IDEAS home Printed from https://ideas.repec.org/a/spr/infsem/v18y2020i1d10.1007_s10257-020-00462-8.html
   My bibliography  Save this article

Generational differences in valuing usefulness, privacy and security negative experiences for paying for cloud services

Author

Listed:
  • Mª Victoria Bordonaba-Juste

    (University of Zaragoza)

  • Laura Lucia-Palacios

    (University of Zaragoza)

  • Raúl Pérez-López

    (University of Zaragoza)

Abstract

This study provides new evidence on the differences between generational cohorts in terms of the effects of technology-related attributes and previous negative privacy and security experiences on users’ propensity to pay for cloud services. Previous negative privacy and security experiences have been examined as a source of different protection behaviors, but little is known about their effect on payment for a premium version of the product or service. Results obtained from a sample of 2480 cloud users show that ubiquity, data loss protection and ease of sharing are relevant aspects for the likelihood of users from the Baby Boomer generation paying for cloud services; for younger users from the Millennial generation, access to greater online resources is the most important technology-related aspect. Previous negative security experiences have a greater impact on payment likelihood for users from Generation X, while privacy concerns are more important for younger Millennial users. The importance of having had a privacy problem in the past decreases as age increases. Cloud service providers and firms with a freemium price strategy should take account of different age cohorts when designing their value offering, emphasizing different aspects depending on the target market.

