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Published in: Journal of Business Ethics 4/2022

02-11-2020 | Original Paper

Which Privacy Policy Works, Privacy Assurance or Personalization Declaration? An Investigation of Privacy Policies and Privacy Concerns

Authors: Fue Zeng, Qing Ye, Zhilin Yang, Jing Li, Yiping Amy Song

Published in: Journal of Business Ethics | Issue 4/2022

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Abstract

This study focuses on two specific privacy policies, namely privacy assurance and personalization declaration. Specifically, we investigate how these distinct privacy policies affect customers’ privacy concerns and subsequent purchase responses. We have developed a conceptual model that addresses the independent effects of privacy assurance and personalization declaration, as well as the mechanism (i.e., privacy concerns) of these effects. Our model is grounded in motivation theory and supported by a field experiment and a controlled experiment. Our study demonstrates that privacy assurance that claims security protection negatively affects customers’ purchase probability and purchase amount. By contrast, personalization declaration that addresses personalized benefits positively affects customers’ purchase probability and purchase amount. Privacy concerns significantly mediate the negative effects of privacy assurance on purchase responses and the positive effects of personalization declaration on purchase responses. Overall, our findings inform managers of how to deploy privacy policies to reduce customers’ privacy concerns and boost purchase responses.
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Metadata
Title
Which Privacy Policy Works, Privacy Assurance or Personalization Declaration? An Investigation of Privacy Policies and Privacy Concerns
Authors
Fue Zeng
Qing Ye
Zhilin Yang
Jing Li
Yiping Amy Song
Publication date
02-11-2020
Publisher
Springer Netherlands
Published in
Journal of Business Ethics / Issue 4/2022
Print ISSN: 0167-4544
Electronic ISSN: 1573-0697
DOI
https://doi.org/10.1007/s10551-020-04626-x

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