Information Technology Reference
In-Depth Information
introduCtion
theoretical approaches to consumers' online pri-
vacy and risk perceptions are addressed, together
with the argument that privacy issues from the
perspective of the expert online household user
needs to be considered. Third, the methodology
is explained, and the results of the two studies
undertaken are provided. Finally, findings are
discussed, management implications are drawn,
and future research directions are identified.
Advances in online technologies have raised new
concerns about privacy. Worldwide, more people
are moving to the online environment with the
number of Internet users growing to a population
of 1093 million as of December 2006 (Nua Internet
Surveys, 2003). In addition, household users of the
Internet are increasing rapidly with 136.60 million
Americans and 8.79 million Australians having
online access at home (Greenspan, 2004). As this
burgeoning number of household end users of the
Internet embark on new activities online, the issue
of privacy and security becomes a major concern
for consumers (Milne & Rohm, 2000; Sheehan
& Hoy, 2000) and governments and consumer
organisations (Consumer Reports Org, 2002;
Federal Trade Commission, 1996, 2000a, 2000b;
Office of the Federal Privacy Commissioner,
2001a). As a result, specific calls have emerged
for end user research on security and privacy
to be extended to household end users (Troutt,
2002). Businesses also recognise privacy as an
important positioning tool with, for example, the
ISP EarthLink positioning itself on privacy in its
competition against the dominant company AOL
(Sweat, 2001) and myspace.com, a site for devel-
oping personal friendships, carefully delineating
its privacy policy (Myspace.com, 2007). As more
household end users become increasingly expert
in that environment, privacy in the electronic
domain (e-privacy) needs specific research atten-
tion (Perri 6, 2002). Given the growing number of
competent experienced Internet users, e-privacy
issues need to be reframed and investigated in the
context of their online expertise.
This chapter focuses on the expert household
end user, defined as highly competent experienced
Internet users who consistently spend time online,
are likely to have subscribed to commercial and/or
government Web sites, to have purchased online,
and have Internet access via a home computer. The
chapter proceeds as follows. First, privacy concep-
tualisations and typologies are examined. Second,
ConCeptualisation oF privaCy
and typologies
The protection of privacy has received growing
attention in the literature (Buchholz & Rosenthal,
2002; Charters, 2002; Cook & Coupey, 1998; Hoy
& Phelps, 2003; Milne & Rohm, 2000; Miyazaki &
Fernandez, 2001) in conjunction with the advances
in technology and its applications to the Internet
(Sappington & Silk, 2003). There are a number of
conceptualisations of privacy, but fundamentally
privacy has been viewed as the right to be left
alone (Warren & Brandeis, 1890), manifesting
in the definition that other people, groups, or
entities should not intrude on an individual's se-
clusion or solitude (McCloskey, 1980). For many
people, there is now an expectation of privacy as a
basic consumer right (Goodwin, 1991). The issue
becomes problematic when violations to privacy
occur where consumers' control over their private
information is unwittingly reduced (Culnan, 1995;
Nowak & Phelps 1995; Lwin & Williams 2003).
However, privacy is not enshrined in constitutional
rights, nor is it grounded as essential to the opera-
tion of a democracy, as free speech is held to be
essential in countries like the United States of
America.
Privacy is thus a weak right (Charters,
2002) which may be easily over-ridden by other
legislative rights. Privacy and anonymity are also
associated for many with personal freedom and
liberty. Specifically, privacy is considered to exist
when consumers are able to control their personal
information (McCloskey, 1980) or restrict the
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