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Privacy Matters: Impact of Ethical Organization Care and Government Regulations on Customer Patronage

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Abstract

Purpose: The coronavirus disease 2019 (COVID-19) epidemic has given an upsurge to online retailing in Pakistan. This shift has escalated the issues about privacy concerns among consumers. Keeping in view the growing concerns, the objective of this study is to investigate customer patronage in online shopping and the role of privacy concerns in this relationship. Design/methodology/approach:To generalize the relationship between antecedents and outcomes of privacy concerns, a cross-disciplinary macro model was used. Data were collected through a survey method from the consumers who used credit and debit cards during online shopping. Findings: Results show that government regulations have a significant positive relationship with privacy concerns and customer patronage. Privacy concerns are found to have a significant negative relationship with organizational ethical care while customer patronage was found to have a significant positive relationship with organizational ethical care. Customer patronage was also found to have a significant negative relationship with privacy concerns. Privacy concerns mediated the relationship between government regulations and customer patronage, whereas privacy concerns does not mediate the relationship between organizational ethical care and customer patronage. Originality/value: The research adds to the existing literature and highlights the customer behavior toward online shopping/e-commerce in developing economies. The research gives a direction to stakeholders to counter privacy concerns and ensure safer e-commerce practices.

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Safeguarding consumer privacy is a key challenge for the growth of e-commerce. The dramatic technological changes advanced by online platforms, big data, artificial intelligence, virtual reality, virtual assistants, and blockchain technology are transforming the way we shop online. This paradigm shift in e-commerce has only intensified the perplexities of privacy issues. Corresponding to the growing concerns of privacy in practice, research in this area has surged during the last two decades. The aim of this paper is to review the current state of consumer privacy research in business to consumer e-commerce and thereby understand what has been studied, what is omitted, and what potential research areas have emerged in the course of transformational technological changes. We conducted a systematic review of behavioral studies published on analyzing privacy concerns at the individual level during the last 20 years. We methodically analyzed the selected literature using the thematic analysis technique. The results revealed eight main themes. We present a taxonomy of consumer privacy concerns and a research agenda that could lead to a more cohesive and comprehensive understanding of privacy dynamics in e-commerce.
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Potential for the use of mobile wallet is enormous and it is drawing attention as an alternative mode of payment worldwide. The present research aims to provide important insights into the TAM (Technology Acceptance Model) and UTAUT2 (Unified Theory of Acceptance and Use of Technology) models. This study develops a conceptual model to determine the most significant factors influencing user's intention, perceived satisfaction and recommendation to use mobile wallet. The research model included 206 responses from an online and manual survey in India. Our study tested the moderating effect of innovativeness, stress to use and social influence on user's perceived satisfaction and recommendation to use mobile wallet services. We found that ease of use, usefulness, perceived risk, attitude, to have significant effect on user's intention, which further influenced user's perceived satisfaction and recommendation to use mobile wallet services. We also determined the significant moderating effect of stress to use and social influence on user's perceived satisfaction and recommendation to mobile wallet services. This study provides an integrated framework for academicians to measure the moderating effect of psychological, social and risk factors on technology acceptance. It can also help practitioners by identifying important factors affecting user's decision, which further affects user's perceived satisfaction and recommendation to use mobile wallet services.
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We conceptualize that psychosocial safety climate (PSC) has a positive effect on employees' safety behavior by reducing their psychological distress. A high-level PSC environment reduces psychological distress by eliminating the employees' need for devoting psychological resources toward safety concerns. This preserves psychological resources to be invested in important behaviors i.e., safety compliance and participation. Data were collected from 190 production workers in the oil and gas industry across three states of Malaysia. Results showed strong support for our hypotheses. PSC was negatively linked with psychological distress. Psychological distress predicted safety compliance and participation and mediated the relationship between PSC and safety compliance/participation. Results suggest that in order to improve safety compliance and participation, management in safety-sensitive industries should pay attention to psychosocial factors in the work environment. The implications of these results for safety interventions and further research are discussed.
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Purpose The purpose of this paper is to examine the impact of performance appraisal satisfaction (PAS) on work engagement (WE) and the impact of WE on turnover intention. Furthermore, this paper investigates the mediating effect of WE between PAS and turnover intention. Design/methodology/approach The sample consisted of employees of 12 oil and gas organisations operating in Malaysia. The data collection process consists of two surveys using a three-month time lag approach. A total of 295 samples were used for the final data analysis. Partial least squares structural equation modelling was performed to test the research hypotheses. Findings The results indicate a strong causal relation between PAS, WE and turnover intentions. In brief, PAS was found to be a predictor of WE, and WE has a negative impact on employees’ turnover intention. Furthermore, WE proved to be a mediator between PAS and turnover intentions. Practical implications The findings of this study can be used as a basis to consider PAS to increase employees’ level of WE and to decrease voluntary turnover. Overall, the findings provide pragmatic insights for human resource management practitioners and relevant stakeholders. Originality/value To date, little is known about the interrelationship between PAS, WE and turnover intention. Importantly, the mediating role of WE between PAS and turnover intention has remained unexplored. This study fills this gap in the existing literature.
