scholarly journals Individual costs and societal benefits: the privacy calculus of contact-tracing apps

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jeanette Carlsson Hauff ◽  
Jonas Nilsson

Purpose During 2020, governments around the world introduced contact-tracing apps to fight the COVID-19 pandemic. In order for contact-tracing apps to be efficient tools in combatting pandemics, a significant proportion of the population has to install it. However, in many countries, the success of apps introduced during the COVID-19 pandemic has been limited due to lack of public support. This paper aims to better understand why consumers seem unwilling to install and use a contact-tracing app. Design/methodology/approach In this study, the authors test a number of determinants hypothesized to influence acceptance of contact-tracing apps based on the theory of privacy calculus (Dinev and Hart, 2006). Both perceived privacy concerns, as well as perceived hedonic, utilitarian and pro-social benefits are included. The hypotheses are tested through SEM analysis on a representative sample of 1,007 Swedish citizens. Findings The results indicate significant privacy concerns with using contact-tracing apps. However, this is to some extent offset by perceived hedonic and pro-social positive consequences of using the app. This study further shows that a general positive attitude towards innovation increases acceptance of the app. Originality/value The study contributes to research on consumer privacy, both in general in its application of the calculus model but also specifically in the context of contact-tracing apps. Moreover, as the results highlight which aspects that are important for consumers to accept and install an app of this kind, they also represent an important contribution to policymakers in countries around the world.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sheshadri Chatterjee ◽  
Ranjan Chaudhuri ◽  
Demetris Vrontis ◽  
Zahid Hussain

Purpose This study aims to empirically examine how consumer privacy concerns (CPC) impact smartphone usage for financial transactions. The study also investigates the moderating impact of regulations on this action. Design/methodology/approach With the inputs from literature and related privacy theories, a theoretical model was developed. The model was later empirically validated using the partial least squares structural equation modeling technique with 367 respondents from India. Findings The study finds that CPC significantly impacts on consumer behavior in using smartphones for financial transactions. The study also highlights that regulation has a moderating impact on consumer usage of smartphones for financial transactions. Research limitations/implications This study provides valuable inputs to smartphone service providers, practitioners, regulatory authorities and policymakers on appropriate and secure usage of smartphones by consumers, ensuring privacy protection while making financial transactions. Originality/value This study provides a unique model showing the antecedents of CPC to impact the behavioral reaction of smartphone users mediated through the ingredients of privacy calculus theory. Besides, this study analyzes the moderating effects of regulation on the use of smartphones for financial transactions. This is also a novel approach of this study.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Teresa Fernandes ◽  
Marta Costa

Purpose The COVID-19 pandemic represents a unique challenge for public health worldwide. In this context, smartphone-based tracking apps play an important role in controlling transmission. However, privacy concerns may compromise the population’s willingness to adopt this mobile health (mHealth) technology. Based on the privacy calculus theory, this study aims to examine what factors drive or hinder adoption and disclosure, considering the moderating role of age and health status. Design/methodology/approach A cross-sectional survey was conducted in a European country hit by the pandemic that has recently launched a COVID-19 contact-tracing app. Data from 504 potential users was analyzed through partial least squares structural equation modeling. Findings Results indicate that perceived benefits and privacy concerns impact adoption and disclosure and confirm the existence of a privacy paradox. However, for young and healthy users, only benefits have a significant effect. Moreover, older people value more personal than societal benefits while for respondents with a chronical disease privacy concerns outweigh personal benefits. Originality/value The study contributes to consumer privacy research and to the mHealth literature, where privacy issues have been rarely explored, particularly regarding COVID-19 contact-tracing apps. The study re-examines the privacy calculus by incorporating societal benefits and moving from a traditional “self-focus” approach to an “other-focus” perspective. This study further adds to prior research by examining the moderating role of age and health condition, two COVID-19 risk factors. This study thus offers critical insights for governments and health organizations aiming to use these tools to reduce COVID-19 transmission rates.


Author(s):  
Farkhondeh Hassandoust ◽  
Saeed Akhlaghpour ◽  
Allen C Johnston

Abstract Objective The study sought to develop and empirically validate an integrative situational privacy calculus model for explaining potential users’ privacy concerns and intention to install a contact tracing mobile application (CTMA). Materials and Methods A survey instrument was developed based on the extant literature in 2 research streams of technology adoption and privacy calculus. Survey participants (N = 853) were recruited from all 50 U.S. states. Partial least squares structural equation modeling was used to validate and test the model. Results Individuals’ intention to install a CTMA is influenced by their risk beliefs, perceived individual and societal benefits to public health, privacy concerns, privacy protection initiatives (legal and technical protection), and technology features (anonymity and use of less sensitive data). We found only indirect relationships between trust in public health authorities and intention to install CTMA. Sex, education, media exposure, and past invasion of privacy did not have a significant relationship either, but interestingly, older people were slightly more inclined than younger people to install a CTMA. Discussion Our survey results confirm the initial concerns about the potentially low adoption rates of CTMA. Our model provides public health agencies with a validated list of factors influencing individuals’ privacy concerns and beliefs, enabling them to systematically take actions to address these identified issues, and increase CTMA adoption. Conclusions Developing CTMAs and increasing their adoption is an ongoing challenge for public health systems and policymakers. This research provides an evidence-based and situation-specific model for a better understanding of this theoretically and pragmatically important phenomenon.


