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Does privacy policy really matter in E-commerce? The influence of FIP principles on customers’ behavioral intentions in both familiar and unfamiliar websites

Tu, Yu (2014) Does privacy policy really matter in E-commerce? The influence of FIP principles on customers’ behavioral intentions in both familiar and unfamiliar websites.

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Abstract:This study investigates the influence of Fair Information Practice principles on customers’ behavioral intentions in both familiar and unfamiliar websites. The four FIP principles are: notice, choice, access, security and the three customers’ behavioral intentions are: purchase intention, disclose intention and intention to read privacy policy. It takes six months to complete the whole project and more than two weeks to collect the data via qualtrics software. A quasi-experiment was conducted to achieve this research goal and 271 valid data were collected. It first explored the influence of FIP principles on customers’ risk perception and trust in company and the results showed that privacy policy may not so important in risk perception. But notice and security of FIP principles can positively influence customers’ trust in a familiar website. Then it measured the influence of risk perception and trust on customers’ behavior intentions. The results showed that risk perception will not negatively influence customers’ purchase intention and disclosure intention because Chinese people have already realized and accepted that online shopping is a risky activity but people still want to shop online even though there exist the risks. Moreover, familiarity plays important role in people’s intention to read privacy policy because customers have no previous experience or knowledge with the new website. When the risk is more salient, they will go to the privacy policy to get more information and when the trust is more salient, customers are also willing to invest time and effort in reading the privacy policy.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:05 communication studies
Programme:Communication Studies MSc (60713)
Link to this item:http://purl.utwente.nl/essays/65864
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