OF  HOTELS   by   Karishma  Aggarwal     Advisor:  Jonatan  Jelen   Submitted  in  partial  fulfillment  of  the  requirements  for                                                                                                                                                   the  degree  of  Master  of  Science  in  the  Management  of  Technology   May  2014   ABSTRACT     This  research  focuses  on  mobile  marketing.  In  particular,  it  focuses  on  the  value  that   mobile   marketing:   methods,   technologies,   and   strategies   have   to   the   hotel   industry.   Chapter   1   is   a   comprehensive   review   of   the   current   state   of   mobile   marketing   and   details:   the   growth   rates   of   mobile   marketing,   how   consumers   are   using   the   smart   phones  and  tablets,  using  mobile  analytics,  understanding  mobile  marketing  strategies,   and   the   newest   mobile   marketing   technologies.   Any   reader   wishing   to   gain   a   firm   understanding  of  mobile  marketing  from  one  source  would  find  chapter  1  particularly   valuable.     Chapter  2  and  Chapter  3  build  on  the  prior  chapter  by  focusing  on  the  application  of   mobile  marketing  to  the  hotel  industry.  In  particular  it  examine  current  traveler  mobile  
  8. 8. viii       habits,  how  smart  phones  and  tablets  are  used  to  book  hotel  and  use  their  services,  and   includes  a  detailed  reviews  of    top  hotel  apps  of  2013.       Chapter  4  is  standard  with  any  research  study  and  includes  the  research  studies:  goals,   motivation,  limitations,  and  study  methodology.       Chapter   5   discusses   the   interview   results.   Here   the   general   managers   of   four   hotel   chains   are   interviewed   and   their   responses   were   cross-­‐compared   against   the   prior   literature.  In  particular,  the  interviews  captured  information  on  these  hotels’:  marketing   capabilities,   customer’s   mobile   usage,   management’s   awareness   of   current   mobile   technologies,  and  the  value  management  see  in  specific  mobile  technologies.     Finally,  Chapter  6  is  a  summary  of  the  research  findings  and  provides  the  author’s  future   predictions  of  how  mobile  marketing  will  evolve  and  affect  the  hotel  industry  in  the  near   future.  
  9. 9. ix         TABLE  OF  CONTENTS   ABSTRACT  .........................................................................................................................  vii   TABLE  OF  CONTENTS  .........................................................................................................  ix   LIST  OF  FIGURES  ...............................................................................................................  xii   LIST  OF  TABLES  ................................................................................................................  xiv   CHAPTER  1                                                                                                                                                                                                                                                                     INTRODUCTION  ..................................................................................................................  1   A.   Summary  of  the  Chapter  ..........................................................................................  2   B.   Key  Definitions  .........................................................................................................  3   C.   Key  Statistics  Related  to  the  Growing  Usages  of  Mobile  Phones  .............................  3   D.   The  Shift  in  the  Mobile  Phone  Devices  toward  Smart  Phones  .................................  5   E.   Smartphones  are  Becoming  More  Affordable  .........................................................  7   F.   Tablets  usage  and  Marketing  ...................................................................................  9   G.   Mobile  Based  Commerce  .......................................................................................  11   H.   Smartphone  User  Habits  a  Worldwide  Assessment  ...............................................  13   I.   The  Future  of  Shopping  and  Omni-­‐Channel  Retail  .................................................  18   J.   Mobile  Shopping  ....................................................................................................  24   K.   Mobile  Applications,  Apps  .....................................................................................  30   L.   Measurement:  Application  Analytics  .....................................................................  34   M.   Innovative  Mobile  Advertising  and  Media  .............................................................  35   N.   Strategy  of  Mobile  Advertising  ..............................................................................  41   O.   Mobile  Tactics  ........................................................................................................  44   CHAPTER  2                                                                                                                                                                                                                                                                             MOBILE  MARKETING  FOR  HOTELS  ...................................................................................  46   A.   Hotel  Mobile  Marketing  and  Distribution  Channels  ..............................................  46   B.   Smart  Phones  and  Tablets  use  in  Travel  ................................................................  49   C.   Undercutting  the  Online  Travel  Agencies  ..............................................................  57   D.   The  Future  of  Mobile  Hotel  Website  and  Apps  ......................................................  59  
  10. 10. x         CHAPTER  3                                                                                                                                                                                                                                                                 ANALYSIS  OF  TOP  HOTEL  APPS  .........................................................................................  62   A.   A  Situational  Analysis  for  Hotel  Apps  .....................................................................  62   B.   W  Hotel  Mobile  App  Analysis  .................................................................................  63   C.   Ritz-­‐Carlton  Mobile  App  Analysis  ...........................................................................  64   D.   Four  Seasons  App  Analysis  .....................................................................................  65   CHAPTER  4                                                                                                                                                                                                                                                                                                                   RESEARCH  GOALS  AND  RESEARCH  METHODOLOGY  ........................................................  68   A.   Summary  of  Chapter  ..............................................................................................  68   B.   Research  Goals  .......................................................................................................  68   C.   Research  Limitations  ..............................................................................................  70   D.   Research  Methodology  ..........................................................................................  70   E.   Limits  of  applying  results  .......................................................................................  71   CHAPTER  5                                                                                                                                                                                                                                                                 RESEARCH  RESULTS  AND  DISCUSSION  .............................................................................  72   A.   Summary  of  this  Chapter  .......................................................................................  72   B.   Profile  of  Respondent  1  -­‐  Amit  Modi,  CFO,  Hotel  The  Grand,  New  Delhi  ..............  73   C.   Profile  of  Respondent  2  -­‐  John  K.  Knowles  Roger  Smith,  New  York  City  ................  74   D.   Profile  of  Respondent  3  -­‐  Arjun  Channa,  General  Manager,  Starwood  Hotels,   Canada  ..........................................................................................................................  75   E.   Profile  of  Respondent  4  -­‐  Maurizio  Bonivento,  General  Manager  Empire  Hotel,   New  York  ......................................................................................................................  76   F.   Interviewee  Profile  Analysis  ...................................................................................  76   G.   Results  of  Marketing  Capabilities  Questions  ..........................................................  78   H.   Marketing  Capabilities  ...........................................................................................  78   I.   Results  for  the  Percentage  of  Customers  using  Mobile  Questions  ........................  78   J.   Results  of  Awareness  of  Trends  Questions  ............................................................  79   K.   Implementing  New  Technologies  ...........................................................................  80   L.   Results  of  Mobile  Coupon  Scenario  Question  ........................................................  80  
