Executive summary of “Privacy concern and online transactions: the impact of internet self-efficacy and internet involvement”

Citation

(2014), "Executive summary of “Privacy concern and online transactions: the impact of internet self-efficacy and internet involvement”", Journal of Consumer Marketing, Vol. 31 No. 2. https://doi.org/10.1108/JCM-03-2014-0890

Executive summary of “Privacy concern and online transactions: the impact of internet self-efficacy and internet involvement”

Article Type: Executive summary and implications for managers and executives From: Journal of Consumer Marketing, Volume 31, Issue 2

This summary has been provided to allow managers and executives a rapid appreciation of the content of the article. Those with a particular interest in the topic covered may then read the article in toto to take advantage of the more comprehensive description of the research undertaken and its results to get the full benefit of the material present.Concerns about the security of personal information when internet transactions are conducted were predicted several decades ago. Given the growing volume of online commerce, the issue continues to increase in significance. That together with media publicity afforded to such as identity theft incidents and prevalence of such as credit and debit card fraud, spyware, adware and phishing has helped raise apprehension to critical levels. Various surveys substantiate that consumers are anxious about firms misusing their personal and financial details obtained during activities like online shopping. A fear of losing control over this information is a major reason why unease remains strong.

While privacy concern is well-acknowledged in the literature, limited effort has been made to ascertain its key antecedents. Research into the social psychology of consumer behavior indicates that “self-efficacy” and “involvement” are potentially important factors.

Self-efficacy essentially refers to someone’s belief in their abilities to perform necessary actions or specific tasks that will enable them to achieve certain objectives. Higher levels of self-efficacy increase a person’s confidence in their capabilities. Where the internet is concerned, specific knowledge and skills are needed to use the technology and to address any challenges or problems which may arise. Research has identified that self-efficacy with computers positively influences perceived ease of use. This typically means that computer-related functions can be completed more proficiently than when self-efficacy is low.

Another notable effect of high self-efficacy in this context is lower anxiety about privacy issues. It has been noted in certain studies that such individuals have greater faith in their ability to remain safe and secure while online. Being more tech-savvy makes them likelier to better control the provision of their personal data when engaging in internet activities.

Various academics have concluded that people with high computer self-efficacy display greater intention to use the technology. Significantly, they are also more enthusiastic about conducting transactions online. This is perhaps explained by the fact that high self-efficacy is associated with willingness to experiment with different ways of working in order to find alternative solutions. There is an eagerness to learn which is reflected in the tendency to spend extra time on tasks.

When self-efficacy is low, the reverse is usually true. Confidence in their ability is lacking so individuals stay with the tried and trusted instead of exploring new possibilities. This prevails even when other options are clearly superior.

The relevance of involvement to consumer behavior is well-documented. While the concept has been variously defined, a person’s interest in the object or entity in question is generally a core aspect. Allusion to its “relevance, importance and centrality” is likewise a common theme within definitions.

Involvement is also referred to as an “internal state of arousal” that in this instance would likely prompt people to use the internet more often and for various purposes. Those who are highly involved are also motivated to learn more about the attributes of an entity and how it functions. One outcome of having enhanced knowledge is the increased confidence to manage the use of personal information online.

A key feature of involvement it that it incorporates both cognitive and behavioral dimensions. The cognitive element reflects the product’s comparability with someone’s most cherished values, which explain its importance and relevance to them. Involvement at the behavioral level can inspire the consumer to engage in certain “observable physical interactions”. One academic uses cars to explain the point, suggesting that high levels of behavioral involvement with this product might result in the consumer carrying out their own repairs and maintenance. Other evidence reveals a link between involvement and such as information search, decision making and brand loyalty. Greater levels of involvement are likely to result in more time being spent with the product or entity. With respect to the internet, the resultant extra learning could well be manifest in willingness to engage in more online activities and transactions.

Internet subscribers from the Midwest region of the US were used by Akhter to further explore key issues. The 1,190 subjects responded to questions and statements relating to internet self-efficacy, internet involvement, privacy control and online transactions. The last named included purchasing, banking and investing online, and frequency of participating in these activities was also recorded.

Data analysis revealed that:

privacy concern about using the internet lessens when internet self-efficacy increases;

as internet self-efficacy rises, so does the frequency of online transactions made;

increase in internet involvement produces a decrease in privacy control in using the internet;

the frequency of internet transactions will mount as internet involvement increases; and

rising concerns about privacy will reduce the frequency of online transactions.

High-profile breaches of personal data continue to occur on a regular basis meaning that consumers are thus even more aware of the potential insecurity of the information about them that companies hold. Firms argue that storing such details on data servers is necessary if they are to better understand customers and properly meet their needs. But consumers feel that more should be done to ensure their privacy is protected.

Evidence reveals that many people are reluctant to make purchases online. In the US, internet sales consequently account for only a small percentage of total transactions. This is despite many organizations investing heavily to create the necessary infrastructures for this area of their business.

In the author’s opinion, firms should aim to increase consumer self-efficacy and involvement within the internet context. Developing and implementing measures which help to lessen privacy concerns is an essential step. It is equally imperative to communicate effectively so that the consumer is aware of these strategies. By putting measures in place to safeguard personal details, companies are signaling their intent to become more “customer centric”. Increased confidence among the public and greater willingness to shop online are feasible payoffs for such action.

Future research might explore privacy in relation to different types of information and whether the issue is more pertinent to specific demographic segments. Another possibility is to investigate if consumer trust in an organization influences privacy concerns.

To read the full article, enter 10.1108/JCM-06-2013-0606 into your search engine.(A précis of the article “Privacy concern and online transactions: the impact of internet self-efficacy and internet involvement”. Supplied by Marketing Consultants for Emerald.)