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The disclosure of private data: measuring the privacy paradox in digital services

Author

Listed:
  • Henner Gimpel

    (FIM Research Center
    Fraunhofer FIT - Project Group Business and Information Systems Engineering)

  • Dominikus Kleindienst

    (FIM Research Center)

  • Daniela Waldmann

    (FIM Research Center
    Fraunhofer FIT - Project Group Business and Information Systems Engineering)

Abstract

Privacy is a current topic in the context of digital services because such services demand mass volumes of consumer data. Although most consumers are aware of their personal privacy, they frequently do not behave rationally in terms of the risk-benefit trade-off. This phenomenon is known as the privacy paradox. It is a common limitation in research papers examining consumers’ privacy intentions. Using a design science approach, we develop a metric that determines the extent of consumers’ privacy paradox in digital services based on the theoretical construct of the privacy calculus. We demonstrate a practical application of the metric for mobile apps. With that, we contribute to validating respective research findings. Moreover, among others, consumers and companies can be prevented from unwanted consequences regarding data privacy issues and service market places can provide privacy-customized suggestions.

Suggested Citation

  • Henner Gimpel & Dominikus Kleindienst & Daniela Waldmann, 2018. "The disclosure of private data: measuring the privacy paradox in digital services," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(4), pages 475-490, November.
    • Handle: RePEc:spr:elmark:v:28:y:2018:i:4:d:10.1007_s12525-018-0303-8
    DOI: 10.1007/s12525-018-0303-8
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    References listed on IDEAS

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    Cited by:

    1. Fred Niederman & Elizabeth White Baker, 2023. "Ethics and AI Issues: Old Container with New Wine?," Information Systems Frontiers, Springer, vol. 25(1), pages 9-28, February.
    2. Annette Wenninger & Daniel Rau & Maximilian Röglinger, 2022. "Improving customer satisfaction in proactive service design," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1399-1418, September.
    3. Rainer Alt, 2018. "Electronic Markets on digitalization," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(4), pages 397-402, November.
    4. Hans Brits & Nicole Jonker, 2023. "The Use of Financial Apps: Privacy Paradox or Privacy Calculus?," Working Papers 794, DNB.
    5. Alzaidi, Maram Saeed & Agag, Gomaa, 2022. "The role of trust and privacy concerns in using social media for e-retail services: The moderating role of COVID-19," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    6. Valerie Graf-Drasch & Maximilian Röglinger & Annette Wenninger & Sabiölla Hosseini, 2022. "A Contextualized Acceptance Model for Proactive Smart Services," Schmalenbach Journal of Business Research, Springer, vol. 74(3), pages 345-387, September.
    7. Sarah Geschonke & Thomas Wein, 2020. "Privacy Paradox – Economic Uncertainty Theory and Legal Consequences," Working Paper Series in Economics 393, University of Lüneburg, Institute of Economics.
    8. Renata Benigna Gonçalves & Júlio César Bastos Figueiredo, 2022. "Effects of perceived risks and benefits in the formation of the consumption privacy paradox: a study of the use of wearables in people practicing physical activities," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1485-1499, September.
    9. Rainer Alt & Andreas Göldi & Hubert Österle & Edy Portmann & Sarah Spiekermann, 2021. "Life Engineering," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 63(2), pages 191-205, April.
    10. Ernestine Dickhaut & Mahei Manhai Li & Andreas Janson & Jan Marco Leimeister, 2022. "The role of design patterns in the development and legal assessment of lawful technologies," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(4), pages 2311-2331, December.
    11. Brusch, Ines & Rappel, Nina, 2020. "Exploring the acceptance of instant shopping – An empirical analysis of the determinants of user intention," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).

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    More about this item

    Keywords

    Privacy paradox; Privacy calculus; Metric; Digital services;
    All these keywords.

    JEL classification:

    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics

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