Privacy has been an enduring concern associated with commercial information technology (IT) applications, in particular regarding the issue of personalization. IT-enabled personalization, while potentially making the user computing experience more gratifying, often relies heavily on the user's personal information to deliver individualized services, which raises the user's privacy concerns. We term the tension between personalization and privacy, which follows from marketers exploiting consumers' data to offer personalized product information, the personalization-privacy paradox. To better understand this paradox, we build on the theoretical lenses of uses and gratification theory and information boundary theory to conceptualize the extent to which privacy impacts the process and content gratifications derived from personalization, and how an IT solution can be designed to alleviate privacy concerns. 1 Set in the context of personalized advertising applications for smartphones, we propose and prototype an IT solution, referred to as a personalized, privacy-safe application, that retains users' information locally on their smartphones while still providing them with personalized product messages. We validated this solution through a field experiment by benchmarking it against two more conventional applications: a base non-personalized application that broadcasts non-personalized product information to users, and a personalized, non-privacy safe application that transmits user information to a central marketer's server. The results show that (com
Online product reviews are important determinants of consumers' purchase decision. Although prior research has articulated various benefits of online product reviews, there are few investigations into whether or not they are perceived as helpful by consumers. Product review helpfulness is conceptualized as a second-order formative construct, which is manifested by perceived source credibility, perceived content diagnosticity, and perceived vicarious expression of the product review. In this study, we conduct a laboratory experiment to investigate product review helpfulness as well as its corresponding antecedents from the product review feature perspective (i.e., source-and content-based review features). Findings from the study are threefold. First, the results of the data analysis support the theoretical conceptualization of product review helpfulness as a formative construct. Second, the results support the notion that the source-and content-based review features have direct impact on product review helpfulness. Consumers perceive customer-written product reviews as more helpful than those written by experts; they also perceive a concrete review as more helpful than an abstract review. Third, we find an interaction effect of the source-and content-based features of product reviews on review helpfulness. A customer-written product review with a low level of content abstractness yields the highest perceived review helpfulness.
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