Exercise 25

Exercise 25: M-commerce and the e-wallet: Innovation and mobile devices

1. What is meant by a location based service?

A location-based service (LBS) is a software application for an IP-capable mobile device that requires knowledge about where the mobile device is located. Location-based services can be query-based and provide the end user with useful information such as "Where is the nearest ATM?" or they can be push-based and deliver coupons or other marketing information to customers who are in a specific geographical area.
An LBS requires five basic components: the service provider's software application, a mobile network to transmit data and requests for service, a content provider to supply the end user with geo-specific information, a positioning component and the end user's mobile device. By law, location-based services must be permission-based. That means that the end user must opt-in to the service in order to use it. In most cases, this means installing the LBS application and accepting a request to allow the service to know the device's location. (anynomous, location-based service (LBS), 2009)
In the research to explore the pro and cons of the LBS, I found a video which was released by CNN in which reporter Susan Candiotti explains how LBS marketing will work.
http://itknowledgeexchange.techtarget.com/overheard/video-the-pros-and-cons-of-lbs-marketing/

This video discusses all the privacy concern and the working of the LBS. Please do have to go at the video it might show you the potential the service hold.