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Beacon - The Location-Based Service Technology to Enhance Customer Experience

The rapid advances in digital and mobile communication technologies have given retailers an opportunity to have a better understanding of their customers and closer connections with them than ever before. Being able to identify an individual consumer in real-time locations and deliver highly personalized messages that are relevant to the targeted consumer when needed is essential for retailers to attract them into their stores and encourage them to make a purchase [1]. Micro-targeting of the potential customers in the proximity of the store can be done using location-based technologies, such as Beacon [2].


Introduction
The rapid advances in digital and mobile communication technologies have given retailers an opportunity to have a better understanding of their customers and closer connections with them than ever before. Being able to identify an individual consumer in real-time locations and deliver highly personalized messages that are relevant to the targeted consumer when needed is essential for retailers to attract them into their stores and encourage them to make a purchase [1]. Micro-targeting of the potential customers in the proximity of the store can be done using location-based technologies, such as Beacon [2].
First introduced by Apple Inc. in 2013 as iBeacon, Beacon refers to small transmission hardware that is Bluetooth enabled and can be placed anywhere in the store premises [3]. Beacons transmit BLE signals to reach consumers' smartphones with Bluetooth on in a 50-foot range within the retail store and to push notifications into the phones. Users need to download a specific app on a mobile phone that supports tracking technology and have Bluetooth turned on and activate Location Services in order to have a beacon communicate with their smartphones. Upon opting in, consumers can receive the information regarding the nearby brand/store/ product on their phones (e.g., merchandise descriptions, availability, recommendations, locations, exclusive promotional offers, loyalty programs, special events, in-store navigations, speedy checkout, and payment, etc.) [4,5].
Although NFC (near field communication) and GPS geofencing technologies have similar location-focused purposes and properties, Beacons are capable of being "hyper-local," more precisely locationpinpointed than GPS geofencing, and communication-able with a variety of smartphones (Android and iOS) without an NFC chip in a broader range [6]. While others' main functions are customer/ product tracking and identification, Beacons can also "push" This type of mobile engagement (using the ability to generate location-sensitive, highly relevant and personalized offers) enables retailers to develop and implement a very effective "hyper-local"

Abstract
In the digital mobile era of retailing, retailers can gain an opportunity to have a better understanding of their customers and closer connections with them than ever before. Mobile engagement enables retailers to develop and implement a very effective "hyper-local" proximity marketing strategies by obtaining consumer data that provide more in-depth insight into understanding their behaviors. Real-time on-site communications with a customer are vital to engage customers and increase sales. Thus, this paper discusses the applications of Location-based Service Technologies in beauty and fashion, health, tourism, and sports and entertainment industries. Managerial implications and challenges of using location-based services are also discussed. making. This may help brick-and-mortar retailers avoid consumers "showrooming" practices, where consumers examine the products in-store and go online or mobile to find the best price deal, which can hinder in-store purchase behaviors [3]. The price matching feature can increase in-store sales while increasing consumers' perception toward monetary, convenience, and epistemic values [8,9]. Brands may use this type of data for dynamic pricing to beat their competition.

Healthcare industry: Health Media Network plans to work
with Gimbal to deploy beacons at HMN's digital displays in the 12,000 medical centers for more individualized communications between patients and wellness brands [10]. Rite Aid began working with in Market to deploy Beacons to its 4,600 U.S. stores for a similar purpose [10]. Location-based service technology devices will be able to communicate with wearable technologies to get customer vitality info along with other data to make customized product recommendations along with other wellbeing and necessary pre-cautious information regarding diseases and care information when an individual enters a pharmacy store.

Tourism industry: Beacons can be used to enhance consumers' travel experience. For example, Miami International
Airport has deployed 500 plus Beacons that can push notifications regarding departures, delays, and gate assignments, and turn-byturn navigation guides to their gates to the traveling consumers' smartphones [11]. The airport is planning to upgrade the Beaconpowered app for more personalized travel assistance by pushing messages regarding the traveler's destination tourist attraction, lodging, and restaurant info to enhance the travel experience [11].
At the destination, Beacons can be used by hotels and resorts for customer relationship management of valued loyal customers by recognizing them and knowing exactly what they like. For example, Starwood Hotels & Resorts use Beacons to create a more personalized guest experience [12]. Concierges can identify a frequent guest, greet arriving them by name (perhaps treat them with coffee to their likings), and let housekeeping know when guests are arriving or still in the room, making sure everything is set to their likings and preferences (e.g., keyless entry, accelerated check in-out, in-room controls and arrangements, F&B, blue dot navigation, concierge assistance).

Managerial implications and challenges
The location-based service technologies can function in enhancing consumers' experience only when an individual decides to opt-in and grants the access of their personal information and their real-time locations to the service providers and the retailers who will use the data. Although the purpose of collecting the behavioral data from tracking a consumer's behavior, interests, search, and location patterns is to be analyzed for better catering customers with a truly personalized, relevant, and engaging experience, this may be viewed as an intrusion of privacy [14]. However, given that individual privacy decision making is often done as an exchange of personal information in return for consumer benefits that increase the value of shopping [15,16], these concerns can be addressed in the efficacy of three privacy intervention approaches -compensation (e.g., financial and convenience benefits), industry self-regulation, and government regulation [17]. In this way, consumers' perceived value from the shopping experience aided by the Beacon technologies will increase, which will ease up their privacy concerns [12]. We expect another challenge will be data security. Potential breach of confidentiality, unintended disclosure of personally identifiable information, financial information, and the real-time location can result in identity theft and threaten the individuals' safety. In the following section, we discuss the legal concerns of digitization, including privacy rights, data security, and potential liability regarding the collection and the use of highly sensitive personal data for creating customized products and communications.