Privacy Risk versus Socialness in the Decision to Use Mobile Location-Based Applications

The adoption and use of mobile location-based applications (LBAs) (e.g. Loopt, Gowalla, Foursquare, Facebook Places, My Town) are far behind industry expectations. Drawing on social exchange theory, we present a theoretical framework to examine the cost-benefit tradeoffs considered by potential users of mobile LBAs. A research model is proposed and tested using data collected from a sample of 222 respondents. Our study offers two explanations for why users would release location information: 1) the application's controls reduce privacy risk beliefs, and 2) the application provides opportunities for socialness. Understanding the motivations and concerns of different types of users and developing LBAs to meet those specific needs is both a challenge and a condition for the growth of the location-based market.