Information Privacy and Online Behaviors

Abstract

This study explores several key potential influences of privacy concerns on consumers' attitudes toward websites. Using a sample of 221 subjects, it was found that privacy concerns could decrease the likelihood of purchasing online. This finding highlights the importance of privacy concerns and contributes to the understanding of Internet marketing in that the early literature incompletely addresses the issue of consumer privacy empirically, which represents a potential threat to the growth of e-commerce. Thus, online marketers should be careful not to abuse (e.g., distribute it without permission) the personal information of consumers. In sum, it is advised that online marketers assure the public that consumer information will not be tracked and traded without the individual consumer's knowledge or consent.     

Impact of privacy concerns on resistance to smart services: does the ‘Big Brother effect’ matter?

ABSTRACT

The aim of this study is to provide a better understanding of the factors that explain consumer resistance to smart services from a privacy perspective. To this end, an exploratory qualitative study and a quantitative study were carried out. 653 French consumers answered an online questionnaire regarding smart services in the banking sector. Structural equation modelling was used to test the conceptual model. The findings show that information privacy, the unauthorised secondary use of personal information and perceived intrusion have an impact on consumer resistance to smart services. Moreover, our research highlights the major role of the ‘Big Brother effect’ as an antecedent to these various privacy concerns.     

Beyond concern: socio-demographic and attitudinal influences on privacy and disclosure choices

ABSTRACT

The co-option of consumers as unwilling agents in their own surveillance has enabled significant abuses of consumer privacy. Previous studies have largely used privacy concern as a proxy for overall privacy attitudes. In this study, we implement a choice experiment in combination with measures adapted from Communication Privacy Management theory to enable a broader exploration of the influences of privacy attitudes by contextualising privacy as a negotiation about accessibility over contextual boundaries. Key findings suggest individuals’ social media disclosure decisions are influenced at least in part by their privacy attitudes, particularly with respect to information categories which may cue other personal information. Findings are also presented on consumers’ willingness to pay for privacy, with implications for alternative revenue streams not built on consumer surveillance.     

Exploring how consumers cope with online behavioral advertising

This study explores how consumers cope with a computer technology-driven persuasion tactic called online behavioral advertising (OBA). By tracking consumers’ online behaviors, OBA delivers highly tailored advertising messages to individual consumers, giving rise to serious privacy concerns due to their covert nature. Integrating the persuasion knowledge model and the protection motivation theory, we employed a survey method (N = 442) to examine how consumers cope with OBA based on their persuasion knowledge, cognitive appraisal, and cognitive processing variables. The results reveal that persuasion knowledge was indirectly associated with coping behavior of ad avoidance throughout cognitive appraisal process (perceived risks; perceived benefits; self-efficacy). Privacy concerns partially mediated such associations with ad avoidance. Interestingly, cognitive processing variables (reactance; perceived personalization) were significantly associated with ad avoidance without being related to persuasion knowledge. The implications for theoretical, managerial, and social contributions are discussed.     

Addressing privacy predicaments in the digital marketplace: A power‐relations perspective

The utilization and governance of the internet and adjacent disruptive technologies have created numerous challenges to ensuring consumer online privacy. This study employs the power–responsibility equilibrium theory to explore emerging online privacy issues in the data‐driven marketplace. This exploratory study, based on semi‐structured interviews, explains why online shopping consumers are increasingly worried about their privacy and why they behave in a manner that could be detrimental to the consumer–vendor relationship. The findings suggest that deficiencies of corporate privacy responsibility and regulatory protection have deprived consumers of privacy empowerment. These deficiencies have also accentuated perceived privacy contract violations to trigger privacy concerns and subsequent defensive responses. We identify enhancement of consumer privacy empowerment and assuagement of privacy contract violations as two separate mechanisms of addressing online privacy issues. We also highlight the importance of addressing power and responsibility dynamics for maintaining a healthy information‐exchange environment.     

