Information Privacy Concerns, Government Involvement, and Corporate Policies in the Customer Relationship Management Context

By Lin, Yaonan; Wu, Hsiang-Yi | Journal of Global Business and Technology, Spring 2008 | Go to article overview
Save to active project

Information Privacy Concerns, Government Involvement, and Corporate Policies in the Customer Relationship Management Context


Lin, Yaonan, Wu, Hsiang-Yi, Journal of Global Business and Technology


ABSTRACT

This study attempts to find how consumer's attitudes (trust, social exchange, knowledge about CRM, and procedural fairness), government involvement, and corporate policies influence their information privacy concerns in the context of Customer Relationship Management (CRM). Path analysis was used to examine the theoretical basis of information privacy concerns. The results found that information privacy concerns are driven by consumers' internal experience, attitude, and external social environment. With efficient government involvement or corporate policies supervising fair use of personal information, consumers can trust companies, and build long-term relationships with them. More social exchanges make customers trust companies. Finally, consumer's trust and correct knowledge about CRM significantly influence their information privacy concerns.

INTRODUCTION

Customer Relationship Management (CRM) includes customer service management, relationship building, and electronic shopping (Fletcher, 2003). CRM has evolved as a business strategy to sustain a profitable customer relationship. Organizations can gather a vast amount of personal information from customers, especially online, and use it to improve sales and service effectiveness. The final goal of CRM is to maximize customer relationships with the firm. Consequently, this will increase customer satisfaction, customer retention, and customer revenue. However, as businesses have become more interested in gathering and using customer data, consumers have begun to be more concerned with how much of their personal information is contained in databases and how it is being used. They do not want computers to disclose their private information without their permission. This situation has created a fundamental struggle between an individual's right to privacy and an organization's legitimate business interests (Culnan, 1994). Marketing technologies have the potential to be intrusive and influence consumers' perceptions of marketing strategies (Dolnicar & Jordaan, 2007). Consumers refuse to buy products through risky channels or provide information (Dinev & Hart, 2006). Based on the above reasons, this research focuses on how government involvement, corporate policies, and consumers' attitudes (social exchange, procedural fairness, trust, and knowledge about CRM) influence consumers' information privacy concerns in the CRM context. The study will build a framework describing the primary dimensions associated with individuals' information privacy concerns in the CRM context.

LITERATURE REVIEW

Customer Relationship Management

Customer Relationship Management (CRM) has been growing in the past few years. It includes customer service management, relationship building, and electronic shopping (Fletcher, 2003). Greenberg (2000) argued that CRM is a business strategy to build and sustain a long-term customer relationship. Furthermore, Winer (2001) argued that CRM is an integration of information technology and business processes. It makes marketers implement the relationship marketing at an enterprise-wide level. However, the issue of privacy is a big problem in CRM. Strong database and data mining techniques help marketers easily find consumers' personal information (Franzak et al., 2001). Most CRM systems just focus on the benefit and technology of companies rather than on perception and attitude of customers. It is necessary to consider both sides. People should understand how customers view their relationships with companies because customers are not just passive buyers ignoring relationships with companies (Culnan & Armstrong, 1999).

Information Privacy Concerns

Information privacy means the ability of the individual to control his personal information (Stone, et al., 1983). Furthermore, information privacy concerns include people's attitudes, toward certain privacy risks, their perception of the nature of privacy, and their thoughts about privacy protection (Hsu, 2003).

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Information Privacy Concerns, Government Involvement, and Corporate Policies in the Customer Relationship Management Context
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?