Privacy or Personalization? Drivers, Deterrents and Moderators of Consumers’ Willingness to Disclose Personal Data

Abstract

With the advent of the digital age and the increasing use of Big Data, potential customers can be easily reached by companies seeking to collect their personal data in exchange of personalized targeted offers. However, these individualized marketing activities are often considered intrusive by consumers, who feel they are losing control over their personal data and their right to privacy. This study contributes to bridge a gap in the literature, identified as a Marketing Science Institute research priority, by developing and testing a comprehensive model of theory-based drivers and deterrents of consumers’ willingness to disclose personal information. Furthermore, the model considers the moderating role of service type, customers’ age, gender, experience. Data was gathered using a self-administered online survey, resulting in a sample of 956 consumers who had recently disclosed personal information during online interactions with self-selected companies. The study concludes that consumers face a trade-off between the costs of privacy loss and the benefits of personalization when they decide to disclose personal information, and partially or fully supports the moderating effects proposed. The study provides valuable insights for companies interested in obtaining consumers’ consent to use their personal data during online interactions, across target segments and industries.