Academic journal article Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior

Young American Consumers' Prior Negative Experience of Online Disclosure, Online Privacy Concerns, and Privacy Protection Behavioral Intent

Academic journal article Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior

Young American Consumers' Prior Negative Experience of Online Disclosure, Online Privacy Concerns, and Privacy Protection Behavioral Intent

Article excerpt

ABSTRACT

A web survey of 403 American college students generated data which permitted the testing of a model of the effects of prior negative experience of online disclosure on the students' online privacy protection intentions. It showed that young American consumers' prior negative experience of online disclosure: directly increased their online information privacy concerns; heightened their risk perceptions of online disclosure; undermined their trust in online companies, Internet marketers and laws to protect online privacy; reduced their time spent on SNS; and enhanced their intent to falsify personal information and/or to refuse to provide personal information. Students' online privacy concerns mediated the impact of prior negative experience on their: intention to refuse information provision; asking for removal of their personal information; spreading negative eWOM; and complaining to online companies. Students' online privacy concerns were found to elevate their perceived risks and undermined their trust in online companies, marketers and laws to protect privacy. Results provide online companies and Internet marketers some valuable insights on how poor customer relationship management might compromise precise, targeted marketing in social media.

INTRODUCTION

The phenomenal success of social networking websites (SNS), especially Facebook, depends on SNS subscribers' voluntary disclosure of enormous amounts of personal information. SNS make huge profits by utilizing the users' profiles, status updates, and social connections as well as their friends' recent activities for advertising and marketing purposes (Quinn 2010). SNS allow advertisers to tailor their ads more effectively and target to social media users more precisely, especially those who express brand preferences and interests on SNS. In addition, SNS sites also generate revenues by supplying mountains of their subscribers' personal information to marketers, recruiters and any interested party. As a result, eMarketer (2012ab) estimated that U.S. marketers would spend about $3.63 billion to advertise on SNS and Facebook alone will receive $6.1 billion from advertisers worldwide in 2012.

However, the inappropriate collection, use, and dissemination of online personal data might curb consumers' enthusiasm for sharing valuable personal information on SNS, diminish the effectiveness of targeted social ads, hinder online bonding between brands/companies and customers, and attract regulators' attention. There exists an abuse of SNS subscribers' disclosed privacy information for the purposes they did not approve of (FTC 2010).

Very recently, there are some ominous signs that the effectiveness of social media advertising is eroding. Wall Street Journal reported that General Motors decided to withdraw its Facebook ads because they had little impact on consumers' car purchases (Terlep, Vranica and Raice 2012). Advertising Age reported that Facebook had been busy introducing new advertising models and metrics to prove its worth to advertisers, due to the dismal click-through rate of Facebook ads and marketers' general doubts over Facebook advertising effectiveness (Hof 201 1). One probable explanation is that Facebook ads were not fed to Facebook users based on truthful and accurate personal information they disclosed so that most of Facebook ads were dismissed as irrelevant and uninteresting. In light of advertisers' doubts on the effectiveness of social media advertising, more empirical studies about consumer behavior of privacy disclosure and protection can provide interactive marketers and online companies valuable insights and guidance for improving their management of marketing communications in social media.

Meanwhile, parents, consumer advocacy groups, and the government have become increasingly concerned about the extent and nature of young American consumers' personal information disclosed on SNS whose design is inherently open but vulnerable. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.