Balancing privacy concerns in the adoption of Location-Based Services: an empirical analysis

Location-Based Services (LBSs) bring unprecedented mobility and personalisation value to nomadic customers and hence have great commercial potential. However, the commercial potential of LBS is obscured by consumer's privacy concerns whereby the LBS provider can misuse confidential personal information and in extreme circumstances jeopardise an individual's social life or finances. Drawing on the privacy calculus theoretical perspective, we study both pull-based and push-based LBS to provide a comprehensive view of LBS adoption. The results reveal that consumer's privacy concerns influence their intention to adopt directly in case of push-based LBS and indirectly through performance expectancy in case of pull-based LBS.

[1]  F. Bookstein,et al.  Two Structural Equation Models: LISREL and PLS Applied to Consumer Exit-Voice Theory: , 1982 .

[2]  P. Klopfer,et al.  The Concept Privacy and Its Biological Basis , 1977 .

[3]  Deborah Compeau,et al.  Computer Self-Efficacy: Development of a Measure and Initial Test , 1995, MIS Q..

[4]  Stuart J. Barnes.  Known by the network: the emergence of location-based mobile commerce , 2003 .

[5]  Jaclyn Easton,et al.  Going Wireless: Transform Your Business with Mobile Technology , 2002 .

[6]  Detmar W. Straub,et al.  Measuring System Usage: Implications for IS Theory Testing , 1995 .

[7]  R. Sitgreaves.  Psychometric theory (2nd ed.). , 1979 .

[8]  Robert P. Minch,et al.  Privacy issues in location-aware mobile devices , 2004, 37th Annual Hawaii International Conference on System Sciences, 2004. Proceedings of the.

[9]  Sumeet Gupta,et al.  The effects of privacy concerns and personal innovativeness on potential and experienced customers’ adoption of location-based services , 2009, Electron. Mark..

[10]  Peter A. Todd,et al.  Assessing IT usage: the role of prior experience , 1995 .

[11]  Richard T. Watson,et al.  The U-Constructs: Four Information Drives , 2006, Commun. Assoc. Inf. Syst..

[12]  Ritu Agarwal,et al.  A Conceptual and Operational Definition of Personal Innovativeness in the Domain of Information Technology , 1998, Inf. Syst. Res..

[13]  Gordon C. Bruner,et al.  Attitude toward Location-based Advertising , 2007 .

[14]  George M. Giaglis,et al.  Towards a classification framework for mobile location services , 2003 .

[15]  Ramnath K. Chellappa,et al.  Personalization versus Privacy: An Empirical Examination of the Online Consumer’s Dilemma , 2005, Inf. Technol. Manag..

[16]  Elena Karahanna,et al.  Time Flies When You're Having Fun: Cognitive Absorption and Beliefs About Information Technology Usage , 2000, MIS Q..

[17]  H. Jeff Smith,et al.  Information Privacy: Measuring Individuals' Concerns About Organizational Practices , 1996, MIS Q..

[18]  Robert R. Harmon,et al.  Perceived Effectiveness of Push vs. Pull Mobile Location Based Advertising , 2007 .

[19]  Hans-Arno Jacobsen.  Middleware for Location-Based Services , 2004, Location-Based Services.

[20]  Gordon B. Davis,et al.  User Acceptance of Information Technology: Toward a Unified View , 2003, MIS Q..

[21]  Tamara Dinev,et al.  Internet Privacy Concerns and Social Awareness as Determinants of Intention to Transact , 2005, Int. J. Electron. Commer..

[22]  R. Bies,et al.  Consumer Privacy: Balancing Economic and Justice Considerations , 2003 .

[23]  Edgar Erdfelder,et al.  G*Power 3: A flexible statistical power analysis program for the social, behavioral, and biomedical sciences , 2007, Behavior research methods.

[24]  Fred D. Davis,et al.  Extrinsic and Intrinsic Motivation to Use Computers in the Workplace1 , 1992 .

[25]  Herman Wold,et al.  Soft modelling: The Basic Design and Some Extensions , 1982 .

[26]  Jane M. Howell,et al.  Influence of Experience on Personal Computer Utilization: Testing a Conceptual Model , 1994, J. Manag. Inf. Syst..

[27]  Per E. Pedersen,et al.  Adoption of Mobile Internet Services: An Exploratory Study of Mobile Commerce Early Adopters , 2005, J. Organ. Comput. Electron. Commer..

[28]  D. Midgley,et al.  Innovativeness: The Concept and Its Measurement , 1978 .

[29]  M. Culnan.  Consumer awareness of name removal procedures: Implications for direct marketing , 1995 .

[30]  Tamara Dinev,et al.  An Extended Privacy Calculus Model for E-Commerce Transactions , 2006, Inf. Syst. Res..

[31]  E. Rogers.  Diffusion of Innovations , 1962 .

[32]  L. Flynn,et al.  A Short, Reliable Measure of Subjective Knowledge , 1999 .

[33]  D. Campbell,et al.  Convergent and discriminant validation by the multitrait-multimethod matrix. , 1959, Psychological bulletin.

[34]  M. E. Gordon,et al.  Direct Mail Privacy-Efficiency Trade-offs within an Implied Social Contract Framework , 1993 .

[35]  Fred D. Davis,et al.  User Acceptance of Computer Technology: A Comparison of Two Theoretical Models , 1989 .

[36]  A. Joinson,et al.  Development of measures of online privacy concern and protection for use on the Internet , 2007, J. Assoc. Inf. Sci. Technol..

[37]  Jinwoo Kim,et al.  Information Quality for Mobile Internet Services: A Theoretical Model with Empirical Validation , 2002, Electron. Mark..

[38]  Venkatesh,et al.  Computer Technology Training in the Workplace: A Longitudinal Investigation of the Effect of Mood. , 1999, Organizational behavior and human decision processes.

[39]  C. Goodwin.  Privacy: Recognition of a Consumer Right , 1991 .

[40]  T. Cook,et al.  Quasi-experimentation: Design & analysis issues for field settings , 1979 .

[41]  William T. Ross,et al.  Social Contracts and Marketing Ethics , 1999 .

[42]  Jane M. Howell,et al.  Personal Computing: Toward a Conceptual Model of Utilization , 1991, MIS Q..

[43]  Thomas W. Dunfee,et al.  How Binding the Ties? Business Ethics as Integrative Social ContractsTies That Bind: A Social Contracts Approach to Business Ethics , 1999 .

[44]  Detmar W. Straub,et al.  Trust and TAM in Online Shopping: An Integrated Model , 2003, MIS Q..

[45]  J. Webster,et al.  Where is the line between benign and invasive? An examination of psychological barriers to the acceptance of awareness monitoring systems , 2002 .

[46]  Ritu Agarwal,et al.  The Role of Innovation Characteristics and Perceived Voluntariness in the Acceptance of Information Technologies , 1997 .