What are 'location-based alerts'?

Could somebody explain me what does this setting do? It's nested under Settings -> Privacy -> System Services.
I see that a lot of people on the web are confusing it with the Suggested Apps setting found under iTunes & App Store, but I'm pretty sure that's not it.
Thanks!

Wasn't this the point of Suggested Apps? When I'm near a starbucks, in the lower left corner on my lock screen, the starbuck's app logo appears.

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