Consumer online privacy concerns and responses: a power–responsibility equilibrium perspective |
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Authors: | May Lwin Jochen Wirtz Jerome D Williams |
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Institution: | (1) Division of Public and Promotional Communication, School of Communication and Information, Nanyang Technological University, 31 Nanyang Link, SCI Bldg, 637718 Singapore, Singapore;(2) NUS Business School, National University of Singapore, 1 Business Link, 117592 Singapore, Singapore;(3) Department of Advertising, University of Texas at Austin, 1 University Station A1200, Austin, TX 78712-1092, USA |
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Abstract: | We use the Power–Responsibility Equilibrium (PRE) framework and advance that consumers balance perceived deficits in privacy
protection by power holders (businesses and regulators) with defensive actions. In our model, consumer privacy concern is
the endogenous mediating entity linking business policy and regulatory perceptions to negative online user responses. The
model was empirically tested and confirmed in an experimental setting. In a second study, we added the nature of consumer
information involved into a sub-model. Here, we investigated the moderating role of information sensitivity and congruency
on the business policy–concern relationship across three industry contexts. Both hypothesized two-way interactions were confirmed,
suggesting that a strong business policy is effective in reducing concern when low sensitivity data are gathered, but insufficient
in reducing concern for highly sensitive data. Furthermore, concern increased dramatically when sensitive data were collected
that were incongruent with the business context. |
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Keywords: | Online privacy Power responsibility Business policy Regulation Congruency-sensitivity interaction |
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