Browse > Article

Information Privacy and Reactance in Online Profiling  

Lee, Gyu-Dong (Business Administration(Management information Systems) from Sungkyunkwan University)
Lee, Won-Jun (SKKU Business School)
Publication Information
Asia pacific journal of information systems / v.19, no.4, 2009 , pp. 29-45 More about this Journal
Abstract
In the information age, cheap price of information processing and advances in personalization technology have allowed companies to enhance the relationships with their existing customers and to expand their customer base by effectively attracting new customers. However, most customers are reluctant to provide their personal information to companies. This study explores the tension between companies' desire to collect personal information to offer personalized services and their customers' privacy concerns. The psychological reactance theory suggests that when individuals feel that their behavioral choice is threatened or restricted, they are motivated to restore their freedom. Therefore, despite the expected benefits from personalized services, customers may perceive the services to be restrictive of their freedom to choose. This adverse effect may undermine the relationships between companies and their customers. We conducted experiments to explore the dynamic roles of transactional and environmental factors in motivating customers to provide personal information. We revisited online privacy issues from the perspective of psychological reactance. For the experiments, we created an online shop and randomly assigned the participants to one of the two experimental conditions-high and low levels of information requirements. The results of the experiment indicate that threatening the free choice serves as a transactional cost in online profiling. On the other hand, the expected benefits of personalization services have positive correlations with customers' willingness to provide personal information. This study explains privacy based on transactional and environmental factors. Our findings also indicate that the environmental factors such as the Internet privacy risk and trust propensity do not significantly affect the willingness to provide personal information when firms required much personal information. Implications and contributions are discussed.
Keywords
Online Privacy; Personal Information; Personalization; Psychological Reactance; Threat To Freedom;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
연도 인용수 순위
1 Altman, I., The Environment and Social Behavior: Privacy.Personal Space.Territory.Crowding, Brooks/Cole, CA, 1975
2 Awad, N.F. and Krishnan, M.S., 'The Personalization Privacy Paradox: An Empirical Evaluation of Information Transparency and the Willingness to be Profiled Online for Personalization,' MIS Quarterly, Vol. 30, No. 1, 2006, pp. 13-28   DOI
3 Bhattacherjee, A., 'Understanding Information Systems Continuance: An Expectation-Confirmation Model,' MIS Quarterly, Vol. 25, No. 3, 2001, pp. 351-370   DOI   ScienceOn
4 Brehm, S.S. and Brehm, J.W., Psychological Reactance: A Theory of Freedom and Control, Academic Press, NY, 1981
5 Choi, M.Y. and Lee, S.Y., 'A Conjoint Analysis of Online Information Privacy Concerns: A Case in Korea,' Asia Pacific Journal of Information Systems, Vol. 18, No. 3, 2008, pp. 46-65   과학기술학회마을
6 Deci, E.L. and Ryan, R.M., Intrinsic Motivation and Self-Determination in Human Behavior, Plenum, NY, 1985
7 Dinev, T. and Hart, P., 'An Extended Privacy Calculus Model for E-Commerce Transactions,' Information Systems Research, Vol. 17, No. 1, 2006, pp. 61-80   DOI   ScienceOn
8 Fitzsimons, G.J. and Lehmann, D.R., 'Reactance to Recommendations: When Unsolicited Advice Yields Contrary Responses,' Marketing Science, Vol. 23, No. 1, 2004, pp. 82-94   DOI   ScienceOn
9 Hair, J.F., Anderson, R.E., Tatham, R.L., and Black, W.C., Multivariate Data Analysis, Prentice Hall, NJ, 1998
10 Hammock, T. and Brehm, J.W. 'The Attractiveness of Choice Alternatives When Freedom to Choose is Eliminated by a Social Agent,' Journal of Personality, Vol. 34, No. 4, 1966, pp. 546-553   DOI   PUBMED
