A framework for consumers' assessments of location-based advertising (LBA) and selective exposure to privacy-related online information

Abstract

PurposeThe purpose of the current research is to present an explanatory framework for how people selectively attend to privacy-related news information about LBA depending on the extent to which they know about LBA already as well as their appraisals of privacy threats and efficacy.Design/methodology/approachThe proposed model was tested using structural equation modeling based on a total of 522 useable responses obtained from an online survey.FindingsThe results revealed two different approaches to information exposure: (1) people choose to seek out privacy-related news articles when their persuasion knowledge and perceived threat level are high, whereas (2) they tend to avoid such information when perceived threats accompany fear as well as psychological discomfort, or when they believe that they are knowledgeable about LBA practices and highly capable of protecting their privacy.Originality/valueWith the development of real-time location-tracking technologies, the practice of LBA is becoming increasingly popular. As such, however, concerns about data collection and privacy are also on the rise, garnering a great deal of media attention. Despite the importance and constant stream of news reports on the subject, a comprehensive understanding of consumers' privacy assessments and information consumption remains underexamined. By incorporating the persuasion knowledge model and extended parallel process model, the current research presents an explanatory framework for consumers' privacy perceptions and information choice.