  11. 11. xi       M.   Results  of  Mobile  Advertising  Scenario  Question  ..................................................  81   N.   Results  of  Advertising  with  Geo-­‐Fencing  Scenario  Question  .................................  81   O.   Results  of  Mobile  Hotel  Services  Scenario  Question  .............................................  82   P.   Results  of  Social  Media  Scenario  Question  ............................................................  83   Q.   Results  of  Mobile  Social  Media  Targeting  Guests  Scenario  Question  ....................  84   R.   Results  of  Places  of  Interest  and  Value  Scenario  Question  ....................................  85   CHAPTER  6                                                                                                                                                                                                                                                                                     CONCLUSIONS  AND  FUTURE  OF  MOBILE  MARKETING  FOR  HOTELS  ................................  86   A.   Summary  of  the  Chapter  ........................................................................................  86   B.   General  Conclusion  on  the  Mobile  Marketing  .......................................................  86   C.   Conclusion  on  the  Review  of  Literature  for  Hotel  Mobile  Marketing  ....................  87   D.   Conclusions  from  the  Analysis  of  Top  Hotel  Apps  ..................................................  87   E.   Conclusion  of  Result  of  the  Research  Study  ...........................................................  88   F.   Future  of  Hotel  Mobile  Marketing  .........................................................................  88   G.   A  Bright  Outlook  on  the  Future  ..............................................................................  89   H.   Prospective  Threats:  ..............................................................................................  90   BIBLIOGRAPHY  ..................................................................................................................  92   APPENDIX  A-­‐  SURVEY  INSTRUMENT  ...............................................................................  100   APPENDIX  B-­‐  SURVEY  RESULTS  .......................................................................................  110      
  12. 12. xii         LIST  OF  FIGURES   Figure  1:  Mobile-­‐Cellular  Penetration  in  2013  ...................................................................  4   Figure  2:  Mobile-­‐Cellular  Subscription  Growth  Rates  2005-­‐2013  ......................................  5   Figure  3.  Mobile  Phone  Users  Worldwide,  2012-­‐2017  .......................................................  7   Figure  4:  Worldwide  Smartphones  Shipments  (USD  Billions)  ............................................  8   Figure  5:  Mobile  Traffic  Sources  by  Device  .........................................................................  9   Figure  6:  Global  PC  (Desktop  /  Notebook)  and  Tablet  Shipments  by  Quarter  Q1:1995  –   Q1:  2013  ...............................................................................................................  10   Figure  7:  Global  Device  Penetration  per  Capita  ...............................................................  11   Figure  8:  From  Telephones  to  Smartphones  –  Technology  Adoption  Lifecycle  US.   Households  by  Type  of  Phone  1900-­‐2011  ............................................................  14   Figure  9:  Seven  Primary  Reasons  that  People  use  their  Smart  Phones  ............................  17   Figure  10:  The  Non-­‐Stop  Customer  Experience  Model  ....................................................  20   Figure  11:  Advertisement  Offering  delivered  via  a  RFID  Beacons  and  Smartphones  .......  26   Figure  12:  Purchasing  Options  Mobile  Shopping  Lifecycle  ...............................................  28   Figure  13:  Traditional  Purchase  Funnel  ............................................................................  28   Figure  14:  Mobile  Applications  continue  to  Dominate  the  Web  ......................................  30   Figure  15:  Mobile  Apps  Features  and  Functionality  .........................................................  32   Figure  16:  Kind  of  Mobile  Apps  from  Developer  Standpoint  ............................................  33   Figure  17:  Mobile  Ads  Classifications  ...............................................................................  40   Figure  18:  Frequency  vs  Quality  of  Mobile  Strategy  .........................................................  43   Figure  19:  Percentage  Increase  in  Mobile  &  Tablet;  Decrease  in  Desktop  in  Q3  2013  ....  48   Figure  20:  Graph  Showing  Usage  by  Time  of  Computer,  Tablet,  and  Smart  Phone  .........  48   Figure  21:  Reasons  for  Booking  on  a  Smartphone  ...........................................................  48   Figure  22:  Part  1:  Infographic  on  Travel  Usage  Trends  for  Mobile  devices  in  USA  ...........  51   Figure  22:  Part  2:  Infographic  on  Travel  Usage  Trends  for  Mobile  devices  in  USA  ...........  52   Figure  23:  Infographic  showing  what  customers  want  from  Hotels  .................................  55   Figure  24:  Infographic  on  Today’s  Mobile  Booker  ............................................................  56  
  13. 13. xiii       Figure  25:  Affluent  Travels  in  USA  using  more  Hotel  Sites  vs.  OTAs  ................................  58   Figure  26:  Impact  of  Quality  of  Website  and  App  on  Segmentation  of  Travelers  ............  60   Figure  27:  Facilities  requested  by  Business,  Leisure  and  Family  Travelers  .......................  61   Figure  28:  Hotel  Brands  according  to  Digital  IQ  Index  for  Hotels  2013  ............................  62   Figure  29:  Graphic  User  Interface  of  W  Hotels  Mobile  Application  .................................  63   Figure  30:  Graphic  User  Interface  of  Mobile  Application  of  Ritz  Carlton  Hotels  ..............  64   Figure  31:  Graphic  User  Interface  of  Mobile  Application  of  Four  Seasons  Hotels  ...........  65   Figure  32:  Affluent  USA  Traveler’s  Bookings  made  via  Browser  and  Mobile  App  ............  67   Figure  33:  Respondent  1:  Amit  Modi,  CFO,  Hotel  The  Grand,  New  Delhi  ........................  73   Figure  34:  Respondent  2:  John  K.  Knowles,  Director  of  Digital  Marketing,  Roger  Smith  .  74   Figure  35:  Respondent  3:  Arjun  Channa,  Hotel  Manager,  Starwood  Hotels,  Canada  ......  75   Figure  36:  Respondent  4:  Mr.  Maurizio  Bonivento,  General  Manager  Empire  Hotel,  New   York  .......................................................................................................................  76   Figure  37:  Private  Encrypted  Technology  Solutions  .........................................................  91        
