Extended model of online privacy concern: what drives consumers’ decisions?

Abstract

Purpose The purpose of this paper is to investigate the relationship between individual and societal determinants of online privacy concern (OPC) and behavioral intention of internet users. The study also aims to assess the degree of reciprocity between consumers’ perceived benefits of using the internet and their OPC in the context of their decision-making process in the online environment. Design/methodology/approach The study proposes comprehensive model for analysis of antecedents and consequences of OPC. Empirical analysis is performed using the PLS–SEM approach on a representative sample of 2,060 internet users. Findings The findings show that computer anxiety and perceived quality of regulatory framework are significant antecedents of OPC, while traditional values and inclinations toward security, family and social order; and social trust are not. Furthermore, the study reveals that perceived benefits of using the internet are the predominant factor explaining the intention to share personal information and adopt new technologies, while OPC dominates in explanation of protective behavior. Research limitations/implications Although the authors tested an extended model, there might be other individual characteristics driving the level of OPC. This research covers just one country and further replications should be conducted to confirm findings in diverse socio-economic contexts. It is impossible to capture the real behavior with survey data, and experimental studies may be needed to verify the research model. Practical implications Managers should work toward maximizing perceived benefits of consumers’ online interaction with the company, while at the same time being transparent about the gathered data and their intended purpose. Considering the latter, companies should clearly communicate their compliance with the emerging new data protection regulation. Originality/value New extended model is developed and empirically tested, consolidating current different streams of research into one conceptual model.