Skip to main content
SpringerLink
Log in

The effect of Internet general privacy concern on customer behavior

  • Published:
Electronic Commerce Research Aims and scope Submit manuscript

Abstract

Privacy and its related variables are important determinants of customer behavior in the electronic market. This paper aims to examine the concern for customer privacy on the Internet, mainly with regard to disclosing personal information online. Furthermore, by establishing an experimental situation, we will analyze how this behavior is influenced by familiarity with the website sponsor, the level of control over the information the customer has and the sensitivity of the information requested.

The results indicate that all the above-mentioned variables (except familiarity) have a significant impact on consumer online behavior.

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

Similar content being viewed by others

References

  1. American Marketing Association (1960). Marketing definitions: a glossary of marketing terms. Chicago: AMA

    Google Scholar 

  2. Andrade, E.B., Kaltcheva, V., & Weitz, B. (2002). Self-disclosure on the Web: the impact of privacy policy, reward, and company reputation. Advances in Consumer Research, 29, 350–353

    Google Scholar 

  3. Balabanis, G., & Vassileiou, S. (1999). Some attitudinal predictors of home-shopping through the Internet. Journal of Marketing Management, 15(5), 361–385

    Article  Google Scholar 

  4. Bauer, H.H., Grether, M., & Leach, M. (2002). Building customer relations over the Internet. Industrial Marketing Management, 31(1), 155–163

    Article  Google Scholar 

  5. Brynjolfsson, E., & Smith, M.D. (2000). Frictionless commerce? A comparison of Internet and conventional retailers. Management Science, 46(4), 563–585

    Article  Google Scholar 

  6. Calder, B.J., Phillips, L.W., & Tybout, A.M. (1981). Designing research for application. Journal of Consumer Research, 8(2), 197–207

    Article  Google Scholar 

  7. Caudill, E.M., & Murphy, P.E. (2000). Consumer online privacy: legal and ethical issues. Journal of Public Policy and Marketing, 19(1), 7–19

    Article  Google Scholar 

  8. Cheskin Research (1999, July). Trust in the wired Americas [Online]. Available at http://www.debmcdonald.com/trust.pdf

  9. Churchill, G.A. (1979). A paradigm for developing better measures of marketing constructs. Journal of Marketing Research, 16, 64–73

    Article  Google Scholar 

  10. Couper, M.P., & Rowe, B. (1996). Evaluation of a computer-assisted self-interview component in a computer-assisted personal interview survey. Public Opinion Quarterly, 60, 89–105

    Article  Google Scholar 

  11. Culnan, M.J., & Armstrong, P.K. (1999). Information privacy concerns, procedural fairness, and impersonal trust: an empirical investigation. Organization Science, 10(1), 104–116

    Article  Google Scholar 

  12. Culnan, M.J., & Milberg, S.J. (1998, July). The second exchange: managing customer information in marketing relationships [Online]. Available at http://www.gsb.georgetown.edu/dept/facserv/faculty/culnanm/research/jm0798.pdf

  13. Culnan, M.J., & Milberg, S.J. (1999, June). Consumer privacy [Online]. Available at http://www.gsb.georgetown.edu/dept/facserv/faculty/culnanm/research/conspriv.pdf

  14. Culnan, M.J. (1993). ‘How did they get my name’: An exploratory investigation of consumer attitudes toward secondary information use. MIS Quarterly, 341–361

  15. Culnan, M.J. (1995). Consumer awareness of name removal procedures: implications for direct marketing. Journal of Direct Marketing, 9, 10–19

    Google Scholar 

  16. Doney, P.M., & Cannon, P. (1997). An examination of the nature of the trust in buyer-seller relationships. Journal of Marketing, 61, 35–51

    Article  Google Scholar 

  17. Ernst & Young (2001, December): Global online retailing [Online]. Available at http://www.ey.com/global/download.nsf/International/Global_Online_Retailing_-_Special_Report_2001/$file/GOR_2001.pdf

