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Privacy versus reward: Do loyalty programs increase consumers' willingness to share personal information with third-party advertisers and data brokers?

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  • Jai, Tun-Min (Catherine)
  • King, Nancy J.

Abstract

This research reports that U.S. online shoppers significantly identify third-party advertisers and data brokers as separate agents and display different attitudes toward sharing their PI in the context of online retailing. Applying Westins' Privacy Segmentation Index, the results showed that enrollment in multiple loyalty programs significantly predicts Privacy Pragmatic shoppers' willingness to share personal information, while consumer commitment significantly increases both the Privacy Unconcerned and Pragmatist groups' willingness to share. Conversely, this is not the case for Privacy Fundamentalists. Age and gender also played important roles in predicting consumers’ willingness to share their PI with advertisers and data brokers.

Suggested Citation

  • Jai, Tun-Min (Catherine) & King, Nancy J., 2016. "Privacy versus reward: Do loyalty programs increase consumers' willingness to share personal information with third-party advertisers and data brokers?," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 296-303.
    • Handle: RePEc:eee:joreco:v:28:y:2016:i:c:p:296-303
    DOI: 10.1016/j.jretconser.2015.01.005
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    References listed on IDEAS

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    Cited by:

    1. Jorge Padilla, 2020. "Big Tech “banks”, financial stability and regulation," Revista de Estabilidad Financiera, Banco de España, issue Spring.
    2. Jorge Padilla, 2020. "Big Tech “banks”, financial stability and regulation," Revista de Estabilidad Financiera, Banco de España, issue Primavera.
    3. Chen, Yanyan & Mandler, Timo & Meyer-Waarden, Lars, 2021. "Three decades of research on loyalty programs: A literature review and future research agenda," Journal of Business Research, Elsevier, vol. 124(C), pages 179-197.
    4. Valentine Weydert & Pierre Desmet & Caroline Lancelot Miltgen, 2019. "Convincing consumers to share personal data: double-edged effect of offering money," Post-Print hal-02566613, HAL.
    5. Pallant, Jason I. & Pallant, Jessica L. & Sands, Sean J. & Ferraro, Carla R. & Afifi, Eslam, 2022. "When and how consumers are willing to exchange data with retailers: An exploratory segmentation," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    6. Zhang, Zhiyun & Zhang, Ziqiong & Liu, Sen & Zhang, Zili, 2024. "Are high-status reviewers more likely to seek anonymity? Evidence from an online review platform," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    7. Jorge Padilla, 2020. "Big Tech “banks”, financial stability and regulation," Financial Stability Review, Banco de España, issue Spring.
    8. Jorge Padilla, 2020. "Big Tech “banks”, financial stability and regulation," Financial Stability Review, Banco de España, issue Spring.
    9. Jacobson, Jenna & Gruzd, Anatoliy & Hernández-García, à ngel, 2020. "Social media marketing: Who is watching the watchers?," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    10. Liyanaarachchi, Gajendra, 2021. "Managing privacy paradox through national culture: Reshaping online retailing strategy," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    11. Teresa Herrador-Alcaide & Montserrat Hernández-Solís, 2019. "Empirical Study Regarding Non-Financial Disclosure for Social Conscious Consumption in the Spanish E-Credit Market," Sustainability, MDPI, vol. 11(3), pages 1-26, February.
    12. Baik, Jeeyun Sophia & Famularo, Jordan, 2024. "Contextual integrity of loyalty programs, compromised? Interrogating consumer health data practices and networked actors in the U.S. retail sector," Telecommunications Policy, Elsevier, vol. 48(7).
    13. Lu Xu & Yanhui Li & Qi Yao, 2022. "Information security investment and purchase decision for personalized products," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2619-2635, September.
    14. Alex Belli & Anne-Maree O’Rourke & François A. Carrillat & Ljubomir Pupovac & Valentyna Melnyk & Ekaterina Napolova, 2022. "40 years of loyalty programs: how effective are they? Generalizations from a meta-analysis," Journal of the Academy of Marketing Science, Springer, vol. 50(1), pages 147-173, January.
    15. Carlo Pugnetti & Sandra Elmer, 2020. "Self-Assessment of Driving Style and the Willingness to Share Personal Information," JRFM, MDPI, vol. 13(3), pages 1-18, March.

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