Revisiting Trust and Privacy Concern in Consumers' Perceptions of Marketing Information Management Practices: Replication and Extension

Abstract

The marketing literature has continued to examine trust and consumer privacy concern. A 1999 study that examined 17 industries found that improving trust and reducing privacy concern are two distinct approaches to managing consumer information, with the former being a more effective strategy than the latter (Milne & Boza, 1999). However, considering the shifting levels of consumer vulnerability due to technologies, managerial actions, and legal environment in the past two decades, a re-evaluation and extension of their findings is warranted. The current study uses a new and expanded dataset as well as new analytical techniques to re-examine the role of trust and privacy concern in managing consumer information. The new analysis shows that building trust still has a greater effect than reducing privacy concern on consumers' willingness to participate in information markets. Although trust and privacy concern have a negative relationship with each other, we find that privacy concern, paradoxically, is not negatively but positively related to direct marketing usage. This study also assesses the impact of trust and privacy concern across a typology for four quadrants of industries, the relationship of trust and concern with the managerial levels of transparency and control, and the moderating influence of age and sex.