Subscriptions versus one-off purchases : the impact of fee-charging models on consumer privacy concerns
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 835-859 |
| Journal / Publication | International Journal of Bank Marketing |
| Volume | 41 |
| Issue number | 4 |
| Online published | 23 May 2023 |
| Publication status | Published - 2023 |
Link(s)
| DOI | DOI |
|---|---|
| Attachment(s) | Documents
Publisher's Copyright Statement
|
| Link to Scopus | https://www.scopus.com/record/display.uri?eid=2-s2.0-85152285803&origin=recordpage |
| Permanent Link | https://scholars.cityu.edu.hk/en/publications/publication(cb94c998-67e9-4a0b-a93f-8c1757ecf1bc).html |
Abstract
Purpose - With the popularity of paid apps and increasing concerns about privacy hazards, this paper aims to investigate the impact of mobile services’ fee-charging models on consumers’ privacy concerns, and generate insights for app developers’ fee-charging strategies.
Design/methodology/approach - Three experimental studies including 550 participants were conducted. All studies were between-subjects designs and based on the context of financial mobile services. The implementations of fee-charging models were manipulated by both visualized and test-based stimuli.
Findings - The results reveal that consumers are less concerned about potential privacy violations when using subscription-based (vs. purchase-based) financial mobile services (study 1). This effect is mediated by consumers’ perceptions that app developers that charge subscription fees (vs. one-off prices) are more likely to be consumer-serving motivated (study 2 and 3).
Originality/value - This paper advances the current understanding of consumer response toward paid apps, by proposing and testing a novel attribution-based mechanism to explain why the implementation of a subscription-based versus purchase-based fee-charging model can result in more favorable consumer reactions. Furthermore, this paper identifies the implementation of contrasting fee-charging models as a market-related factor that affects the extent to which consumers are concerned about potential privacy violations, extending extant literature on consumer privacy concern.
© 2023, Emerald Publishing Limited.
Design/methodology/approach - Three experimental studies including 550 participants were conducted. All studies were between-subjects designs and based on the context of financial mobile services. The implementations of fee-charging models were manipulated by both visualized and test-based stimuli.
Findings - The results reveal that consumers are less concerned about potential privacy violations when using subscription-based (vs. purchase-based) financial mobile services (study 1). This effect is mediated by consumers’ perceptions that app developers that charge subscription fees (vs. one-off prices) are more likely to be consumer-serving motivated (study 2 and 3).
Originality/value - This paper advances the current understanding of consumer response toward paid apps, by proposing and testing a novel attribution-based mechanism to explain why the implementation of a subscription-based versus purchase-based fee-charging model can result in more favorable consumer reactions. Furthermore, this paper identifies the implementation of contrasting fee-charging models as a market-related factor that affects the extent to which consumers are concerned about potential privacy violations, extending extant literature on consumer privacy concern.
© 2023, Emerald Publishing Limited.
Research Area(s)
- Consumer privacy concern, Consumer-serving motive, Fee-charging model, Financial mobile services, Paid apps
Citation Format(s)
Subscriptions versus one-off purchases: the impact of fee-charging models on consumer privacy concerns. / Yan, Chenfeng; Yang, Zhilin; Dai, Xin.
In: International Journal of Bank Marketing, Vol. 41, No. 4, 2023, p. 835-859.
In: International Journal of Bank Marketing, Vol. 41, No. 4, 2023, p. 835-859.
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
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