Consumer Value of Context Aware and Location Based Mobile Services

Context aware services have the ability to utilize information about the user's context to adapt services to the user's current situation and needs. In this paper we consider users' perceptions of the added value of location awareness and presence information in mobile services. We use an experimental design, where stimuli comprising specific bundles of mobile services were presented to groups of respondents. The stimuli showed increasing, manipulated, levels of context-awareness, including location of the user and location and availability of buddies as distinct levels. Our results indicate that simply adding context aware features to mobile services does not necessarily provide added value to users, rather the contrary. The potential added value of insight in buddies' location and availability is offset by people's reluctance to share location information with others. Although the average perceived value overall is rather low there exists a substantial minority that does appreciate the added context aware features. High scores on constructs like product involvement, social influence and self-expressiveness characterize this group. The results also show that context aware service bundles with utilitarian elements have a higher perceived value than bundles with hedonic elements. On the basis of the different results some guidelines for designing context aware mobile services are formulated.