Trust and commitment: Effect of applying consumer data rights on U.S. Consumers' attitudes toward online retailers in big data era

Abstract

Applying the Commitment‐Trust Theory, this study investigates how a U.S.‐based online retailer's choice to apply (or not to apply) General Data Protection Regulation (GDPR) data subject rights to consumers in the United States affect the retailer‐customer relationship. This study conducted an online survey through Amazon Mechanical Turk (MTurk) with a total of 659 respondents. The findings provide empirical evidence that consumers perceived higher trust and lower privacy concerns toward online retailers when a retailer voluntarily applied the GDPR consumer data rights to U.S. consumers, thereby increasing brand commitment. The post hoc analyzes also revealed that when a global retailer chose to apply the GDPR consumer data rights to U.S. customers, the respondents' comments exhibited positive emotions and indicated they would be more willing to give the retailer their future business. These results are particularly relevant to international marketers and brands that serve both European and U.S. consumers.

Gratifications in change of privacy? The response of four consumers' generational cohorts toward facial recognition technology in retail settings

“…By conducting this study, we reply to the call for future investigations on the effect of age on the perceived risk of privacy loss (Pantano, Viassone, et al, 2022; Rehman et al, 2020; Willis et al, 2021). While the willingness to disclose personal information is usually related to the control that users have over the collected and used information (Schmidt et al, 2020), our results add new knowledge to the existing literature by confirming that locus of control is neither related to the age of consumers nor to their knowledge of the specific technology used to collect their personal data.…”

“…Similarly, recent studies in retailing considered age as an influential factor in consumer behaviors, including experience and purchase decisions (Khan et al, 2020; Lissitsa & Kol, 2021). To this end, scholars encourage further investigations of the effect of age on the usage of new technologies in retailing (Pantano, Viassone, et al, 2022), and on the perceived risk of privacy loss (Rehman et al, 2020; Willis et al, 2021). Despite the importance of age in understanding the gratifications resulting from technology use, the application of UGT to explore generational differences in technology uses and motivations is still limited (Athwal et al, 2019; Banda & Banerjee, 2020; Huang & Zhou, 2018; Rauschnabel, 2018).…”

How do brand policy updates turn into transgressions and impact consumers’ continuance intentions?

“…Since demographic characteristics were seen as important determinants of decisions relating to privacy in earlier research, gender was used as a control variable in this study. But some studies supported this assumption (Smith et al, 2011;Jai & King, 2016), while others did not (Cheng et al, 2021;Willis et al, 2021). Furthermore, the sample is inadequate for testing other demographic characteristics (e.g., income, age, education, etc.)…”

“…Wu, Huang, Yen, and Popova (2012) emphasize that the content of privacy policies, privacy concerns, and trust were also significant in consumers' information disclosure intentions. Willis et al (2021) suggest that if the data regulation laws were applied voluntarily by digital platforms, this would increase consumers' trust and decrease privacy concerns and that as an expected outcome of privacy concerns, a decrease in trust results; consequently, trust motivates the commitment of consumers to a related digital platform. Regulations by governmental organizations significantly contribute to consumers' trust and commitment to related digital platforms.…”

“…This could harm the perception of the digital society and its willingness to continue contributing. Furthermore, some studies indicate that consumer privacy policy practices and regulations could be problematic (Campbell, 1997;Griggio, Nouwens, & Klokmose, 2022;Willis, Jai, & Lauderdale, 2021). The rise in cross-border data flows, the upcoming 5G rollout, the Internet of Things and AI, and an acceleration in digitalization after the COVID-19 epidemic make it possible to collect and monetize massive amounts of data on a global scale.…”