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

  • Authors:
  • David G. Taylor;Donna F. Davis;Ravi Jillapalli

  • Affiliations:
  • Department of Marketing & Logistics, College of Business Administration, University of North Texas, Denton, USA 76201;Texas Tech University, Lubbock, USA 79409;Texas State University, San Marcos, USA 78666

  • Venue:
  • Electronic Commerce Research
  • Year:
  • 2009

Quantified Score

Hi-index 0.00

Visualization

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.