Information transparency and digital privacy protection: are they mutually exclusive in the provision of e‐services?

The purpose of this study is to develop and validate a model to analyze the inter‐relationship between information transparency and the protection of digital privacy of customers, from the perspective of e‐services providers.

A total of 320 questionnaires were sent out to all e‐banking service providers in the Guangdong province in China in 2004 and 150 useable questionnaires were collected. The response rate was 46.9 percent.

The paper identifies three types of digital privacy: information, communication and individual privacy. The findings show that e‐service marketers who adopt a more open information transparency policy are more likely to pay attention to customers' information and communication privacy, but less to their individual privacy.

E‐services providers need to be very careful about the necessity to be transparent in information sharing, but at the same time, have to be well aware of the need of the protection of individual privacy of their customers. Unfortunately, at times they may be too aggressive in adopting an open information transparency policy that may upset their customers by intruding into their individual privacy.

The paper contributes to a more comprehensive conceptualization of digital privacy not only by identifying three generic types of privacy (information, communication and individual), but also by looking into the relationship between information transparency and these three generic types of privacy. This study shows that, unlike the first two types of privacy, individual privacy of customers is given less concern by most e‐service providers.