An Empirical Investigation on the Effects of Privacy Policies on Perceived Fairness of Online Vendors

Abstract

Fairness of organizational policies regarding management of personal information about customers has gained heightened importance in the phase of the information age dominated by the Internet and e-commerce. This research employed a 2 × 2 × 2 within-subjects experimental design to test the effects of three organizational information management strategy variables on customers' perception of organizational fairness. The three strategy variables presented to customers through privacy policies are seeking customers' informed consent, allowing customers to limit data sharing, and limiting secondary use of data. Analyses of data collected from customers support three hypothesized main effects, all of which are positive.