The Willingness to Disclose Personal Information: Trade-off between Privacy Concerns and Perceived Benefits

This research project aims to understand the trade-offs between perceived benefits and privacy concerns associated with the disclosure of personal information while transacting online. The joint effect (or trade-off) of these two opposing factors (i.e. perceived benefits and privacy concerns) on the disclosure behavior has been referred to as privacy calculus. Based on preliminary review of extant literature, a research model based on privacy calculus theory will be proposed. The model relate the willingness to disclose personal information to three high-order factors: privacy concerns, perceived benefits, and controllability. A survey instrument will be developed and used to collect primary data from actual online market customers. Structural Equation Modeling (SEM) will be used to analyze the data and test the proposed research model. This research project will contribute to research by identifying and validating the high-order factors and sub-factors, and developing and testing the research model that explain the individual willingness to disclose personal information. The primary practical contribution of this research will be the empirical evidence that demonstrate how a number of contrary/opposing factors play a role in the individual's decision to interact with online markets. By identifying the trade-offs that render individuals to surrender or retain their personal information, online marketers would gain a better understanding of how to address privacy concerns and increase the expected benefits for those who seek to obtain information, products, and services through online markets.