Consumers' Privacy Concerns toward Using Location-Based Services: An Exploratory Framework and Research Proposal

Privacy concerns associated with the use of Location-Based Services (LBS) may ultimately prevent consumers from gaining the ‘anytime anywhere’ convenience. Through a psychological control lens, we examine whether individual difference variables such as locus of control (LOC) could have moderating effects on the relationship between privacy concern and three privacy assurance mechanisms in the LBS context. The paper develops a preliminary research model which conceptualizes the moderating effects of LOC by extending Xu and Teo (2004)’s research model. With an explicit focus on LOC, this study will not only add an important piece of information to our understanding of consumers’ reactions to LBS but also can help frame the ongoing policy and scholarly debate surrounding the relative effectiveness of technology, industry self-regulation and government legislation in ensuring consumers’ privacy. We believe that our findings will be able to offer practical implications for the various players in the LBS landscape: merchants, wireless service providers, wireless device manufacturer, privacy advocates and legislators.