More Web Proxy on the site http://driver.im/

article

The personalization privacy paradox: an empirical evaluation of information transparency and the willingness to be profiled online for personalization

Authors:

Naveen Farag Awad,

M. S. KrishnanAuthors Info & Claims

MIS Quarterly, Volume 30, Issue 1

Pages 13 - 28

Published: 01 March 2006 Publication History

Abstract

Firms today use information about customers to improve service and design personalized offerings. To do this successfully, however, firms must collect consumer information. This study enhances awareness about a central paradox for firms investing in personalization; namely, that consumers who value information transparency are also less likely to participate in personalization. We examine the relationship between information technology features, specifically information transparency features, and consumer willingness to share information for online personalization. Based on a survey of over 400 online consumers, we examine the question of whether customer perceived information transparency is associated with consumer willingness to be profiled online. Our results indicate that customers who desire greater information transparency are less willing to be profiled. This result poses a dilemma for firms, as the consumers that value information transparency features most are also the consumers who are less willing to be profiled online. In order to manage this dilemma, we suggest that firms adopt a strategy of providing features that address the needs of consumers who are more willing to partake in personalization, therefore accepting that the privacy sensitive minority of consumers are unwilling to participate in personalization, despite additional privacy features.

References

[1]

Andrade, E. B., Kaltcheva, V., and Weitz, B. "Self-Disclosure on the Web: The Impact of Privacy Policy, Reward, and Company Reputation," in Advances in Consumer Research (29), S. M. Broniarczyk and K. Nakamoto (Eds.), Association for Consumer Research, Valdosta, GA, 2002, pp. 350-353.

[2]

Armitage, C. J., and Conner, M. "The Theory of Planned Behavior: Assessment of Predictive Validity and 'Perceived Control.'" British Journal of Social Psychology (38:1), 1999, pp. 35-54.

[3]

Awad, N. F., and Krishnan, M. S. "Price Dispersion and Online Information: Quality or Quantity?," University of Michigan Business School Working Paper, 2002.

[4]

Azjen, I. and Driver, B. L. "Prediction of Leisure Participation from Behavioral, Normative, and Control Beliefs: An Application of the Theory of Planned Behavior," Leisure Sciences (13:3), 1991, pp. 185-204.

[5]

Azjen, I., and Fishbein, M. Understanding Attitudes and Predicting Social Behavior, Prentice-Hall, Englewood Cliffs, NJ, 1980.

[6]

Bagozzi, R. P. Causal Models in Marketing, John Wiley & Sons, New York, 1980.

[7]

Barwise, P., and Strong, C. "Permission-Based Mobile Advertising," Journal of Interactive Marketing (16:1), 2002, pp. 14-24.

[8]

Bates, A. P. "Privacy, A Useful Concept?," Social Forces (42:4), 1964, pp. 430-434.

[9]

Bentler, P. M. EQS: Structural Equations Program Manual, BMDP Statistical Software, Inc., Los Angeles, 1989.

[10]

Blau, P. Exchange and Power in Social Life, John Wiley & Sons, Inc., New York, 1964.

[11]

Browne, M. W., and Cudeck, R. "Alternative Ways of Assessing Model Fit," in Testing Structural Equation Models, J. S. Long and K. A. Bollen (Eds.), Sage Publications, Newbury Park, CA, 1993, pp. 136-162.

[12]

Campbell, D., and Fiske, D. "Convergent and Discriminant Validity by the Multitrait-Multimethod Matrix," Psychological Bulletin (56:2), 1959, pp. 81-105.

[13]

Chellappa, R. K., and Sin, R. "Personalization versus Privacy: An Empirical Examination of the Online Consumer's Dilemma," Information Technology and Management (6:2/3), 2005, pp. 181-202.

[14]

Cranor, L. F., Reagle, J., and Ackerman, M. S. "Beyond Concern: Understanding Net Users' Attitudes about Online Privacy," AT&T Labs Research Technical Report TR 99.4.3, 1999.

[15]

Culnan, M. J. "How Did They Get My Name? An Exploratory Investigation of Consumer Attitudes Toward Secondary Information Use," MIS Quarterly (17:3), 1993, pp. 341-363.

Digital Library

[16]

Culnan, M. J. "Consumer Awareness of Name Removal Procedures: Implications for Direct Marketing," Journal of Direct Marketing (9:2), 1995, pp. 10-19.

[17]

Culnan, M. J., and, Armstrong, P. K. "Information Privacy Concerns, Procedural Fairness, and Impersonal Trust: An Empirical Investigation," Organization Science (10:1), 1999, pp. 104-115.