  14. 14. xiv         LIST  OF  TABLES     Table  1:  Mobile  email  opens  are  significant,  on  phones  and  tablets.  ..............................  10   Table  2:  Goldman  Sachs’  Global  Mobile  Commerce  Forecast,  2012-­‐2018E  $  in  billions,   except  per  buyer  ...................................................................................................  12   Table  3:  List  of  Google  Analytics  App’s  Feature  ................................................................  34   Table  4:  Division  of  Population  into  Mobile  Adoption  Segments  .....................................  42   Table  5:  Division  of  Population  into  Mobile  Adoption  Segments  .....................................  43        
  15. 15.     1               CHAPTER  1                                                                                                                                                                                                   INTRODUCTION     “There  is  no  black  magic  to  successfully  attracting  customers  via  the  Web.”   Rand  Fishkin     Forth  Thought   Since  the  inception  of  the  mobile  phone  for  consumers  in  1973,  there  has  been  a  steady   evolutionary   change   in   the   market   for   mobile   phones   and   how   customers   interacted   with   them   on   a   daily   bases.   As   I   have   and   I   bet   everyone   have   observed   the   mobile   phone  is  no  longer  a  device  solely  used  to  communicate,  it  morphed  into  a  massively   powerful   tool   for   information   and   decision   making,   entertainment,   navigation,   photography,   gaming,   and   intern-­‐connectivity.   Truly,   it   has   changed   the   way   people   operate  and  live  in  the  twenty  century  on  a  daily  and  minute-­‐by-­‐minute  base.  The  global   climatic  shift  in  the  way  mobile  phones  touch  our  daily  lives  has  created  a  tremendous   opportunity   for   marketers.   The   walls   between   traditional   methods   of   marketing   and   digital  marketing  have  tumbled  down,  and  peering  across  the  void  we  see  that  reaching   the  customer,  wherever  they  are,  has  never  been  easier.       With   these   massive   changes   comes   a   landmark   opportunity   to   guide   marketers   to   channel,  target,  and  engage  customers  through  the  immensely  powerful  smart  phone.   Marketers  have  already  started  down  this  road  and  are  setting  up  signs  guiding  others   toward   mobile   ready   websites,   and   mobile   advertising   in   apps   and   search   engines.   However,  at  the  speed  new  technologies  are  being  created  in  the  20th  century  a  number   of  new  options  are  appearing  that  would  further  advance  mobile  marketing.  Therefore  
  16. 16.     2       looking  forward,  I  impatiently  asked  the  question,  “How  are  smart  phone  going  to  be   used  to  permanently  change  the  way  marketer  reach  their  customer?”       A. Summary  of  the  Chapter       Chapter   one   is   review   of   the   literature   relevant   to   mobile   marketing.   Beginners   to   advanced  practitioners  will  benefit  from  the  detailed  review  of  this  subject.  This  chapter   starts  with  a  section  A  on  the  key  definitions  relevant  to  mobile  marketing,  then  moves   into  the  growth  rate  and  usage  of  mobile  phones  and  other  mobile  connected  devices   (section  B).  The  next  section  D  describes  the  segmentation  of  smart  phone  as  compared   to  mobile  phones  showing  the  shifting  tied  towards  multi-­‐media/web  capable  devices.   This  is  followed  by  section  F  being  growing  usage  of  tables,  such  as  the  iPad,  as  they  are   a  device  specifically  targeted  by  mobile  marketers.         Moving  away  from  the  device  towards  the  environment  the  next  section  G  examines  the   world  of  mobile  commerce  and  its  tremendous  growth  rates.  This  is  followed  by  section   H  an  review  of  worldwide  habits  of  smartphone  uses  as  they  consume  media,  shop,  play   games.   The   marketers   goal   is   to   seamless   provide   a   brand   message   across   multiple   medians,  consequently  section  I  thus  the  next  section  examines  Omni-­‐channel  retails.   Keeping   with   the   vain   of   retail,   section   J   describes   the   different   aspects   of   mobile   shopping  which  is  emerging  as  a  massive  branch  termed  mobile  retail.  Subsequently,   section   K   discusses   the   hot   areas   of   mobile   applications   “apps”   is   described   and   continues  to  redefine  the  way  brands  interact  with  consumers.       Application   analytics   starts   section   L,   as   this   is   vital   to   confirming   one’s   marketing   campaigns   and   strategies.   With   the   base   understanding   of   how   to   measure   results,   section   M   gets   very   interesting   and   describes   the   future   and   innovation   in   mobile   marketing   via   meeting   customer’s   core   physiological   needs.   Here   physiological   needs   like   instant   gratification,   goal   achievement,   social   interactions,   belonging   to   a  
  17. 17.     3       community,   and   self-­‐identifications   are   related   to   new   and   innovative   mobile   technologies.       B. Key  Definitions     A   general   definition   of   Mobile   Advertising   would   be   a   form   of   advertising   that   is   communicated   to   the   consumer   via   a   handset.   This   type   of   advertising   is   most   commonly  seen  as  a  mobile  web  banner,  mobile  web  poster,  or  full  screen  interstitial   that  appears  while  a  requested  mobile  web  page  is  “loading.”  Other  forms  of  this  type   of  advertising  are  SMS  and  MMS  ads,  mobile  gaming  ads,  and  mobile  video  ads  being   pre,  mid,  and  post  roll  ads  (Mobile  Marketing  Assocation,  n.d.).  The  same  organization   defines   Mobile   Marketing   as   “a   set   of   practices   that   enables   organizations   to   communicate   and   engage   with   their   audience   in   an   interactive   and   relevant   manner   through  any  mobile  device  or  network”  (Mobile  Marketing  Association).       While  m-­‐commerce  (mobile  commerce)  is  more  of  transaction  or  revenue  based,  mobile   marketing   is   a   bigger   part   of   the   mobile   ecosystem   than   mobile   advertising   or   m-­‐ commerce.   Mobile   marketing   is   more   about   brand   building,   customer   acquisition,   engaging   customers,   starting   a   conversation,   and   creating   word   of   mouth.   In   simpler   terms,   mobile   marketing   efforts   like   mobile   advertising   and   mobile   transactions   are   increasing  the  amount  of  m-­‐commerce.     C. Key  Statistics  Related  to  the  Growing  Usages  of  Mobile  Phones     According   to   statistics   the   number   of   mobile   subscriptions   have   reached   almost   the   same  number  as  the  world’s  population  as  of  2013.  Figure  1  shows  out  of  6.8  billion   subscriptions,   more   than   half   3.8   billion   are   in   Asia-­‐Pacific   region.    It   been   estimated   that  the  global  mobile  penetration  has  reached  almost  100%;  hence,  there  would  be   slower   growth   in   the   number   of   subscribers.   The   report   suggests,   “Mobile   cellular  
  18. 18.     4       penetration   rates   stand   at   96%   globally;   128%   in   developed   countries;   and   89%   in   developing  countries”  (International  Telecommunication  Union,  2013).       Figure  1:  Mobile-­‐Cellular  Penetration  in  2013                                                                                                                                   Source:  (International  Telecommunication  Union,  2013)                                                                                                                             The  decrease  in  growth  corresponds  with  the  reduction  in  cellular  subscription  growth   rates   shown   by   figure   2.   One   problem   is   that   this   data   does   not   include   devices   like   iPads   and   Tablets,   or   devices   like   Google   Glasses   (wearable   technology)   which   also   constitute  an  increasing  number  of  the  mobile  device  market.  It  is  also  shows  that  with   the  increased  usage  of  high-­‐speed  broadband  mobile  services,  customers  can  download   and  buffer  rich  media  content  such  as  pictures,  movies,  and  games  resulting  in  a  rich   media  experience  over  the  prior  simple  non-­‐smart  phones.     Tablets  are  also  a  big  part  of  mobile  as  more  and  more  users  are  using  these  multiple   devices  in  their  daily  lives.  As  of  2014  the  hands  down  leader  in  the  category  is  an  iPad.   However,  more  android  tablets  are  being  adopted  and  they  may  surpass  Apple’s  OS  in   the  near  future  (The  Guardian,  2013).    
