The Role of Mobile Self-Efficacy in the Adoption of Location-Based Applications: An iPhone Experiment

Geospatially-aware mobile devices and applications (GAMODAs) are increasingly penetrating both business and consumer markets. One of the primary concerns with GAMODAs is the new dimension of information privacy risk associated with users' location data. However, because this technology is relatively new, it is possible that much of this concern can be explained by the user's knowledge (or lack thereof) about how location data is used and the actual privacy concerns which exist. This study examines the construct of mobile self-efficacy (MSE) as a moderator in the formation of trusting beliefs and adoption intentions in two types of users - those with GAMODA experience and those without. GAMODA privacy assurance and quality are manipulated in an experiment. In general, we find that MSE plays a lesser role for those without GAMODA experience, and stronger role for those with experience. Implications are discussed along with directions for future research.