Social networks: the role of users' privacy concerns

Authors:
Laura Becker;Key Pousttchi
Affiliations:
University of Augsburg, Augsburg, Germany;University of Augsburg, Augsburg, Germany
Venue:
Proceedings of the 14th International Conference on Information Integration and Web-based Applications & Services
Year:
2012

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Abstract

In recent years social networks have become some of the most frequently used websites. Facebook is currently the largest online social network; its business model is based on the analysis of user data to display customized advertisements. However, the data collection induces possible privacy concerns which oppose perceived benefits. Therefore, the aim of this paper is to analyze the discrepancy between possible privacy concerns and expected benefits and its effect on the users' intention to participate in Facebook. For that purpose, a structural equation model is developed to explain the role of information disclosure and privacy concerns. We show that people use Facebook despite information privacy concerns. On closer examination information privacy concerns are an important aspect for the intention (not) to use Facebook but it is outweighed by perceived usefulness.