Skyhook has a recent article and infographic based on a Research Now survey into consumer attitudes into keeping location services on. 50% of users are concerned about privacy, 23% don’t see the value of location data and 19% think that location services drains their battery.
Skyhook recommend developers concentrate on the First Time User Experience (FTUX) to tell users what data is being collected, why and the value in keeping it turned on.
Also don’t forget that on Android, as of Marshmallow, Bluetooth LE beacons (iBeacon and Eddystone) also need coarse location permission and location ON to detect in background. This is actually a functional regression in Android as older previously working apps now fail to detect Bluetooth LE beacons in background on Marshmallow phones without this permission and location ON.