How Do People Value Data Utilization?: An Empirical Analysis Using Contingent Valuation Method in Japan

Abstract

In this study, we tested the following three hypotheses regarding the data utilization of online services: 1) Service users are concerned about the data utilization of service providers, and there exists a privacy paradox. 2) Consumer evaluations of data utilization are diverse, and some service users are positive about data utilization. 3) People with familiarity with the Internet are more positive about data utilization. In order to quantitatively measure people's evaluation of data utilization, we used contingent valuation method (CVM) in a survey by questionnaire of 5986 people to find out their willingness to pay for data utilization. The results of the empirical analysis show that all hypotheses were supported. We can obtain the following two policies and service providers implications. First, there is a privacy paradox with respect to data utilization, so the service providers need to create an environment where people can choose the level of data utilization. Second, it is necessary to design a rule that takes diverse values into account.