Generational differences in valuing usefulness, privacy and security negative experiences for paying for cloud services

Abstract

This study provides new evidence on the differences between generational cohorts in terms of the effects of technology-related attributes and previous negative privacy and security experiences on users’ propensity to pay for cloud services. Previous negative privacy and security experiences have been examined as a source of different protection behaviors, but little is known about their effect on payment for a premium version of the product or service. Results obtained from a sample of 2480 cloud users show that ubiquity, data loss protection and ease of sharing are relevant aspects for the likelihood of users from the Baby Boomer generation paying for cloud services; for younger users from the Millennial generation, access to greater online resources is the most important technology-related aspect. Previous negative security experiences have a greater impact on payment likelihood for users from Generation X, while privacy concerns are more important for younger Millennial users. The importance of having had a privacy problem in the past decreases as age increases. Cloud service providers and firms with a freemium price strategy should take account of different age cohorts when designing their value offering, emphasizing different aspects depending on the target market.