Marketing Letters

, Volume 13, Issue 1, pp 5-15

Defaults, Framing and Privacy: Why Opting In-Opting Out1

  • Eric J. JohnsonAffiliated withThe Norman Eig Professor of Business, Uris Hall 514, Department of Marketing, Columbia School of Business, Columbia University
  • , Steven BellmanAffiliated withLecturer in Electronic Commerce, Graduate School of Management, University of Western Australia
  • , Gerald L. LohseAffiliated withAccenture The Wanamaker Building

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Differences in opt-in and opt-out responses are an important element of the current public debate concerning on-line privacy and more generally for permission marketing. We explored the issue empirically. Using two on-line experiments we show that the default has a major role in determining revealed preferences for further contact with a Web site. We then explore the origins of these differences showing that both framing and defaults have separate and additive effects in affecting the construction of preferences.

privacy consumer choice framing default effects electronic commerce