Management of location-based services innovation: Insights from consumers

In this project, we examine the effects of three individual-level factors - consumption values, privacy concerns, and subjective norms - on consumers' intention to adopt location-based services (LBS) on their mobile phones. A research model was created based on the Theory of Consumption Values, and tested by survey data from potential adopters. Structural equation modeling was conducted using SmartPLS. We found that consumption values positively whereas privacy concerns negatively influenced intention to adopt LBS; subjective norms were found not to impact intention. In addition, consumer intention to spread positive word-of-mouth about LBS was studied as another outcome measure. Both consumption values and subjective norms positively affected the measure, whereas privacy concerns did not. Managerial implications and theoretical contributions of the project are discussed.