An Exploratory Study on Consumer Privacy Paradox Experience: Grounded Theory Approach

Abstract

This study redefines `consumer privacy attitude and behavior discrepancy` that occurs in the transaction environment that exists between consumer and provider as `consumer privacy paradox.` In this study, qualitative research was conducted based on grounded theory. This study explored how consumers react to a privacy paradox as well as looked into how to adapt to the negative and positive results that can be generated by the privacy paradox. `Consumer privacy paradox` is the same as the existing privacy paradox in that consumers can utilize the resources of personal information to consume and benefit from the market environment. However, it differs from previous studies in that it examines the privacy paradox in terms of consumer influence and consumer experience. The results of the study are as follows. First, a paradigm model of the consumer privacy paradox was derived. Second, consumers used three types of strategies to rationalize themselves or maintain indifference or relief to cope with the consumer privacy paradox. Third, the possibility of damage and the responsibility for privacy protection were the mediators of the consumer privacy paradox. Fourth, the `result` generated by the consumer privacy paradox showed four types of: non-response, satisfaction, commitment to change, and negative emotional experience. Fifth, there is a difference in strategies to respond to the consumer privacy paradox according to consumer types.