Introducing new products that affect consumer privacy: A mediation model

Caroline Lancelot Miltgen, Jörg Henseler, Carsten Gelhard and Aleš Popovič
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Caroline Lancelot Miltgen: Audencia Recherche - Audencia Business School
Jörg Henseler: ULISBOA - Universidade de Lisboa = University of Lisbon = Université de Lisbonne
Carsten Gelhard: University of Twente
Aleš Popovič: Faculty of Economics - University of Ljubljana, ULISBOA - Universidade de Lisboa = University of Lisbon = Université de Lisbonne

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Abstract: Many innovative products can only fully deploy their value if they rely on consumers' personal information. This issue challenges the confidence that consumers have in new innovations, and revolutionizes marketing practices. Malhotra, Kim, and Agarwal's (2004) framework provides the theoretical basis for hypotheses on the consequences of privacy concerns. An empirical study in the context of four pervasive IT innovations involving various privacy issues helps to test these hypotheses. The findings consistently show that privacy concerns have an adverse effect on consumers' intention to accept IT innovation. However, trust and risk perceptions both mediate this relationship. By understanding the underlying mechanism, firms can alleviate the potential downsides of their products and increase the odds of their market success.

Keywords: Structural equation modeling; New product adoption; Technological innovation; Consumer privacy concerns (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-ino and nep-mkt
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Citations: View citations in EconPapers (15)

Published in Journal of Business Research, 2016, 69 (10), pp.4659-4666. ⟨10.1016/j.jbusres.2016.04.015⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01528464

DOI: 10.1016/j.jbusres.2016.04.015

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