  18. Foxman, E.R., & Kilcoyne, P. (1993). Information technology, marketing practice, and consumer privacy: ethical issues. Journal of Public Policy and Marketing, 12, 106–119

    Google Scholar 

  19. Ganesan, S. (1994). A determinants of long-term orientation in buyer-seller relationships. Journal of Marketing, 58(2), 1–19

    Article  Google Scholar 

  20. Gerbing, D.W., & Anderson, J.C. (1988). An updated paradigm for scale development incorporating unidimensionality and its assessment. Journal of Marketing Research, 25, 186–192

    Article  Google Scholar 

  21. Gillin, D. (2000). The Federal Trade Commission and Internet privacy. Marketing Research, 39–41

  22. Goldfarb, A. (2002, March). Interpreting Internet clickstream data [Online]. Available at http://www.rotman.utoronto.ca/~agoldfarb/surveypaper.pdf

  23. Goodwin, C. (1991). Privacy: recognition of a consumer right. Journal of Public Policy and Marketing, 10(1), 149–166

    Google Scholar 

  24. Grabner-Kraeuter, S. (2002). The role of consumers trust in online-shopping. Journal of Business Ethics, 39, 43–50

    Article  Google Scholar 

  25. Hair, J.F., Anderson, R.E., Tathan, R.L., & Black, W.C. (1998). Multivariate data analysis. Englewood Cliffs: Prentice-Hall

    Google Scholar 

  26. Hoffman, D.L., & Novak, T.P. (1996). Marketing in hypermedia computer-mediated environments: conceptual foundations. Journal of Marketing, 60(3), 50–68

    Article  Google Scholar 

  27. Hoffman, D.L., Novak, T.P., & Peralta, M.A. (1999). Information privacy in the marketspace: Implications for the commercial uses of anonymity on the Web. The Information Society, 15, 129–139

    Article  Google Scholar 

  28. Hoffman, D.L., Novak, T.P., & Peralta, M.A. (1999). Building consumer trust in online environments: The case for information privacy. Communications of the ACM, 42(4), 80–85

    Article  Google Scholar 

  29. Hunt, S. (1983). Marketing theory: the philosophy of marketing science. Homewood: Irwin

    Google Scholar 

  30. Jarvenpaa, S.L., Tractinsky, N., & Vitale, M. (2000). Consumer trust in an Internet store. Information Technology and Management, 1(1/2), 45–71

    Article  Google Scholar 

  31. Jones, M.G. (1991). Privacy: a significant marketing issue for the 1990s. Journal of Public Policy and Marketing, 10(1), 133–148

    Google Scholar 

  32. Kardes, F.R. (1996). In defense of experimental consumer psychology. Journal of Consumer Psychology, 5(3), 279–276

    Article  Google Scholar 

  33. Kelly, E.P., & Rowland, H.C. (2000). Ethical and online privacy issues in electronic commerce. Business Horizons, 43(3), 3–12

    Article  Google Scholar 

  34. Kerlinger, F. (1984). Foundations of behavioral research. New York: Holt, Rinehart and Winston

    Google Scholar 

  35. Lohse, G.L., Bellman, S., & Johnson, E.J. (2000). Consumer buying behavior on the Internet: findings from panel data. Journal of Interactive Marketing, 14(1), 15–29

    Article  Google Scholar 

  36. Luo, X. (2002). Trust production and privacy concerns on the Internet. A framework based on relationship marketing and social exchange theory. Industrial Marketing Management, 31, 111–118

    Article  Google Scholar 

  37. Mauldin, E., & Arunachalam, V. (2002). An experimental examination of alternative forms of Web assurance for business-to-consumer e-commerce. Journal of Information Systems, 16, 33–54 (special issue)

    Google Scholar 

  38. Mayer, R.C., Davis, J.H., & Schoorman, F.D. (1995). An integrative model of organizational trust. Academy of Management Review, 20(3), 709–734

    Article  Google Scholar 

  39. McKnight, D.H., & Chervany, N.L. (2002). What trust means in e-commerce customer relationships: an interdisciplinary conceptual typology. International Journal of Electronic Commerce, 6(2), 35–59

