Extended model of online privacy concern: what drives consumers’ decisions?
| Pages | 799-817 |
| DOI | https://doi.org/10.1108/OIR-10-2017-0281 |
| Date | 09 September 2019 |
| Published date | 09 September 2019 |
| Author | Ivan-Damir Anic,Jelena Budak,Edo Rajh,Vedran Recher,Vatroslav Skare,Bruno Skrinjaric |
| Subject Matter | Library & information science,Information behaviour & retrieval,Collection building & management,Bibliometrics,Databases,Information & knowledge management,Information & communications technology,Internet,Records management & preservation,Document management |
Extended model of online
privacy concern: what drives
consumers’decisions?
Ivan-Damir Anic, Jelena Budak, Edo Rajh, Vedran Recher,
Vatroslav Skare and Bruno Skrinjaric
Department for Innovation, Business Economics and Business Sectors,
Institute of Economics, Zagreb, Croatia
Abstract
Purpose –The purpose of this paper is to investigate the relationship between individual and societal
determinants of online privacy concern (OPC) and behavioral intention of internet users. The study also aims
to assess the degree of reciprocity between consumers’perceived benefits of using the internet and their OPC
in the context of their decision-making process in the online environment.
Design/methodology/approach –The study proposes comprehensive model for analysis of antecedents
and consequences of OPC. Empirical analysis is performed using the PLS–SEM approach on a representative
sample of 2,060 internet users.
Findings –The findings show that computer anxiety and perceived quality of regulatory framework are
significant antecedents of OPC, while traditional values and inclinations toward security, family and social
order; and social trust are not. Furthermore, the study reveals thatperceived benefits of using the internet are
the predominant factor explaining the intention to share personal information and adopt new technologies,
while OPC dominates in explanation of protective behavior.
Research limitations/implications –Although the authors tested an extended model, there might
be other individual characteristics driving the level of OPC. This research covers just one country and
further replications should be conducted to confirm findings in diverse socio-economic contexts. It is
impossible to capture the real behavior with survey data, and experimental studies may be needed to verify
the research model.
Practical implications –Managers should work toward maximizing perceived benefits of consumers’
online interaction with the company, while at the same time being transparent about the gathered data and
their intended purpose. Considering the latter, companies should clearly communicate their compliance with
the emerging new data protection regulation.
Originality/value –New extended model is developed and empirically tested, consolidating current
different streams of research into one conceptual model.
Keywords Internet, Consumer behaviour, PLS–SEM, Online environment, Online privacy concern
Paper type Research paper
1. Introduction
With rapid technological advancements and ever-growing availability of the internet,
consumer online privacy has become the major talking point in discussions about online
advertising and e-commerce. It is documented that consumers generally exhibit growing
concern about their online privacy (Dinev and Hart, 2006; Ginosar and Ariel, 2017).
As consumers are becoming more aware of privacy risks connected to their online activities
(Pavlou, 2003; Goldfarb and Tucker, 2011), they could have various behavioral responses to
their concerns; from obvious ones such as choosing not to use websites and applications
they deem risky, to more subtle ones such as fabricating personal information or using
privacy enhancing software (Lwin et al., 2007). Obviously, both options are unsatisfactory
from the business point of view. Tucker (2014) shows that privacy concerns of consumers
are important for online advertising –evidence on Facebook showed that reducing concerns
by offering more privacy control to consumers yields positive advertising effects. Thus, it is
Online Information Review
Vol. 43 No. 5, 2019
pp. 799-817
© Emerald PublishingLimited
1468-4527
DOI 10.1108/OIR-10-2017-0281
Received 6 October 2017
Revised 22 February 2018
27 June 2018
Accepted 11 September 2018
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1468-4527.htm
This work was supported by Croatian Science Foundation under the Project 7913.
799
Extended
model of
online privacy
concern
important to understand factors that affect consumers’online privacy concern (OPC) as well
as their impact on consumers’behavioral reaction.
The study adds to past research dealing with OPC in several ways. Although previous
studies have proposed various concepts, models, antecedents and consequences of OPC
(Bandyopadhyay, 2009; Chang and Wen, 2008; Youn, 2009; Weinberger et al., 2017),
there is still disagreement among researchers about drivers and consequences of OPC.
The present study proposes and empirically tests an extended model for the analysis of
antecedents and consequences of OPC, consolidating different strands of research. The
model incorporates personal values, recognized in the literature as an important
determinant of con sumer behavior in the online environ ment (Moon et al., 2008; Yoon,
2009; Kim et al., 2016). While so far value dimensions were observed on the macro-level
(Budak et al., 2017), this paper analyses traditional values at the level of individual
respondents (Lindeman and Verkasalo, 2005). Furthermore, the focus is shifted from
intention to buy (Moon et al., 2008; Nepomuceno et al., 2014) to a broader set of possible
consumer reactions, which is crucial from advertising point of view. Finally, the m odel is
tested on a nationally representative sample of internet users in a post-transition country,
unlike the majority of previous research which is predominantly focused on the USA
(Dinev and Hart, 2006; Van Slyke et al., 2006; Lwin et al., 2007; Eastlick et al., 2006), on
student population, or on highly educated individuals (Nam et al., 2006; Van Slyke et al.,
2006; Buchanan et al., 2007; Weinberger et al., 2017).
The paper is structured as follows. In the next section, we offer a literature review of
OPC, research hypotheses and an outline of the conceptual model of OPC, its antecedents
and consequences. Methodology applied to test proposed hypotheses is described in the
following section. Results are discussed in the fourth section, and the last section concludes.
2. Conceptual framework and literature review
Figure 1 presents a research framework based on the antecedents –privacy
concern –consequences paradigm, as suggested by Li (2011) and Smith et al. (2011). This
paper aligns these views, reinforcing the argument made by Smith et al. (2011, p. 1008) that
positivist privacy researchers should keep their eye on an optimized antecedents →privacy
Antecedents of online
privacy concern
Traditional
values
Social trust
Regulatory
framework
Belief in privacy
rights
Computer
anxiety
Online privacy
concern
Intention to use
new technologies
Perceived benefits
of using the
Internet
Active protection
of personal data
Fabrication of
personal data
Sustaining from
revealing
personal data
Intention to share
personal
information
Consumer behavioral
intention
Figure 1.
Conceptual framework
of antecedents and
outcomes of online
privacy concern
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OIR
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