Which Privacy Policy Works, Privacy Assurance or Personalization Declaration? An Investigation of Privacy Policies and Privacy Concerns

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Author(s)

Detail(s)

Original languageEnglish
Pages (from-to)781-798
Journal / PublicationJournal of Business Ethics
Volume176
Issue number4
Online published2 Nov 2020
Publication statusPublished - Apr 2022

Abstract

This study focuses on two specific privacy policies, namely privacy assurance and personalization declaration. Specifically, we investigate how these distinct privacy policies affect customers’ privacy concerns and subsequent purchase responses. We have developed a conceptual model that addresses the independent effects of privacy assurance and personalization declaration, as well as the mechanism (i.e., privacy concerns) of these effects. Our model is grounded in motivation theory and supported by a field experiment and a controlled experiment. Our study demonstrates that privacy assurance that claims security protection negatively affects customers’ purchase probability and purchase amount. By contrast, personalization declaration that addresses personalized benefits positively affects customers’ purchase probability and purchase amount. Privacy concerns significantly mediate the negative effects of privacy assurance on purchase responses and the positive effects of personalization declaration on purchase responses. Overall, our findings inform managers of how to deploy privacy policies to reduce customers’ privacy concerns and boost purchase responses.

Research Area(s)

  • Personalization declaration, Privacy assurance, Privacy concerns, Privacy policy, Purchase responses

Citation Format(s)

Which Privacy Policy Works, Privacy Assurance or Personalization Declaration? An Investigation of Privacy Policies and Privacy Concerns. / Zeng, Fue; Ye, Qing; Yang, Zhilin; Li, Jing; Song, Yiping Amy.

In: Journal of Business Ethics, Vol. 176, No. 4, 04.2022, p. 781-798.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review