  19. 19.     5         Figure  2:  Mobile-­‐Cellular  Subscription  Growth  Rates  2005-­‐2013   Source:  (International  telecommunication  Union,  2013)     D. The  Shift  in  the  Mobile  Phone  Devices  toward  Smart  Phones     There  are  three  categories  of  mobile  phone  devices  as  of  2014  (Nielsen,  2013).       1. Smart  Phones:  with  touch  and  non-­‐touch  screens  (Blackberry,  iPhones,  Samsung   Galaxy  etc.)     2. Multimedia   Phones:   with   or   without   touchscreens   but   it   does   not   have   an   advanced  operating  systems.   3. Features  Phones:  does  not  have  advanced  operating  systems  it  is  only  used  to   make  call  and  text  primarily  with  QWERTY  keyboard,  or  standard  123456789*0#   dial  pad.       The   world   of   mobile   advertising   is   due   to   the   advent   of   smartphones.   PC   Magazine   describes   the   smartphone   as   “A   cellular   telephone   with   built-­‐in   applications   and   Internet  access.  In  addition  to  digital  voice  service,  modern  smartphones  provide  text  
  20. 20.     6       messaging,   e-­‐mail,   Web   browsing,   still   and   video   cameras,   MP3   player   and   video   playback  and  calling.  In  addition  to  their  built-­‐in  functions,  smartphones  run  myriad  free   and  paid  applications,  turning  the  once  single-­‐minded  cellphone  into  a  mobile  personal   computer”  (Pc  Mag,  n.d.).  In  other  words,  a  smartphone  is  like  a  mini  personal  computer   and   has   many   other   features   other   than   just   calling   or   simple   text   communication.   Technically   the   era   of   smartphones   began   when   IBM   launched   “Simon”   in   1993   (Microsoft  Research,  n.d.).       Experts  suggest  that  the  number  of  smartphone  users  are  increasing  in  the  world;  there   would  be  nearly  1.75  billion  smartphone  users  by  the  end  of  2014,  and  nearly  4.5  billion   mobile  phone  users  as  shown  in  figure  3  (EMarketer,  2014).  In  addition,  another  report   states   that   there   were   6.8   billion   mobile-­‐cellular   subscriptions   in   the   world   in   2013   (International  telecommunication  Union,  2013).  It  will  be  noteworthy  that  numbers  of   mobile  users  have  multiple  subscriptions  one  for  personal  and  one  for  business.  Some   businesses   even   mandate   employees   to   keep   personal   and   business   communications   separate  so  that  when  the  employee  leaves  or  are  transferred,  the  business  phone  are   transferred   to   the   new   employee   one;   also,   it   helps   companies   keep   privacy   issues   intact.   Nearly   half   of   Brazilian   and   Russian   users   have   more   than   one   mobile   phone   device  (Nielsen,  2013).  Number  of  subscribers  are  growing  four  times  fasters  than  the   world’s  population  (AT  Kearney,  2013).    
  21. 21.     7         Figure  3.  Mobile  Phone  Users  Worldwide,  2012-­‐2017   (Billions,  %  of  population  and  %  of  change)  Source:  (EMarketer,  2014)     E. Smartphones  are  Becoming  More  Affordable         High-­‐end  smart  phones  were  the  highest  selling  versions  as  of  2010;  however,  with  a   total  saturation  of  the  high-­‐end  market  that  growth  has  slowed  to  replacement  phones.   Now,   as   the   cost   for   smart   phone   drops,   we   are   seeing   another   adoption   of   smart   phones  in  the  low-­‐end  market;  apple  computers  tried  to  target  this  market  with  their   IPhone  5C  but  unfortunately  it  did  not  meet  sales  expectations.  Companies  like  Wiko   and  many  other  Chinese  manufacturers  that  sell  smart  phones  for  less  than  $  100  are   increasing   in   their   market   share   in   both   developed   and   developing   countries.   The   consumers  buying  these  cheaper  versions  would  rather  buy  a  new  phone  than  a  used   high  end  model.  More  importantly,  the  move  to  smart  phones  by  those  who  previously   owned  mobile  phones  seek  access  to  social  media,  music,  and  other  attractive  features.       Another  reason  for  the  shift  to  target  the  low-­‐end  market  is  due  to  drastically  reduced   manufacturing   costs   making   lower   priced   smart   phones   profitable   at   reduced   price   points.  Manufacturers  target  the  price  sensitive  spectrum,  which  is  untouched  by  high  
  22. 22.     8       end   manufacturers   like   Apple   and   Samsung.   This   market   is   especially   much   bigger   in   emerging  markets  such  as  Africa,  Asia,  and  the  Indian  subcontinent.       The  shift  toward  smart  phones  in  the  low-­‐end  segments  is  creating  an  increase  number   of   viewers   for   mobile   advertisements   and   mobile   marketing.   This   allows   for   mass   targeting  advertising  content  and  not  just  meant  for  the  upper  crest  of  society  that  had   propensity  to  buy  expensive  handsets  only.  The  Figure  4  shows  worldwide  smartphone   shipments   in   Billions   from   2011   through   the   forecasted   2018.   One   can   see   that   the   number  of  smartphones  priced  at  or  less  than  $99  has  been  steadily  increasing  since   2011  when  the  first  $99  smart  phone  was  introduced.  In  2011,  the  shipments  grew  to  90   million   (approximately)   then   rose   almost   3   times   the   following   year   to   almost   300   million   handsets   in   2012.   An   estimated   increase   to   almost   350   million   in   2014   is   projected.  Reports  have  forecasted  the  number  of  cheap  handsets  will  reach  450  million   by  2018.  On  the  other  hand,  smartphones  priced  at  or  above  $500  increased  from  2011-­‐ 2012  from  250  million  to  350  million  and  then  remained  steady,  which  is  indicative  of   market  saturation  for  the  high-­‐end  smart  phones.  Forecasted  show  the  more  expensive   smartphone  handsets  will  decline  to  300  million  by  2018.    (The  Economist,  2014)       Figure  4:  Worldwide  Smartphones  Shipments  (USD  Billions)     Source:  (The  Economist,  2014)  
  23. 23.     9       F. Tablets  usage  and  Marketing     “One  in  every  5  people  in  the  world  own  a  smartphone,  one  in  every  17  own  a  tablet”   (Business   Insider,   2013).   Since   tablets   can   also   be   connected   via   Wi-­‐Fi   and   GSM   technologies,  they  are  considered  a  significant  part  of  the  mobile  ecosystem.  Tablets  are   like  mini  computers  and  more  users  are  adopting  them  due  to  the  ease  of  use  and  the   mobility  factor.  More  companies  are  installing  tablets  in  the  retail  sector  as  tablets  to   improve  customer  engagement  and  operational  efficiency  (Samsung,  2013).  Tablets  are   also  responsible  for  increased  email  marketing  effectiveness  as  an  increasing  number  of   users  are  opening  emails  on  their  tablets.  “Retailers  are  now  dedicating  an  average  of   6%  of  their  search  budgets  to  search  campaigns  on  tablets.  By  the  end  of  2013,  more   than  seven  out  of  10  retailers  surveyed  said  they  will  have  phone-­‐and  tablet-­‐  specific   search  programs  in  place”  (Forrester,  2013).       Figure  5:  Mobile  Traffic  Sources  by  Device     Source:  (Forrester,  2013)    
  24. 24.     10         Table  1:  Mobile  email  opens  are  significant,  on  phones  and  tablets.     Source:  (Forrester,  2013)         Figure  6:  Global  PC  (Desktop  /  Notebook)  and  Tablet  Shipments  by  Quarter  Q1:1995  –   Q1:  2013   Source:    (AOL  Advertising)                
  25. 25.     11       Figure  7:  Global  Device  Penetration  per  Capita   Source:    (Business  Insider,  2013)     Figure  7  above  shows  that  how  PC  (desktops  and  laptops),  mobile  phones  and  tablets   are   increasing   their   penetrating   the   global   market,   this   is   providing   a   push   to   m-­‐ commerce.  The  rate  of  PC  adoption  (i.e.  the  slope  of  the  curve)  is  decreasing  (18%  in   2010,  19%  in  2011,  20%  in  2012  and  20%  in  2013);  however,  the  mobile  and  tablets   curves  are  rising  sharply.  The  per  capita  penetration  of  mobile  smartphone  devices  has   sharply  increased  to  22%,  surpassing  the  PC  penetration  in  2013  and  tablets  to  almost   6%,   three   times   since   2011   in   just   two   years.   Nonetheless,   tablet   penetration   is   still   small  in  comparison.     G. Mobile  Based  Commerce     M-­‐Commerce  is  becoming  a  behemoth,  the  sales  numbers  and  number  of  paid  searches   tells  the  tale.  Estimated  show  that  by  2018  mobile  commerce  will  account  for  nearly  half   of   e-­‐commerce   by   percentage   of   revenues   (Internet   Retailer,   2014).     Table   2   show   “global  m-­‐commerce  sales  reaching  $133  billion  in  2013,  and  an  expected  $626  billion  in   sales   in   2018.   In   the   US,   m-­‐commerce   will   be   more   than   triple   by   2018,   representing  $131   billion  or   32%   of   American   e-­‐commerce   sales”   (Goldman   Sachs,  
  26. 26.     12       2014).     The     Goldman   Sach   2014   report   divides   the   revenues   from   smartphones   and   tablets   and   estimates   of   global   m-­‐commerce   revenues;   their   numbers   indicate   the   revenues   were   $133   Billion   in   2013   and   are   estimated   to   increase   to   $204   billion   approximately  in  2014  (Goldman  Sachs,  2014).       Table  2:  Goldman  Sachs’  Global  Mobile  Commerce  Forecast,  2012-­‐2018E  $  in  billions,   except  per  buyer   Source:  (Goldman  Sachs,  2014)     Monitoring  the  rise  in  the  use  of  m-­‐commerce  against  projections  will  be  imperative  in   determining   the   growth   in   the   mobile   advertising   industry.   Global   mobile   advertising   spending   is   forecasted   to   reach   $18.0   billion   in   2014,   up   from   the   estimated   $13.1   billion   in   2013   (Gartner,   2014);   however   another   report   indicates   the   mobile   ad   revenues  in  2013  to  be  $18  billion  which  is  followed  by  a  very  bullish  $30  billion  in  2014   (EMarketer,  2014).  This  is  a  significant  increase  in  just  one  year.      