Suggested Citation

  • Mª Victoria Bordonaba-Juste & Laura Lucia-Palacios & Raúl Pérez-López, 2020. "Generational differences in valuing usefulness, privacy and security negative experiences for paying for cloud services," Information Systems and e-Business Management, Springer, vol. 18(1), pages 35-60, March.
    • Handle: RePEc:spr:infsem:v:18:y:2020:i:1:d:10.1007_s10257-020-00462-8
    DOI: 10.1007/s10257-020-00462-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10257-020-00462-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10257-020-00462-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Murad Moqbel & Valerie Bartelt & Mohammed Al-Suqri & Azzah Al-Maskari, 2017. "Does privacy matter to millennials? The case for personal cloud," Journal of Information Privacy and Security, Taylor & Francis Journals, vol. 13(1), pages 17-33, January.
    2. Caroline Lancelot Miltgen & Dominique Peyrat-Guillard, 2014. "Cultural and generational influences on privacy concerns: a qualitative study in seven european countries," Post-Print hal-01116067, HAL.
    3. Sengupta, Anirban & Chaudhuri, Anoshua, 2011. "Are social networking sites a source of online harassment for teens? Evidence from survey data," Children and Youth Services Review, Elsevier, vol. 33(2), pages 284-290, February.
    4. Purani, Keyoor & Kumar, Deepak S. & Sahadev, Sunil, 2019. "e-Loyalty among millennials: Personal characteristics and social influences," Journal of Retailing and Consumer Services, Elsevier, vol. 48(C), pages 215-223.
    5. Amanda S. King & John T. King, 2017. "Depth versus breadth in video rental kiosks," Applied Economics Letters, Taylor & Francis Journals, vol. 24(9), pages 623-626, May.
    6. Wagner, T. & Benlian, Alexander & Hess, Thomas, 2014. "Converting freemium customers from free to premium - The role of the perceived premium fit in the case of music as a service," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 66722, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    7. Sonia Livingstone, 2008. "Taking risky opportunities in youthful content creation: teenagers' use of social networking sites for intimacy, privacy and self-expression," LSE Research Online Documents on Economics 27072, London School of Economics and Political Science, LSE Library.
    8. Janice Y. Tsai & Serge Egelman & Lorrie Cranor & Alessandro Acquisti, 2011. "The Effect of Online Privacy Information on Purchasing Behavior: An Experimental Study," Information Systems Research, INFORMS, vol. 22(2), pages 254-268, June.
    9. Liu, Jingting & Zhu, Ying & Serapio, Manuel & Cavusgil, S. Tamer, 2019. "The new generation of millennial entrepreneurs: A review and call for research," International Business Review, Elsevier, vol. 28(5), pages 1-1.
    10. Venu M. Garikapati & Ram M. Pendyala & Eric A. Morris & Patricia L. Mokhtarian & Noreen McDonald, 2016. "Activity patterns, time use, and travel of millennials: a generation in transition?," Transport Reviews, Taylor & Francis Journals, vol. 36(5), pages 558-584, September.
    11. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    12. Dah-Kwei Liou & Wen-Hai Chih & Li-Chun Hsu & Chia-Yi Huang, 2016. "Investigating information sharing behavior: the mediating roles of the desire to share information in virtual communities," Information Systems and e-Business Management, Springer, vol. 14(2), pages 187-216, May.
    13. Wagner, C. & Benlian, Alexander & Hess, Thomas, 2014. "Converting freemium customers from free to premium - The role of the perceived premium fit in the case of music as a service," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 63495, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    14. Jin Ha Lee & Rachel Wishkoski & Lara Aase & Perry Meas & Chris Hubbles, 2017. "Understanding users of cloud music services: Selection factors, management and access behavior, and perceptions," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 68(5), pages 1186-1200, May.
    15. Ruth Halperin & Yuval Dror, 2016. "Information privacy and the digital generation gap: An exploratory study," Journal of Information Privacy and Security, Taylor & Francis Journals, vol. 12(4), pages 166-180, October.
    16. Ana Mosquera & Emma Juaneda-Ayensa & Cristina Olarte-Pascual & Jorge Pelegrín-Borondo, 2018. "Key Factors for In-Store Smartphone Use in an Omnichannel Experience: Millennials vs. Nonmillennials," Complexity, Hindawi, vol. 2018, pages 1-14, November.
    17. Dou, Wenyu, 2004. "Will Internet Users Pay for Online Content?," Journal of Advertising Research, Cambridge University Press, vol. 44(4), pages 349-359, December.
    18. Wagner, T. & Benlian, Alexander & Hess, Thomas, 2014. "Converting freemium customers from free to premium - The role of the perceived premium fit in the case of music as a service," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 69900, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    19. Chin-Lung Hsu & Judy Chuan-Chuan Lin, 2016. "Factors affecting the adoption of cloud services in enterprises," Information Systems and e-Business Management, Springer, vol. 14(4), pages 791-822, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Irene (Eirini) Kamenidou & Aikaterini Stavrianea & Evangelia-Zoi Bara, 2020. "Generational Differences toward Organic Food Behavior: Insights from Five Generational Cohorts," Sustainability, MDPI, vol. 12(6), pages 1-25, March.
    2. Biraglia, Alessandro & Bowen, Karen T. & Gerrath, Maximilian H.E.E. & Musarra, Giuseppe, 2022. "How need for closure and deal proneness shape consumers’ freemium versus premium price choices," Journal of Business Research, Elsevier, vol. 143(C), pages 157-170.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Le Wang & Paul Benjamin Lowry & Xin (Robert) Luo & Han Li, 2023. "Moving Consumers from Free to Fee in Platform-Based Markets: An Empirical Study of Multiplayer Online Battle Arena Games," Information Systems Research, INFORMS, vol. 34(1), pages 275-296, March.
    2. Biraglia, Alessandro & Bowen, Karen T. & Gerrath, Maximilian H.E.E. & Musarra, Giuseppe, 2022. "How need for closure and deal proneness shape consumers’ freemium versus premium price choices," Journal of Business Research, Elsevier, vol. 143(C), pages 157-170.
    3. Oliver Francis Koch & Alexander Benlian, 2017. "The effect of free sampling strategies on freemium conversion rates," Electronic Markets, Springer;IIM University of St. Gallen, vol. 27(1), pages 67-76, February.
    4. Wann-Yih Wu & Phan Thi Phu Quyen & Adriana A. Amaya Rivas, 2017. "How e-servicescapes affect customer online shopping intention: the moderating effects of gender and online purchasing experience," Information Systems and e-Business Management, Springer, vol. 15(3), pages 689-715, August.
    5. Kang Li & Jingwei Zhang & Lunchuan Zhang, 2021. "Optimal Software Feature-Limited Freemium Model Design: A New Consumer Learning Theoretical Framework," Mathematics, MDPI, vol. 9(9), pages 1-24, April.
    6. Numminen, Emil & Sällberg, Henrik & Wang, Shujun, 2022. "The impact of app revenue model choices for app revenues: A study of apps since their initial App Store launch," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 325-336.
    7. Florian Wiesböck & Thomas Hess, 2020. "Digital innovations," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(1), pages 75-86, March.
    8. Xiaoyan Chen & Wei Geng, 2022. "Enroll now, pay later: optimal pricing and nudge efforts for massive-online-open-courses providers," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 1003-1018, June.
    9. Tang, Hua & Chen, Jing & Ai, Xingzheng & Li, Xiaojing & He, Haojia, 2023. "First-party content decision under competitive hardware/software platforms: Free vs. charge," European Journal of Operational Research, Elsevier, vol. 311(3), pages 1068-1083.
    10. Martin Adam & Konstantin Roethke & Alexander Benlian, 2022. "Gamblified digital product offerings: an experimental study of loot box menu designs," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 971-986, June.
    11. Hamari, Juho & Hanner, Nicolai & Koivisto, Jonna, 2017. "Service quality explains why people use freemium services but not if they go premium: An empirical study in free-to-play games," International Journal of Information Management, Elsevier, vol. 37(1), pages 1449-1459.
    12. Falko Lucht, 2019. "The Success of the Freemium Business Model. How Riot Games flourishes with a free to play game," Manager Journal, Faculty of Business and Administration, University of Bucharest, vol. 29(1), pages 114-124, December.
    13. Roll, Oliver & Loh, Patrick, 2020. "Der Einfluss der Digitalisierung auf das Preismanagement – Ansatzpunkte, Modelle und Methoden," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 74(4), pages 334-348.
    14. Zijun (June) Shi & Kaifu Zhang & Kannan Srinivasan, 2019. "Freemium as an Optimal Strategy for Market Dominant Firms," Marketing Science, INFORMS, vol. 38(1), pages 150-169, January.
    15. Danckwerts, Sebastian & Meißner, Lasse & Krampe, Caspar, 2019. "Examining User Experience of Conversational Agents in Hedonic Digital Services – Antecedents and the Role of Psychological Ownership," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 3(3), pages 111-125.
    16. Hongshuang (Alice) Li, 2022. "Converting free users to paid subscribers in the SaaS context: The impact of marketing touchpoints, message content, and usage," Production and Operations Management, Production and Operations Management Society, vol. 31(5), pages 2185-2203, May.
    17. Philipp Brüggemann & Nina Lehmann-Zschunke, 2023. "How to reduce termination on freemium platforms—literature review and empirical analysis," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(4), pages 707-721, December.
    18. Manuel Trenz & Jan Huntgeburth & Daniel Veit, 2019. "How to Succeed with Cloud Services?," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 61(2), pages 181-194, April.
    19. Rainer Alt & Carsta Militzer-Horstmann & Hans-Dieter Zimmermann, 2016. "Electronic Markets on the impact factor," Electronic Markets, Springer;IIM University of St. Gallen, vol. 26(2), pages 95-101, May.
    20. Jian Pei, 2020. "A Survey on Data Pricing: from Economics to Data Science," Papers 2009.04462, arXiv.org, revised Nov 2020.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:infsem:v:18:y:2020:i:1:d:10.1007_s10257-020-00462-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.