Perceived quality factors of location-based apps on trust, perceived privacy risk, and continuous usage intention

Numerous location-based services (LBS) studies have suggested that the risk of disclosing personal privacy hinders consumers from adopting LBS, whereas scant attention has focused on clarifying how to mitigate the perceived privacy risk of using LBS. This quantitative study focuses on the effects of consumer quality perceptions (i.e. information quality, system quality, and service quality) on their trust in LBS, which consequently affects perceived privacy risk and continued usage intention towards LBS. Research data were collected through a market survey website; 1399 valid questionnaires were collected. Structural equation modelling analysis was applied to the data. The results revealed that information quality, system quality, and service quality were positively related to perceived trust. Perceived trust also correlated negatively with perceived privacy risk, but positively with continued usage intention. A managerial implication drawn from the findings is that LBS providers should develop more useful user interfaces or provide timely, personalised services to reduce perceived privacy risk and strengthen LBS continued usage intention.