  27. 27.     13       Even  though,  mobile  advertising  is  still  catching  up  with  traditional  advertising  mediums   such  as  television  and  print,  it  is  increasing  in  leaps  and  bounds.  Google  and  Facebook   are  the  leaders  in  mobile  advertising.  These  two  giants  constitute  world’s  two  thirds  of   the   mobile   ad   market.   The   other   companies   included   Twitter,   Pandora,   Yelp!,   and   Millennial  Media  etc.  (EMarketer,  2014).  Google  is  a  major  leader  taking  the  53%  of  the   pie  with  a  distant  second  Facebook  with  just  15%;  however,  these  two  makeup  the  two   thirds   of   the   entire   market   (EMarketer,   2014).   Facebook   is   increasingly   shifting   their   strategy   to   mobile   as   more   and   more   Facebook   users   are   now   accessing   the   social   networking  site  with  their  smartphones  and  tablets.  The  company  revealed  that  almost   78%  of  the  users  of  the  social  media  site  were  mobile  (TechCrunch,  2013)  resulting  in  a   bump  in  their  stock  prices  in  2014  due  to  increase  in  revenues  from  mobile  advertising.     H. Smartphone  User  Habits  a  Worldwide  Assessment       The   usage   and   device   penetration   of   mobile,   especially   in   the   case   of   smartphones,   differs  greatly  by  regions,  countries,  and  demographics.  Smartphone  users  in  developed   or  developing  countries,  within  different  income  groups,  of  different  ages,  be  they  male   or  female  have  different  usage  patterns,  this  allows  marketers  to  segment  and  carefully   target  products  and  services  to  the  appropriate  customers/user  groups.  Users  not  only   use   mobile   devices   when   they   are   on   the   move,   as   predicted   earlier   but   68%   of   consumer’s  smartphone  usage  occurs  at  home  (Harvard  Business  Review,  2013).  It  can   be  seen  that  most  mobile  use  happens  in  the  “me  time”  of  the  consumers,  which  is  a   great  opportunity  for  marketers  to  target  advertisements  and  promotional  material.  The   “me   time”   consists   of   shopping,   self-­‐expression,   looking   for   news   and   information,   preparing   for   activities,   such   as,   a   forthcoming   travel   or   planning   holidays   etc.   and   accomplishing  productive  tasks  such  as  preparing  financial  sheets,  paying  taxes  online   etc..  (Harvard  Business  Review,  2013).      
  28. 28.     14       The   rate   of   technology   adoption   among   consumers   is   speeding   up;   amazingly,   consumers  in  earlier  decades  were  slower  to  adopt  new  technologies.  “It  took  early  25   years  for  telephones  to  reach  10%  adoption  but  less  than  five  years  for  tablet  devices  to   achieve   the   10%   rate.     It   took   an   additional   39   years   for   telephones   to   reach   40%   penetration   and   another   15   before   they   became   ubiquitous.     Smart   phones,   on   the   other   hand,   accomplished   a   40%   penetration   rate   in   just   10   years”   (McGrath,   2013).   McGrath  substantiates  their  argument  with  the  understated  technology  adoption  graph   explaining  the  phenomenon  of  the  sudden  rise  of  mobile  phones.         Figure  8:  From  Telephones  to  Smartphones  –  Technology  Adoption  Lifecycle  US.   Households  by  Type  of  Phone  1900-­‐2011   Source:  (DeGusta,  2012)     Since   more   and   more   people   are   adopting   smart   phones   in   at   a   faster   pace   than   previous  technologies;  such  as,  phones  or  mobile  phones,  there  has  been  a  constant   change  in  the  way  users  are  using  their  smart  phones  devices.  It  is  imperative  for  mobile   marketers  to  understand  the  mobile  usage  pattern  and  mobile  behavior  of  users.    
  29. 29.     15       There  are  many  activities  that  a  mobile  user  performs  via  their  handheld  devices  (AOL   Advertising,  2012):     To   Accomplish:   All   the   activities   a   user   does   to   feel   accomplished.   These   could   include  productivity  tasks,  scheduling  etc.   To   Socialize:   Interaction   with   people,   friends   and   family   on   social   media   apps,   messenger  services  etc.     To   Prepare:   Planning   and   preparing   for   future   and   upcoming   activities   like   on   the   calendar,  planning  trips  etc.     For   Me   Time:   The   time   spent   by   the   user   for   themselves   in   relaxing   and   entertainment  for  example  watching  movies,  trailers,  surfing  etc.     To  Discover:  Seeking  information,  news  etc.     To  Shop:  Purchasing  of  new  products  and  services,  looking  for  discount  deals  on  the   phone   To  Express:  Expressing  their  interests,  opinions  and  passions  through  mobile  devices       InsightsNow  (2012)  provided  an  in-­‐depth  analysis  of  what  people  actually  do  with  their   mobile  handsets.  The  authors  provide  information  to  marketers  and  helps  in  product   development   to   assess   what   information   to   be   targeted   to   consumers   and   how.   The   information  that  is  provided  via  companies  like  those  that  InsightsNow  are  compared  to   the   consumer   behavior   analysis   surveys   provide   from   the   traditional   advertising   and   marketing   research   analysts.   These   analysts   frequent   shopping   malls   and   physically   analyze  through  the  “observing”  technique  how  shoppers  behave  in  a  shopping  mall  and   how  products  can  be  placed  on  shelves  and  in  stores  to  increase  their  visibility  and  sales.     With  this  increase  in  mobile  usage,  brands  must  be  able  to  engage  customers  through   mobile  apps,  mobile  ready  sites,  and  mobile  optimized  advertising.  Hence,  this  detailed   analysis  narrows  down  mobile  behavior  so  that  more  companies  can  target  integrated   cross  platform  solutions  to  deliver  better  mobile  content  and  targeted  advertising.      
