Introducing products that affect consumer privacy

Wednesday, October 5, 2016

A new study appears in October 2016 issue of Journal of Business Research on the topic of consumer privacy concerns in adopting new technological innovations, co-authored with C. Lancelot Miltgen, J. Henseler, and C. Gelhard, : Introducing new products that affect consumer privacy: A mediation model. Here is the abstract:

Many innovative products can only fully deploy their value if they rely on consumers’ personal information. This issue challenges the confidence that consumers have in new innovations, and revolutionizes marketing practices. Malhotra, Kim, and Agarwal’s (2004) framework provides the theoretical basis for hypotheses on the consequences of privacy concerns. An empirical study in the context of four pervasive IT innovations involving various privacy issues helps to test these hypotheses. The findings consistently show that privacy concerns have an adverse effect on consumers’ intention to accept IT innovation. However, trust and risk perceptions both mediate this relationship. By understanding the underlying mechanism, firms can alleviate the potential downsides of their products and increase the odds of their market success.

Aleš Popovič

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