The high global penetration of mobile telephony provides a strong basis for the development and diffusion of mobile business applications. Especially for location based services, i.e. mobile services that consider the user’s current location to add value to the service provided, a high potential to become a major market success is
seen. Nevertheless the development of mobile business and location based services has so far been lagging behind expert expecations. One of the reasons for this disappointing development is the failure of application developers to center their
efforts on potential users and their needs and demands.
The following paper therefore reviews the existing literature on user requirements in mobile business and location based services. A definition and characterization of location based services is given and a framework to categorize existing location
based services is developed. Additionally, usefulness and usability are put in
concrete terms as they are identified as the main determinants of end-user acceptance of location based services. Security concerns of potential users of location based services are analyzed and further limitations of the diffusion of location based services are discussed.
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