  30. 30.     16       The   research   provided   by   InsightsNow   (2012)   was   conducted   in   three   phases:   ethnographic,   qualitative,   and   then   quantitative.   For   the   ethnographic   research,   they   recorded  on  video  and  took  notes  on  seven  days  of  select  subject  smart  phone  usages.   This   was   followed   up   with   in-­‐depth   qualitative   interviews,   which   allowed   the   researchers   to   determine   the   what,   when,   where,   and   why   those   subject   interacted   with  their  mobile  phone  during  that  seven  day  period.    For  privacy  reasons  the  content   of  phones,  texts  and  emails  was  strictly  not  recorded;  but  more  importantly,  the  time   and  frequency  of  these  activities  was  recorded.     Next,   two   separate   quantitative   studies   were   deployed,   the   first   method   gave   1000   smart   phone   users   an   in   person   survey.   This   survey   asked   questions   about   three   different   moments   in   which   they   used   their   phone   (excluding   voice   calls,   email,   and   texts).  The  second  method  respondents  agreed  to  have  their  mobile  behaviors  tracked   across  a  31-­‐day  period  using  metering  technology  provided  by  Arbitron  Mobile  Oy,  a   subsidiary  of  Arbitron  Inc.       The   combination   of   these   two   independent   studies,   the   survey   instrument   and   the   collection  of  metered  data  helped  gathering  information  on  approximately  3000  user   interactions   with   their   smart   phones.   This   captured   the   landscape   of   mobile   phone   touch   points   what   the   researchers   called   the   mobile   moments   being   the   deep   motivations   spur   by   each   moment.   On   further   segmentation,   these   mobile   moments   were  mapped  as  moment  markets  and  are  presented  in  the  figure  9  below.    
  31. 31.     17         Figure  9:  Seven  Primary  Reasons  that  People  use  their  Smart  Phones   Source:  (Harvard  Business  Review,  2013)     Some   revelations   gleamed   from   this   study   made   the   researchers   realized   that   one   activity  can  be  performed  under  different  headings;  such  as,  ordering  a  pizza  falls  under   shopping  and  me  time  both  as  the  user  was  dreaming  of  eating  a  pizza  in  me  time  lead   to  the  ordering  of  pizza  in  the  shop  activity.  It  can  be  seen  from  the  figure  8  above  that   users  spent  46%  of  their  time  in  me  time  activities  that  could  include,  but  are  not  limited   to  watching  videos,  relaxing,  entertainment,  reading  gossip,  and  just  internet  surfing  for   pleasure  etc.      
  32. 32.     18       The  next  most  frequent  activity  was  socializing  with  their  peers  being  nineteen  percent   of  the  smart  phone  user’s  time  or  7  hours  per  user  per  month.  The  socializing  apps  could   include  but  are  not  limited  to  social  media  applications,  instant  messenger  applications   What’s  app,  blackberry  messenger,  Facebook  chatter  etc...           The   next   most   popular   activity   was   accomplishing   (see   figure   9)   and   shopping   with   nearly  eleven  to  twelve  percent  of  their  time  respectively  spent  performing  both  the   activities.  As  we  have  noticed  that  more  and  more  people  are  shopping  their  mobile   devices,   this   number   has   been   on   a   constant   increase   and   in   2013   the   mobile   retail   officially  surpassed  online  and  PC  retail  (Internet  retailer,  2013).       The  authors  assert  “It  was  further  noticed  that  marketers  were  still  making  incorrect   assumptions   and   hence   leading   to   misleading   conclusions   about   mobile   use   and   mobile  phone  users:”     Firstly,   marketers   make   poor   assumptions   about   applications   usage:   Mobile   applications   can   be   used   for   more   than   one   purposes.   For   example,   social   media   applications  like  Facebook  can  be  used  for  me  time  and  socializing  both.  Secondly,  they   fail  to  connect  to  users  during  the  me  time.  Ads  targeted  on  the  me  time  were  seen  to   do  poorly  if  they  are  not  related  to  the  context.  Thirdly,  they  do  not  invest  enough  in   mobile  media:  “Ten  percent  of  consumers'  media  time,  but  only  1%  of  all  advertising   money  is  spent  on  mobile”  (Harvard  Business  Review,  2013).  Hence  marketers  need  to   invest  more  time  and  resources  in  mobile  media;  such  as,  video  ads,  mobile  ads  etc.  so   that  more  mobile  users  can  click  and  avail  those  opportunities.       I. The  Future  of  Shopping  and  Omni-­‐Channel  Retail     Marketers  are  also  targeting  customers  through  omni-­‐channel  retailing.  Omni-­‐channel   retailing   can   be   described   a   step   further   than   multi-­‐channel   retailing.   Multi-­‐channel  
  33. 33.     19       retailing   targets   customers   via   many   channels   like   digital:   mobile,   online,   social   or   traditional   ads   via   brick   and   mortar,   TV,   tele-­‐marketing   etc...   In   Omni-­‐channel,   a   seamless  customer  experience  are  delivered  at  all  levels  regardless  of  which  channel  the   customer   buys   through.     “It   is   a   seamless,   [the]   omni-­‐channel   approach   provides   a   single,  unified  experience  for  the  customer  across  all  channels”  (Accenture  ,  2013).       As  the  new  customers  are  more  empowered  via  the  instant  information  and  knowledge   at  their  fingertips  via  smart  phone  a  dramatic  shift  in  the  way  traditional  shopping  is   occurring  is  underway.  This  make  delivering  the  same  or  omni-­‐channel  experience  that   much  more  important.  It  has  been  discovered  that  initially  the  companies  had  a  great   deal  of  control  over  the  consumer’s  decision  making  process  while  making  a  purchase   decision;   however,   with   the   advancement   of   technology   that   has   empowered   customers,   marketers   now   have   a   diminished   amount   of   control   and   access   to   the   customer’s   decision   making   process.   With   analytics   data   companies   can   only   analyze   and   track   how   the   customers   are   making   a   purchase   decision   but   as   said   their   influencing  it  at  any  stage  is  greatly  reduced.     The  understated  figure  10  describes  The  Non  Stop  Customer  Experience  Model  vs.  the   traditional   one   (Accenture   Outlook,   2012).   Their   model   expands   on   the   consumer’s   decision  process  for  purchasing  by  moving  away  from  the  archaic  linear  model  (Discover   –  Consider  –  Evaluate  –  Purchase)  and  instead  uses  new  feedback  loop  model.  The  linear   model   was   introduced   before   mass   information   technology   where   consumers   had   limited  access  to  information.  Traditionally,  consumers  purchase  decisions  were  usually   more   straightforward   with   less   outsider   influencers   in   the   decision-­‐making   process.   However,   with   social   media   technology   and   other   digital   channels   the   customer’s   purchase  process  is  non-­‐linear  and  much  less  influenced  by  the  marketer’s  influences.     Consequently,  in  today’s  world  there  is  no  long  a  mainline  for  influencing  the  consumer   via  the  marketer’s  messaging,  as  the  access  to  information  via  the  consumers’  smart  
  34. 34.     20       phone  from  more  trusted  sources  provides  more  influential  information  for  making  their   purchase  decisions.         Figure  10:  The  Non-­‐Stop  Customer  Experience  Model                                                                                                                     Source:  (Accenture  Outlook,  2012)     The   following   can   be   said   for   the   new   non-­‐Stop   customer   experience   model                                             (Accenture,  2013):   • Customer’s  journey  is  more  dynamic   • Customer’s  journey  is  more  accessible   • Customer’s  journey  is  continuous  and  “always  on”     Ridby   2011   states   the   following:   “E-­‐commerce   is   now   approaching   $200   billion   in   revenue  in  the  United  States  and  accounts  for  9%  of  total  retail  sales,  up  from  5%  five   years   ago.   The   corresponding   numbers   are   about   10%   in   the   United   Kingdom,   3%   in   Asia-­‐Pacific,  and  2%  in  Latin  America.  Globally,  digital  retailing  is  headed  toward  15%  to   20%   of   total   sales,   though   the   proportion   will   vary   significantly   by   sector.   Moreover,   digital   retailing   is   now   highly   profitable.   Amazon’s   five-­‐year   average   return   on   investment,  for  example,  is  17%,  whereas  traditional  discount  and  department  stores   average  6.5%.”    
