Would you Turn-On GPS for LBA? Fuzzy AHP Approach

Abstract

Location-based advertising (LBA) is a mobile phone service to apply customers' geographic location to provide suitable advertisement. It was proved in literature to be effective to motivate purchasing intention. However, perceived benefits would be accompanied by perceived risks of privacy concerns to users. The precondition of receiving the LBA is to turn on the location functions in the mobile device. This study applies the Fuzzy Analytic Hierarchy Process (FAHP) method to analyze the factors evaluated by consumers while considering to turn on the GPS functions for receiving LBA. The analytic results reported that “functional value”, “privacy considerations” and “inertia and usage of other 3C habits” are the top three important decision dimensions. In terms of decision factors, the most top three important evaluation factors are “habit of using 3C device”, “getting money-saving opportunities” and “whereabouts”. The findings are useful not only for LBA providers to design and manage their advertising practices but also for consumers to understand the critical factors while considering to turn on the GPS functions for receiving LBA.