The multidimensional nature of privacy risks: Conceptualisation, measurement and implications for digital services

Abstract

While today consumers benefit from personalised service offerings, they are also understandably concerned about the privacy risks generated by disclosing their personal information online. We know that such perceived risks in general shape behaviour, but we know little about what specific privacy risks obstruct the use of digital services, making it difficult to implement technologies that could mitigate these risks. Based on qualitative and quantitative studies involving over 1000 participants, we conceptualise and quantify a multidimensional perspective on privacy risks consisting of physical, social, resource-related, psychological, prosecution-related, careerrelated and freedom-related privacy risks. Our results explicate the prospects of distinguishing privacy risk dimensions by demonstrating how they are differently pronounced across contexts and how technology designs can be tailored to assuage them. Thus, our findings improve the understanding of context and service-specific privacy risks, helping managers to adjust their digital offerings to mitigate users' privacy risk perceptions.

Special issues

“…In the second paper, Karwatzki et al (2022) investigate the dichotomy that lies at the junction between firms' need for private information and the associated risks that individuals may face as a consequence of providing firms with this private information. The authors conceptualise and quantify a multidimensional perspective on privacy risks that incorporates physical, social, resource‐related, psychological, prosecution‐related, career‐related and freedom‐related dimensions.…”

A Review of Service Design Pedagogy to Identify Potential Added Value to Product Innovation in Higher Education

“…Research on service design and service innovation puts emphasis not only on co-creation among participants [63] but also on the value of co-creation [58,59] between designers and wider stakeholders. Moreover, service innovation often appears to be based on technology and digitalization [70][71][72]. We therefore argue that service design and innovation pedagogy can benefit product innovation, especially when it depends on participants from multiple disciplines.…”

Managing artificial intelligence in international business: Toward a research agenda on sustainable production and consumption

“…Such privacy violations are costly for end users and firms alike, which leads to negative consequences. For end users, the loss of privacy may lead to feelings of uneasiness and powerlessness, loss of resources such as time or money, a negative change in an individual's social relationships, and restricted freedom of opinion and behavior (Karwatzki et al, 2022). For firms, it may lead to a loss of customer trust and pose reputational risk in foreign markets (Madan et al, 2023).…”