Give Your Restaurant an Edge!

Put it on a GPS Map!

Anil BilgihanCihan CobanogluMelih Madanoglu

Copyrighted © 2008.

GPS devices support the main purpose of navigation with additional tools that can ◦ suggest nearby business services, ◦ provide traffic, gas price and weather updates,

and ◦ offer an array of travel information.

• From this perspective, GPS have the potential to be an important information and marketing tool for the travelling public.

Introduction

Copyrighted © 2008.

GPS

GPS as a Marketing ToolCopyrighted © 2008.

Earth-circling satellites Ground-based stations Receiver manufacturers

GPS Components

Copyrighted © 2008.

Location Based Services (LBS)

Copyrighted © 2008.

What is a 'point of interest'?

As well as the layout and names of streets, the maps include some buildings, such as restaurants, hotels, train stations, museums and shopping centers.

You can add your own points of interest as you find them.

Next Generation GPS Add Restaurant Reviews Zagat ratings Google Review ratings

Add Your Business as a POI Navteq supplies data for Garmin products,

Teleatlas supplies map data to TomTom.

Next Screen…

Adding Your Business to GPS http://www.gps-data-team.com/corporate_c

ustomers.html

They provide GPS listing service franchise, small, medium or large size business.

Adding Your Business to GPS By listing your business location in POI you

make it easier for your customers to find you.

They provide business location details as a points-of-interest database for Garmin, Magellan, Navman, Route 66, TomTom, Nokia, Destinator, etc.

Google Maps Every bit of exposure is worth its weight in

gold! You can directly add your business into

Google’s online Local Business Centre, free of charge.

Trekking applications Navigation and information services Public transportation information services

City guides Point of interest information (POI) services

Mobile yellow pages

Examples of LBS for Travelers

Copyrighted © 2008.

Premium location listings

Digital SaversGuide $49.95

When a consumer enters area near restaurant at 12:00 p.m., send a lunch coupon for a hamburger, discounted meal, etc.

Targeted marketing

Other Emerging Trends Restaurant reviews/ratings by customers.

Wine listings for fine dining customers.

Posting your menu and pricing on GPS devices

“Low-fat, low carb” menu listings.

Matching user profiles with types of food they prefer.

The worldwide LBS revenues in 2009 will be US$5500M. Study estimates revenues from North America to be US$3000M in 2009 and US$8500M cumulative in the period 2006-2009.

Agile (2007)

GEO Marketing

Copyrighted © 2008.

The Consumer Study

To explore the current and potential use of the GPS as a marketing tool from the consumers’ perspective.

To provides a snapshot of consumer perceptions.

Consumer Study Purpose

GPS as a Marketing ToolCopyrighted © 2008.

What is the level of GPS usage and usage type in the last 12 months by consumers?

What are the reasons for not using a GPS device in the last 12 months?

What are the perceived benefits and impact of GPS by consumers?

What are the purposes of GPS use? What is the impact of GPS on the business

patronage?

Research Questions

GPS as a Marketing ToolCopyrighted © 2008.

The sample was selected randomly from a national database of consumers in the United States of America. The sample was stratified based on state population.

A total of 1,000 consumers who had email addresses were randomly selected for this study.

Out of 1,000 surveys sent, 201 complete responses were obtained for a 20.1% response rate.

Sample

Copyrighted © 2008.

Findings

Copyrighted © 2008.

Use of GPS

%I rented/borrowed a 22.3%It is in my car (built-in) 9.5%I own a dashboard (portable) 48.0%I own a telephone- with 7.4%Other 12.8%

GPS as a Marketing ToolCopyrighted © 2008.

Reasons for not using a GPS Device

%Not needed 46.8%

Expensive 32.3%

Do not own yet 16.1%

Other(Please specify) 4.8%

N=62

GPS as a Marketing ToolCopyrighted © 2008.

GPS Statements- Agree

Statements Mean

is useful 1.40Receiving advertisement in my would annoy me 1.41

makes my life easier 1.53saves me time 1.67reduces stress 1.78I feel safer with a 1.83I rely on my 2.13I would like my to suggest touristic attractions to me 2.53

1=Strongly Agree 4=Strongly Disagree

I travel more because of a GPS 2.66My GPS helps me plan my vacation 2.66I am dependent on my GPS 2.68I would like my GPS to provide me user reviews about businesses

2.79

I would feel comfortable receiving coupons from my GPS nearby businesses while using my

2.95

I talk to my GPS (i.e. Good job Jack) 3.06I name my GPS (i.e. Jack, Jill) 3.10I can not drive without a GPS 3.44

1=Strongly Agree 4=Strongly Disagree

GPS Statements- Disagree

The usage purposes of GPS other than navigation

I used my GPS to: %Find directions to the places I travel 87.1%Find a restaurant 47.5%Find a hotel 26.7%Find a gas station 30.7%Find touristic attractions 26.7%Find a bank 15.8%Plan my travels 29.7%Other 23.8%

N=101

GPS as a Marketing ToolCopyrighted © 2008.

Economic Impact of GPS on businesses

1 time 2 times

3 times

4 times

5 or more times

None

% % % % % %A restaurant 17.9 13.1 14.3 4.8 14.3 35.7A hotel 21.0 9.9 8.6 1.2 9.9 49.4A gas station 10.5 7.9 9.2 1.3 9.2 61.8Touristic attractions

12.7 12.7 7.6 3.8 10.1 53.2

A bank 8.5 5.6 1.4 1.4 2.8 80.3Other 8.9 4.4 2.2 31.1 53.3

GPS as a Marketing ToolCopyrighted © 2008.

So What? – Future!

Visioning the future 2010 Bluetooth/3G based “beaming” coupons into

Bluetooth servers in your restaurant.

Tracking coupon use by customers.

Wireless restaurant reservations.

Wireless seating arrangements.

“Can we get the bill, please?” beaming “Buy 10 meals, get one free” tracking.

Thank you

Anil Bilgihan

Dr. Cihan Cobanoglu (302) 831 4881 cihan@udel.edu

Questions and Answers

GPS as a Marketing ToolCopyrighted © 2008.