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.     

Understanding information disclosures and privacy sensitivity on short-form video platforms: An empirical investigation

As a new social media platform, short-form video apps integrate the dual functions of e-commerce and social networking. The proliferation and high penetration rate of this kind of app have resulted in online user concerns about the privacy security problems exposed by such platforms. This study focuses on better understanding the impact mechanism of private information disclosure behaviors and obtained benefits on privacy concerns of short-form video platform users. We analyzed the behavioral and privacy setting data of 35,456 users registered on the TikTok platform. The results demonstrated a correlation between use behaviors (e.g., participation and interest) and privacy sensitivity, among which popularity, as a form of external feedback, played a mediating role. In addition, the official certification provided to users by the platform moderated the impact of user popularity on privacy sensitivity. This study enriches the understanding of the correlation between privacy concerns and information disclosure behavior and suggests practical implications for the design of privacy settings and protections by short-form video platforms.     

Exploring the impact of online privacy disclosures on consumer trust

We explore the impact of privacy disclosures on online shoppers’ trust in an e-tailer through a two-phase study. In the first study, we use a between-subjects factorial design to test whether the presence of an online privacy policy influences consumer trust and find that consumers are likely to respond more favorably to a shopping site with a clearly stated privacy message than to one without it, especially when privacy risk is high. In our second experiment, we examine the effects of different forms of privacy disclosures. The results suggest that online shoppers find a short, straightforward privacy statement more comprehensible than a lengthy, legalistic one. However, how a privacy policy is presented (in terms of wording) does not affect a shopper's trust in the store to any significant degree.     

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.     

Consumers’ privacy calculus: The PRICAL index development and validation

Although collecting personal information about consumers is crucial for firms and marketers, understanding of when and why consumers accept or reject information collection remains limited. The authors conceptualize a privacy calculus that represents a consumer’s trade–off of the valence and uncertainty of the consequences of the collection, storage, and use of personal information. For example, usage-based car insurance requires drivers to share data on their driving behavior in exchange for a discount (certain benefit) but at the risk of third parties intercepting location data for malicious use (uncertain disadvantage). Building on this conceptualization, the authors develop the privacy calculus (PRICAL) index. They empirically confirm the validity of the items (Study 1) and the index as a whole (Study 2). The PRICAL index is generally applicable and improves the explanation of behavioral intentions (Study 2) and actual behavior (Study 3), compared with currently used constructs (e.g., privacy concern, trust). Overall, the PRICAL index allows managers to understand consumers’ acceptance of information collection regarding financial, performance, psychological, security, social, and time-related consequences, which the authors demonstrate using the top five most valuable digital brands (Study 4).     

How does ad relevance affect consumers' attitudes toward personalized advertisements and social media platforms? The role of information co-ownership,vulnerability, and privacy cynicism

Consumers' responses to the use of their personal data for personalized advertising by platform providers are paradoxical. Drawing from psychological ownership theory and the collective information boundary, this study examines how the social relevance and personal relevance of ads impact consumers' attitudes toward advertisements and social media platforms. Basing on 350 responses, we confirm that perceptions of information co-ownership and feelings of vulnerability play a serial mediating role in the positive relationship between ad relevance and consumer attitudes. Specifically, ad relevance increases consumers' perceptions of social media platforms as co-owners of their personal information, which in turn reduces feelings of vulnerability and improves their attitudes toward personalized advertisements and social media platforms. Privacy cynicism negatively moderates the indirect effects of information co-ownership perceptions on two attitude variables mediated through feelings of vulnerability. Our research findings provide a new perspective on the personalization–privacy paradox and offer platform providers new insights into improving their personalized advertising performance and user–platform relationships.     

To Share and Protect: Using Regulatory Focus Theory to Examine the Privacy Paradox of Consumers' Social Media Engagement and Online Privacy Protection Behaviors

Consumers' personal information often informs retailers' marketing efforts in terms of creating value in the online marketplace. This study examines four factors related to consumers' social media engagement and online privacy protection behaviors. Regulatory focus, social exchange, and marketing relationship theories explain the online consumer personal information share-and-protect model developed. Consumers aged 18–64 years across the United States participated in this survey research. The results suggest that while personal privacy violation experience and perceived secondary control of one's personal information are influential antecedents, privacy concerns and trust in social media websites mediate each of these respectively. The findings suggest that promotion- and prevention-related behaviors regarding personal information align with the orientation of the antecedents, indicating that regulatory focus theory shows promise for examining the privacy paradox. We conclude by developing a matrix that integrates regulatory focus and social exchange theories to guide future research.     

Privacy, property rights and efficiency: The economics of privacy as secrecy

There is a long history of governmental efforts to protect personal privacy and strong debates about the merits of such policies. A central element of privacy is the ability to control the dissemination of personally identifiable data to private parties. Posner, Stigler, and others have argued that privacy comes at the expense of allocative efficiency. Others have argued that privacy issues are readily resolved by proper allocation of property rights to control information. Our principal findings challenge both views. We find: (a) privacy can be efficient even when there is no “taste” for privacy per se, and (b) to be effective, a privacy policy may need to ban information transmission or use rather than simply assign individuals control rights to their personally identifiable data.

