Consumer online privacy concerns and responses: a power–responsibility equilibrium perspective

Abstract

We use the Power-Responsibility Equilibrium (PRE) framework and advance that consumers balance perceived deficits in privacy protection by power holders (businesses and regulators) with defensive actions. In our model, consumer privacy concern is the endogenous mediating entity linking business policy and regulatory perceptions to negative online user responses. The model was empirically tested and confirmed in an experimental setting. In a second study, we added the nature of consumer information involved into a sub-model. Here, we investigated the moderating role of information sensitivity and congruency on the business policy-concern relationship across three industry contexts. Both hypothesized two-way interactions were confirmed, suggesting that a strong business policy is effective in reducing concern when low sensitivity data are gathered, but insufficient in reducing concern for highly sensitive data. Furthermore, concern increased dramatically when sensitive data were collected that were incongruent with the business context.

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

“…For example, if smartphone users perceive that mobile marketers are acting responsibly and thus respecting privacy policies and that sufficient legal regulations are in vigor and in practice, then these users are expected to show less concern for potential privacy violation, and therefore not resort to balancing operations. But if those in power positions are not perceived as acting responsibly, consumer concern is likely to intensify, leading to defensive measures [27]. These responses are consistent with utility maximization theory in that consumers will make specific trade-offs in the online setting to minimize foreseeable losses (e.g., [38]).…”

“…Lwin et al [27] found that informationprivacyconcernsinluencecustomers'apprehensionanduneasiness over the use of their personal data, which ultimately controls their resultant defensive responses. In the light of utility maximization theory, information privacy in m-commerce has become a prominent concern because ubiquitous multimedia capacity enables firms to collect significant amounts of personal information and to store it indefinitely for later use [37].…”

“…Lwin et al [27] proposed three possible outcomes of defensive responses to information privacy concerns: the fabrication of personal information ("fabricate"), adoption of protective measures ("protect"), or refusal to transact with a Web site ("withhold"). These defensive responses are the consequence of a perceived imbalance in the power-dependence relationship.…”

A Three-way Interaction Model of Information Withholding: Investigating the Role of Information Sensitivity, Prevention Focus, and Interdependent Self-Construal

“…Therefore, instead of indiscriminately dividing the levels of information sensitivity based on general information types, it is more appropriate to measure information sensitivity by taking users' perception of sensitivity into account. Some scholars define information sensitivity as the perceived intimacy level of information (Lwin, Wirtz, & Williams, 2007). More intimate information is perceived as riskier to disclose because it may lead to potential losses, including psychological (e.g., loss of self-esteem), physical (e.g., loss of health), and material (e.g., loss of property and assets) aspects (Moon, 2000).…”

Consumer-based strategy: using multiple methods to generate consumer insights that inform strategy

“…Users of consumer-based strategy may include for-profit firms (e.g., Brasel and Gips 2014;Brocato et al 2015), nonprofits (e.g., Pappu and Cornwell 2014), and governmental bodies (e.g., Burton et al 2015;Lwin et al 2007). Firms may wish to persuade consumers to purchase their products and services; generating consumer insights can help them develop the right products and services for the right prices and effectively persuade consumers to buy them.…”