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Does self-disclosure matter? A dynamic two-stage perspective for the personalization-privacy paradox

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  • Zeng, Fue
  • Ye, Qing
  • Li, Jing
  • Yang, Zhilin

Abstract

Although marketing managers are relying increasingly on customer data, insight into the best approaches for resolving the personalization–privacy paradox remains limited. Specifically, we argue for the success of a personalization involving the integration of two stages: the self-disclosure stage and the personalization stage. Using a conceptual framework grounded in the foot-in-the-door effect, we argue that compliance with commitment to self-disclosure as the initial small request induces greater compliance with the later target request. The results of a large-scale two-stage field experiment based on a combined propensity score matching and difference-in-difference model show positive causal effects of the act of self-disclosure and the positive effect of the intensity of self-disclosure on purchase responses to personalized promotions. The results also indicate that a combination of privacy assurance and personalization declaration drives customers’ act of self-disclosure and increases the intensity of self-disclosure. Findings empower managers to capitalize on new opportunities in personalization.

Suggested Citation

  • Zeng, Fue & Ye, Qing & Li, Jing & Yang, Zhilin, 2021. "Does self-disclosure matter? A dynamic two-stage perspective for the personalization-privacy paradox," Journal of Business Research, Elsevier, vol. 124(C), pages 667-675.
  • Handle: RePEc:eee:jbrese:v:124:y:2021:i:c:p:667-675
    DOI: 10.1016/j.jbusres.2020.02.006
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    2. Degutis, Mindaugas & UrbonaviÄ ius, Sigitas & Hollebeek, Linda D. & Anselmsson, Johan, 2023. "Consumers’ willingness to disclose their personal data in e-commerce: A reciprocity-based social exchange perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    3. Lambillotte, Laetitia & Magrofuoco, Nathan & Poncin, Ingrid & Vanderdonckt, Jean, 2022. "Enhancing playful customer experience with personalization," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    4. Fehrenbach, David & Herrando, Carolina, 2021. "The effect of customer-perceived value when paying for a product with personal data: A real-life experimental study," Journal of Business Research, Elsevier, vol. 137(C), pages 222-232.
    5. Lucia-Palacios, Laura & Pérez-López, Raúl, 2021. "Effects of Home Voice Assistants' Autonomy on Instrusiveness and Usefulness: Direct, Indirect, and Moderating Effects of Interactivity," Journal of Interactive Marketing, Elsevier, vol. 56(C), pages 41-54.
    6. Wang, Lu-Yao & Hu, Hai-Hua & Wang, Le & Qin, Jian-Qun, 2022. "Privacy assurances and social sharing in social commerce: The mediating role of threat-coping appraisals," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).

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