855-W170 Contents



Executive summary 3

Geofencing and Locational Services 4

References 6

Executive summary

Geofencingis a fast and economic method of notifying potential customers of theoffers in a certain business enterprise. This helps in creation ofcustomer awareness of the products in the market. The advantage fthis method is that businesses are able to offer their superiorservices to the customers without having to directly confront them.Though geofencing is an efficient business enterprise for anybusiness that wishes to harness more customers, it has its ownshortcomings. Some customers feel that geofencing services are anintrusion of personal security and relate it to being spied. Thus,the customer decision making process is affected negatively. Somecustomers also feel that their information may reach their employersthus compromising them.

Thereis a problem with the privacy of data since the scope of the datastored by the locational services is not defined. Therefore, thesebusinesses can sell the customer locational information to thirdparty companies thus jeopardizing on the privacy of the people whoused the service.

Geofencing and Locational Services

Geofencingaffects the behavior and the decision making process of the peopledifferently. One way is that Geofencing affects the decision makingprocess of a person. The person who receives the message feels thattheir privacy is being intruded. A good example is when a person goesto purchase a product in one shop but when surveying the product getsa message that they can get the same product at a cheaper cost inanother place. They feel that someone is spying on their onlineactivities and they might end up changing their decision of buyingthe product. This is due tothe fact that many customers are not wellacquainted with the process and therefore fail to understand why itishappening so. It is evident from the research conducted by PEW thatpeople are turning off their geofencing services for the fear of theinformation about them getting to the hands of their employers.Therefore, it has created a creeping factor to the customers[ CITATION MPS14 l 1033 ].

Thebold behavior of many consumers is affected by the use of locationservices. This is because there is the issue of data security. Whogets access to the data that is collected during the process? This isa critical question to many people considering the fact that locationservices collect a large amount of data from the customers and theymight share this with the third party companies. This could lead totracking of the customers since location data is collected throughthe process. This feeling of being watched makes people shy away fromusing the services[ CITATION Pri13 l 1033 ].

Itis true that geofencing and other locational services lead toinvasion of the privacy. The fact is that for the service to send youinformation when you are in a specific location, it means that theservice keeps on tracking your movement. This means that the servicekeeps a watch over your movement which is an infringement of theprivacy of a person. These services also records your online browsinghistory so as to understand what you are trying to search for andwhen you go to the shop they send you messages of invitation to theirstores. In this age where mobile phones are used for socialinteracting and other forms of communication, keeping a track on thebrowsing history can mean following the communication of theindividuals. This is invading on the privacy of such people and it isnot ethically acceptable. Since there are no companies that arekeeping a watch on the companies that are using geofencing andlocation based apps, it could be possible that these companies cansell data about the location changes of their customers to otherthird party companies, an activity that is illegal[ CITATION Bar13 l 1033 ].

Onealternative to geofencing is doing extensive advertisement of theproducts. This can be through websites, physical advertisement andthrough the use of the media. The information that is well targetedwill reach majority of the customers and this will impact positivelyon their decisions. Advertisement creates brand loyalty as customerswill feel associated to a certain class and will increase the brandawareness. Another alternative is the application that combines bothcamera and web to locate certain properties. For example, a personcan take a photo of a passerby in the street and search in the webfor the clothes they are wearing. This improves brand loyalty sincepeople like to cloth as their role models. It also increases thevolume of sales and brand awareness[ CITATION Hei15 l 1033 ].


Baran, R. J., &amp Galka, R. J. ( 2013). CRM: The Foundation of Contemporary Marketing Strategy. London: Routledge.

Heinemann, G., &amp Gaiser, C. (2015). Social local mobile : the future of location-based services. Heidelberg: Springer.

MPSM601 Consumer Insights Midterm Case Analysis. (2014). Geofencing: The Future Of Location Data. Retrieved July 18, 2014, from http://www.tactify.com/geofencing/

Price, S., Jewitt, C., &amp Brown, B. (2013). The Sage handbook of digital technology research. Los Angeles : Sage Publications Ltd.

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