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Purpose This paper aims to examine the relationship between six factors of consumers’ perceived risk and consumers’ online purchase intentions. In particular, this study will examine the relationship between financial risk, product risk, security risk, time risk, social risk and psychological risk and online purchase intention. Design/methodology/approach Survey method was used for the purpose of data collection, and quantitative analysis was used to test the hypotheses. A total of 350 respondents participated on an online survey, and data were quantitatively analyzed via IBM SPSS Statistics 24. Findings The findings from this study suggest consumers’ perceived risks when they intend to purchase online. Five factors of perceived risk have a significant negative influence on consumer online purchase intention, while social risk was found to be insignificant. Among these factors, security risk is the main contributor for consumers to deter from purchasing online. Practical implications This study provides useful information to online retailers in electronic commerce (e-commerce) activities. Previous studies show that many online retailers are still facing some risks in online business, and this will affect the transaction and performance of the retailers. It is hoped that the findings can help online retailers to formulate strategies to reduce risks in the online shopping environment, especially security risks for better e-commerce. Originality/value The development of online shopping has led to some challenges to consumers, which comprise security of payment, data protection, the validity and enforceability of e-contract, insufficient information disclosure, product quality and enforcement of rights. This issue emerged because many online retailers do not understand the main factors that will contribute to consumers’ perceived risk. Consumers’ perceived risks will influence consumer attitudes toward online shopping and purchase behaviors. Studies on consumers’ perceived risks toward online purchase intentions are still inconclusive. Thus, this paper fills the gap in the research area.
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Mobile wallet has become the predominant form of electronic commerce in many countries, and India is no exception. It is imperative to understand the behavior of users of mobile wallets as it can help service providers to attract new users and retain their existing ones. For predicting intentions to use from a mental cost perspective, this empirical study focuses on evaluating different competing models using relevant, vital constructs rooted in theories of Diffusion of Innovation, Planned Behavior, and Technology Acceptance Model and Trust. Results point to the supremacy of the Perceived Behavioral Control construct over other constructs in predicting the intentions, to use mobile wallets. Among the competing models, the best predictive model explained 50.81% of the changes in intentions to use.
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The increasing difficulty in managing one's online personal data leads to individuals feeling a loss of control. Additionally, repeated consumer data breaches have given people a sense of futility, ultimately making them weary of having to think about online privacy. This phenomenon is called “privacy fatigue.” Although privacy fatigue is prevalent and has been discussed by scholars, there is little empirical research on the phenomenon. This study aimed not only to conceptualize privacy fatigue but also to examine its role in online privacy behavior. Based on literature on burnout, we developed measurement items for privacy fatigue, which has two key dimensions —emotional exhaustion and cynicism. Data analyzed from a survey of 324 Internet users showed that privacy fatigue has a stronger impact on privacy behavior than privacy concerns do, although the latter is widely regarded as the dominant factor in explaining online privacy behavior.
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Research and business practice have already established the central role of trust in business, particularly in online interactions. Many online business exchanges require the disclosure of sensitive personal information on a regular basis. Simultaneously, customers are reluctant to disclose private information online due to concerns about privacy. Thus, trust plays a critical role in such disclosures. However, a number of factors could influence the extent of customers' trust and their willingness to disclose their private information. In this study, we explore the critical roles of two sets of factors: the sensitivity of the context within which the private information is disclosed and the customer's personality. Our theory building is based on the contextualization of the theory of reasoned action (TRA-Privacy) and its synthesis with Prospect theory. Our theory argues that context sensitivity as a moderator and individuals' salient attributes in terms of personality types and privacy concern are critical factors impacting trust and the willingness to disclose personal information. Our results indicate that context moderates the parameters and path structure of the trust model and that the influence of personality on privacy concern and trust depends on the nature of the context. Applying these "who" and "where" aspects of theory building, the study opens a new avenue of context-related research that can further increase the specificity and richness of trust and privacy research. The study also provides a new perspective in trust scholarship, therein requiring the examination of three inter-related components: trustee, trustor and the context of trust.
