The Effects of Consumption Values on the Use of Location-Based Services on Smartphones

Abstract

This project is designed to understand what factor drives consumers’ behavioral intentions to use and to speak positively about mobile location-based services (LBS). A model was developed based on the Theory of Consumption Values (Sheth et al, 1991a, 1991b), positing the effects of five consumption values on such behavioral intentions. The five values are functional values exemplified by perceived usefulness and ease of use, social value, emotional value, epistemic value, and conditional value. Use behavior is also studied to reveal the learning process in the LBS context, i.e., consumers learn about their five values towards using LBS from their actual use. An online survey was conducted among 226 LBS users. The research model was tested by using SmartPLS. The authors found that consumers’ consumption values significantly influenced their intentions to use LBS and to spread positive word-of-mouth about LBS. Use behavior was also shown to significantly predict the five consumption values at varying degrees. The chapter concludes with both theoretical and business implications of the findings.