Digital Library

[18]

Dinev, T., and, Hart, P. "Internet Privacy Concerns and Trade-Off Factors: Empirical Study and Business Implications," Working Paper, Florida Atlantic University, 2002.

[19]

Equifax. "Harris-Equifax Consumer Privacy Survey," Equifax, Inc, Atlanta, GA, 1991.

[20]

Equifax. "Harris-Equifax Consumer Privacy Survey," Equifax, Inc, Atlanta, GA, 1996.

[21]

Goodwin, C. "Privacy: Recognition of a Consumer Right," Journal of Public Policy Management (10:1), 1991, pp. 149-166.

[22]

Greene, M. "Who's Zoomin' Who on the Web?," Black Enterprise (28:3), October 1997, pp. 40-42.

[23]

Harris, L., and Associates, Inc. Harris-Equifax Consumer Privacy Survey, 1992, Equifax, Inc., Atlanta, GA, 1991.

[24]

Harris, L., and Westin, A. F. E-commerce and Privacy: What Net Users Want, Privacy and American Business, Hackensack, NJ, 1998.

[25]

Heskett, J. L., Sasser, W. E., and Hart, C. W. L. Service Breakthroughs: Changing the Rules of the Game, The Free Press, New York, 1990.

[26]

Hoffman, D., Novak, T., and Peralta, M. A. "Information Privacy in the Market-Space: Implications for the Commercial Use of Anonymity on the Web," Information Society (15:4), 1999, pp. 129-139.

[27]

Kirsch, L. J. "The Management of Complex Tasks in Organizations: Controlling the Systems Development Process," Organization Science (7:1), 1996, pp. 1-21.

Digital Library

[28]

Klobas, J. E., and Clyde, L. A. "Adults Learning to Use the Internet: A Longitudinal Study of Attitudes and Other Factors Associated with Intended Internet Use," Library and Information Science Research (22:1), 2000, pp. 5-34.

[29]

Laufer, R. S., Proshansky, H. M., and Wolfe, M. "Some Analytic Dimensions of Privacy," in Environmental Psychology: People and Their Physical Settings (2nd ed.), H. M. Proshansky W. G. Ittelson, and L. G. Rivlin (Eds.), Holt, Rinehart, and Winston, New York, 1976, pp. 206-217.

[30]

Laufer, R. S., and Wolfe, M. "Privacy as a Concept and a Social Issue: A Multidimensional Development Theory," Journal of Social Issues (33:3), 1977, pp. 22-42.

[31]

Mason, R. O. "Four Ethical Issues of the Information Age," MIS Quarterly (10:1), 1986, pp. 4-12.

Digital Library

[32]

McKnight, D. H., Cummings, L. L, and Chervany, N. L. "Initial Trust Formation in New Organizational Relationships," Academy of Management Review (23:3), 1998, pp. 473-490.

[33]

McLaughlin, L. "The Straight Story on Search Engines," PC World, July 2002, p. 115 (available online at http://www.pcworld.com/ news/article/0,aid,97431,00.asp).

[34]

Milberg, S. J., Smith, H. J., and Burke, S. J. "Information Privacy: Corporate Management and National Regulation," Organization Science (11:1), 2000, pp. 35-57.

Digital Library

[35]

Milne, G. R. "Privacy and Ethical Issues in Database/ Interactive Marketing and Public Policy: A Research Framework and Overview of the Special Issue," Journal of Public Policy and Marketing (19:1), 1993, pp. 1-6.

[36]

Milne, G. R., and Gordon, M. E. "Direct Mail Privacy-Efficiency Trade-Offs Within an Implied Social Contract Framework," Journal of Public Policy and Marketing (12:2), 1993, pp. 206-215.

[37]

Milne, G. R., and Rohm, A. J. "Consumer Privacy and Name Removal Across Direct Marketing Channels: Exploring Opt-In and Opt-Out Alternatives," Journal of Public Policy and Marketing (19:2), 2000, pp. 238-249.

[38]

Morgan, R. M., and Hunt, S. D. "The Commitment-Trust Theory of Relationship Marketing," Journal of Marketing (58:3), July 1994, pp. 20-39.

[39]

Nunnally, J. Psychometric Theory, McGraw-Hill Book Company, New York, 1967.

[40]

Phelps, J., Nowak, G., and Ferrell, E. "Privacy Concerns and Consumer Willingness to Provide Personal Information," Journal of Public Policy and Marketing (19:1), 2000, pp. 27-41.

[41]

Regan, K. "Does Anyone Read Online Privacy Policies?," www.EcommerceTimes.com, June 2001 (available online at http://www.ecommercetimes.com/perl/story/11303.html).

[42]

Rivard, S., and Huff, S. "Factors of Success for End User Computing," Communications of the ACM (31:5), May 1988, pp. 552-561.

