Getting too personal: Reactance to highly personalized email solicitations

Research on the effects of personalized messages on consumers’ behavioral responses has yielded mixed findings. We explore how e-mail personalization influences click-through intentions. Our results suggest that consumers experience personalization reactance in response to highly personalized messages when the fit between the offer in the message and consumers’ personal characteristics is not explicitly justified by firms. Consequently, consumers are less willing to respond favorably to the offer. Results of two studies suggest that this effect primarily emerges for consumers who perceive the utility of the service to be relatively low. For those consumers with higher perceived utility, justification of personalization is less important because highly personalized messages are less likely to elicit reactance.     

Permission Marketing and Privacy Concerns — Why Do Customers (Not) Grant Permissions?

Little is known about the influence of motivators that drive consumers to grant permission to be contacted via personalized communication. In this study, a framework is developed to investigate the effect of select drivers of consumers granting permission to receive personalized messages. The authors distinguish between drivers related to benefit and cost to the consumers. They identify the influence of perceived personal relevance, entertainment, and consumer information control as well as monetary incentives and lottery participation as benefit-related factors. Cost-related factors entail the registration process, privacy concerns, and perceived intrusiveness. The authors find that, except for monetary incentives and lottery participation, the identified drivers significantly influence consumers' decision to grant permission. The strong negative influence of privacy concerns on the probability of granting permission can be lessened by two benefit-related factors, namely message content with entertainment value or personal relevance for the consumer. The study helps to improve firm measures aimed at getting more permissions — granted by customers for interactive campaigns.     

The Privacy Paradox: Personal Information Disclosure Intentions versus Behaviors

Impelled by the development of technologies that facilitate collection, distribution, storage, and manipulation of personal consumer information, privacy has become a “hot” topic for policy makers. Commercial interests seek to maximize and then leverage the value of consumer information, while, at the same time, consumers voice concerns that their rights and ability to control their personal information in the marketplace are being violated. However, despite the complaints, it appears that consumers freely provide personal data. This research explores what we call the “privacy paradox” or the relationship between individuals’ intentions to disclose personal information and their actual personal information disclosure behaviors.     

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.     

Effect of service recovery on customers’ perceived justice,satisfaction, and word-of-mouth intentions on online shopping websites

As consumers become better informed and more demanding about their purchase of services, service provider's failure to satisfy all consumers during delivery of service is unavoidable. Consequently, to alleviate consumer dissatisfaction that results from service failure has become important. However, empirical consensus has been lacking on the effects of various service recovery activities. Thus, this study examines the impact of different types of service recovery on customers’ perceptions of justice, post-recovery satisfaction, and word-of-mouth (WOM) intentions. The results indicated that consumers’ perceptions of distributive and interactional justice differ by the types of service recovery and supported significant relationships among perceptions of justice, satisfaction, and WOM intentions. The results implied that consumers respond differently to different types of service recovery and that consumers particularly favor apology among types of service recovery.     

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.     

The value of social presence in mobile communications

Texting via mobile devices is used as a primary means for day-to-day communications among an increasing number of consumers and, as a result of this trend, more companies are engaging with consumers and addressing service complaints using social media platforms, such as Facebook. This study addresses the use of two-way mobile texting via Facebook to resolve service complaints with applications from social presence theory. Research shows that marketers’ warm emotions are important in addressing service complaints, yet prior works mainly focus on the significance of human warmth in face-to-face contexts. Therefore, this study uses an experimental design to investigate the value of social presence in mobile texting as a means for providing service recovery. In triangulating the data, we use focus groups in confirmatory analysis. The findings show that social presence cues add human warmth to text messages with respect to two-way communication perceptions, control perceptions, responsiveness perceptions, satisfaction, attitudes, and repurchase intentions. The article concludes with a discussion of the importance of social presence cues in improving customers’ experiences and overall satisfaction.     

The evaluation factors of adopting SoLoMo services: the hybrid fuzzy MCDM approach

SoLoMo services are emerging mobile services, which combine different software and hardware techniques, enabling users to obtain location-based information at any time and place as well as exchange, interact, and communicate messages with other people in real time. Since SoLoMo services contain two types of the most widely used mobile applications, different users might have different needs for and expectations on these services. This study proposed a three-stage hybrid fuzzy multicriteria decision-making (MCDM) model and applied fuzzy analytic network process (FANP) and the decision-making trial and evaluation laboratory (DEMATEL) to analyze, from an angle of integral SoLoMo services, the critical factors evaluated by users in adopting SoLoMo services. In addition, this study also discussed how the users make their choices after they have weighed between the privacy consideration and the use of complete SoLoMo services. The analysis results reported that popularity degree of service, information accuracy of service, privacy risk, maintaining affection and friendship with others, and location-based store information search are the top five ones among these critical positive and negative factors considered by users while adopting SoLoMo services. Furthermore, the analysis indicated that for achieving information accuracy of service, location-based store information search, and maintaining affection and friendship with others, SoLoMo service users would tolerate more privacy risk.     