Motives and barriers affecting consumers’ co-creation in the physical store

ABSTRACT

The rise of e-commerce has caused a dramatic shift in consumer behaviour, putting pressure on physical stores to offer a more personalised and service-oriented offering. This paper investigates one strategy retailers might apply in this context: in-store consumer co-creation. Research has predominantly focused on online-based consumer co-creation in new product and service development. We argue that with increased focus on digitalisation and consumer experiences in physical retail, this type of co-creation will increasingly take place in-store. Following a pre-study with practitioners, our main study uses 20 scenario-based semi-structured interviews, where we identify eight consumer motives and seven barriers that underlie consumers’ willingness and reluctance to create and select new products in-store, respectively. Some motives, such as ethical, self-efficacy, and concerted are reported as barriers when reverted, due to consumers’ concerns regarding data privacy, low levels of perceived self-efficacy and assumptions that the technology might be flawed. Other motives largely overlap existing research on motives for co-creation whereas other barriers predominantly pertain to the underlying technology and the physical setting of co-creation in-store. The findings further indicate that consumers co-create differently online versus in-store. In-store seems particularly suitable for more marketing related aspects of co-creation, with a stronger emphasis on playfulness and purchase intentions. Practical implications for retailers are therefore discussed.     

Explicating the privacy paradox: A qualitative inquiry of online shopping consumers

Online consumers often voice discontent and concern over their privacy and yet fail to take adequate precautions. Nor do they abstain from disclosing information. This study aims to explore this phenomenon which is known as the privacy paradox. Based on semi-structured interviews with online shopping consumers and thematic analysis of data, this paper illuminates the privacy paradox using three themes: psychological distance of privacy, perceived social contracts of privacy, and learned helplessness and privacy empowerment. Our findings contribute to the privacy paradox discourse and provide several implications for consumers, online retailers, and policymakers.     

Online anthropomorphism and consumers’ privacy concern: Moderating roles of need for interaction and social exclusion

Online privacy concern has become a critical ethical and managerial issue for online retailing. However, we know limited information about what marketing practices may exacerbate consumers’ privacy concern. This study intends to examine the undesirable intertwining effect of online anthropomorphism and individual features on consumers’ privacy concern and downstream variables. Three experiments were conducted to test hypotheses. The results suggest that consumers who have a low need for interaction in business encounters and who experience social exclusion indicate a higher privacy concern and lower willingness to register online in anthropomorphic (vs. non-anthropomorphic) websites. Moreover, the interactive effect of online anthropomorphism and social exclusion extends to consumers’ online purchase intention, which works via privacy concern as a mediator in this process. The findings suggest that incorporating anthropomorphic elements online may exacerbate consumers’ perceptions of privacy risk and detract their behavioral intention toward the websites and thus individual features should be taken into account. We conclude by discussing the implications, limitations, and directions for future research.     

Privacy concerns on social networking sites: a longitudinal study

This longitudinal cohort study examines whether privacy concerns have changed on social network sites (SNSs), in particular Myspace/Facebook, as both the users and the medium have matured. Tracking a cohort of 15–17-year olds at three points across an 8-year period, it uses focus groups and self-determination theory to investigate the perceptions of control and vulnerability of 45 participants. The findings suggest that while consumers appear to trust SNSs to protect their private information, they are reluctant to trust advertising or brands on these sites. Over time, users’ autonomy, connectedness and competence have shifted from experimenters, who have nothing to lose, to acceptors who felt their social life was more important than their privacy concerns, to managers who strategically controlled their information in order to reduce their vulnerability.     

