Skip to main content
SpringerLink
Log in

Consumer online privacy concerns and responses: a power–responsibility equilibrium perspective

  • Original Empirical Research
  • Published:
Journal of the Academy of Marketing Science Aims and scope Submit manuscript

Abstract

We use the Power–Responsibility Equilibrium (PRE) framework and advance that consumers balance perceived deficits in privacy protection by power holders (businesses and regulators) with defensive actions. In our model, consumer privacy concern is the endogenous mediating entity linking business policy and regulatory perceptions to negative online user responses. The model was empirically tested and confirmed in an experimental setting. In a second study, we added the nature of consumer information involved into a sub-model. Here, we investigated the moderating role of information sensitivity and congruency on the business policy–concern relationship across three industry contexts. Both hypothesized two-way interactions were confirmed, suggesting that a strong business policy is effective in reducing concern when low sensitivity data are gathered, but insufficient in reducing concern for highly sensitive data. Furthermore, concern increased dramatically when sensitive data were collected that were incongruent with the business context.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Figure 1
Figure 2

Similar content being viewed by others

References

  • Baron, R. M., & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182.

    Article  Google Scholar 

  • Bennett, C. J. (1992). Regulating Privacy. Ithaca, New York: Cornell University Press.

    Google Scholar 

  • Bloom, P. N., Milne, G. R., & Adler, R. (1994). Avoiding misuse of new information technologies: Legal and societal consideration. Journal of Marketing, 58(January), 98–110.

    Article  Google Scholar 

  • Caudill, E. M., & Murphy, P. E. (2000). Consumer Online Privacy: Legal and Ethical Issues. Journal of Public Policy and Marketing, 19(Spring), 7–19.

    Article  Google Scholar 

  • Cranor, L. F., Reagle, J., & Ackerman, M. S. (1999). Beyond concern: Understanding net users’ attitudes about online privacy. AT&T Labs–Research Technical Report TR 99.4.3.

  • Culnan, M. J. (2000). Protecting privacy online: Is self-regulation working? Journal of Public Policy & Marketing, 19(Spring), 20–26.

    Article  Google Scholar 

  • Culnan, M. J., & Bies, R. J. (2003). Consumer privacy: Balancing economic and justice considerations. Journal of Social Issues, 59(2), 323–342.

    Article  Google Scholar 

  • Culnan, M. J., & Milne, G. R. (2001). The Culnan–Milne survey on consumers and online privacy notices. (accessed August 8, 2006). [available at: http://www.ftc.gov/bcp/workshops/glb/supporting/culnan-milne.pdf].

  • Emerson, R. M. (1962). Power-dependence relations. American Sociological Review, 27, 31–40.

    Article  Google Scholar 

  • Fox, S., Lee, R., Horrigan, J., Lenhart, A., Tom, S., & Carter, C. (2000). Trust and privacy online: Why Americans want to rewrite the rules.

  • Gauzente, C., & Ranchhod, A. 2001. Ethical marketing for competitive advantage on the internet. Academy of Marketing Science Review (Online). 01 (10).

  • Georgia Tech Research Corporation (1998). 10th WWW user survey, (accessed January 8, 2001), [available at: http://www.cc.gatech.edu/gvu/user_surveys].

  • Goldring, J. (1990). Common law and legal theory: Reflections of a common lawyer. Journal of Consumer Policy, 13(2), 113.

    Article  Google Scholar 

  • Graeff, T. R., & Harmon, S. (2002). Collecting and using personal data: Consumers’ awareness and concerns. The Journal of Consumer Marketing, 19(4/5), 302.

    Article  Google Scholar 

  • Hiller, J. S., & Cohen, R. (2001). Internet Law and Policy. NJ: Prentice-Hall.

    Google Scholar 

  • Kam, L. E., & Chismar, W. G. (2006). Self-disclosure: Model for the use of internet-based technologies in collecting sensitive health information. International Journal of Healthcare Technology and Management, 7(3/4), 5.

    Google Scholar 

  • Karson, E. J. (2002). Exploring a valid and reliable scale of consumer privacy and security concerns on the internet and implications for e-commerce. Paper presented at Academy of Marketing Science Conference, May 29–June 2, Sanibel, FL.

  • Lwin, M. O., & Williams, J. D. (2003). A model interpreting the multidimensional developmental theory of privacy and theory of planned behavior to examine fabrication of information online. Marketing Letters, 14(4), 257–272.

    Article  Google Scholar 

  • Margulis, S. T. (2003). Privacy as a social issue and behavioral concept. Journal of Social Issues, 59(2), 243–261.

    Article  Google Scholar 

  • McGraw, H. IIII. (1999). Managing the privacy revolution. Direct Marketing, 61 (April), 36–40.

    Google Scholar 

  • Milberg, S. J., Burke, S. J., Smith, H. J., & Kallman, E. A. (1995). Values, personal information, privacy and regulatory approaches. Communications of the ACM, 38(12), 65–74.

