TY - JOUR
T1 - Privacy concerns in consumer E-commerce activities and response to social media advertising
T2 - Empirical evidence from Europe
AU - Kose, Tekin
AU - Alkas, Aras
N1 - Funding
This research is in part funded by TED University Institutional Research Fund [Grant Number: T-19-B2010-90011].
PY - 2022/12/1
Y1 - 2022/12/1
N2 - This research quantifies how privacy concerns and consumer characteristics are associated with e-commerce participation and consumer response to social media advertising by accounting for both individual-level and country-level covariates. This study uniquely analyzes a rich micro-level data set that includes responses of 153,053 individuals from 29 European countries. Through multilevel logit modelling, authors account for the country nested structure of consumer behavior and report odds ratios for relations between privacy measures and e-commerce activities of consumers in Europe. Privacy risk knowledge and online information sharing levels are positively correlated with probability of e-commerce participation. Odds of e-commerce participation are negatively associated with level of concern on online activity recordings. Consumers who take more protective actions against online privacy risks are more likely to participate in e-commerce and make purchase in response to social media advertisements. Firms that offer credible tools to help consumers protect their online privacy can benefit from increased e-commerce participation and higher effectiveness in social media advertising. Representative sampling in data collection offers external validity and generalizability of findings to the European market, which is unique for this study and an empirical contribution.
AB - This research quantifies how privacy concerns and consumer characteristics are associated with e-commerce participation and consumer response to social media advertising by accounting for both individual-level and country-level covariates. This study uniquely analyzes a rich micro-level data set that includes responses of 153,053 individuals from 29 European countries. Through multilevel logit modelling, authors account for the country nested structure of consumer behavior and report odds ratios for relations between privacy measures and e-commerce activities of consumers in Europe. Privacy risk knowledge and online information sharing levels are positively correlated with probability of e-commerce participation. Odds of e-commerce participation are negatively associated with level of concern on online activity recordings. Consumers who take more protective actions against online privacy risks are more likely to participate in e-commerce and make purchase in response to social media advertisements. Firms that offer credible tools to help consumers protect their online privacy can benefit from increased e-commerce participation and higher effectiveness in social media advertising. Representative sampling in data collection offers external validity and generalizability of findings to the European market, which is unique for this study and an empirical contribution.
KW - Online privacy risks
KW - E-commerce participation
KW - Advertising effectiveness
KW - Social media marketing
KW - Multilevel logit model
UR - http://dx.doi.org/10.1016/j.chb.2022.107412
U2 - 10.1016/j.chb.2022.107412
DO - 10.1016/j.chb.2022.107412
M3 - Article
VL - 137
JO - Computers in Human Behavior
JF - Computers in Human Behavior
SN - 0747-5632
M1 - 107412
ER -