AN EQUITY THEORY VIEW OF PERSONAL INFORMATION DISCLOSURE IN AN ONLINE TRANSACTIONAL EXCHANGE

Thomas P Barto,Indira R Guzman

doi:10.21529/resi.2018.1701002

Abstract

This study draws upon equity theory to present a conceptual model for the study of personal information disclosure in an online buyer-seller transactional exchange. Prior research studies have utilized social contract and principal-agent theories to explain how information privacy concerns influence consumers’ intentions to provide their personal information to online sellers. Herein, equity theory is viewed as another “fairness and justice” lens through which online information privacy concerns can be explored while accommodating a broader set of situational factors, e.g., vendor loyalty, that also influence a buyer's willingness to provide their personal information to an online seller. The model operationalizes the “distress” construct that, according to equity theory, acts as an equity restoration mechanism and explores its mediation effects. Results of this empirical study show that event-driven distress can positively motivate an individual to provide personal information; and, that it can mediate the impact of certain situational factors on an individual’s willingness to provide personal information. Finally, vendor loyalty is conceptualized as a broadening of the “personalization” concept from the personalization-privacy paradox literature. It was also determined that “marital status” was significant in affecting one’s intention to disclose personal information while the significance of “age” was deemed inconclusive.

Highlights

The global electronic market has had a profound impact on businessto-consumer (B2C) e-commerce, where U.S online retail sales reached $445 billion in 2017, are envisioned to top $600 billion in 2020, and surpass $1 trillion in 2027 (FTI Consulting, Inc., 2017).1Based on optimistic sales projections in online shopping, brick-andmortar retailers have exploited the use of technology for electronic marketing purposes diverting capital away from traditional storefronts to websites to make online shopping easier, faster, and cheaper (JONES, 2010)
Retail sales has been evolving from a traditional multi-channel strategy for consumer purchases to a more holistic one that utilizes a wide array of Internet-connected devices that has increased consumer purchases through the Internet (TITLOW, 2011) while rendering traditional in-store, telephone, and catalog sales almost obsolete (WALKER, 2011)
Instead of the familiar salesperson, there appears an electronic portal in the form of a web information system (WIS); and, “the familiar layout of the physical store becomes a maze of pull-down menus, product indices, and search features” (LOHSE and SPILLER, 1998)

Summary

Introduction

The global electronic market has had a profound impact on businessto-consumer (B2C) e-commerce, where U.S online retail sales reached $445 billion in 2017, are envisioned to top $600 billion in 2020, and surpass $1 trillion in 2027 (FTI Consulting, Inc., 2017).1Based on optimistic sales projections in online shopping, brick-andmortar retailers have exploited the use of technology for electronic marketing purposes diverting capital away from traditional storefronts to websites to make online shopping easier, faster, and cheaper (JONES, 2010). Instead of the familiar salesperson, there appears an electronic portal in the form of a web information system (WIS); and, “the familiar layout of the physical store becomes a maze of pull-down menus, product indices, and search features” (LOHSE and SPILLER, 1998) This creates a new unknown in their shopping experience that leads to concerns regarding the friendliness, convenience, service, and trustworthiness of the retailer. Among the problems cited with Adams’ (1963) original income/ outcome model, critics argue that individuals might perceive inequity (or equity) based on specific inputs/outcomes in a relationship and in terms of the “overarching system” that generates those inputs and outcomes (CARRELL and DITTRICH, 1978). The approach taken in this research study is compatible with the notion of the Fairness Model in that equity is addressed based upon a person’s “internally derived standard”

Objectives

Methods

Results

Discussion

Conclusion