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Introducing new products that affect consumer privacy: A mediation model

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  • Miltgen, Caroline Lancelot
  • Henseler, Jörg
  • Gelhard, Carsten
  • Popovič, Aleš

Abstract

Many innovative products can only fully deploy their value if they rely on consumers' personal information. This issue challenges the confidence that consumers have in new innovations, and revolutionizes marketing practices. Malhotra, Kim, and Agarwal's (2004) framework provides the theoretical basis for hypotheses on the consequences of privacy concerns. An empirical study in the context of four pervasive IT innovations involving various privacy issues helps to test these hypotheses. The findings consistently show that privacy concerns have an adverse effect on consumers' intention to accept IT innovation. However, trust and risk perceptions both mediate this relationship. By understanding the underlying mechanism, firms can alleviate the potential downsides of their products and increase the odds of their market success.

Suggested Citation

  • Miltgen, Caroline Lancelot & Henseler, Jörg & Gelhard, Carsten & Popovič, Aleš, 2016. "Introducing new products that affect consumer privacy: A mediation model," Journal of Business Research, Elsevier, vol. 69(10), pages 4659-4666.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:10:p:4659-4666
    DOI: 10.1016/j.jbusres.2016.04.015
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    References listed on IDEAS

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    11. Zheng Shen & Armida de la Garza, 2019. "Developing a Digital Artifact for the Sustainable Presentation of Marketing Research Results," Sustainability, MDPI, vol. 11(23), pages 1-22, November.
    12. Del Bucchia, Céline & Lancelot Miltgen, Caroline & Russell, Cristel Antonia & Burlat, Claire, 2021. "Empowerment as latent vulnerability in techno-mediated consumption journeys," Journal of Business Research, Elsevier, vol. 124(C), pages 629-651.
    13. Ying, Shiyi & Huang, Youlin & Qian, Lixian & Song, Jinzhu, 2023. "Privacy paradox for location tracking in mobile social networking apps: The perspectives of behavioral reasoning and regulatory focus," Technological Forecasting and Social Change, Elsevier, vol. 190(C).

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