Privacy concern and online personalization: The moderating effects of information control and compensation

Abstract

Firms have at their disposal an increasing amount of personal information about consumers gathered through various means. Studies find that personalizing online interactions improves customer relationships and increases desirable behaviors, such as positive word-of-mouth and increased purchase intent. However, other research suggests that the use of personal information stimulates privacy concern, which has a negative effect on behavior. This study examines potential moderators of the negative effects of privacy concern on behavioral intentions in the context of personalized online interactions. Results show that increasing perceived information control reduces the negative effect of privacy concern on intentions to engage in positive behaviors. In contrast, the offer of compensation has no effect on the relationship between privacy concern and these behavioral intentions. However, compensation increases the salience of trust to privacy concern.

Factors Affecting Students’ Privacy Paradox and Privacy Protection Behavior

“…Putting this new scale into practice, we found that users with a higher level of concern for online privacy and higher privacy self-efficacy chose privacy protection behavior over usability and reported lower privacy paradox behavior. These results were in accordance with some of the above studies (Akhter 2014;Awad & Krishnan 2006;Castañeda & Montoro 2007;Heirman, Walrave & Ponnet 2013;Hoffman et al 1999;Lee & Letho 2010;Phelps, Nowak & Ferrell 2000;Phelps, D'Souza & Nowak 2001;Potoglou, Palacios & Feijóo 2015;Taylor, Davis & Jillapalli 2009). …”

A Study on User-Oriented and Intelligent Service Design in Sustainable Computing: A Case of Shipbuilding Industry Safety

“…Sustainability 2017, 9, 544 2 of 19 being applied to numerous areas such as the practice and development of u-City, u-Government, u-Health, u-Transportation, u-Education, u-Distribution/Logistics, etc., and the Ubiquitous Computing is emerging as an important keyword that represents the current trend of IT industries [11,12]. The u-Business is defined as a business system applied to a diversity of fields by using Ubiquitous Computing and networks to intellectualize things, terminals, goods inducing customers' business activities in the living environment, and devices or systems constructing business processes and by connecting them with networks [11,13,14].…”

“…The u-Business is defined as a business system applied to a diversity of fields by using Ubiquitous Computing and networks to intellectualize things, terminals, goods inducing customers' business activities in the living environment, and devices or systems constructing business processes and by connecting them with networks [11,13,14]. U-Business service is not an entirely new concept.…”

Personalized Product Recommendations: Evidence from the Field

“…Typically, recommendations are made based on customers' expressed preferences, personal information or past behavior [2,5,27]. In practice, this would mean for example suggestions on what to buy based on already selected products or on what other consumers expressing similar needs have bought.…”

“…Privacy concerns and ad irritation increase advertisement avoidance whereas increased personalization was found to decrease avoidance. In addition, privacy concerns are an extensive concern among consumers as companies use their personal information when providing personalized online services [6,27]. Personalized messages may create reactance if individuals perceive them as too personal and feel that they do not have control over how their personal information is used [4].…”