Comparing consumer-produced product reviews across multiple websites with sentiment classification

ABSTRACT

Online consumer reviews have been extensively studied. However, existing literature analyzing online consumer review data mostly relies on a single data source, resulting in potentially biased analytics conclusions. Many websites encourage consumers to post reviews of their purchased products, so that new consumers can evaluate these reviews for the same product across different websites to help them make purchasing decisions. Confusions often arise in this process, because there often exist substantial discrepancies in customer reviews across different retailers on the same product. Clarifying such confusions can help consumers reduce concerns to make up their mind for their purchases, therefore benefiting both consumers and retailers. Through text analytics and sentiment analysis, we comparatively examine the underlying patterns of online consumer reviews of three large retailers including Sears, Home Depot, and Best Buy for a same product. Afterward, we combine online consumer reviews from these large retailers and conduct an overall text analytics and sentiment analysis. The overall results are further compared with the results from individual retailers. The findings show that the sentiment of the online consumer reviews could vary substantially so relying on a single data source to make purchase decision is not a wise idea. Based on the results, we further devise a framework to comparatively examine and integrate multiple data sources for social media analytics of online consumer reviews. This study offers important managerial implications and identifies several new research directions for social media analytics.     

The Effect of Internet Expertise on Offline Expectations

ABSTRACT

Because the Internet enhances consumer control over online marketing transactions, more expert web users are hypothesized to generalize this web expertise to their expectations of offline service encounters. This hypothesis is supported for consumers with moderate web expertise as compared to those with little web expertise. However, web users with high levels of expertise have lower expectations of offline encounters than those with moderate expertise. The lower expectations of the most expert web users are likely to be due to a lower level of involvement with offline service encounter, a greater awareness and use of online information by the most expert, and possibly a greater propensity to distinguish between online and offline encounters.     

Factors that Influence Consumers’ Attitudes toward Internet Buying in Nigeria

The study used previously validated measurement instrument to investigate, in a Nigerian context, the extent to which some specific factors like perceived security, perceived privacy, perceived integrity, constrained consumer’s product need, personality, perceived ease of use, perceived usability, perceived usefulness, and previous experience in Internet buying predict consumers’ attitude towards Internet buying in Nigeria. The survey research was adopted and the population of the study consisted of postgraduate management students form University of Benin, Benson Idahosa University, Ambrose Ali University, and Graduate MBA Students from the University of Benin. Data were analyzed using regression, t test and ANOVA. The research findings were: perceived privacy, constrained product need, consumers’ previous online experience and perceived usability exert strong predictive influence on consumers’ attitude towards internet buying in Nigeria. In view of the findings, a modified model that addresses the key factors influencing consumers’ attitude towards Internet buying in Nigeria is proposed.     

Exploring Consumers' Perceptions of Online Credit Card Theft

Abstract

Retailers offer consumers assurances and attempt to allay their fears over using their credit card for online transactions. Consumers, however, may not be reacting to these assurances. This exploratory study examines how consumers assess the risks associated with using their credit card online. Results of this study support the notion that consumers assess risk in a multi-dimensional manner. Consumers may be concerned with the possibility of losing many forms of resources (such as financial and time).     

Do ethics drive value co-creation on digital sharing economy platforms?

PurposeSharing economy is surging and so are the consumers’ ethical concerns regarding such platforms. The current study examines the antecedents of consumers’ intention to co-create value that include consumers’ ethical perceptions constructs (i.e. privacy, security, fulfillment/reliability, shared value, service recover, and non-deception) and relationship quality constructs (trust, satisfaction, commitment), focusing on the digital sharing economy platforms.MethodologySurvey method was applied to gather data from n=348 consumers at digital sharing economy platforms. Structural equation modelling technique through Amos version 24. was employed in order to further analyze the data.FindingsResults reveal that consumers’ ethical perceptions as a second order construct comprising of privacy, security, fulfillment/reliability, service recovery, and shared value does not influence consumers’ intention to co-create value. However, relationship quality as a second order construct including commitment trust and satisfaction influences consumers’ intention to co-create value. Furthermore, relationship quality serves as strong full mediator between consumers’ ethical perceptions and their intention to co-create value.OriginalityThe studies on drawing relationships between value co-creation and relationship quality constructs have been popular yet to the authors’ surprise; seldom any studies have been conducted in examining the role of ethical perceptions in the settings of digital sharing economy platforms. Therefore, the current study closes this gap.     