2020 ◽  
Vol 55 (1) ◽  
pp. 219-246
Author(s):  
Ruwan Bandara ◽  
Mario Fernando ◽  
Shahriar Akter

Purpose The purpose of this study is to examine privacy issues in the e-commerce context from a power-responsibility equilibrium theory (PRE) perspective. Design/methodology/approach The data was collected using an online survey (n = 335) from online shopping consumers. This study used partial least squares-structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA) techniques to empirically examine the proposed relationships. Findings A lack of corporate privacy responsibility and regulatory protection can deprive consumers of privacy empowerment and damage consumer trust to trigger privacy concerns and subsequent defensive responses. Also, the fsQCA revealed five causal configurations to explain high consumer defensive behaviours. Research limitations/implications This study identifies the importance of PRE theory in the privacy context. Consumer privacy concerns, privacy empowerment and trust are established as strong mediators between corporate/regulatory privacy protection efforts and consumer backlash. The application of fsQCA verified that consumer privacy behaviour can be better explained by different configurations of the same causal antecedents. Practical implications The findings highlight the importance of increasing trust and privacy empowerment as mechanisms to manage privacy concerns and consumer backlash through responsible organisational and regulatory privacy protections. The importance of balancing power and responsibility dynamics for maintaining a healthy information exchange environment is identified. Originality/value This study extends the PRE framework of privacy to include corporate privacy responsibility, privacy empowerment and trust. This is one of the first studies to explore both antecedents and outcomes of privacy empowerment. Also, the application of complexity theory and fsQCA to explain consumers’ defensive responses is novel to the literature.


2015 ◽  
Vol 32 (2) ◽  
pp. 99-112 ◽  
Author(s):  
Jennifer Fries Taylor ◽  
Jodie Ferguson ◽  
Pamela Scholder Ellen

Purpose – The purpose of this paper is to advance our understanding of how information privacy concerns are derived from the combination effects of individual traits, compound traits, situational traits and surface traits that ultimately influence the consumer’s attitude toward data collection programs. The study investigates a hierarchical model of individual traits, information privacy orientation and consumer privacy concerns. Design/methodology/approach – The empirical research utilizes structural equation modeling to analyze the responses from 964 respondents. Findings – The results suggest that consumer attitudes toward data collection programs associated with personal shopping information (e.g. retail loyalty card programs) are determined through a hierarchical model of personal traits and contextual-dependent variables. Specifically, the authors find that the compound traits of risk orientation and need for cognition influence the situational trait of information privacy orientation which leads to the surface trait of consumer privacy concern and ultimately attitude toward the information collection program. Practical implications – The results suggest several means to increase participation in data collection programs. Although high need for cognition and high risk orientation cannot be changed, communication plans can provide guarantees that mitigate perceived risk associated with sharing personal information and highlight the information value to the individual’s sharing of information. Originality/value – While previous research focuses on either the internal traits or external traits, this research contributes to the current literature by offering insights into how privacy evolves from more abstract personality traits to more situational-specific behavioral tendencies, which then influence attitudes and behavior.


Subject Technology sector outlook. Significance US tech firm Apple will soon become the world’s first 1-trillion-dollar company. The tech-heavy Nasdaq composite equities index has increased by 41% since the beginning of 2017, nearly twice that of the S&P 500 and the world MSCI equities index. Concerns about overvaluation are colliding with rising fears and awareness of the power that the tech firms hold over citizens and governments. Impacts The substantial power that is being accumulated by the leading technology platforms will come under increasing review. In response to consumer concerns and upcoming regulation, technology companies will scramble to update their privacy disclosures. Privacy subcategories including medical records, and biometric and genetic data have not drawn scrutiny thus far; this could change. A more fundamental question of how social media affects human society and interaction may also enter political discourse.


2019 ◽  
Vol 29 (2) ◽  
pp. 209-222 ◽  
Author(s):  
Michail Vafeiadis ◽  
Denise S. Bortree ◽  
Christen Buckley ◽  
Pratiti Diddi ◽  
Anli Xiao

