Antecedents of the Intention to Use Location-Based-Advertising: Advertising Value, Privacy Concerns, and the Role of Brand Trust: An Abstract

Abstract

The increasing diffusion rate of GPS-enabled smart phones and the possibility to collect and handle a huge amount of data in real time (the so-called Big Data) equip marketing managers with an innovative advertising channel: Location-Based Advertising (LBA). Despite the vast opportunities offered by LBA, consumers are still skeptical about this innovative advertising channel. While consumers may see benefits of LBA, privacy becomes an important concern (the so-called personalization–privacy paradox). Therefore, it is very important for LBA providers to identify factors influencing the intention to use LBA and, thereby, the willingness to disclose personal information. These antecedents were identified in this study applying privacy calculus and expectancy theory and the advertising value model. Based on an empirical study with 1121 German smart phone users, the positive effect of advertising value on intention to use LBA is larger than the negative effect of privacy concerns. In addition, there are positive effects of entertainment and informativeness on advertising value and a negative effect of irritation on advertising value. Finally, brand trust and self-efficacy have negative effects on privacy concerns. Comparing both antecedents, brand trust has a stronger effect on privacy concerns than self-efficacy.