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The impact of transparency on mobile privacy decision making

Author

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  • Jan Hendrik Betzing

    (University of Münster)

  • Matthias Tietz

    (University of Liechtenstein)

  • Jan Brocke

    (University of Liechtenstein)

  • Jörg Becker

    (University of Münster)

Abstract

Smart devices provide unprecedented access to users’ personal information, on which businesses capitalize to offer personalized services. Although users must grant permission before their personal information is shared, they often do so without knowing the consequences of their decision. Based on the EU General Data Protection Regulation, which mandates service providers to comprehensively inform users about the purpose and terms of personal data processing, this article examines how increased transparency regarding personal data processing practices in mobile permission requests impact users in making informed decisions. We conducted an online experiment with 307 participants to test the effect of transparency on users’ decisions about and comprehension of the requested permission. The results indicate increased comprehension of data processing practices when privacy policies are transparently disclosed, whereas acceptance rates do not vary significantly. We condense our findings into principles that service providers can apply to design privacy-transparent mobile apps.

Suggested Citation

  • Jan Hendrik Betzing & Matthias Tietz & Jan Brocke & Jörg Becker, 2020. "The impact of transparency on mobile privacy decision making," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(3), pages 607-625, September.
    • Handle: RePEc:spr:elmark:v:30:y:2020:i:3:d:10.1007_s12525-019-00332-3
    DOI: 10.1007/s12525-019-00332-3
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    Cited by:

    1. Fast, Victoria & Sachs, Nikolai & Schnurr, Daniel, 2021. "Privacy Decision-Making in Digital Markets: Eliciting Individuals' Preferences for Transparency," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238020, International Telecommunications Society (ITS).
    2. Trabucchi, Daniel & Patrucco, Andrea S. & Buganza, Tommaso & Marzi, Giacomo, 2023. "Is transparency the new green? How business model transparency influences digital service adoption," Technovation, Elsevier, vol. 126(C).
    3. Gregor Dorfleitner & Lars Hornuf & Julia Kreppmeier, 2023. "Promise not fulfilled: FinTech, data privacy, and the GDPR," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-29, December.
    4. Severin Weiler & Christian Matt & Thomas Hess, 2022. "Immunizing with information – Inoculation messages against conversational agents’ response failures," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(1), pages 239-258, March.
    5. Rainer Alt, 2020. "Electronic Markets on business model development," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(3), pages 405-411, September.
    6. Katharina Baum & Olga Abramova & Stefan Meißner & Hanna Krasnova, 2023. "The effects of targeted political advertising on user privacy concerns and digital product acceptance: A preference-based approach," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-17, December.
    7. 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.
    8. Tobias Dehling & Ali Sunyaev, 2024. "A Design Theory for Transparency of Information Privacy Practices," Information Systems Research, INFORMS, vol. 35(3), pages 956-977, September.
    9. Gregor Dorfleitner & Lars Hornuf & Julia Kreppmeier, 2021. "Promise not Fulfilled: FinTech Data Privacy, and the GDPR," CESifo Working Paper Series 9359, CESifo.

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