Young American Consumers’ Prior Negative Experience of Online Disclosure, Online Privacy Concerns, and Privacy Protection Behavioral Intent

Abstract

A web survey of 403 American college students generated data which permitted the testing of a model of the effects of prior negative experience of online disclosure on the students' online privacy protection intentions. It showed that young American consumers' prior negative experience of online disclosure: directly increased their online information privacy concerns; heightened their risk perceptions of online disclosure; undermined their trust in online companies, Internet marketers and laws to protect online privacy; reduced their time spent on SNS; and enhanced their intent to falsify personal information and/or to refuse to provide personal information. Students' online privacy concerns mediated the impact of prior negative experience on their: intention to refuse information provision; asking for removal of their personal information; spreading negative eWOM; and complaining to online companies. Students' online privacy concerns were found to elevate their perceived risks and undermined their trust in online companies, marketers and laws to protect privacy. Results provide online companies and Internet marketers some valuable insights on how poor customer relationship management might compromise precise, targeted marketing in social media.