Banks’ unfairness and the vulnerability of low-income unbanked consumers

This paper’s objective was to explore low-income unbanked consumers’ perceptions of bank fairness and the way these perceptions were linked to consumer experiences of vulnerability. Qualitative data were used to analyse low-income consumers’ perceptions about banks’ services and communications. The study finds that although consumers’ financial inclusion is partially hindered by their personal circumstances, the perceived unfair treatment by banks has an even more negative impact on their financial inclusion. Low-income unbanked individuals report banks avoiding them, discriminating against them and impeding their financial inclusion. Banks’ perceived unfairness towards low-income consumers leads those consumers to experience vulnerability in numerous ways. Finally, we provide public policy implications for low-income consumers’ well-being and financial inclusion and to assist them in mitigating their vulnerability.     

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.     

The Future of Digital Communication Research: Considering Dynamics and Multimodality

Digital communication, the electronic transmission of information, reflects and influences consumers’ perceptions, attitudes, behaviors, and shopping journeys. Thus, data stemming from digital communication is an important source of insights for retailers, manufacturers, and service firms alike. This article discusses emerging trends and recent advances in digital communication research, as well as its future opportunities for retail practice and research. The authors outline four consumer–retailer domains relevant to digital communication, which in turn frame their discussion of the properties of communication dynamics (e.g., trends, variations) within messages, communicators, and their interaction, as well as communication multimodality (i.e., numeric heuristics, text, audio, image, and video). These factors are critical for understanding and predicting consumers’ behaviors and market developments. Furthermore, this article delineates conceptual and methodological challenges for researchers working in contexts that feature dynamics and multimodality. Finally, this article proposes an agenda for continued research, with the goal of stimulating further efforts to unlock the “black boxes” of digital communication and gain insights into both consumers and markets.     

Unraveling the Personalization Paradox: The Effect of Information Collection and Trust-Building Strategies on Online Advertisement Effectiveness

Retailers gather data about customers’ online behavior to develop personalized service offers. Greater personalization typically increases service relevance and customer adoption, but paradoxically, it also may increase customers’ sense of vulnerability and lower adoption rates. To demonstrate this contradiction, an exploratory field study on Facebook and secondary data about a personalized advertising campaign indicate sharp drops in click-through rates when customers realize their personal information has been collected without their consent. To investigate the personalization paradox, this study uses three experiments that confirm a firm's strategy for collecting information from social media websites is a crucial determinant of how customers react to online personalized advertising. When firms engage in overt information collection, participants exhibit greater click-through intentions in response to more personalized advertisements, in contrast with their reactions when firms collect information covertly. This effect reflects the feelings of vulnerability that consumers experience when firms undertake covert information collection strategies. Trust-building marketing strategies that transfer trust from another website or signal trust with informational cues can offset this negative effect. These studies help unravel the personalization paradox by explicating the role of information collection and its impact on vulnerability and click-through rates.     

Impact of personalization and privacy concerns on information disclosure and pricing

Advances in IT have enabled some firms to offer personalized products according to the private information disclosed by consumers, while others are still offering standardized products, which brings about asymmetric competition. For consumers, disclosing private information for personalized products leads to reduced misfit cost as well as privacy loss. To illuminate the impact of consumers' trade-off between the benefit of information disclosure and the associated privacy concerns on firms' asymmetric price competition, we consider a setting where only one firm is capable of product personalization based on consumers' personal information. The capable firm makes a profit from selling the product and monetizing consumers' information. We demonstrate that as the capable firm becomes more adept at personalization, he may raise or lower the price depending on his profit foci, and an improvement in his capability does not always guarantee a higher profit. Counterintuitively, an increase in the unit misfit cost (i.e., greater product differentiation) can, under certain circumstances, intensity price competition, making both firms worse off and leading to higher consumer surplus. We also show that when consumers are more privacy-concerned, there exists an indirect effect that weakens the impact of an increase in price on the monetization of consumers’ information, and hence price competition can be mitigated and both firms can be better off. Furthermore, we demonstrate that product personalization with misfit-reducing effect always increases consumer surplus under the asymmetric competition. Our findings provide firms and policy-makers with great managerial insights.     

