Role of Privacy Legislations and Online Business Brand Image in Consumer Perceptions of Online Privacy Risk

Abstract

Developing an approach to manage privacy risk is critical to the success of e-marketing. Understanding the antecedents of privacy risk is therefore essential for the success of e-business. Because governments, businesses, and consumers are economic agents, this study examined the effects of governmental (privacy legislations) and firm-related (online business brand image) factors on consumer perceptions of online privacy risk. This paper proposes a conceptual model for exploring the underlying mechanisms of privacy legislations and online business brand image on consumer perceptions of online privacy risk. To test the conceptual model, data were collected from 425 students on a university campus which provided real personal information to online businesses within the preceding 3 months. Structural equation modeling was employed to test all the hypotheses in the conceptual model. The results reveal that perceived effectiveness of privacy legislations and online business brand image positively affect trust in online businesses. In addition, trust in online businesses positively affects perceived effectiveness of business privacy policies and perceived benefits of information disclosure, which in turn negatively influences online privacy risk perception.

Big crisis data, contradictions and perceived value of social media crowdsourcing in pandemics

“…These findings are in line with many previous studies (e.g. Sharma et al, 2019;Wang & Wang, 2019), which have shown that the perceived value of social media crowdsourcing depends on the extent to which participants trust it.…”

“…The literature (e.g. Sweta, 2014;Wang & Wang, 2019) confirms that the perceived value of social media crowdsourcing depends on the extent to which participants trust it. Rodr ıguez et al (2020) claims that honourable people will not continue as members of online communities, despite their positive intention, if they believe that other participants are opportunistic.…”

“…In any case, the role of trust in social media crowdsourcing has attracted the attention of many researchers (e.g. Schimak et al, 2015;Sharma et al, 2019;Wang & Wang, 2019).…”

“…However, the literature (e.g. Schimak et al, 2015;Tang et al, 2018;Wang & Wang, 2019) reports that, despite the different perceived risks, people may decide to continue their membership in online crowds based on trust in their leaders, other members and disseminated information. According to Guidry et al (2017), online social platforms that enable collective perception and promote trust between participants are likely to be more attractive for collaborative activities and the adoption and use of social media crowdsourcing.…”

Looking Back to Move Forward: A Bibliometric Analysis of Consumer Privacy Research

“…This cluster primarily provides the theoretical basis for this field and may shed light on further research. For example, many studies propose an integrated theoretical framework to understand context-specific antecedents and outcomes of privacy concerns (e.g., [46][47][48][49][50][51][52]). An implication for further research is thus to exploit context and contextual differences in managing consumer privacy.…”