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Electronic Markets

, Volume 19, Issue 2–3, pp 137–149 | Cite as

The effects of privacy concerns and personal innovativeness on potential and experienced customers’ adoption of location-based services

  • Heng XuEmail author
  • Sumeet Gupta
Focus Theme

Abstract

Location-Based Services (LBS) use positioning technology to provide individual users the capability of being constantly reachable and accessing network services while ‘on the move’. However, privacy concerns associated with the use of LBS may ultimately prevent consumers from gaining the convenience of ‘anytime anywhere’ personalized services. We examine the adoption of this emerging technology through a privacy lens. Drawing on the privacy literature and theories of technology adoption, we use a survey approach to develop and test a conceptual model to explore the effects of privacy concerns and personal innovativeness on customers’ adoption of LBS. In addition, as a number of IS researchers have shown that customers differ in their decision making for continued adoption as compared to initial decision making, we test the research model separately for potential and experienced customers. The results indicate that privacy concerns significantly influence continued adoption as compared to initial adoption. The implications for theory and practice are discussed.

Keywords

Location-Based Services (LBS) Location Commerce (L-Commerce) Privacy concerns Technology adoption Personal innovativeness Experienced and potential customers 

JEL

M15 

Notes

Acknowledgments

The authors would like to thank two anonymous reviewers, the special issue editor for their constructive and encouraging comments. The authors like to thank Prof. Hock Hai Teo at the National University of Singapore for his valuable help on an earlier version of this paper. This material is partially based upon work supported by the U.S. National Science Foundation under Grant No NSF-CNS 0716646. Any opinions, findings and conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of the U.S. National Science Foundation.

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Copyright information

© Institute of Information Management, University of St. Gallen 2009

Authors and Affiliations

  1. 1.College of Information Sciences and TechnologyPennsylvania State UniversityUniversity ParkUSA
  2. 2.Dept. of Business AdministrationShri Shankaracharya College of Engineering and TechnologyBhilaiIndia

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