Digital Library

[43]

Rust, R. T., Kannan, P. K., and Peng, N. "The Customer Economics of Internet Privacy," Journal of the Academy of Marketing Science (30:4), 2002, pp. 455-464.

[44]

Safire, W. "The Intrusion Explosion," The New York Times, May 2, 2002.

[45]

Schoenbachler, D. D., and Gordon, G. L. "Trust and Customer Willingness to Provide Information in Database-Driven Relationship Marketing," Journal of Interactive Marketing (16:3), 2002, pp. 2-16.

[46]

Smith, H. J. Managing Privacy: Information Technology and Corporate America, University of North Carolina Press, Chapel Hill, NC, 1994.

Digital Library

[47]

Smith, H. J., Milberg, S. J., and Burke, S. J. "Information Privacy: Measuring Individuals' Concerns about Organizational Practices," MIS Quarterly (20:2), 1996, pp. 167-196.

Digital Library

[48]

Stewart, K. A., and Segars, A. H. "An Empirical Examination of the Concern for Information Privacy Instrument," Information Systems Research (13:1), 2002, pp. 36-49.

Digital Library

[49]

Stone, E. F., Gardner, D. G., Gueutal, H.G., and McClure, S. "A Field Experiment Comparing Information-Privacy Values, Beliefs, and Attitudes Across Several Types of Organizations," Journal of Applied Psychology (68:3), 1983, pp. 459-468.

[50]

Stone, E. F., and Stone, D. L. "Privacy in Organizations: Theoretical Issues, Research Findings, and Protection Mechanisms," in Research Findings in Personnel and Human Resources Management, K. M. Rowland and G. R. Ferris (Eds.), JAI Press, Greenwich, CT, 1990, pp. 349-411.

[51]

Tezinde, T., Smith, B., and Murphy, J. "Getting Permission: Exploring Factors Affecting Permission Marketing," Journal of Interactive Marketing (16:4), 2002, pp. 28-36.

[52]

Weill, P., and Vitali, M. Place to Space, Harvard Business School Press, Boston, 2001.

[53]

Westin, A. F. Commerce, Communication, and Privacy Online, Center for Social and Legal Research, Hackensack, NJ, 1997.

[54]

Westin, A. F. "Domestic and International Data Protection Issues," How the American Public Vies Consumer Privacy Issues in the Early 90s--and Why, testimony before the Subcommittee on Government Information and Agriculture, Committee on Government Relations, U.S. House of Representatives, Washington, D.C., U.S. Government Printing Office, 1991, pp. 54-68.

[55]

Westin, A. F. Privacy and Freedom, Athenaeum, New York, 1967.

[56]

Wortman, C. "Some Determinants of Perceived Control," Journal of Personality and Social Psychology (31:2), 1975, pp. 282-294.

Cited By

Ge YLiu SFu ZTan JLi ZXu SLi YXian YZhang Y(2024)A Survey on Trustworthy Recommender SystemsACM Transactions on Recommender Systems10.1145/36528913:2(1-68)Online publication date: 13-Apr-2024
https://dl.acm.org/doi/10.1145/3652891
Xu YWang D(2023)Privacy Concerns and Antecedents of Building Data Sharing: A Privacy Calculus PerspectiveACM SIGEnergy Energy Informatics Review10.1145/3607114.36071163:2(3-18)Online publication date: 30-Jun-2023
https://dl.acm.org/doi/10.1145/3607114.3607116
Belal YBellet AMokhtar SNitu V(2022)PEPPERProceedings of the ACM on Interactive, Mobile, Wearable and Ubiquitous Technologies10.1145/35503026:3(1-27)Online publication date: 7-Sep-2022
https://dl.acm.org/doi/10.1145/3550302
Show More Cited By

Index Terms

The personalization privacy paradox: an empirical evaluation of information transparency and the willingness to be profiled online for personalization

Recommendations

Competing with Privacy

We analyze the implications of consumer privacy for competition in the marketplace. Firms compete for consumer information and derive revenues both from consumer purchases as well as from disclosing consumer information in a secondary market. Consumers ...
The personalisation-privacy paradox: Consumer interaction with smart technologies and shopping mall loyalty
Abstract
Smart shopping malls integrate a range of smart technologies such as artificial intelligence, virtual reality and augmented reality. However, there is a lack of research on the personalisation-privacy paradox in the context of consumer ...
Graphical abstract

Display Omitted
Highlights
- Digital technologies have revolutionised shopping mall experiences.
- The study proposes a new model on the smart shopping mall customer loyalty.
- Personalisation plays a mediating role in customer smart shopping mall loyalty.
- ...
The Effects of Information Transparency on Suppliers, Manufacturers, and Consumers in Online Markets

This paper looks into the effects of information transparency on market participants in an online trading environment. We study these effects in business-to-business electronic markets with firms competing in both upstream and downstream industries. The ...

