I. INTRODUCTIONNowadays, Wi-Fi enabled connectivity has become one of the standard functions for smart phones and tablets with the trend of increasing number of indoor Wi-Fi enabled venues. For example, shopping malls provide free Wi-Fi connection to attract more shoppers. These free Wi-Fi services can bring more traffic to increase the visit volume of the shopping malls. Wi-Fi is also a "must-have" for retail stores [1]. Retailers want to be the special preference of their customers, in order to do that, they desire to have a direct relationship with their customers and remember their preferences. For example, once the customers come to their shops, these customers can be identified via Wi-Fi signal which is captured by their mobiles or tablets, a popup will be displayed in their mobile devices to inform them about new products or promotions and provide recommendations based on their historical purchase record.In addition, in order to attract more customers into the shopping mall, these Wi-Fi services can also be used to help capturing indoor shoppers' location. Given a particular location, the smart phone can be represented by its Wireless LANs Address (MAC) uniquely and the received strength of the Wi-Fi signal indicator (RSSI) from different access points Manuscript received April 9, 2014; revised July 8, 2014 can be measured. By modeling the distribution of the RSSI in different locations, an Indoor Positioning System (IPS) as in [2], [3] can be built and trained with collected RSSI data to predict the device location from the signal strength. Although there are other options for indoor positioning, such as the indoor-messaging-system (IMES) in which positioning uses the indoor-GPS devices [4], however, because of the low-cost setup and the simple infrastructure needed, the Wi-Fi based IPS is more attractive to many retailers. Normally, the accuracy of these Wi-Fi Based IPS ranges from 3 to 10 meters [5]. If we keep recording the location of a MAC address for a period of time, these chronological location data can represent the movement or trajectory of a specified person.In this work, we aim to develop a model to predict the pedestrian's next location based on his historical movement which can be represented by his trajectory. There are many potential ways in which users can benefit from this application of the next location prediction. By being aware of the movement of the shoppers in advance, the retailers can quickly target shoppers by both interest and location, turning window-shopping into actual sales [6]. In order to maximize the effect of coupon promotion, delivering the coupons in specified regions and at a particular time, namely "user oriented coupon dispersion", can be carried out. Leveraging the application of next location prediction, organizers can rearrange the manpower with more efficiency and at a lower cost.This paper presents an improved model for the next location prediction and the remainder of this paper is organized as follows. First, we review relevant related works in Section II b...