Attenuating perceived privacy risk of location-based mobile services

The rapid diffusion of mobile devices has spurred the development and use of location-based mobile services (LBMS). LBMS have the potential to add value to businesses through sale of LBMS applications and targeted marketing of products and services. However, studies have shown that individuals’ intention to use LBMS is plagued by the perceived privacy risks of disclosing location and personal information. This study examines how various consumption values may weaken the negative influence of perceived privacy risk on individuals’ intention to use LBMS based on the multi-dimensional concept of privacy risk, theory of consumption values, and privacy calculus. The attenuating effects of conditional, emotional, epistemic, functional, and social values are studied. Results of a survey of 194 potential users of a LBMS show that conditional, functional, and social values have significant attenuating effects. This study contributes to research by looking beyond the separate and direct effects of perceived privacy risk and consumption values to provide new insights on their joint influences. For practitioners such as LBMS providers and businesses’ marketing managers, the findings highlight the type of values that should be emphasized in designing and promoting LBMS.