• Asia pacific journal of information systems
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• v.22 no.4
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• pp.7-29
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• 2012

Smartphone and its applications (i.e. apps) are increasingly penetrating consumer markets. According to a recent report from Korea Communications Commission, nearly 50% of mobile subscribers in South Korea are smartphone users that accounts for over 25 million people. In particular, the importance of smartphone has risen as a geospatially-aware device that provides various location-based services (LBS) equipped with GPS capability. The popular LBS include map and navigation, traffic and transportation updates, shopping and coupon services, and location-sensitive social network services. Overall, the emerging location-based smartphone apps (LBA) offer significant value by providing greater connectivity, personalization, and information and entertainment in a location-specific context. Conversely, the rapid growth of LBA and their benefits have been accompanied by concerns over the collection and dissemination of individual users' personal information through ongoing tracking of their location, identity, preferences, and social behaviors. The majority of LBA users tend to agree and consent to the LBA provider's terms and privacy policy on use of location data to get the immediate services. This tendency further increases the potential risks of unprotected exposure of personal information and serious invasion and breaches of individual privacy. To address the complex issues surrounding LBA particularly from the user's behavioral perspective, this study applied the privacy calculus model (PCM) to explore the factors that influence the adoption of LBA. According to PCM, consumers are engaged in a dynamic adjustment process in which privacy risks are weighted against benefits of information disclosure. Consistent with the principal notion of PCM, we investigated how individual users make a risk-benefit assessment under which personalized service and locatability act as benefit-side factors and information privacy risks act as a risk-side factor accompanying LBA adoption. In addition, we consider the moderating role of trust on the service providers in the prohibiting effects of privacy risks on user intention to adopt LBA. Further we include perceived ease of use and usefulness as additional constructs to examine whether the technology acceptance model (TAM) can be applied in the context of LBA adoption. The research model with ten (10) hypotheses was tested using data gathered from 98 respondents through a quasi-experimental survey method. During the survey, each participant was asked to navigate the website where the experimental simulation of a LBA allows the participant to purchase time-and-location sensitive discounted tickets for nearby stores. Structural equations modeling using partial least square validated the instrument and the proposed model. The results showed that six (6) out of ten (10) hypotheses were supported. On the subject of the core PCM, H2 (locatability ${\rightarrow}$ intention to use LBA) and H3 (privacy risks ${\rightarrow}$ intention to use LBA) were supported, while H1 (personalization ${\rightarrow}$ intention to use LBA) was not supported. Further, we could not any interaction effects (personalization X privacy risks, H4 & locatability X privacy risks, H5) on the intention to use LBA. In terms of privacy risks and trust, as mentioned above we found the significant negative influence from privacy risks on intention to use (H3), but positive influence from trust, which supported H6 (trust ${\rightarrow}$ intention to use LBA). The moderating effect of trust on the negative relationship between privacy risks and intention to use LBA was tested and confirmed by supporting H7 (privacy risks X trust ${\rightarrow}$ intention to use LBA). The two hypotheses regarding to the TAM, including H8 (perceived ease of use ${\rightarrow}$ perceived usefulness) and H9 (perceived ease of use ${\rightarrow}$ intention to use LBA) were supported; however, H10 (perceived effectiveness ${\rightarrow}$ intention to use LBA) was not supported. Results of this study offer the following key findings and implications. First the application of PCM was found to be a good analysis framework in the context of LBA adoption. Many of the hypotheses in the model were confirmed and the high value of $R^2$ (i.,e., 51%) indicated a good fit of the model. In particular, locatability and privacy risks are found to be the appropriate PCM-based antecedent variables. Second, the existence of moderating effect of trust on service provider suggests that the same marginal change in the level of privacy risks may differentially influence the intention to use LBA. That is, while the privacy risks increasingly become important social issues and will negatively influence the intention to use LBA, it is critical for LBA providers to build consumer trust and confidence to successfully mitigate this negative impact. Lastly, we could not find sufficient evidence that the intention to use LBA is influenced by perceived usefulness, which has been very well supported in most previous TAM research. This may suggest that more future research should examine the validity of applying TAM and further extend or modify it in the context of LBA or other similar smartphone apps.

• Asia Marketing Journal
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• v.13 no.4
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• pp.159-189
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• 2012

What attracts consumers to bloggers' reviews? Consumers would be attracted both by the Bloggers' expertise (i.e., knowledge and experience) and by his/her unbiased manner of delivering information. Expertise and trustworthiness are both virtues of information sources, particularly when there is uncertainty in decision-making. Noting this point, we postulate that consumers' motives determine the relative weights they place on expertise and trustworthiness. In addition, our hypotheses assume that tie strength moderates consumers' expectation on bloggers' expertise and trustworthiness: with expectation on expertise enhanced for power-blog user-group (weak-ties), and an expectation on trustworthiness elevated for personal-blog user-group (strong-ties). Finally, we theorize that the effect of credibility on willingness to accept a review is moderated by tie strength; the predictive power of credibility is more prominent for the personal-blog user-groups than for the power-blog user groups. To support these assumptions, we conducted a field survey with blog users, collecting retrospective self-report data. The "gourmet shop" was chosen as a target product category, and obtained data analyzed by structural equations modeling. Findings from these data provide empirical support for our theoretical predictions. First, we found that the purposive motive aimed at satisfying instrumental information needs increases reliance on bloggers' expertise, but interpersonal connectivity value for alleviating loneliness elevates reliance on bloggers' trustworthiness. Second, expertise-based credibility is more prominent for power-blog user-groups than for personal-blog user-groups. While strong ties attract consumers with trustworthiness based on close emotional bonds, weak ties gain consumers' attention with new, non-redundant information (Levin & Cross, 2004). Thus, when the existing knowledge system, used in strong ties, does not work as smoothly for addressing an impending problem, the weak-tie source can be utilized as a handy reference. Thus, we can anticipate that power bloggers secure credibility by virtue of their expertise while personal bloggers trade off on their trustworthiness. Our analysis demonstrates that power bloggers appeal more strongly to consumers than do personal bloggers in the area of expertise-based credibility. Finally, the effect of review credibility on willingness to accept a review is higher for the personal-blog user-group than for the power-blog user-group. Actually, the inference that review credibility is a potent predictor of assessing willingness to accept a review is grounded on the analogy that attitude is an effective indicator of purchase intention. However, if memory about established attitudes is blocked, the predictive power of attitude on purchase intention is considerably diminished. Likewise, the effect of credibility on willingness to accept a review can be affected by certain moderators. Inspired by this analogy, we introduced tie strength as a possible moderator and demonstrated that tie strength moderated the effect of credibility on willingness to accept a review. Previously, Levin and Cross (2004) showed that credibility mediates strong-ties through receipt of knowledge, but this credibility mediation is not observed for weak-ties, where a direct path to it is activated. Thus, the predictive power of credibility on behavioral intention - that is, willingness to accept a review - is expected to be higher for strong-ties.