Travelers and location-information in the mobile environment

– consumer attitudes and a prototype of a service for early adopters of mobile Internet

service

I. Tjostheim, B. Nordlund, J. Lous, K. Fuglerud

ingvar.tjostheim@nr.no

The Norwegian Computing Center

ENTER 2003 Research Track Slide Number 2

Point of departure

• The new 2.5G and 3G networks

• advanced m-phones

• Privacy concerns, the individual’s information privacy is the right to determine when, how, and to what extent information about a person is communicated to others. Westin, Alan, (1967) Privacy and Freedom.

• A new research field: “Privacy Enhancing Technology”

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• “Because rigorous theoretical and empirical research on the marketing implications of m-commerce is lacking, it would seem appropriate to conclude this article with a serious of illustrative questions: - How must consumer privacy policies be designed? - What m-commerce activities should be placed in the set that mobile devices users would need to opt in to, and what m-commerce activities should be placed in the set that they would need to opt out of? Balasubramanian, Peterson & Jarvenpaa (2002)

• “Location-aware services as a general concept raise a number of ethical and legal issues. These include security, user privacy, etc. Obviously such issues have implications for everybody, including tourists, and the successful resolution of these issues is a prerequisite for the widespread deployment of electronic tourist guides.” O’Grady, O’Hare, & Gregory (2002)

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Hypothesis

• H1 Individuals with e-commerce experience are more willing to share personal information online than the general Internet-user.

• H2 The travelers with e-commerce experience will be among the early adopters of mobile Internet (MI) services.

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The surveys

National survey 2000/01 Travel survey 2002

5376 (100%)

Internet users 3094 (58%) 458 (100%)

Daily Internet user 1572 (29%) 367 (80%)

Has e-commerce experience 1544 (29%) 334 (73%)

Has an advanced m-phones 485 (9%) -

• The first survey was a large postal survey to members of a national panel, the winter 2000/2001. The second, a travel survey targeted to members of the Internet-population with travel experience.

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The profile of the respondents with e-commerce experienceNational survey 2000/01 Travel survey 2002

Men - women 52% - 48% 68% - 32%15 – 29 years old30 – 39 years old40 – 49 years old50 – 59 years old60 years or old

24%32%24%16%5%

22%29%30%14%5%

StudentPrimary schoolTechnical/professional schoolCollege- or university degree

12%13%28%48%

-20%23%57%

Income less than 25000 EURO“ between 25 – 50000 EURO“ more than 50000 EUROUn-answered

22%56%15%7%

16%51%28%5%

N= 1544 334

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Attitudes to advertisement and willingness to share personal information on the Internet.To what extent do you agree to the following;

National survey Winter 2000/01 Internet-users withoute-commerceexperience

Internet-users withe-commerceexperience

Travelers – has bookedtravel services online

more than 3 times

It is OK to receive advertisements from a company in e-mails even though I haven’t approved it in advance

Strongly disagreePartly disagreePartly agreeStrongly agreeImpossible to answer

64%16%11%5%3%

64%18%10%6%2%

66%12%14%8%0

N= 1525 1350 188

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Attitudes to advertisement and willingness to share personal information on the Internet.To what extent do you agree to the following;National survey Winter 2000/01 Internet-users without

e-commerceexperience

Internet-users withe-commerceexperience

Travelers – has bookedtravel services online

more than 3 timesFor goods & services of interest to me, I am positive to register and receive advertisementStrongly disagreePartly disagreePartly agreeStrongly agreeImpossible to answer

47%15%25%12%2%

29%16%30%23%1%

24%10%39%26%

-I think it is OK to register in order to get access to information on the Internet if the information isinterestingStrongly disagreePartly disagreePartly agreeStrongly agreeImpossible to answer

21%13%37%27%2%

12%10%35%42%1%

9%5%

35%49%1%

I am positive to become a member/registered customer on the Internet of a supplier of a brand that I likeand use.Strongly disagreePartly disagreePartly agreeStrongly agreeImpossible to answer

47%16%23%10%4%

26%16%33%23%2%

18%12%33%34%

-N= 1525 1350 188

ENTER 2003 Research Track Slide Number 9

Internet-behavior and mobile phonesNational survey Travel survey

Has a MI phone Is planning tobuy a MI-phone

Are using SMS,but not wap-

services

Are using wap-services

E-commerce experienceWithout e-com. experience

13%10%

9%5%

47%45%

12%2%

ENTER 2003 Research Track Slide Number 10

Personal information and search vs. buying behaviorWhat kind of information are you willing to give in order to get information / to buy about products andservices on the Internet?National survey Winter 2000/01 Internet-users

without e-commerceexperience

Internet-users withe-commerceexperience

Travelers -has booked travel

services online morethan 3 times

… in order to get information about products and services

E-mail addressName and addressShopping behavior informationInfo about gender, age, incomeOfficial id-numberCredit card number

76%50%26%26%3%1%

89%65%32%34%3%3%

95%68%31%34%6%5%

…in order to buy products or services

E-mail addressName and addressShopping behavior informationInfo about gender, age, incomeOfficial id-numberCredit card number

58%55%21%20%3%5%

78%89%26%32%7%

23%

88%87%23%33%11%43%

N= 1548 1356 188

ENTER 2003 Research Track Slide Number 11

Key findings

• H1 was supported

– individuals with e-commerce experience are more willing to share personal information online than the general Internet-user.

• H2 was supported

- the travelers with e-commerce experience are, according to this study, among the early adopters of mobile Internet (MI) services. 11% of the members in this segment had experience with MI services. The travelers with e-commerce experience seem to be quite willing to reveal personal information in an electronic environment.

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The prototype – controlling access to location information

• This prototype is a system that provides a single place for a user of a mobile phone to define his or her privacy policy regarding location information.

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Figure 1. Policy editor Figure 2. Situation editor

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Concluding remarks

• The prototype will be used as a tool in the investigation of user-preferences, as well as reactions and attitudes with regard to location privacy policies. The effectiveness of a privacy policy will depend on the possibilities for enforcing the policy.

• There is a substantial challenge in making the relation between the user interface and the requirements for a privacy policy consistent and at the same time making it understandable for the users.

• “Travel and tourism” is in its nature international. Hence, systems that will function across national borders are needed. It is highly desirable to develop a cross national and non-proprietary solution that operates independent of the separate network operators

ENTER 2003 Research Track Slide Number 16

Acknowledgement

• The paper was written as part of a project funded by The Norwegian Research Council.