Comments

Please enable JavaScript to view thecomments powered by Disqus.

Information & Contributors

Information

Published In

cover image MIS Quarterly

MIS Quarterly Volume 30, Issue 1

March 2006

210 pages

ISSN:0276-7783

Issue’s Table of Contents

Publisher

Society for Information Management and The Management Information Systems Research Center

United States

Publication History

Published: 01 March 2006

Author Tags

Qualifiers

Article

Contributors

Other Metrics

View Article Metrics

Bibliometrics & Citations

Bibliometrics

Article Metrics

108
Total Citations
View Citations
174
Total Downloads

Downloads (Last 12 months)0
Downloads (Last 6 weeks)0

Reflects downloads up to 13 Jan 2025

Other Metrics

View Author Metrics

Citations

Cited By

Ge YLiu SFu ZTan JLi ZXu SLi YXian YZhang Y(2024)A Survey on Trustworthy Recommender SystemsACM Transactions on Recommender Systems10.1145/36528913:2(1-68)Online publication date: 13-Apr-2024
https://dl.acm.org/doi/10.1145/3652891
Xu YWang D(2023)Privacy Concerns and Antecedents of Building Data Sharing: A Privacy Calculus PerspectiveACM SIGEnergy Energy Informatics Review10.1145/3607114.36071163:2(3-18)Online publication date: 30-Jun-2023
https://dl.acm.org/doi/10.1145/3607114.3607116
Belal YBellet AMokhtar SNitu V(2022)PEPPERProceedings of the ACM on Interactive, Mobile, Wearable and Ubiquitous Technologies10.1145/35503026:3(1-27)Online publication date: 7-Sep-2022
https://dl.acm.org/doi/10.1145/3550302
Westin FHundlani KChiasson S(2022)“I just want to play games with friends and it asked me for all of my information”: Trading privacy for connection during the COVID-19 pandemicProceedings of the 2022 European Symposium on Usable Security10.1145/3549015.3555672(40-52)Online publication date: 29-Sep-2022
https://dl.acm.org/doi/10.1145/3549015.3555672
Bemmann FWindl MErbe JMayer SHussmann H(2022)The Influence of Transparency and Control on the Willingness of Data Sharing in Adaptive Mobile AppsProceedings of the ACM on Human-Computer Interaction10.1145/35467246:MHCI(1-26)Online publication date: 20-Sep-2022
https://dl.acm.org/doi/10.1145/3546724
Liu ZWang XLi XLiu J(2022)Protecting Privacy on Mobile Apps: A Principal–Agent PerspectiveACM Transactions on Computer-Human Interaction10.1145/347579729:1(1-32)Online publication date: 7-Jan-2022
https://dl.acm.org/doi/10.1145/3475797
Olson DXu Y(2021)Building Trust Over Time in Human-Agent RelationshipsProceedings of the 9th International Conference on Human-Agent Interaction10.1145/3472307.3484178(193-201)Online publication date: 9-Nov-2021
https://dl.acm.org/doi/10.1145/3472307.3484178
Reinhardt DBorchard JHurtienne JKitamura YQuigley AIsbister KIgarashi TBjørn PDrucker S(2021)Visual Interactive Privacy Policy: The Better Choice?Proceedings of the 2021 CHI Conference on Human Factors in Computing Systems10.1145/3411764.3445465(1-12)Online publication date: 6-May-2021
https://dl.acm.org/doi/10.1145/3411764.3445465
Liao MSundar SKitamura YQuigley AIsbister KIgarashi TBjørn PDrucker S(2021)How Should AI Systems Talk to Users when Collecting their Personal Information? Effects of Role Framing and Self-Referencing on Human-AI InteractionProceedings of the 2021 CHI Conference on Human Factors in Computing Systems10.1145/3411764.3445415(1-14)Online publication date: 6-May-2021
https://dl.acm.org/doi/10.1145/3411764.3445415
Dickhaut EThies LJanson ARoßnagel ALeimeister JTorres MSchlögl SClark LPorcheron M(2020)Towards a New Methodology to Capture the Legal Compatibility of Conversational Speech AgentsProceedings of the 2nd Conference on Conversational User Interfaces10.1145/3405755.3406160(1-4)Online publication date: 22-Jul-2020
https://dl.acm.org/doi/10.1145/3405755.3406160
Show More Cited By

View Options

View options

Media

Figures

Other

Tables

View Issue’s Table of Contents