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The more the better? Data disclosure between the conflicting priorities of privacy concerns, information sensitivity and personalization in e-commerce

Author

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  • Gouthier, Matthias H.J.
  • Nennstiel, Carina
  • Kern, Nora
  • Wendel, Lars

Abstract

E-commerce companies are beginning to use data analytics to individually address their customers, as such firms are strongly dependent on customers’ willingness to disclose (WTD) personal information. Conceptually known as privacy calculus, a cognitive comparison of the predicted benefits and risks of such a disclosure results in subjective expected utility (SEU). As this construct has not been elucidated in the context of situational factors, namely personalization and information sensitivity, this research utilizes a quantitative experimental study design to analyze these factors and evaluate the impact of SEU on customers’ WTD. Based on an online survey, the study reveals a positive but decreasing effect of personalization on SEU, while identifying information sensitivity as a negative influential factor. In general, the results emphasize the importance of a fair and transparent exchange relationship to foster a data disclosure setting without acute data privacy concerns.

Suggested Citation

  • Gouthier, Matthias H.J. & Nennstiel, Carina & Kern, Nora & Wendel, Lars, 2022. "The more the better? Data disclosure between the conflicting priorities of privacy concerns, information sensitivity and personalization in e-commerce," Journal of Business Research, Elsevier, vol. 148(C), pages 174-189.
    • Handle: RePEc:eee:jbrese:v:148:y:2022:i:c:p:174-189
    DOI: 10.1016/j.jbusres.2022.04.034
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