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A Study on the Factors Affecting Reuse Intention of Location-Based Service in the Mobile Telecommunication Market

LBS (Location-Based Service) provides a variety of services based on the Global Positioning System (GPS) such as providing location information of individuals, cars, or any places which might be valuable to people. The LBS draws a lot of attention because the location information could be a catalyst to develop many interesting services which could appeal to general public when it is connected with mobile communication networks. The Google’s map service, ‘Street View’, which started it’s service in September 2008, aroused general public’s interest greatly in LBS. The market potential of LBS would be very significant as a strategic business initiative. According to Gartner’s 2009 report, although device sales would go down by 4%, subscribers and revenues of LBS would grow 20 times compared to 2008. And the report predicted that advertisement-based services or free LBS would be very popular in the LBS market in the future. In North America and Europe, users of free LBS would grow from 10~15% of users currently to 40~50% in 2013 (Gartner, 2009). As LBS spreads rather rapidly, a serious research is needed in this area. First, firms could utilize resources more efficiently to improve customers’ value by finding factors which would lead to frequent resue of LBS from customers’ perspective. Second, firms could apply the findings of research to the development of enhanced services by recognizing problems encountered when new services with new technologies are adopted in the market. And lastly, as this research is customer-focused one, it would overcome some of the shortcomings of technology-focused current research. This research is based on the theory of information technology users’ acceptance (Zaltman, 1973; Rogers, 1983; Brancheau and Wetherbe, 1995), research on the consumption of products and services (Dodds and Monroe, 1985~1991; Zeithaml, 1988; Ajzen, 1991), research on the informations use and success and failure (Davis 등, 1989; DeLone and McLean, 2003; Lin and Lu, 2000), and applied the developed research model to find factors affecting reuse intention of location-based service among cyber banking service users.