Consumer Acceptance of Location Based Services in the Retail Environment

Abstract

Smartphones have become a commodity item. In combination with their seemingly infinite extensions through mobile applications, they hold great economic potential for businesses. Location Based Services (LBS) take advantage of their portability by providing relevant information to the user regarding their location. Utilizing the user’s position to create personalized location-specific marketing messages enables businesses to yield value for their customers. The main objective of this paper is to identify factors, which influence the acceptance of LBS apps in the context of retail since there is a lack of research in this field. A qualitative research approach was chosen to investigate the relevant variables. Based on the conducted interviews, theories were derived and verified against further data retrievals. Similar to findings of previous research the factors ease of use (usability) and usefulness were confirmed as being crucial in forming consumers’ attitudes.