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Perceived Privacy Violation: Exploring the Malleability of Privacy Expectations

Author

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  • Scott A. Wright

    (Providence College)

  • Guang-Xin Xie

    (University of Massachusetts)

Abstract

Recent scholarship in business ethics has revealed the importance of privacy expectations as they relate to implicit privacy norms and the business practices that may violate these expectations. Yet, it is unclear how and when businesses may violate these expectations, factors that form or influence privacy expectations, or whether or not expectations have in fact been violated by company actions. This article reports the findings of three studies exploring how and when the corporate dissemination of consumer data violates privacy expectations. The results indicate that consumer sentiment is more negative following intentional releases of sensitive consumer data, but the effect of data dissemination is more complex than that of company intentionality and data sensitivity alone. Companies can effectively set, and re-affirm, privacy expectations via consent procedures preceding and succeeding data dissemination notifications. Although implied consent has become more widely used in practice, we show how explicit consent outperforms implied consent in these regards. Importantly, this research provides process evidence that identifies perceived violation of privacy expectations as the underlying mechanism to explain the deleterious effects, on consumer sentiment, when company actions are misaligned with consumers’ privacy expectations. Ethical implications for companies collecting and disseminating consumer information are offered.

Suggested Citation

  • Scott A. Wright & Guang-Xin Xie, 2019. "Perceived Privacy Violation: Exploring the Malleability of Privacy Expectations," Journal of Business Ethics, Springer, vol. 156(1), pages 123-140, April.
  • Handle: RePEc:kap:jbuset:v:156:y:2019:i:1:d:10.1007_s10551-017-3553-z
    DOI: 10.1007/s10551-017-3553-z
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    References listed on IDEAS

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    Cited by:

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    2. Etye Steinberg, 2022. "Run for Your Life: The Ethics of Behavioral Tracking in Insurance," Journal of Business Ethics, Springer, vol. 179(3), pages 665-682, September.
    3. Grosso, Monica & Castaldo, Sandro & Li, Hua (Ariel) & Larivière, Bart, 2020. "What Information Do Shoppers Share? The Effect of Personnel-, Retailer-, and Country-Trust on Willingness to Share Information," Journal of Retailing, Elsevier, vol. 96(4), pages 524-547.
    4. Gary Burkhardt & Frederic Boy & Daniele Doneddu & Nick Hajli, 2023. "Privacy Behaviour: A Model for Online Informed Consent," Journal of Business Ethics, Springer, vol. 186(1), pages 237-255, August.
    5. Rong Liu & Jiawei Yang & Jifei Wu, 2022. "When Big Data Backfires: The Impact of a Perceived Privacy Breach by Pharmaceutical E-Retailers on Customer Boycott Intention in China," IJERPH, MDPI, vol. 19(8), pages 1-13, April.
    6. Xie, Yi & Chen, Ke & Guo, Xiaoling, 2020. "Online anthropomorphism and consumers’ privacy concern: Moderating roles of need for interaction and social exclusion," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).

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