11 Jolson, M.A., 'Broadening the Scope of Relationship Selling,' Journal of Personal Selling and Sales Management, Vol. 17, No. 4, 1997, pp. 75-88
12 Komiak, S.Y.X. and Benbasat, I., 'The Effects of Personalization and Familiarity on Trust and Adoption of Recommendation Agents,' MIS Quarterly, Vol. 30, No. 4, 2006, pp. 941-960   DOI
13 Laufer, R.S. and Wolfe, M., 'Privacy as a Concept and a Social Issue: A Multidimensional Development Theory,' Journal of Social Issues, Vol. 33, No. 3, 1977, pp. 22-42   DOI
14 Smith, H.J., Milberg, S.J., and Burke, S.J., 'Information Privacy: Measuring Individuals' Concerns about Organizational Practices,' MIS Quarterly, Vol. 20, No. 2, 1996, pp. 167-186   DOI   ScienceOn
15 Miyazaki, A.D. and Krishnamurthy, S., 'Internet Seals of Approval: Effects on Online Privacy Policies and Consumer Perceptions,' Journal of Consumer Affairs, Vol. 36, No. 1, 2002, pp. 28-49   DOI   ScienceOn
16 Nunes, P.F. and Kambil, A., 'Personalization? No Thanks,' Harvard Business Review, Vol. 79, No. 4, 2001, pp. 32-33
17 Silvia, P.J., 'Deflecting Reactance: The Role of Similarity in Increasing Compliance and Reducing Resistance,' Basic and Applied Social Psychology, Vol. 27, No. 3, 2005, pp. 277-284   DOI   ScienceOn
18 Stone, E.F., Gueutal, H.G., Gardner, D.G., and McClure, S., 'A Field Experiment Comparing Information-privacy Values, Beliefs, and Attitudes across Several Types of Organizations,' Journal of Applied Psychology, Vol. 68, No. 3, 1983, pp. 459-468   DOI
19 Thaler, R.H., 'Toward a Positive Theory of Consumer Choice,' Journal of Economic Behavior and Organization, Vol. 1, No. 1, 1980, pp. 39-60   DOI   ScienceOn
20 Vroom, V.H., Work and Motivation, John Wiley, NY, 1964
21 Wendlandt, M. and Schrader, U., 'Consumer Reactance against Loyalty Programs'. Journal of Consumer Marketing, Vol. 24, No. 5, 2007, pp. 293-304   DOI   ScienceOn
22 Westin, A.F., Privacy and Freedom, Atheneum, NY, 1970
23 Kovar, S.E., Burke, K.G., and Kovar, B.R., 'Consumer Responses to the CPA WEBTRUST Assurance,' Journal of Information Systems, Vol. 14, No. 1, 2000, pp. 17-25   DOI
24 Brehm, J.W., A Theory of Psychological Reactance, Academic Press, NY, 1966
25 Lee, Gyudong, Lee, W.J., and Kim, J.U., 'Effects of the user's perceived threat to freedom and personalization on intention to use recommendation services,' Asia Pacific Journal of Information Systems, Vol. 17, No. 1, 2007, pp. 123-145
26 van Slyke, C., Shim, J.T., Johnson, R., and Jiang, J., 'Concern for Information Privacy and Online Consumer Purchasing,' Journal of the Association for Information Systems, Vol. 7, No. 6, 2006, pp. 415-443   DOI
27 Ackerman, M.S., Cranor, L.F., and Reagle, J., 'Privacy in E-Commerce: Examining User Scenarios and Privacy Preferences,' in The ACM Conference on Electronic Commerce, 1999, pp. 1-8
28 Hui, K.-L., Teo, H.H., and Lee, S.-Y.T., 'The Value of Privacy Assurance: An Exploratory Field Experiment,' MIS Quarterly, Vol. 31, No. 1, 2007, pp. 19-33   DOI
29 Chellappa, R.K. and Sin, R.G., 'Personalization versus Privacy: An Empirical Examination of the Online Consumer's Dilemma,' Information Technology and Management, Vol. 6, No. 2-3, 2005, pp. 181-202   DOI   ScienceOn
30 Oliver, R.L., 'A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions,' Vol. 17, No. 4, 1980, pp. 460-469   DOI   ScienceOn
31 Sachau, D.A., Houlihan, D., and Gilbertson, T., 'Predictors of Employee Resistance to Supervisor's Requests,' The Journal of Social Psychology, Vol. 139 No. 5, pp. 611-621   DOI
32 Shoham, V., Trost, S.E. and Rohrbaugh, M.J., 'From State to Trait and Back Again: Reactance Theory Goes Clinical,' in Wright, R.A., Greenberg, J. and Brehm, S.S. eds. Motivational Analyses of Social Behavior, Lawrence Erlbaum Associates, NJ, 2004
33 Son, H.-Y. and Kim, S.S., 'Internet Users' Information Privacy-Protective Responses: A Taxonomy and A Nomological Model,' MIS Quarterly, Vol. 32, No. 3, 2008, pp. 503-539
34 Kivetz, R., 'Promotion Reactance: The Role of Effort-Reward Congruity,' Journal of Consumer Research, Vol. 31, No. 4, 2005, pp. 725-736   DOI   ScienceOn
