The Mediating Effect of Perceived Trust on Privacy Concern and Intention to Use App-Based Location-Based Mobile Advertising: Evidence from Taiwan

• In Event: ICA Interactive Paper/Poster Session I
  In Interactive Poster Session: Mass Communication Interactive Poster Session

Abstract

App-based location-based advertising (LBA) uses a pull approach to reduce privacy concerns and user avoidance. This study examines how dimensions of perceived trust in mobile advertisers (ability, benevolence and integrity) mediate the negative effect of privacy concern on intention to use app-based LBA. Analyzing web survey data from 658 Taiwanese smartphone users with LBA experiences, the SEM results show that privacy concern negatively affects intention to use app-based LBA; however, mediated by perceived trust, privacy concern turns to a positive effect on use intention. Among dimensions of perceived trust, integrity is the only mediator influencing privacy concerns and use intention of app-based LBAs. Specifically, privacy concern negatively predicts integrity of mobile advertiser which turns to a positive effect on use intention. Theoretical and practical implications of perceived trust in mobile advertisers and privacy concern on app-based LBA use are discussed.

Authors

• Trisha T. C. Lin, National Chengchi University

• Yi-hsuan Chiang, Shih Hsin U