Abstract

Title: The possibilities of location-based marketing and the challenges of privacy – a cross cultural study between Sweden and New Zealand.

Date: 2016-05-20

Level: Bachelor Thesis in Marketing

Author: Johan Rambrandt and Simon Thordmark

Supervisor: Klaus Solberg Soilen

Problem formulation:If and when does location-based marketing intrude on individual's privacy?Does individual's perceive privacy differentially in Sweden and New Zealand?From the individual's perspective, what is the accepted limit for information disclosure?

Purpose: The purpose of our bachelor thesis is to study if and when location-based marketing intrude on individual's privacy and how location-based marketing affect the individuals in both Sweden and New Zealand. The theoretical and empirical work is to find out what is accepted and not accepted in terms of location-based marketing and privacy.Theoretical framework: The theoretical framework starts with a review of the

Theoretical framework: The theoretical framework starts with a review of the previous research within the field of location-based marketing complemented with theories regarding privacy such as rights, concerns and laws.

Method: We have chosen to make a quantitative study. The data collection consists of 385respondents in Sweden and 385 respondents in New Zealand, who participated in our survey.This is presented along with previously written theories and information.

Empirical framework: The empirical studies consist of two surveys, one in Sweden and one in New Zealand. The focus of the survey was to test the theories and get a good understanding of what the two different groups think in terms of location-based marketing and their privacy.

Conclusion: The conclusion of the thesis is that the majority of the respondents consider location-based marketing as a positive way of receiving information, offers and content via their smartphone. Location-based marketing are thereby an effective and tolerated technique when studying customers and their behavior. There were no distinct difference between how individuals perceive privacy in Sweden and New Zealand. Regarding the accepted limit for information disclosure, our conclusion is that the limit is based upon benefit versus cost and how the companies treat the information that is collected or handed to them.

Keywords: Privacy, Location-based services, Customer behavior, Location-based marketing,Applications and Smartphones.