35 Wicklund, R.A., Freedom and reactance. John Wiley and Sons, NY, 1974
36 Malhotra, N.K., Sung, S.K., and Agarwal, J., 'Internet Users' Information Privacy Concerns (IUIPC): The Construct, the Scale, and a Causal Model,' Information Systems Research, Vol. 15, No. 4, 2004, pp. 336-355   DOI   ScienceOn
37 Faja, S. and Trimi, S., 'Influence of the Web Vender's Interventions on Privacy-Related Behaviors in E-Commerce,' Communications of the Association for Information Systems, Vol. 17, No. 2006, pp. 593-634
38 Kahneman, D., Knetsch, J.L., and Thaler, R.H., 'Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias,' Journal of Economic Perspectives, Vol. 5, No. 1, 1991, pp. 193-206   DOI   ScienceOn
39 Nunnally, J.C., Psychometric Theory (2ed.), McGraw-Hill, NY, 1978
40 Phelps, J., Nowak, G., and Ferrell, E.,'Privacy Concerns and Consumer Willingness to Provide Personal Information,' Journal of Public Policy and Marketing, Vol. 19, No. 1, 2000, pp. 27-41   DOI   ScienceOn
41 Tam, K.Y. and Ho, S.Y., 'Web Personalization as a Persuasion Strategy: An Elaboration Likelihood Model Perspective,' Information Systems Research, Vol. 16, No. 3, 2005, pp. 271-291   DOI   ScienceOn
42 Gunther, O. and Spiekermann, S., 'RFID and the Perception of Control: the Consumer's View,' Communications of the ACM, Vol. 48, No. 9, 2005, pp. 73-76   DOI   ScienceOn
43 Andrade, E.B., Kaltcheva, V., and Weitz, B., 'Self-Disclosure on the Web: The Impact of Privacy Policy, Reward, and Company Reputation,' Advances in Consumer Research, Vol. 29, No. 1, 2002, pp. 350-353
44 Warren, S.D. and Brandeis, L.D., 'The Right to Privacy,' Harvard Law Review, Vol. 4, No. 5, 1890, pp. 193-220   DOI   ScienceOn
45 Suh, C.J. and Pang, H.K., 'An Empirical Evaluation and Improvement of CRM in View of Customers,' Korean Management Review, Vol. 34, No. 2, 2005, pp 423-444
46 Hong, S.-M., 'Hong's Psychological Reactance Scale: A further factor analytic validation,' Psychological Reports, Vol. 70, No. 2, 1992, pp. 512-514   DOI
47 The New York Times, 'Like this? You'll hate that,' Jan. 2006
48 McKnight, D.H., Cummings, L.L. and Chervany, N.L., 'Initial Trust Formation in New Organizational Relationships,' Academy of Management Review, Vol. 23, No. 3, 1998, pp. 473-490   DOI   ScienceOn
49 Moon, Y., 'Personalization and Personality: Some Effects of Customizing Message Style Based on Consumer Personality,' Journal of Consumer Psychology, Vol. 12, No. 4, 2002, pp. 313-325   DOI   ScienceOn
50 Silvia, P.J., 'A Skeptical Look at dispositional Reactance,' Personality and Individual Differences, Vol. 40, No. 6, 2006, pp. 1291-1297   DOI   ScienceOn
51 Hoffman, D.L., Novak, T.P., and Peralta, M.A., 'Information Privacy in the Marketspace: Implications for the Commercial Uses of Anonymity on the Web,' Information Society, Vol. 15, No. 2, 1999, pp. 129-139   DOI   ScienceOn
52 Peppers, D. and Rodgers, M., Enterprise One to One: Tools for Competing in the Interactive Age, Doubleday, NY, 1997
53 Fornell, C. and Larcker, D.F., 'Evaluating Structural Equation Models with Unobservable Variables and Measurement Error,' Journal of Marketing Research, Vol. 18, No. 1, 1981, pp 39-50   DOI   ScienceOn
54 Schiaffino, S. and Amandi, A., 'User-interface agent interaction: personalization issues,' International Journal of Human-Computer Studies, Vol. 60, No. 1, 2004, pp. 129-148   DOI   ScienceOn
55 Edwards, S.M., Li, H. and Lee, J.-H., 'Forced Exposure and Psychological Reactance: Antecedents and Consequences of the Perceived Intrusiveness of Pop-Up Ads,' Journal of Advertising, Vol. 31, No. 3, 2002, pp. 83-95   DOI
56 Maes, P., Guttman, R.H., and Moukas, A.G., 'Agents That Buy and Sell,' Communications of the ACM, Vol. 42, No. 3, 1999, pp. 81-91   DOI   ScienceOn
57 Murthi, B.P.S. and Sarkar, S., 'The Role of the Management Sciences in Research on Personalization,' Management Science, Vol. 49, No. 10, 2003, pp. 1344-1362   DOI   ScienceOn
58 Pavlou, P.A. and Gefen, D., 'Building Effective Online Marketplaces with Institution-Based Trust,' Information Systems Research, Vol. 15, No. 1, 2004, pp. 37-59   DOI   ScienceOn