Consumer Privacy Concerns and Preference for Degree of Regulatory Control

Abstract

Esta es la versión de autor del artículo publicado en:This is an author produced version of a paper published in: El acceso a la versión del editor puede requerir la suscripción del recurso Access to the published version may require subscription CONSUMER PRIVACY CONCERNS AND PREFERENCE FOR DEGREE OFREGULATORYCONTROL A Study of Mobile Advertising in JapanShintaro Okazaki, Hairong Li, and Morikazu Hirose ABSTRACT: This study explores the consequences of consumers' privacy concerns in the context of mobile advertising. Drawing on social contraer theory, the proposed research model connects a series of psychological factors (prior negative experience, information privacy concerns, perceived ubiquiry, trust, and perceived risk) and preference for degree of regulatory control. Data from a survey of 51O mobile phone users in Japan show that mobile users with prior negative experiences with information disclosure possess elevated privacy concerns and perceive stronger risk, which leads them to prefer stricter regulatory controls in mobile advertising. Both perceived ubiquity and sensitivity of the information request further the negative impact of privacy concerns on trust. No such effect occurs for the impact of privacy concerns on perceived risk, however. The authors discuss sorne theoretical and managerial implications.Consumer privacy concerns with respect to mobile advertising have become an important issue for policymakers, trade groups, and consumer advocates as unfair information practices continue to escalare in many countries. In the United States, unsolicited messages or spam increased by 38% from 2006 to 2007 and was expected to increase by 50% more to l.5 million messages in 2008 (Cloudmark 2008). Sorne spam messages request mobile users to provide personal information, including their credit card numbers, or attempt to infiltrare mobile devices with virus programs by asking users to register for services (CNET.co.uk 2006).To alleviate consumers' concerns about these potential invasions, the mobile industry has implemented several selfregulations. For example, the Mobile Marketing Association recently revised its consumer best practices guidelines, including those regarding promotional content and marketing to children; it also expanded and clarified its guidelines for free, standard, and premium rate messaging, mobile Web, and interactive voice responses ( Despite these different regulatory measures, what makes the most effective type of regulation in terms of protecting consumer information privacy remains a topic of debate. To assess the appropriateness of different approaches, we might examine mobile users' preferences for the degree of regulatory control, because users influence both mobile service providers and regulatory government agencies. Therefore, this research explores the relationship between consumer privacy concerns in mobile advertising and their preference for three types of regulations: government regulation, industry self-regulation, and government and industry coregulation. Government ...

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“…Prior literatures revealed that consumers' ability on behavioral control has a significant positive influence on many behavioral intentions (Bauer, et al, 2005;Carroll, et al, 2007;Hongwei, et al, 2010;Leppaniemi & Karjaluoto, 2005;Merisavo, et al, 2010;NOKIA, 2002;Nysveen, et al, 2005;Sheppard, Hartwick, & Warshaw, 1988;Tripathi & Siddiqui, 2008;Tsang, et al, 2004;Venkatesh, et al, 2003). In fact, studies in developed countries disclosed that many consumers appreciate rights to have behavioral control (Hongwei, et al, 2010;Leppaniemi & Karjaluoto, 2005;Okazaki, et al, 2009). …”

“…Furthermore, consumers require fair opportunities to have control over the transaction process to boost their confidence for further business deals (Leppaniemi & Karjaluoto, 2005;Milne & Rohm, 2000;Okazaki, Li, & Hirose, 2009). Prior to that, consumers' knowledge about how to utilize mobile communication technologies together with technology facilitating conditions also found to be equally important to ensure participation in mobile advertising activities (Beneke, et al, 2010;Nysveen, et al, 2005).…”

“…Consumers' behavioral intention usually directed by their beliefs due to the existence of constraints, which may assist or hinder the act of a particular behavior (Hongwei, et al, 2010;McKenzie & Jurs, 1993). Consumers always require fair opportunities to have control over a specific transaction process to boost their confidence for further business deals (Leppaniemi & Karjaluoto, 2005;Milne & Rohm, 2000;Okazaki, et al, 2009). …”

Privacy Concerns in Quick Response Code Mobile Promotion: The Role of Social Anxiety and Situational Involvement

“…For example, subscribers who opted in to e-mail newsletters may be reluctant to provide their personal information because the subscription mechanism may not be perceived as a sufficient safeguard. In this context, Okazaki et al [37] examined consumers' preferences on the desired strictness of advertising regulation in mobile advertising delivered by e-mail newsletters. Their findings suggest that information privacy concerns substantially attenuate trust and strengthen the risk in mobile advertising, which in turn acts as a direct predictor of preference for regulatory strictness.…”

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“…Wang et al 2015;Quinn 2015;Liu 2015;Combe 2015;Kshetri 2014;Hahn 2014;Gaff et al 2014;Cate 2014;Bardi et al 2014;Karabey 2012) and consumer privacy with mobile environment, mobile devices (Zhang et al 2013;Okazaki et al 2009;Praher and Praher 2008;Holtmanns 2002;Buck et al 2014) All the happenings show that ''we live in an era of an explosion of data'' (Landau 2015). In light of the many studies and which is referred to above, the purpose of this study is to understand consumer privacy in the era of big data.…”