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Effects of perceived risks and benefits in the formation of the consumption privacy paradox: a study of the use of wearables in people practicing physical activities

Author

Listed:
  • Renata Benigna Gonçalves

    (Escola Superior de Propaganda e Marketing (ESPM))

  • Júlio César Bastos Figueiredo

    (Escola Superior de Propaganda e Marketing (ESPM))

Abstract

This work aims to analyze the formation of the privacy paradox, defined as the difference between the declared intention about privacy and the natural behavior, in the consumption of wearables among the practitioners of physical activities by evaluating the practitioners' risks and benefits. Wearables are electronics that combine features of wearability and intelligence. It also analyzes the influence of the privacy paradox in wearing wearables and the moderation effects of demographic variables in forming the paradox. A quantitative approach based on descriptive research was used to collect questionnaires and subsequent descriptive and variance analyses. The results show that the frequency of physical activities, wearable functionality, monthly income, and sex influence paradoxical behavior. Furthermore, evidence shows that the privacy paradox influences the habit, with signs of reducing users' paradoxical situation. As a contribution, this work brings a more general formulation of the privacy paradox metric. The metric is formed of the latent dimensions "performance expectation", "hedonic motivation", and "privacy risk". This metrical composition in three latent perspectives allows obtaining a view of the contribution of each perspective on paradoxical behavior for different classes of consumers. In the managerial aspect, it is suggested that companies, through metric, can identify the paradoxical use of their products and identify specific dimensions to be worked by communication actions.

Suggested Citation

  • Renata Benigna Gonçalves & Júlio César Bastos Figueiredo, 2022. "Effects of perceived risks and benefits in the formation of the consumption privacy paradox: a study of the use of wearables in people practicing physical activities," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1485-1499, September.
    • Handle: RePEc:spr:elmark:v:32:y:2022:i:3:d:10.1007_s12525-022-00541-3
    DOI: 10.1007/s12525-022-00541-3
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    More about this item

    Keywords

    Privacy paradox; Paradox scale; Metric; Paradoxical consumption; Wearables;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General

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