Promise more instead of saying less
Effects of privacy statement contents on the trustworthiness of an Internet merchant
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Transacting with various commercial organizations online requires consumers to disclose their personal data for the completion of the transaction. However, with the commoditization of personal data, consumers are starting to realize how risky it could be to initiate a transaction anchored on information disclosure. People who would like to be informed how their personal data will be used by organizations only have privacy statements on websites as sources for the needed information. Nonetheless, organizations tend to have different views on the acceptable amount of information that should be i...
Transacting with various commercial organizations online requires consumers to disclose their personal data for the completion of the transaction. However, with the commoditization of personal data, consumers are starting to realize how risky it could be to initiate a transaction anchored on information disclosure. People who would like to be informed how their personal data will be used by organizations only have privacy statements on websites as sources for the needed information. Nonetheless, organizations tend to have different views on the acceptable amount of information that should be included in privacy statements. This study investigated the effects of the contents of two versions of privacy statements (complete vs abridged) on Internet users' perception of an online merchant's trustworthiness (ability, benevolence, and integrity) and on their perceived risk of information disclosure. Results show that a relatively complete privacy statement is more effective in influencing peoples' evaluation of the trustworthiness of an online merchant than an abridged privacy statement. Furthermore, perceptions of privacy-related risks are lower when people are presented with a relatively complete privacy statement than with an abridged privacy statement.
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