Concerns about data privacy on the Internet are growing exponentially, in line with the advancement of Internet technologies such as data mining and personalized marketing. Against this backdrop, Weiyin Hong and James Y. L. Thong of HKUST, working with a colleague, provide a timely and comprehensive review of the factors influencing online data privacy concerns. Their findings offer critical guidance for companies and even governments seeking to alleviate consumers’ anxiety about the use of their personal data on the Internet.
“Online consumers are increasingly concerned about their privacy,” the researchers tell us, “as their personal information and online activities are often automatically tracked and analyzed without their consent or knowledge.” Distrust in the ability of Internet platforms to properly handle data has been exacerbated by recent data breaches on Facebook and lawsuits against Twitter, Google, and other platforms. In response to these fears, many consumers have retreated from the Internet, closing their social media accounts and making fewer online purchases.
“It is imperative for online companies to understand the drivers and inhibitors of individuals’ privacy concerns,” say the authors, “to formulate strategies to alleviate such concerns.” Rising to this challenge, they set out to determine the various factors influencing Internet privacy concern (IPC), which they defined as “an individual’s concern about possible loss of privacy due to voluntary or surreptitious information disclosure to websites.”
Multidimensional development theory (MDT) suggests that the factors affecting IPC fall into four dimensions: environmental, individual, information management and interaction management. “An individual’s privacy concern is a result of environmental influences, the individual’s experience, and the interaction between the individual and other parties involved in the privacy situation,” the researchers explain. Following a rigorous literature review, they formulated a model of IPC that incorporated the four dimensions of MDT.
The next step was to test the model. “Our research context was Hong Kong,” the researchers tell us, “which is one of the most connected cities in the world.” Analysis of data gathered from an online survey of 2,417 Hong Kong respondents revealed that all four dimensions of MDT affected IPC, whether directly or interactively. “In particular,” the authors reveal, “for individuals who have greater Internet knowledge, the positive effect of information sensitivity on IPC will be stronger.”
Their findings have important practical implications for individual Internet users, Web designers and even governments. “Individuals need to educate themselves about the latest online privacy protection technologies,” say the researchers. Meanwhile, “websites should not ask for sensitive personal information unless absolutely necessary.” Displaying photos of salespeople and products can make websites seem more “human,” thereby reducing privacy concerns. Finally, say the authors, “governments need to educate their citizens about privacy regulations and laws.” Governments should also establish legislation to enforce websites’ compliance with privacy regulations.
These novel insights into the drivers and inhibitors of IPC may benefit not only individual Internet users but also online companies and governmental policy makers. Concluding their study, the researchers highlight “the need for more effective mitigation measures that can be tailored to users’ privacy requirements, such as customized privacy protection.”