Soft Biometrics in Retail Service: Understanding Privacy Paradox and Cross-Cultural Differences Regarding 3D Body Scanning Technology

Abstract

This study aims to explore the privacy paradox and cultural difference associated with integrating soft biometric information through 3D body scanning technologies into personalized shopping services. By incorporating the theory of Concerns for Information Privacy and the Unified Theory of Acceptance and Use of Technology into the Privacy Calculus Theory, the purpose of this study is to understand fashion consumers’ privacy paradox and investigate cultural differences (U.S. vs. China). A partial least squares structural equation modeling and multigroup analysis was conducted from two data sets collected online (N U.S.= 525, N China = 484). Results show that consumer concerns toward data management (i.e., collection, error, secondary use) and service excellence expectations (i.e., perceived expectance, facilitation condition, hedonic motivation) explain the privacy calculus (i.e., risk and benefit) in consumer decisions. The results indicate that error management is critical to understanding Chinese consumers’ privacy calculus, while secondary use is important for U.S. consumers.