    Google Scholar 

  40. Milne, G.R., & Boza, M.E. (1999). Trust and concern in consumers: perceptions of marketing information management practices. Journal of Interactive Marketing, 13(1), 5–24

    Article  Google Scholar 

  41. Milne, G.R., & Rohm, A.J. (2000). Consumer privacy and name removal across direct marketing channels: exploring opt-in and opt-out alternatives. Journal of Public and Marketing, 19(2), 238–249

    Article  Google Scholar 

  42. Milne, G.R. (2000). Privacy and ethical issues in database/interactive marketing and public policy: a research framework and overview of the special issue. Journal of Public Policy and Marketing, 19(1), 1–6

    Article  Google Scholar 

  43. Miyazaki, A.D., & Fernandez, A. (2000). Internet privacy and security: an examination of online retailer disclosures. Journal of Public Policy and Marketing, 19(1), 54–61

    Article  Google Scholar 

  44. Morgan, R.M., & Hunt, S. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20–38

    Article  Google Scholar 

  45. Nissenbaum, H. (1998). Protecting privacy in an information age. Law and Philosophy, 17, 559–596

    Google Scholar 

  46. Novak, T.P., Hoffman, D.L., & Yoon, Y. (2000). Measuring the customer experience in online environments: a structural modelling approach. Marketing Science, 19(1), 22–42

    Article  Google Scholar 

  47. Nowak, G.J., & Phelps, J. (1995). Direct marketing and the use of individual-level consumer information: determining how and when ‘privacy’ matters. Journal of Direct Marketing, 9, 46–60

    Google Scholar 

  48. O’Brien, T.V., Schoenbachler, D.D., & Gordon, G.L. (1995). Marketing information systems for consumer products companies: a management overview. Journal of Consumer Marketing, 12(5), 16–36

    Article  Google Scholar 

  49. Paul, P. (1996). Marketing on the Internet. Journal of Consumer Marketing, 13(4), 27–39

    Article  Google Scholar 

  50. Pavlou, P.A. (2002, December). A theory of planned behavior perspective to the consumer adoption of electronic commerce [Online]. Available at www-scf.usc.edu/~pavlou/MISQ_PAVL.pdf

  51. Peter, J.P., & Churchill, G.A. (1986). Relationships among research design choices and psychometric properties of rating scales. Journal of Marketing Research, 23, 1–10

    Article  Google Scholar 

  52. Peterson, R.A. (2001). On the use of college students in social science research: Insights from a second-order meta-analysis. Journal of Consumer Research, 28, 450–461

    Article  Google Scholar 

  53. Petty, R.D. (2000). Marketing without consent: Consumer choice and costs, privacy, and public policy. Journal of Public Policy and Marketing, 19(1), 42–53

    Article  Google Scholar 

  54. Phelps, J., Nowak, G., & Ferrell, E. (2000). Privacy concerns and consumer willingness to provide personal information. Journal of Public Policy and Marketing, 19(1), 27–41

    Article  Google Scholar 

  55. Phelps, J.E., D’Souza, G., & Nowak, G.J. (2001). Antecedents and consequences of consumer privacy concerns: an empirical investigation. Journal of Interactive Marketing, 15(4), 2–17

    Article  Google Scholar 

  56. Prabhaker, P.R. (2000). Who owns the online consumer? Journal of Consumer Marketing, 17(2), 158–171

    Article  Google Scholar 

  57. Rachels, J. (1975). Why privacy is important. Philosophy and Public Affairs, 4, 323–333

    Google Scholar 

  58. Rindskopf, D., & Rose, T. (1988). Some theory and applications of confirmatory second-order analysis. Multivariate Behavioural Research, 23, 51–67

    Article  Google Scholar 

  59. Scheibal, W.J., & Gladstone, J.A. (2000). Privacy on the Net: Europe changes the rules. Business Horizons, 43(3), 13–18