  35. 35.     21         Omni-­‐channel  retailing  presents  the  opportunity  of  an  integrated  sales  experience  that   is   benefitting   both   the   consumers   and   the   retailers   with   the   information-­‐rich   and   a   highly   price   competitive   shopping   experience.   Customers   are   now   browsing   products   online,  with  a  reference  point,  they  are  better  at  spotting  deals  for  product  at  brick  and   mortar   store,   they   are   asking   for   reviews   from   friends   on   social   media   via   their   smartphones,  and  are  making  a  purchases  via  the  iPad  or  tablet.  This  is  an  “a-­‐typical”   modern  shopper  that  wishes  to  review  the  same  shopping  cart  with  the  third  or  now  in   future  the  fourth  screen,  which  could  be  a  wearable  technology  like  Google  Glass,  or   Apple’s  iWatch.     The  importance  of  a  seamless  brand  experience  across  all  channels  does  not  only  help   increase   sales   it   but   also   increase   brand   equity   and   perception   in   the   eyes   of   the   consumers.   It   is   important   to   integrate   all   digital   channels   being   offline   physical   channels   with   that   of   the   digital   online   channels.   If   a   customer   tries   a   product   in   a   store’s  isle,  he  should  be  able  to  add  that  to  a  wish  list,  then  make  a  click  to  purchase   action  online  later  maybe  when  they  are  more  compelled  or  have  available  funds.  Even   after   physically   interacting   with   a   product   stores   should   provide   online   and   offline   promotions  to  induce  a  purchase,  or  even  allow  cross-­‐stores  prices  comparisons.       It  is  vital  that  various  activities  performed  both  offline  and  online  are  integrated  at  all   levels;   this   includes   backend   and   frontend   of   the   supply   chain.   At   the   back-­‐end   the   online  and  m-­‐commerce  stores  must  be  integrated  to  the  supply  chain  of  the  physical   brick  and  mortar  so  that  the  systems  would  know  no  matter  what  sales  channel  is  being   used  how  much  inventory  of  a  particular  products  is  available  at  a  particular  time.  With   this  technology,  the  advantages  of  both  shopping  online  and  offline  can  be  merged.       The  benefits  of  shopping  online  are  many  and  include:  rich  product  information,  being   customer  reviews  and  tips,  editorial  and  advertorial  content,  user  generated  content,  
  36. 36.     22       coupons  and  promotions,  social  media  two  way  dialogue,  option  of  a  convenient  and   one  click  checkout  and  most  importantly,  the  convenience  of  anytime  anywhere  access.   And  with  a  smart  phone  all  of  these  benefits  are  available  at  their  fingertips  making  it   easy  for  them  to  compare  prices  and  products  and  immediately  asking  for  opinions  from   peers,  share  pictures  on  social  media,  and  click  through  store’s  product  information.         One  must  not  neglect  the  major  benefits  of  shopping  at  brick  and  mortar  (B&M)  stores   such  as:  instant  in  store  pickup,  helpful  sales  personnel  with  their  detailed  knowledge   and   experience,   customization   options,   handpicked   items,   or   selective   assortment   of   products   according   to   location.   Most   importantly,   B&M   stores   offer   the   ability   to   physically  test  and  try  products  which  for  many  items  is  vital  (think  couches),  walk  in   returns   and   or   replacement,   instant   gratification   of   purchase,   and   enabling   impulse   shopping  by  enticing  store  windows  el  al  (Bibliography:  Future  of  Shopping  2HBR).       With  omni  channel  retailing  all  the  advantages  of  B&M  can  be  merged  and  neither  the   consumers  nor  the  retailers  has  to  accept  trade  off  benefits  of  one  or  the  other.  The   only  task  would  be  for  companies  to  hire  the  technological  talent  that  could  develop   and   replicate   offline   shopping   experiences   online.   However,   some   have   noted   a   technophobic   culture   that   permeates   many   retailers,   and   young   computer   savvy   employees  refuse  to  work  at  such  places.  On  the  other  hand,  the  modern  consumers  are   very  adaptive  and  appreciative  of  technology  and  new  mediums  that  bring  “coolness”   and  convenience  to  their  modern  lifestyles  so  why  should  retail  fight  against  something   the  consumer  wish  for  like  the  move  toward  an  omni-­‐channel  experience?       Rigby  states  there  are  four  reasons  retailers  are  not  as  receptive  to  e-­‐commerce,  m-­‐ commerce,  or  the  whole  omni-­‐channel  phenomenon  (Rigby,  2011).  Firstly,  retailers  are   wary  of  hypes  and  booms  example  is  the  dot  com  bubble  of  2002.  Retailers  are  careful   about  new  phenomenon  that  are  wildly  optimistic  or  overpriced.  Since  digital  is  fairly   new  and  still  growing  in  adoption,  many  companies  are  over  cautious  in  dedicating  too  
  37. 37.     23       much   timely   or   financial   resources   especially   after   many   were   burnt   by   the   dot   com   bubble.     The  metrics  for  measurement  of  digital  marketing  in  online  and  mobile  are  still  nascent   and   not   universal;   hence,   calculations   for   return   on   investment   (ROI)   can   vary   extremely.   There   can   be   large   differences   in   the   way   digital   advertising   agencies,   companies,  and  search  engines,  and  digital  publishers  calculate  ROI.  A  perfect  marriage   is   to   use   measurement   metrics,   which   are   best   able,   allocate   budgets   and   award   incentives  for  maximum  output.  The  process  is  still  evolutionary  and  will  take  few  more   years  to  get  cemented  and  could  be  a  Ph.D.  dissertation  in  itself.     Amazingly,  digital  retailing  threatens  existing  B&M  economics,  system  and  incentives.   Since   traditional   retailing   has   been   in   place   for   more   than   a   century,   measurement   metrics  are  fairly  set  and  cemented.  These  metrics  do  not  match  the  online  world  at  all.   For  example,  usually  commissions  in  traditional  retailing  are  up  to  20%-­‐30%  and  when   this  is  applied  to  the  online  or  mobile  commission  base,  the  system  completely  fails.  The   ticket  value  of  items  purchased  online  especially  through  mobile  is  usually  much  low   due   to   their   volume   based   business   models   and   lower   respective   overhead.     Hence,   commissions  are  usually  much  lower  but  purchase  frequency  and  online  traffic  is  much   higher.  The  e-­‐commerce  giant  Amazon  pays  4%  to  a  maximum  of  8.5%  to  all  its  affiliates   and  partners  (Amazon,  n.d.).  Since,  traditional  retailers  are  more  set  in  their  ways  and   new   generation   customers   like   the   millennials   are   moving   towards   mobile   shopping,   traditional   retailers   will   have   to   move   towards   Omni-­‐channel   retailing   as   soon   as   possible.     One   may   be   interested   to   know   that   traditional   retailers   tend   to   focus   on   financial   metrics,   which   are   incompatible   with   online   measures.   Retailers’   stock   prices   are   generally  by  return  on  invested  capital,  sales  per  square  foot,  and  growth  rather  than  by   profit   margins.   “Amazon’s   five-­‐year   operating   margin   is   only   4%—far   below   the   6%  