How the burdens of ownership promote consumer usage of access-based services

Services that let customers access goods, such as car-sharing, are gaining increasing relevance as an alternative to ownership. These access-based services allow consumers to avoid the “burdens of ownership”, i.e., risks and responsibilities that come with owning a good. However, the interplay between consumers’ risk perception of ownership, access-based service usage, and the subsequent decision to reduce or forgo ownership has not been sufficiently investigated. Based on risk perception theory, we hypothesize the effects of different risk dimensions (financial, performance, social) on the intensity of access-based service usage, as well as the latter’s influence on ownership reduction. Using a unique dataset that links survey and actual usage data of car-sharing users, we test four corresponding hypotheses. The results reveal that access-based service usage is positively influenced by all three ownership risk perceptions. Moreover, a higher usage of an access-based service increases the likelihood that consumers subsequently reduce ownership.     

‘Hello,Mrs. Sarah Jones! We recommend this product!’Consumers' perceptions about personalized advertising: comparisons across advertisements delivered via three different types of media

As new technologies (e.g. online, mobile and interactive TV) develop worldwide, numerous types of personalized advertising, in which companies use an individual's name and/or other types of personal information, have become more popular in many countries. Using many types of information about specific individuals, personalized advertising is designed to convey a customized message at the right time to the right person using diverse media. However, despite its universally increased use, few academic studies have explored the effectiveness of personalized advertising and consumers' response to it. This exploratory study focused on consumers' perceptions of personalized advertising delivered online (e‐mail) and offline (letter and telephone call). The results show that consumers generally have negative perceptions of personalized advertising, regardless of how it is delivered, with the strongest negative reaction to telephone calls.     

Will artificial intelligence replace human customer service? The impact of communication quality and privacy risks on adoption intention

In the digital environment, chatbots as customer service agents assist consumers in decision making. Based on the computers-are-social-actors paradigm, this study examines the perceived differences in communication quality and privacy risks between different service agents and their impact on consumers' adoption intention, and investigates whether these perceived differences might depend on differences in the user's human interaction need. A series of five scenario-based experiments were carried out to collect data and test hypotheses. It was discovered that: different types of service agents directly affect consumers' adoption intention; perceived communication quality and privacy risk mediate the effect of service agent type on adoption intention; the effects of service agent type on perceived accuracy, communicative competence, and privacy risk are moderated by the need for human interaction. The findings of this study provide important insights into the rational use of human−computer interacation in e-commerce.     

The role of customization,brand trust,and privacy concerns in advergaming

This study investigates the effects of advergame customization features and trust in the brand advertised in the advergame on players’ brand attitude and personal information disclosure. Moreover, we examine to what extent players’ privacy concerns moderate these effects. Drawing on self-determination theory and uncertainty reduction theory, we developed and tested a game with varying levels of customization features and brand trust. Results show that customization possibilities and brand trust may have a positive influence on advergame persuasion outcomes, but this influence is strongly conditioned by consumers’ privacy concerns. When privacy concerns are low, a game containing customization features leads to a more positive brand attitude. However, when privacy concerns are high, the effect becomes negative. Additionally, we find that different levels of privacy concerns do not affect players’ responses toward high trust brands, but toward low trust brands. For low trust brands, players with high privacy concerns show more negative game responses than players with low concerns. These findings set the boundaries for several theoretical and practical implications regarding advergame effectiveness.     

Volunteering personal information on the internet: Effects of reputation, privacy notices, and rewards on online consumer behavior

Accurate personal information provision is one of the most important determinants of the commercial development of the Web. However, consumers are usually reluctant to provide personal information or tend to provide false information online because of their concern about privacy violation risks. We employ a 2× 2× 2 experimental design to examine the effects of reputation, privacy notices, and rewards on online consumer behavior in volunteering two types of personal information on the Internet: demographic information and personally identifiable information. We discuss the theoretical and practical implications of the findings.     

A cross-country comparison of online deal popularity effect

The paper examines the effect of online deal popularity for service deals in a cross-country context. A 2 (deal popularity: low vs high) X 2 (culture: collectivist vs individualist) quasi experimental design was used to collect data in Australia and Taiwan to examine the consumer reactions toward deal popularity information of service deals on e-retailing websites. Results show consumers' perceived performance and psychological risk mediate the effect of deal popularity on purchase intention both in the Australian and Taiwanese samples. In addition, consumers' reactions towards online popularity information for online service deals do differ across cultures. While high deal popularity increases the Australian consumers' performance and psychological risk perceptions, which in turn lowers their purchase intention, high deal popularity decreases the Taiwanese consumers’ risk perception and enhances their purchase intention. This paper contributes to the broader fields of retailing and services studies by providing insights for online retailers concerning how deal popularity can be leveraged as a means to reduce perceptions of risk for Taiwanese consumers but with caveats for their Australian counterparts. As a first study that examines the effect of online deal popularity for service deals in a cross-country context, it extends the body of knowledge in a fast-changing domain of consumer behavior e-commerce settings.     

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.