The Effects of Consumers’ Perceived Privacy Control on Perceived Privacy Risk in Location-Based Services

Abstract

The diffusion of advanced mobile technology has introduced new types of personal information or ‘location data’. These new data mean new opportunities for businesses, such as location-based services (LBS), but have resulted in new consumer anxieties regarding disclosure of personal information. This study examines the effects of the consumers’ perceived control over “time-and-place” information in location-aware services on their perceived privacy risk. A total of 270 respondents participated in this study. Conditions of perceived privacy control were operationalized over time-and-place information, in a 2x2 factorial design. Results indicate that the perceived control over time-and-place personal information is a significant predictor of perceived risk, and control assurances over time-and-place information enhances the perception of control, thus alleviating the perceived risk. In addition, the effect is much more significant when time and place were combined.