Investigating innovation diffusion,social influence,and personal inner forces to understand people's participation in online e-waste recycling

By integrating the elaboration likelihood model (ELM), innovation diffusion theory (IDT) and social cognition theory (SCT), this study constructs a research model through which to explore the key factors and their influence mechanisms to understand people's participation in online e-waste recycling. Based on the ELM, we believe that people's behavioral intention to participate in online e-waste recycling is affected by the information processing of central and peripheral routes. Based on IDT, we take the perceived innovation characteristics as the key elements of the central route and consider social influence as the key element of the peripheral route. At the same time, we consider personal inner force factors, based on SCT, as the functional condition of the information processing mode to explore the moderating effects of privacy concern, pricing fairness concern, and environmental concern on the information processing of the central and peripheral routes. By taking discarded mobile phones as an example, we collect 475 valid samples to test our research model using the structural equation modelling (SEM) approach. The results confirm that perceived innovation characteristics and social influence are two factors that motivate people to participate in online e-waste recycling and that the three kinds of inner forces have different moderating effects on perceived innovation characteristics and social influence. Based on the above findings, this study puts forward some policy proposals.     

Factors predicting attitude toward disclosing personal data online

To test a theoretical model, this study explores the effect of anxiety, trust, personality, and perceived benefits on the disclosure of personal information online. An online survey conducted among participants in the United States (n = 248, age range: 20–82 years) examined attitudes toward disclosing personal data online. Specifically, the study researches the impact of anxiety disclosing personal data, trust (both in the Internet and in institutions), the Big Five personality traits, and four sets of perceived shopping benefits (opportunity, bargain, purchase, and expected privacy benefits) in e-commerce disclosure and their role as antecedents for adoption and use of e-commerce. The study aligns with existing trust literature and corroborates other findings on how perceived purchase benefits impact individuals’ attitudes toward disclosing personal data online. The data suggest that both trust in the Internet and trust in institutions positively influence attitude toward disclosing personal data online. Perceived purchase benefits were also significant positive predictors for attitude toward disclosing personal data online. Furthermore, personality dimensions can affect attitude toward disclosing: the more neurotic a person is, the more negative their attitude is about disclosing personal data online. The study underscores that consumers have a responsibility to educate themselves about online disclosure and marketing practices, and about how to protect their online privacy. Most importantly, fostering trust, reducing anxiety, and promoting benefits are essential to the future of e-commerce. Implications for theory, consumers, marketing practice, and public policy are also discussed.     

Platform perspective verse user perspective: The role of expression perspective in privacy disclosure

This study investigates how the expression perspective impacts privacy disclosure when presenting privacy authorization interfaces to users. Using a series of five experiments, the authors discovered that potential users are more inclined to reveal personal information when authorization statements are presented from the user expression perspective (UEP) rather than the platform expression perspective (PEP). This finding is driven by users' perceptions of greater psychological ownership over personal data (POPD) from the UEP as opposed to the PEP. An EEG experiment also reveals that users pay less attention (a lower P2 amplitude) to the UEP (vs. PEP), decreasing the complexity of decision-making (a lower N2 amplitude). This effect persists even when the perceptual load is low but is attenuated under a high perceptual load. The current study contributes to the literature on linguistic framing and privacy disclosure, providing guidelines for platforms to effectively and ethically acquire users' private information.     

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.     

Relative power of online buyers in regard to a store: How it encourages them to disclose their personal data?

The current study contributes to the knowledge as to how the relative power of buyers impacts their willingness to disclose personal data in online buying. The theoretical framework is based on social exchange theory, which makes it possible to consider the importance of trust in stores and perceptions about external privacy regulations. Data were collected via a representative survey (985 respondents) and analysed with the help of two-step structural equation modelling. The key findings show the presence of the indirect effect of relative power on willingness to disclose personal data (mediated by store trust), while the direct impact was found to be insignificant. It was found that store trust is built by relative power of buyers, along with their perceptions about external privacy regulations. This suggests that relative power grows when perceptions about the effectiveness of privacy regulations improve. These findings help to develop theoretical and managerial implications.     

What if you ask and they say yes? Consumers' willingness to disclose personal data is stronger than you think

Technological progress—including the development of online channels and universal access to the internet via mobile devices—has advanced both the quantity and the quality of data that companies can acquire. Private information such as this may be considered a type of fuel to be processed through the use of technologies, and represents a competitive market advantage. This article describes situations in which consumers tend to disclose personal information to companies and explores factors that encourage them to do so. The empirical studies and examples of market activities described herein illustrate to managers just how rewards work and how important contextual integrity is to customer digital privacy expectations. Companies' success in obtaining client data depends largely on three Ts: transparency, type of data, and trust. These three Ts—which, combined, constitute a main T (i.e., the transfer of personal data)—deserve attention when seeking customer information that can be converted to competitive advantage and market success.     