    Article  Google Scholar 

  • Milne, G. R., & Boza, M. E. (1999). Consumers’ trust and concern about organizations use of personal information in direct marketing. Journal of Interactive Marketing, 13(Winter), 7–24.

    Article  Google Scholar 

  • Milne, G. R., & Culnan, M. J. (2004). Strategies for Reducing Online Privacy Risks: Why Consumers Read [or Don’t Read] Online Privacy Notices. Journal of Interactive Marketing, 18(3).

  • Miyazaki, A. D., & Krishnamurthy, S. (2002). Internet seals of approval: Effects on online privacy policies and consumer perceptions. The Journal of Consumer Affairs, 36(1), 28–49.

    Article  Google Scholar 

  • Moon, Y. (2000). Intimate Exchanges: Using Computers to Elicit Self-Disclosure from Consumers. Journal of Consumer Research, 26(March), 323–339.

    Google Scholar 

  • Murphy, P., Laczniak, G. R., Bowie, N. E., & Klein, T. A. (2005). Ethical marketing: Basic ethics in action. Upper Saddle River, NJ: Prentice-Hall.

    Google Scholar 

  • Phelps, J. E., Nowak, G., & Ferrell, E. (2000). Privacy Concerns and Consumer Willingness to Provide Personal Information. Journal of Public Policy & Marketing, 19(Spring), 27–41.

    Article  Google Scholar 

  • Reidenberg, J. R. (1996). Governing networks and rule-making in cyberspace. Emory Law Journal, 45.

  • Robbin, A. (2001). The loss of personal privacy and its consequences for social research. Journal of Government Information, 28(5), 493–527.

    Article  Google Scholar 

  • Rust, R., Kannan, P. K., & Peng, N. (2002). The customer economics of internet privacy. Journal of Academy of Marketing Science, 30(4), 455–464.

    Article  Google Scholar 

  • Sheehan, K. B., & Hoy, M. G. (1999). Flaming, Complaining, Abstaining: How online users respond to privacy concerns. Journal of Advertising, 28 (Fall), 37–51.

    Google Scholar 

  • Sheehan, K. B., & Hoy, M. G. (2000). Dimensions of privacy concern among online consumers. Journal of Public Policy & Marketing, 19(Spring), 62–73.

    Article  Google Scholar 

  • Shenkar, O., & Ellis, S. (1995). Death of the organization man: Temporal relations in stategic alliances. The International Executive, 37(6), 537.

    Article  Google Scholar 

  • Smith, H. J. (1994). Managing privacy: Information technology and corporate America. Chapel Hill, N.C.: University of North Carolina Press.

    Google Scholar 

  • Smith, H. J., Milberg, S. J., & Burke, S. J. (1996). Information privacy: Measuring individuals’ concerns about organizational practices. MIS Quarterly, 20 (June), 167–196.

    Article  Google Scholar 

  • Szynal, D. (2002). Internet proposals await lawmakers. Marketing News, 36 (Jan 7), 11.

    Google Scholar 

  • The Health Insurance Portability and Accountability Act of 1996 (1996). Public Law 104-91, 104th Congress, August 21, 1996, accessed at http://aspe.hhs.gov/admnsimp/pl104191.htm. December 19, 2006.

  • The Right to Financial Privacy Act of 1978 (1978). Public Law 95-630, November 10, 1978, accessed at http://www.fdic.gov/regulations/laws/rules/6500-2550.html, December 19, 2006.

  • Vlosky, R. P., Wilson, D., & Vlosky, R. (1997). Closing the interorganizational information systems relationship satisfaction gap. Journal of Marketing Practice, 3(2), 75.

    Article  Google Scholar 

  • Westin, A. F. (2003). Social and political dimensions of privacy. Journal of Social Issues, 59(2), 431–453.

    Article  Google Scholar 

  • Wirtz, J., & Bateson, J. E. G. (1999). Consumer satisfaction with services: Integrating the environmental perspective in services marketing into the traditional disconfirmation paradigm. Journal of Business Research, 44(1), 55–66.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Division of Public and Promotional Communication, School of Communication and Information, Nanyang Technological University, 31 Nanyang Link, SCI Bldg, 637718, Singapore, Singapore

    May Lwin

  2. NUS Business School, National University of Singapore, 1 Business Link, 117592, Singapore, Singapore

    Jochen Wirtz

  3. Department of Advertising, University of Texas at Austin, 1 University Station A1200, Austin, TX, 78712-1092, USA

    Jerome D. Williams

Authors
  1. May Lwin
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Jochen Wirtz
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Jerome D. Williams
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Jerome D. Williams.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Lwin, M., Wirtz, J. & Williams, J.D. Consumer online privacy concerns and responses: a power–responsibility equilibrium perspective. J. of the Acad. Mark. Sci. 35, 572–585 (2007). https://doi.org/10.1007/s11747-006-0003-3

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11747-006-0003-3

Keywords

Search

Navigation