    Article  Google Scholar 

  60. Selnes, F. (1998). Antecedents and consequences of trust and satisfaction in buyer-seller relationships. European Journal of Marketing, 32(3/4), 305–322

    Article  Google Scholar 

  61. Sheehan, K.B., & Hoy, M.G. (1999). Flaming, complaining, abstaining: How online users respond to privacy concerns. Journal of Advertising, 28(3), 37–51

    Google Scholar 

  62. Sheehan, K.B., & Hoy, M.G. (2000). Dimensions of privacy concern among online consumers. Journal of Public Policy and Marketing, 19(1), 62–73

    Article  Google Scholar 

  63. Sirdeshmukh, D., Singh, J., & Sabol, B. (2002). Consumer trust, value, and loyalty in relational exchanges. Journal of Marketing, 66, 15–37

    Article  Google Scholar 

  64. Taylor Nelson Sofres (2002, December). Global E-commerce Report [Online]. Available at http://www.tnsofres.com/ger2002/download/index.cfm

  65. Tourangeau, R., & Smith, T.W. (1996). Asking sensitive question. The impact of data collection mode, question format and question context. Public Opinion Quarterly, 60, 275–304

    Article  Google Scholar 

  66. Urban, G.L., Sultan, F., & Qualls, W.J. (2000). Placing trust at the centre of your Internet strategy. Sloan Management Review, 42(1), 39–48

    Google Scholar 

  67. Wang, H., Lee, M.K.O., & Wang, C. (1998). Consumer privacy concerns about Internet marketing. Communications of the ACM, 41(3), 63–70

    Article  Google Scholar 

  68. Ward, M.R., & Lee, M.J. (2000). Internet shopping, consumer search and product branding. Journal of Product and Brand Management, 9(1), 6–20

    Article  Google Scholar 

  69. Warren, S., & Brandeis, L. (1984). The right to privacy. In F. Schoeman (Ed.), Philosophical dimensions of privacy (pp. 75–103). Cambridge: Cambridge University Press. Originally publicised in Harvard Law Review, 4, (193)

    Google Scholar 

  70. Weiber, R., & Kollmann, T. (1998). Competitive advantages in virtual markets-perspectives of ‘information-based marketing’ in cyberspace. European Journal of Marketing, 32(7/8), 603–615

    Article  Google Scholar 

  71. Weible, R.J. (1993). Privacy and data: an empirical study of the influence and types and data and situational context upon privacy perceptions. Doctoral dissertation, Department of de Business Administration, Mississippi State University. Cited by Sheehan and Hoy (2000)

  72. West, S.G., Finch, J.F., & Curran, P.J. (1995). Structural equations models with nonnormal variables: problems and remedies. In R.H. Hoyle (Ed.), Structual equation modeling: concepts, issues, and applications (pp. 57–75). Thousand Oaks: Sage.

    Google Scholar 

  73. Wong, A., & Sohal, A. (2002). An examination of the relationship between trust, commitment and relationship quality. International Journal of Retail and Distribution Management, 30(1), 34–50

    Article  Google Scholar 

  74. Wright, D.L., Aquilino, W.S., & Supple, A.J. (1998). A comparison of computer-assisted and paper-and-pencil self-administered questionnaires in a survey on smoking, alcohol, and drug use. Public Opinion Quarterly, 62, 331–353

    Article  Google Scholar 

  75. Yoon, S. (2002). The antecedents and consequences of trust in online-purchase decisions. Journal of Interactive Marketing, 16(2), 47–62

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Faculty of Economics and Business, Department of Marketing and Market Research, University of Granada, Campus Universitario de Cartuja s/n, 18071, Granada, Spain

    J. Alberto Castañeda & Francisco J. Montoro

Authors
  1. J. Alberto Castañeda
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Francisco J. Montoro
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to J. Alberto Castañeda.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Castañeda, J.A., Montoro, F.J. The effect of Internet general privacy concern on customer behavior. Electron Commerce Res 7, 117–141 (2007). https://doi.org/10.1007/s10660-007-9000-y

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10660-007-9000-y

Keywords

Search

Navigation