The purpose of this study is to investigate the determinants of customers’ intentions to use location-based services (LBS) offered by a hotel. The study examined whether hotel customers’ coupon proneness, trust, privacy concerns and familiarity with LBS are significant determinants of their intentions to use LBS.
An online survey using a scenario-based narrative was administered to collect data from participants who have smartphones and have stayed at a full-service hotel within the previous 12 months. A research model tested data collected from 402 hotel customers, using confirmatory factor analysis and structural equation modeling.
Three proposed determinants (i.e. familiarity, coupon proneness and trust) positively influenced customers’ intentions to use LBS. Out of the four dimensions of privacy concerns (concerns of collection, error, unauthorized secondary use and improper access), only concerns about data collection negatively influenced customers’ intentions to use a hotel’s LBS.
This study extends the literature on LBS adoption and other technology with privacy issues by modifying existing models and empirically testing it in the new context of hotels.