Purpose The dissemination of fake news has accelerated with social media and this has important implications for both organizations and their stakeholders alike. Hence, the purpose of this study is to shed light on the effectiveness of the crisis response strategies of denial and attack in addressing rumors about consumer privacy when non-profit organizations are targeted on social media. Design/methodology/approach To test the hypotheses, a 2 (response type: denial vs attack) × 2 (privacy concerns: low vs high), between-group online experiment was conducted via Qualtrics. Findings The results indicated that one’s involvement level in the issue determines the effectiveness of the crisis response strategy. Data showed that attacking the source of fake news (as a crisis response) reduces the message’s credibility more than denying fake news. Furthermore, highly involved individuals are more likely to centrally process information and develop positive supportive intentions toward the affected non-profit brand. High issue involvement also predicted organizational and response credibility. Conversely, an attack rebuttal message increased the credibility of the circulated malicious rumors for low involved individuals. Research limitations/implications The findings suggest that issue involvement plays a key role in message perceptions of false information regarding consumer privacy in social media. Practical implications Practically, this study offers insights for organizations that are developing response strategies in the current environment of fake news. Findings from this study suggest that organizations need to consider the degree to which audiences are currently involved in an issue before deciding how aggressively to respond to perpetrators of fake news. Originality/value The present study examines the intersection of fake news and crisis management in the non-profit sector, with an emphasis on various response strategies and issue involvement. This is one of the first attempts to experimentally investigate how social media strategies can defend and protect non-profit reputation in the fake news era.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Doaa Herzallah ◽  
Francisco Muñoz Leiva ◽  
Francisco Liébana-Cabanillas

PurposeThroughout 2020, especially under the lockdown measures, there was a significant surge in e-commerce and social commerce (s-commerce), with numerous people all over the world adopting and using commerce platforms on social media and other websites to buy desired products and services quickly and easily. Instagram Commerce is a new, cutting-edge social commerce platform. This research aims to explore the positive influence of the measures adopted during summer 2020 on Spanish s-commerce users' urge to buy impulsively.Design/methodology/approachDrawing on the stimulus–organism–response (S–O–R) theoretical framework, this study postulates and tests a model to help understand the behaviour of Spanish users towards social commerce, specifically Instagram Commerce. To accomplish this purpose, an SEM analysis is performed using a sample of 251 respondents.FindingsGenerally speaking, the findings obtained in the present study serve to expand and enhance the scientific literature on one of the latest determinants affecting social networks and online commerce.Originality/valueThis research is innovative due to the research background study that is carried out to analyse the urge to buy impulsively.


2018 ◽  
Vol 27 (6) ◽  
pp. 661-669 ◽  
Author(s):  
Michael Schade ◽  
Rico Piehler ◽  
Claudius Warwitz ◽  
Christoph Burmann

Purpose This study aims to investigate the influence of advertising value and privacy concerns on consumers’ intention to use location-based advertising. It also explores if brand trust toward location-based advertising providers and consumers’ privacy self-efficacy reduce privacy concerns. Design/methodology/approach Based on the privacy calculus and expectancy theory, a conceptual model is developed and empirically tested through structural equation modeling using cross-sectional data of 1,121 actual smartphone users from Germany. Findings Advertising value positively and privacy concerns negatively affect consumers’ intention to use location-based advertising. As expected, brand trust and consumers’ privacy self-efficacy can reduce consumers’ privacy concerns. Research limitations/implications Further research should test and validate the proposed framework in other cultures to gain insights into the culturally specific relevance of privacy concerns and their antecedents. The current study includes sociodemographics as potential moderators; additional studies could investigate other potential moderators (e.g. personality, values). Practical implications To reduce consumers’ privacy concerns, location-based advertising providers should make their offers transparent and give consumers control, to increase their privacy self-efficacy. They also should work to strengthen their brand, monitor brand trust trends and avoid any trust-damaging behavior. Originality/value This study introduces brand trust toward location-based advertising providers and privacy self-efficacy as factors to reduce consumers’ privacy concerns. It also encompasses a broader, general sample of consumers, which increases the generalizability and practical relevance of the results and supports an initial investigation of sociodemographic factors as potential moderators in this context.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nik Thompson ◽  
Atif Ahmad ◽  
Sean Maynard

Purpose It is a widely held belief that users make a rational cost-benefit decision when choosing whether to disclose information online. Yet, in the privacy context, the evidence is far from conclusive suggesting that strong and as-yet unmeasured influences on behaviour may exist. This paper aims to demonstrate one such link – the effect of internet addiction on information disclosure. Design/methodology/approach Data from 216 Web users was collected regarding their perceptions on privacy and information disclosure intentions as well as avoidance behaviour, an element of internet addiction. Using a research model based on the Privacy Calculus theory, structural equation modelling was applied to quantify the determinants of online disclosure under various conditions. Findings The authors show that not all aspects of privacy (a multi-dimensional construct) influence information disclosure. While concerns about data collection influence self-disclosure behaviour, the level of awareness about privacy does not. They next examine the impact of internet addiction on these relationships, finding that internet addiction weakens the influence of privacy concerns to the point of non-significance. Originality/value The authors highlight some of the influences of self-disclosure behaviour, showing that some but not all aspects of privacy are influential. They also demonstrate that there are powerful influences on user behaviour that have not been accounted for in prior work; internet addiction is one of these factors. This provides some of the first evidence of the potentially deleterious effect of internet addiction on the privacy calculus.


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