Case Study: Life on the Grid, iPhone Becomes  iTrack

1.     Why do cell phone manufacturers (Apple, Google, and BlackBerry ) want to track where their customers go ?

          Cell phone manufacturers, Apple, Google and Blackberry, want to track where their customers go due to various factors. Firstly, location-based service provided in Apple, Google’s Android and BlackBerry smartphones can be the tool for three of the cell phone manufacturers to earn money. They can earn money by the location-based service in smartphones through advertising. Apple and Google are advertising platforms, so this makes them create the location-based service in their smartphones products.

            How can they earn money through advertising channel? This can be explained that mobile technologies based on the smartphone make it possible to locate people who use smartphones. After that, the location data of the users will be reported to the smartphone manufacturing company databases, retained and analyzed. The analyzed location data will then be sold to advertisers and others. When the advertising firms received the location data of their customers, they will pay Apple, Google’s Android and BlackBerry for the information of their customers’ location and for the distributing of their mobile advertisements. Once the advertising firms know where their customers are through mobile, they can send the customers advertisements, coupons, and flash bargains based on where the customers are.

             Next, Apple, Google and BlackBerry needs the location data of their smartphones’ users as they want to use the information to identify the location of cell phones for WIFI connected phones, and to improve the customer experience of location based services. Furthermore, the location information of users is also needed for them to improve their services.

             Moreover, location-based service created in smartphone can also build a strong and closed customer relationship to Apple, Google and BlackBerry. For instance, Foursquare, a 2009 start-up, is a popular mobile social application that allows users to check in to a restaurant or other location, and the app automatically lets friends on Facebook and other programs learn where you are. After starting up Foursquare on a smartphone, smartphone users will see a list of local bars and restaurants based on their cell phones’ GPS position. Foursquare has a widely accepted loyalty program. Each check-in awards users points and badges, which can be used later for discounts and at various venues. Users of  smartphones with Foursquare app are also awarded to be “Mayors” of the venue based on how many times they have checked in over a month’s time. Those who become Mayors will be given special offers. Thus, from here, it is shown that Apple, Google’s Android and BlackBerry provide location-based service in their smartphones can help them to create customers’ values.

2. Do you think cell phone customers should be able to turn tracking off? Should customers be informed when they are being tracked? Why or why not ?

            In my opinion, I think that the cell phone customers should be able to turn tracking off. They should also be informed when they are being tracked. This is because if the systems of the smartphone manufacturers do not have the action of that, they will violate their customers’ privacy for certain scenarios. For example, it is sure that most of the people do not like others from the public, who they do not know, to have known their location and what they are doing. This will be especially when they are enjoying their special occasions, such as, wedding ceremony and dating. So, from here, it is encouraged that customers are informed when they are being tracked.

            Moreover, allowing smartphone users to turn tracking off using their smartphones’ functions also acts as a respect of  the cell phone manufacturers towards their customers. They can show their respect to their customers by giving permission to their customers to choose to check in their location areas or not through their phones’ location-based services.

             Last but not least, if there is no awareness of being tracked among customers and customers cannot turn tracking off, users will be scary to use smartphones with location-based services. This may bring bad reputation to the cell phone manufacturers and also the smartphone products itself. It is owing to the bad treatment and customers’ services provided by the system of cell phones. Consequently, sales of cell phones with location-based services may decrease.

3.  Do you think cell phone tracking is a violation of a person’s privacy?

        Cell phone tracking can either a violation of a person’s privacy or not. It depends on the situations. 

        If  the systems of cell phones with tracking functions allow users to decide whether to share their location data or not, then for this case, cell phone tracking does not violate a person’s privacy. Yet, on the other hand, if the phone’s system automatically transmits location data of the users to other parties without getting permissions from the users, then, cell phone tracking is said to be a violation of a person’s privacy.

         Furthermore, for another case, if users of cell phones with tracking services are given benefits and so are willing to share voluntarily their location data, then, cell phone tracking is not violation of a person’s privacy. This is due to the agreement of the users on sharing their location data to public.

          In addition, if the location tracking apps in the cell phones have no privacy policy, cell phone tracking is considered a violation to a person’s privacy. This is because these types of apps transmit location data of the users to their developers after which the information is not well controlled, and that these services are creating a situation where government agencies, marketers, creditors, and telecommunication firms will end up knowing nearly everything about the users including their whereabouts.

          Last but not least, the most significant factor that makes cell phone tracking the violation of a person’s privacy is the location-based services of the cell phones that locate people automatically and persistently without users having a chance to go off the grid, and without being able to turn off the location features of their phones.