The role of privacy-related factors in consumer perceptions of smart advertising
Journal of Service Theory and Practice
ISSN: 2055-6225
Article publication date: 16 February 2024
Issue publication date: 13 March 2024
Abstract
Purpose
As a smart service, location-based advertising (LBA) integrates advanced technologies to deliver personalized messages based on a user’s real-time geographic location and needs. However, research has shown that privacy concerns threaten the diffusion of LBA. This research investigates how privacy-related factors (i.e. LBA type, privacy self-efficacy (PSE) and consumer generation) impact consumers’ value-in-use and their intention to use LBA.
Design/methodology/approach
This study developed and examined an LBA value-in-use framework that integrates the role of LBA type, consumers’ PSE and consumer generation into the technology acceptance model (TAM). Data were collected through two experiments in the field with a total of 374 consumers. The proposed relationships were tested using PROCESS modeling.
Findings
The results reveal that pull (vs push) LBA causes higher value-in-use in terms of perceived usefulness and perceived ease of use, leading to greater usage intention. Further, the differences in the mediated relationship between pull- and push-LBA are larger among consumers of low PSE (vs high PSE) and Generation Z (vs other generations). The findings suggest that the consumer value-in-use brought about by LBA diminishes when using push-LBA for low PSE and Generation Z consumers.
Originality/value
This research is the first to integrate the privacy-related interactions of LBA type and consumer characteristics into TAM to develop a TAM-based LBA value-in-use framework. This study contributes to the literature on service value-in-use, smart services and LBA by clarifying the boundary conditions that determine the effectiveness of LBA in enhancing consumers’ value-in-use.
Keywords
Acknowledgements
This paper forms part of a special section “The Bright & Dark Sides of Smart Service (Technologies)”, guest edited by Nicola Bilstein, Alexander P. P. Henkel and Kristina Heinonen.
The authors are grateful to the editors and reviewers for their helpful suggestions regarding this research. The first author is grateful for the funding provided by the Ministry of Science and Technology in Taiwan, R.O.C. (No: MOST-104-2410-H-327-028).
Citation
Shieh, C.-H., Ling, I.-L. and Liu, Y.-F. (2024), "The role of privacy-related factors in consumer perceptions of smart advertising", Journal of Service Theory and Practice, Vol. 34 No. 2, pp. 216-241. https://doi.org/10.1108/JSTP-11-2022-0252
Publisher
:Emerald Publishing Limited
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