Self-Disclosure and Managing Privacy: Implications for Interpersonal and Online Communication for Consumers and Marketers

In our fast-changing technological world, the line between the offline and online world has become blurred and individuals are faced with constant opportunities to divulge personal details. The process of disclosing sensitive information to others is necessary for establishing, maintaining, and building relationships, both with people and businesses; however, it also creates opportunities for misuse of the disclosed information. Consumers who are willing to disclose personal information online may often be unaware of the full implications of such disclosure. By thoroughly exploring the origins and processes of self-disclosure, and outlining its development in interpersonal and online communication, individuals will become more aware of their (sometimes competing) implicit and explicit disclosure behaviors necessary for enacting strong privacy management. Utilizing communication privacy management (CPM) theory, this article proposes a framework for ongoing consideration of how self-disclosure and privacy function online. By framing privacy in terms of the literature of communicative self-disclosure, CPM instructs the building of privacy boundaries that are functional for consumers and marketers alike, allowing people to protect themselves online while also ensuring their continued enjoyment of Internet provided benefits.     

Managing privacy paradox through national culture: Reshaping online retailing strategy

Data privacy is a threat to the future of e-commerce. Consumers face a dilemma in balancing the risks and benefits associated with online privacy, leading to a phenomenon termed the privacy paradox. The study interviewed 30 Millennials representing 13 countries using a grounded theory approach to explore the influence of national culture on the information disclosure attitude in the context of online retailing. The study presents a novel framework, Privacy Paradox Pyramid, to manage the privacy paradox through the lens of national culture, enabling retailers to segment the customers and design a tailored approach to create a competitive advantage.     

Can information and communication overload influence smartphone app users' social network exhaustion,privacy invasion and discontinuance intention? A cognition-affect-conation approach

Thanks to the expansion of network technologies and the coupling of smartphone hardware, younger generations have unparalleled access to a diverse range of information and interactive communication opportunities. Despite voluminous research on the causes of social network exhaustion and privacy invasion, limited academic attention has been devoted to understanding the driving forces and contributing factors for discontinuing usage of smartphone app. Drawing on the cognition-affect-conation paradigm, the present research proposes a conceptual research model to examine how information overload and communication overload effect social network exhaustion, privacy invasion, and ultimately, smartphone app users' intentions to discontinue usage. The study evaluates data from 442 smartphone app users, employing statistical analyses to demonstrate that both information overload and communication overload significantly impact users' exhaustion and privacy invasion. Additionally, social network exhaustion and privacy invasion are two major predictors of smartphone app discontinuance intention. By identifying the influential factors and causes of younger generations' discontinuous usage intention of smartphone app, this study meets the need for a thorough assessment of the social network exhaustion and privacy invasion phenomena. The findings may potentially enhance comprehension of the discontinuation intention phenomenon in the context of cognitive overload. Furthermore, they may provide novel insights for practitioners regarding effective strategies conducive to managing mobile social network adoption behavior, as well as the preservation of engagement levels among young users in mobile-saturated societies.     

Adding insult to injury: consumer experiences of being denied credit

To inspire confidence in consumer credit and improve outcomes for consumers, negative experiences such as being denied credit must be handled appropriately. We conducted an online survey with 298 UK citizens who had a credit application denied to gain a better understanding of their experience of being denied credit. We found that privacy issues make this experience more upsetting for consumers than necessary. When being denied credit, respondents are most concerned about (1) being denied credit ‘in public’; and (2) not being informed about the reasons why they are denied. Only 23% of our respondents knew why they had been denied; 116 (62%) believed they had been denied credit because of their credit record, but 28% had never checked it. Out of the 194 respondents who had checked their record, 38 identified errors in their credit reports, and in 14 of these cases (38%) debts that they had paid off were incorrectly listed as outstanding. Based on our findings, we propose several changes to the credit application process: (1) providing sensitive but helpful information in a private manner, e.g. a preview of their credit score before they commit a loan application; (2) credit denial notifications with information on what to do next; and (3) giving applicants more information about checking their credit report and who to contact for correcting errors.     

How to reduce perceived risk when buying online: The interactions between intangibility,product knowledge,brand familiarity,privacy and security concerns

This paper studies how product intangibility and its moderators affect perceived risk in an online shopping setting. The moderators studied were brand familiarity, product knowledge, privacy concerns and security concerns. Student samples performed online experimental tests, wherein product intangibility was manipulated. The findings indicate that both mental intangibility and physical intangibility increased perceived risk. Mental tangibility had more impact over perceived risk than physical tangibility. This study is the first to show how intangibility, product knowledge, brand familiarity, privacy and security concerns interact and affect perceived risk. Previous studies did not have the opportunity to observe the interactions of these relevant dimensions, thus not identifying which one would have a stronger effect over the perceived risk of buying online. In short, we found that when interacting with intangibility security and privacy concerns increase perceived risk to the same degree. On the other hand, product knowledge reduces the perceived risk more than brand familiarity.