Country of Production Biases on Consumer Perceptions of Global Brands: Evidence From an Emerging Market

ABSTRACT

Globalization has created significant opportunities of cost reductions for players to take advantage of location specific benefits. Simultaneously, it has presented significant opportunities for countries, such as China, to actively participate in global trade, attract foreign direct investment, and improve the economic wealth of their nations. However, literature cautions marketers about consumers’ biased evaluations of products based on their country of production. Moving production to low-cost countries could potentially harm brand trust, quality evaluations, and purchase intentions due to unfavorable biases for the country of production. The objective of this study is to investigate country of production biases of Turkish consumers for two global brands, Philips and Adidas. Data for the study (N = 1,608) were collected using mall-intercepts from the 17 largest cities of Turkey. Study findings show that brand trust, perceived quality, and purchase intentions declined sharply for both brands when consumers learned that the product was manufactured in China.     

An empirical study of the impact of consumer emotional engagement and affective commitment in firm-hosted virtual communities

ABSTRACT

Emergent perspectives in marketing highlight new opportunities for leveraging social media as a means to build customer–firm relationships through consumer engagement. Drawing from cognitive appraisal theory and aspects of the service dominant logic, this study delineates and empirically tests hypotheses regarding the effects of key components of consumer engagement (cognitive appraisal, affective states, participation) on consumers’ affective commitment, in the context of two service companies where the firms used social media to host virtual communities. The research examines how consumers’ cognitive appraisal of the engagement experience aligned with their online interaction propensity and participation in value-creating activities drive engagement outcomes. The results confirm the need to contextualise, personalise and respond to the consumer’s engagement experience to develop this engagement.     

Consumers' SKU choices in an online supermarket: a latent class approach

Abstract

This study examines the effects of loyalty and e-marketing mix variables on the choices of online consumers at the stock-keeping-unit (SKU) level. Using a panel dataset from an online supermarket, we estimate a discrete choice model of a frequently purchased product; generate the refined smoothing constants of the loyalty variables for brand, size, and SKU; and adopt the latent class approach to address consumer heterogeneity. The findings suggest that SKU loyalty is a better predictor of consumer choices than brand and size loyalty. Although online consumers are not sensitive to the net prices of SKU alternatives, they are attracted to price promotions. While webpage display has little effect on SKU choices, speedy delivery has a positive impact. The latent class approach significantly improves model fitness and classification accuracy. Analysing consumer choices at the SKU level can help online supermarkets with promotion planning and inventory and distribution management to improve customer satisfaction and profitability.     

Teenagers on the Net

ABSTRACT

Both in business and in academic research, the Internet and electronic commerce grow exponentially. Attention has predominately been directed to developing the companies' capabilities and systems, while the consumers' perspective in contrast has received much less attention. This paper takes this perspective and focuses on online behavior of specifically 16- to 18-year-old teenagers. This particular segment tends to open to new things and know a great deal about using computers and the Internet. A questionnaire conducted among students in a high school in southern Finland showed that the overwhelming majority had computer and Internet access at home. Most of the young respondents had already used the Internet for various purposes and intend to do so even more in the future. For the young, information search and communication were the main purposes of using the Internet, and lower-value products related to mobile phones were the main products being bought online. At the same time they had different concerns that influence their behavior and, somewhat surprisingly, reported a slightly negative attitude towards electronic commerce. In line with previous studies, privacy and security issues were the primary concerns for the young Internet users. Gender aspects also emerged from the data since there were several differences in Internet usage and online purchasing between girls and boys. Based on the findings, the paper ends with implications and recommendations for companies attempting to approach teenagers in order to build relationships with them.