The dimensionality of customer privacy concern on the internet
| Published date | 14 August 2007 |
| Date | 14 August 2007 |
| Pages | 420-439 |
| DOI | https://doi.org/10.1108/14684520710780395 |
| Author | J. Alberto Castañeda,Francisco J. Montoso,Teodoro Luque |
| Subject Matter | Information & knowledge management,Library & information science |
The dimensionality of customer
privacy concern on the internet
J. Alberto Castan
˜eda, Francisco J. Montoso and Teodoro Luque
Department of Marketing, School of Management,
University of Granada, Spain
Abstract
Purpose – This study attempts to carry out an approximation both to the conceptual delimitation
and to the measuring of customer concern for privacy on the electronic market.
Design/methodology/approach – To complete the objective of this research, an overview of the
literature is made in an attempt to summarise the main proposals as regards dimensions of the
construct analysed. Furthermore, two studies were carried out with the aim of evaluating the
instruments to measure concern for privacy on the internet and which support the conclusion
concerning the construct’s dimensionality, reached following the aforementioned literature overview.
Findings – From the main results reached, we can highlight that the concern for privacy on the
internet construct has a structure consisting of two dimensions, which are confirmed through the
scales evaluated for different contexts of use of the internet. These dimensions are: concern for control
over the collecting of personal information, and its use on the electronic market.
Originality/value – The paper’s main contributions are threefold: a conceptual revision of the
construct; a proposal of the dimensions for the construct; and an evaluation of two scales to measure
the construct in different situations.
Keywords Internet, Privacy,Data security, Electronic commerce
Paper type Research paper
Customer concern for privacy in e-commerce
Both commercial and service web sites require information on their visitors/customers.
This is an essential resource for electronic market success (Weiber and Kollmann,
1998). Given that the electronic market allows customer data to be accessed, site users
express a logical concern for privacy (Culnan and Armstrong, 1999; Milne and Boza,
1999; Palmer, 2005). This cognitive variable has a great effect on consumer behaviour
(e.g. Lohse et al., 2000; Phelps et al., 2001; Graeff and Harmon, 2002). In fact, according
to the Eurostat (2006a), worries about revealing data over the internet is the main
online-related risk perceived.
The consequences of the online customer’s privacy concerns pinpoint a series of
negative behaviours for the firm, although this is moderated in some measure by the
context (web site) in which the exchange is done (Hsu, 2006). In any case, these
concerns affect the exchange process and relationship between the web site and the
customer, such as reducing the levels of: customer attraction, mainly with regard to
purchasing on and sharing data with the web site (Culnan and Milberg, 1998, 1999;
Culnan and Armstrong, 1999; Hoffman et al., 1999b; Sheehan and Hoy, 1999; Lohse
et al., 2000; Phelps et al., 2000; George, 2002, 2004; Brown and Muchira, 2004; Dinev and
Hart, 2006; Dinev et al., 2006), customer maintenance (Culnan and Milberg, 1998, 1999;
Culnan and Armstrong, 1999; Milne and Boza, 1999; Chellappa and Sin, 2005) and
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OIR
31,4
420
Refereed article received
15 November 2006
Revision approved for
publication 20 February
2007
Online Information Review
Vol. 31 No. 4, 2007
pp. 420-439
qEmerald Group Publishing Limited
1468-4527
DOI 10.1108/14684520710780395
customer retention (Culnan and Milberg, 1998, 1999; Milne and Boza, 1999; Phelps et al.,
2000; Phelps et al., 2001).
Technologies of e-commerce are fundamentally altering the kind of relationships
that businesses have with consumers. Unlike traditional direct marketing channels, the
internet allows for interactive two-way communication and accordingly poses uniqu e
information privacy threats that differ from the issues previously addressed (Hoffman
and Novak, 1996; Smith et al., 1996; Sheehan and Hoy, 2000). That is, any attempt to
simply apply our habitual notions of privacy to the context of e-commerce is bound to
be unsatisfying since the kinds of relationships from which our understanding of these
concepts was derived and to which they are normally applied are themselves being
altered (Palmer, 2005). For this reason, Phelps et al. (2000, p. 40) stated that “research
involving privacy and information issues related to e-commerce, however, remains
primarily in a nascent stage”, and called for more studies.
To maximise the potential of e-commerce, it seems critical to accurately understand
online consumers’ concerns for information privacy. However, although several
pioneering studies exist that examine online privacy in general (e.g. Miyazaki and
Fernandez, 2000; Sheehan and Hoy, 2000), few systematic attempts have been made to
provide a theoretical framework on the specific nature of information privacy conce rns
among internet users (e.g. Malhotra et al., 2004). Furthermore, in a relatively new field
of study as is internet, we need to base scientific progress on a knowledge
accumulation process. For this reason, it is essential that the scientific community use
similar operative definitions and measurement instruments for the variables analysed
(Day and Montgomery, 1999). For this reason, our research centres on reaching a
conclusion as regards the dimensionality of the customer online privacy concern
construct, as well as proposing and evaluating instruments to measure it. Thus, the
paper begins by conceptualising and determining the construct. Based on this result,
we propose and evaluate measurement instruments. The final part includes the main
conclusions.
The main implications of this study refer to normalising the dimensionality of the
internet privacy concept, attempting to construct reliable and valid instruments to
measure it. The practical application of the results achieved in this study will allow us
to know more about the determining factors and the consequences of Internet users’
concern for privacy.
Research framework
The internet is a new context, whose characteristics affect the form in which user
privacy is invaded and therefore regulated It is necessary to spend time analysing how
these particular issues determine the way in which an individual perceives the risk of
privacy invasion when surfing or buying online. Furthermore, it is interesting to
discuss the evolution of this perception as a user gains more experience with this
medium.
The invasion of privacy on the internet and its regulation
The internet is based on a combination of technologies, protocols and services that
modify and amplify the ways in which one part of one relationship may invade the
privacy of another. Thus, some aspects of invasion of privacy as it applies to netizens
Customer
privacy
421
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