Academic SeminarAn Empirical Examination of Voluntary Profiling: Privacy and Quid Pro Quo
- 2019-05-09 ~ 2019-05-09
IT경영 분야 세미나를 아래와 같이 개최하오니, 관심 있는 분들의
많은 참석 부탁 드립니다.
1. 일시: 2019년 5월 9일 (목), 16:00~17:20
2. 장소: 수펙스 경영관 101 강의실
3. 강사: 고병완 교수 (고려대학교)
4. 주제: An Empirical Examination of Voluntary Profiling: Privacy and Quid Pro Quo
5. 연구분야: IT경영 분야
* Lecture will be delivered in Korean.
* Seminar materials: Abstract
Anecdotal and empirical evidence suggests that firms which use customer data analytics perform better than those that do not. However, current voluntary profiling policy allows firms to collect and use customer information only if customers voluntarily disclose information with them. Further, surveys and literature show that many customers are not comfortable with firms collecting their information due to privacy concerns. A vast literature has examined customer information disclosing behavior using the privacy calculus. The primary premise of the privacy calculus is that despite strong privacy concerns customers would disclose information if the benefits they can get from disclosure justify the costs of losing privacy, or privacy costs. Based on privacy calculus, firms and marketers have embraced the belief that customers disclose information in exchange for monetary benefits such as discount coupons or cash rewards. Using the transaction data that we collected from a firm that sells skin care cosmetic products on its website, we investigate if there is statistical evidence to support the firms’ and marketers’ belief that customers are willing to disclose information in exchange for monetary benefits. In line with the privacy calculus, we find that customers with low privacy costs and that expect benefits such as personalized services and product recommendations are more likely to disclose information. Monetary incentives may work as an effective means to elicit information but only from younger customers. Customers, on average, and especially older customers are not likely to disclose information simply as a tradeoff for monetary benefits. Thus, personalized services outweigh monetary benefits in enticing customers to disclose information.