  38. 38.     24       average   for   discount   and   department   stores;   but   with   faster   inventory   turns   and   no   physical   store   assets,   Amazon’s   return   on   invested   capital   is   more   than   double   the   average  for  conventional  retailers.  As  a  result,  Amazon’s  market  value,  $100  billion,  is   roughly  equivalent  to  that  of  Target,  Best  Buy,  Staples,  Nordstrom,  Sears,  J.C.  Penney,   Macy’s,   and   Kohl’s   combined”   (Rigby,   2011).   Hence,   the   online   and   traditional   retail   works  completely  on  a  different  measurement  system.     Finally,   conventional   retailers   have   not   had   great   experiences   with   breakthrough   innovation.  Traditional  retail  will  face  extreme  pressures  from  online  retailers  if  they  do   not  adopt  omni-­‐channel  strategies.  The  view  by  retailers  that  customers  would  always   come  if  the  store  doors  were  open  is  simply  not  true.  The  over  demanding  customers   who  need  an  integrated  and  modern  shopping  environment,  also  demand  a  better  B&M   retail  environment;  such  as,  information  about  products,  shorter  checkout  lines,  more   convenient  billing  systems  etc.     J. Mobile  Shopping      More   than   44%   of   the   consumers   are   using   their   smart   phone   devices   to   make   purchases.   Even   when   they   are   not   purchasing,   they   are   using   their   devices   to   comparing   prices.   This   has   led   to   a   phenomenon   called   “show-­‐rooming”   when   a   customer  goes  to  a  B&M  store  but  actually  makes  a  purchase  online  (through  mobile  or   tablet)  after  seeing  the  product  in  the  shelf.  Show-­‐room  is  finding  a  cheaper  price  on  the   web,   and   amazingly   about   36%   of   mobile   shoppers   go   online   while   they   are   making   purchases   in   store   (Margarita   Constantinides,   2013).   With   this   information,   one   can   assert  that  smart  phones  are  becoming  an  important  tool  in  the  lives  of  the  customers,   which  is  a  notable  shift  in  the  purchasing  behavior  of  the  customers.  Mobile  users  also   share  information  through  social  media  about  their  purchases  or  look  for  items  on  social   media  on  websites  such  as  “pinterest”  and  “instagram”  to  find  promoted  items  offline,   in  stores.    
  39. 39.     25         This   integration   of   offline   and   online   retail   has   been   a   breakthrough   in   combining   marketing  technologies.  Companies  like  Walmart  and  Macy’s  have  mobile  apps  where   the  users  can  turn  on  “store  mode”  and  get  offers  from  the  Wi-­‐Fi  system  as  they  pass  by   different  sections.  They  receive  offers,  discount  coupons,  loyalty  points,  and  welcome   messages.   However,   this   can   be   performed   through   either   Bluetooth   (low   energy   Bluetooth  or  BLE)  technologies  used  by  many  retailers  where  the  mobile  phone  users   have   their   Bluetooth   turned   on   or   by   Wi-­‐Fi.   Low   energy   Bluetooth   technology   is   the   latest   and   more   targeted   technology   because   users   is   in   a   very   specific   range,   say   a   particular  isle  of  the  store  receive  a  signal  as  compared  to  the  Wi-­‐Fi  which  is  for  the   entire   store   or   floor   (VeriFone,   2013).   Low   energy   Bluetooth   requires   installing   “beacons”   or   small   physical   devices   in   various   parts   of   the   store   and   then   as   the   customer  passes  by  they  receive  a  specific  targeted  coupon,  message,  or  information   about  the  particular  section.       There  are  many  kinds  of  beacons  available  in  the  market  but  as  of  2014  there  are  few   limitations  associated  with  this  kind  of  technology.  Firstly,  mobile  users  may  not  have   their  Bluetooth  turned  on  as  it  consumers  battery  and  it  is  less  popular  technology  to   Wi-­‐Fi.  Secondly,  the  purchase  of  a  large  number  beacons  for  each  stores  and  malls,  as  a   whole  can  be  an  expensive  proposition  especially  for  a  technology  in  the  trial  stages.   Finally,   the   beacons   work   on   batteries   and   replacement   of   batteries   or   beacons   themselves  after  a  limited  period  can  be  an  additional  expense  and  hassle.      
  40. 40.     26         Figure  11:  Advertisement  Offering  delivered  via  a  RFID  Beacons  and  Smartphones   Source:  (Swedberg,  2013)     One   should   note   that   in   addition   to   customers   being   empowered   by   technology,   the   storeowners,  store  managers,  and  sales  associates  are  also  empowered.  Sales  associates   now  carry  iPads  like  seen  in  the  “Genius  Bar”  at  the  Apple’s  stores,  which  are  connected   to   the   point   of   sale   systems   allowing   for   on   the   spot   purchases.   Further,   this   allows   store   managers   or   supervisors   to   monitor   in   real   time   the   effectiveness   of   sales   associates.  It  is  a  complete  360-­‐degree  solution  can  be  provided  at  retail  outlets.   There  are  more  techniques  that  can  help  retailers  integrate  mobile  and  M&B,  increasing   their  share  of  customer’s  wallet  and  allowing  to  integrating  more  into  the  customer’s   purchasing   lifecycle.   For   example,   Walmart’s   apps   have   set   reminders   on   mobile   for   refilling  pharmacy  prescriptions  and  customers  can  walk  in  and  scan  the  QR  codes  for   pick-­‐ups  for  medicines  (Margarita  Constantinides,  2013).  Further,  brands  like  Kate  Spade   have   taken   technology   in   retail   to   a   new   level   buy   replacement   of   paper   prices   and   product  information  labels  with  iPads.  The  replacement  of  paper  signs  that  display  price   information  for  products  with  iPads  with  much  more  information  about  the  clothes  or   BLE  Beacon  

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