Personalisation vs. Privacy: Consumer Perceptions of Location-based Advertising

Abstract Purpose: This paper explores consumer attitudes towards location based advertising (LBA) in Leicester, with a focus on individual consumer perception of value and risk of LBA and response. Design/Methodology/Approach: A multi method approach was adopted to data collection, using four mini focus groups and a survey of 98 respondents. Six hypotheses relating to the impact of awareness, risk, value and individual characteristics on LBA adoption were developed and tested using Chi-Square tests of association. Qualitative content analysis was conducted to illustrate interview themes. Findings: Surprising results indicated a lack of awareness of LBA, and some unwillingness to engage with LBA due to privacy concerns. Nonetheless, respondents articulated the perceived value of LBA, identifying that personalised offers did encourage intention to respond, while risks centred on privacy and potential intrusion. Of the six hypotheses, only two were significant; contradicting some previous findings (Almasri, 2013; Varnali et al, 2010); thus suggesting that further research into variance in motives and intentions across customer groups is needed. Originality/Values: The paper adds new insights into the consumer adoption of location-based advertising; and identifies a need for selective, personalised approaches to LBS to incentivise consumers. Keywords: location based advertising; location based services, personalisation