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Abstract Questions regarding personal privacy are becoming increasingly relevant, and the discussion continuously arises regarding what digital tracks we leave. Intrusive use and manipulation of personal information not only affect people's behaviour, but also they could have important implications for political and civic society. Previous research has relied on convenience samples and has often focused on one or only a few areas of use. The presented study, based on a probability sample, gives an overall picture of how privacy concerns are perceived in different online contexts and how socio-demography, internet experience, trust, and political orientation contribute to the understanding of privacy concerns in different settings. The results clearly point to privacy concerns as being very diverse and dependent on the applications in question. All dimensions that are used to explain privacy concerns are partly supported in the study. But their explanatory powers differ and not all areas of concern are affected by the same explanatory factors. Trust in other people is the single most important factor explaining privacy concerns when using digital media and applications. The more people trust others, the less concern they have for misuse of personal information.
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Consumer surveys indicate that concerns about privacy are a principal factor discouraging consumers from shopping online. The key public policy issue regarding privacy is whether the US should follow its current self-regulation course (where the FTC encourages websites to obtain private “privacy web-seals”), or whether a European style formal legal regulation approach should be adopted in the US. We conclude that the use of assurance seals has worked reasonably well and websites should be free to decide whether they have a privacy seal or not. Given the narrow scope and the wide variety among these seals, we do argue that the seals should commit themselves to the key features of a good privacy policy and that an opt-in provision be required. We believe that insufficient evidence exists to propose formal Government mandated Internet privacy regulation.
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Consumers are becoming increasingly concerned about the privacy of their personal information and information about their purchase behaviors. The current study examines the extent to which consumers are concerned with how their personal information is collected and used, their awareness and knowledge of data collection practices using discount (loyalty) cards, the relationship between demographics and privacy concerns, and the relationship between privacy concerns and purchase behaviors. Results from a telephone survey of 480 consumers suggest that even though consumers are concerned about how personal information is collected and used, very few consumers are aware of how discount (loyalty) cards are used to collect personal level purchase data. Results also suggest that concerns about the use of personal information vary by demographic market segments, and that privacy concerns are significantly related to consumers’ purchasing behaviors on the Internet.
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The 1990s have seen a resurgence of interest in information privacy. Public opinion surveys show that many citizens are becoming greatly concerned about threats to their information privacy, with levels of such concern reaching all-time highs. Perhaps as a response to the growing concerns of citizens, the media are devoting more attention to privacy issues, and governmental regulation of the corporate privacy environment is increasing in many countries. Almost all developed countries have grappled with the trade-offs between open access to information—which enables economic efficiency—and an individual's right to privacy. Consistent with these trade-offs, many recent incidents suggest that regulatory approaches to information privacy, corporate management of personal data, and consumer reactions are becoming tightly interwoven around the world. To provide some insights into these relationships, we develop a conceptual model and test it with a cross-cultural sample from 19 different countries. In general, we find that a country's regulatory approach to the corporate management of information privacy is affected by its cultural values and by individuals' information privacy concerns. In addition, as governments become more involved in the corporate management of information privacy, internal management of such issues seems to tighten. This result supports previous observations that most firms take a primarily reactive approach to managing privacy by waiting for an external threat before crafting cohesive policies that confront their information practices. Moreover, when corporations are not perceived to adequately manage information privacy issues, and/or when privacy concerns rise, individuals are more inclined to prefer government intervention and be distrustful of firm self-regulation. As such, citizens may look to lawmakers to enact stricter regulation to reduce their privacy concerns. These findings and several international trends suggest that the self-regulatory model of privacy governance may not be sustainable over the long term. Findings from this research constitute an important contribution to the emerging theoretical base of information privacy research and should be particularly enlightening to those managing information privacy issues. Several directions for future research are also discussed.
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Understanding communication processes is the goal of most communication researchers. Rarely are we satisfied merely ascertaining whether messages have an effect on some outcome of focus in a specific context. Instead, we seek to understand how such effects come to be. What kinds of causal sequences does exposure to a message initiate? What are the causal pathways through which a message exerts its effect? And what role does communication play in the transmission of the effects of other variables over time and space? Numerous communication models attempt to describe the mechanism through which messages or other communication-related variables transmit their effects or intervene between two other variables in a causal model. The communication literature is replete with tests of such models. Over the years, methods used to test such process models have grown in sophistication. An example includes the rise of structural equation modeling (SEM), which allows investigators to examine how well a process model that links some focal variable X to some outcome Y through one or more intervening pathways fits the observed data. Yet frequently, the analytical choices communication researchers make when testing intervening variables models are out of step with advances made in the statistical methods literature. My goal here is to update the field on some of these new advances. While at it, I challenge some conventional wisdom and nudge the field toward a more modern way of thinking about the analysis of intervening variable effects.