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Electronic Commerce Research

, Volume 9, Issue 3, pp 203–223 | Cite as

Privacy concern and online personalization: The moderating effects of information control and compensation

  • David G. Taylor
  • Donna F. Davis
  • Ravi Jillapalli
Article

Abstract

Firms have at their disposal an increasing amount of personal information about consumers gathered through various means. Studies find that personalizing online interactions improves customer relationships and increases desirable behaviors, such as positive word-of-mouth and increased purchase intent. However, other research suggests that the use of personal information stimulates privacy concern, which has a negative effect on behavior. This study examines potential moderators of the negative effects of privacy concern on behavioral intentions in the context of personalized online interactions. Results show that increasing perceived information control reduces the negative effect of privacy concern on intentions to engage in positive behaviors. In contrast, the offer of compensation has no effect on the relationship between privacy concern and these behavioral intentions. However, compensation increases the salience of trust to privacy concern.

Keywords

Privacy concern Personalization Information control Compensation Implicit data collection Online trust 

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Copyright information

© Springer Science+Business Media, LLC 2009

Authors and Affiliations

  • David G. Taylor
    • 1
  • Donna F. Davis
    • 2
  • Ravi Jillapalli
    • 3
  1. 1.Department of Marketing & Logistics, College of Business AdministrationUniversity of North TexasDentonUSA
  2. 2.Texas Tech UniversityLubbockUSA
  3. 3.Texas State UniversitySan MarcosUSA

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