Location, location ... mailing location? The impact of address as a signal

Recently, service providers have begun offering an innovative option for consumers seeking to rent an address. While the traditional option was for a post office box (e.g., PO Box 203, Chicago, IL 60654), the new option features a real street address with a unique suite number (e.g., 301 West Grand Avenue, Suite 203, Chicago, IL 60654). Service providers claim that addresses affect consumer perceptions of credibility and professionalism; however, these arguments have never been substantiated. Therefore, this research aims to examine the relationship between addresses and consumer evaluations of small businesses. Across a series of five experiments, we find evidence in support of the service providers' claims and apply signaling theory to show why consumers evaluate a small business with a street and suite address more favorably.

Automated summary

Research shows that consumers tend to have a more positive perception of small businesses with real street and suite addresses, as these addresses impact their perceptions of credibility and professionalism. The arguments made by service providers are supported, and signaling theory explains why consumers prefer businesses with this type of address.