An Empirical Study of Home IoT Services in South Korea: The Moderating Effect of the Usage Experience

This article examines the responses of users to home Internet of Things (IoT) services in South Korea, which is taking progressive steps in the field of IoT. It is important to investigate the user’s response because home IoT users are the core users of the IoT business. To this end, the research model includes two trust constructs — “trust in the service provider” and “institutional trust”; two risk constructs — “perceived security risk” and “perceived privacy risk”; and “perceived benefit” construct. This study has two main objectives: (1) to establish the functional relationship among the five constructs listed above; (2) to examine the moderating role of home IoT usage experience in these relationships. The study first reviews the literature on home IoT services and describes the Korean situation. Data were collected from residents living in a smart apartment complex. They were made aware of not only the benefits of home IoT but also the security and privacy risks before they moved into their new homes. The research model was empirically analyzed with structural equation modeling (SEM) using Amos 22.0. The results show that (1) “trust in the service provider” negatively influences “perceived security risk” and “perceived privacy risk” while “institutional trust” does not have a significant influence on them, (2) “perceived security risk” and “perceived privacy risk” negatively influence “perceived benefit,” and (3) “trust in service provider” does not directly influence “perceived benefit” while “institutional trust” has a positive and direct influence on it. In addition, there is a significant moderating effect of home IoT usage experience on some paths. Finally, the study’s findings and limitations are discussed, and potential avenues for future research are suggested.     

Differential responses of loyal versus habitual consumers towards mobile site personalization on privacy management

We examine how two different underlying mechanisms of behavioral loyalty to a brand—attitudinal loyalty and habit—impact smartphone users' privacy management when they browse personalized vs. non-personalized mobile websites. The online experimental study conducted with Amazon Mechanical Turk workers (N = 73) finds different responses of attitudinal loyalty and habit towards personalization in significant three-way interactions between personalization, attitudinal loyalty, and habit on privacy disclosure and protection behaviors. When interacting with a personalized website, highly habitual consumers without high level of attitudinal loyalty disclosed the most personal information on a personalized mobile site, and displayed the least intention of protecting their privacy on their smartphones, whereas consumers with high levels of both habit and attitudinal loyalty reported the highest tendency of privacy protection behavior. However, habit and personalization do not have a significant effect on disclosure behaviors when users have high attitudinal loyalty to a brand. Theoretical and practical implications are discussed.     

An empirical examination of user adoption of location-based services

Location-based services (LBS) can present the optimal information and services to users based on their locations. This will improve their experience. However, this may also arouse users’ privacy concern and increase their perceived privacy risk. From both perspectives of flow experience and perceived risk, this research examined user adoption of LBS. We conducted data analysis with structural equation modeling. The results indicated that contextual offering affects trust and flow, whereas privacy concern affects trust and perceived risk. Trust, flow and perceived risk affect the usage intention. Among them, flow has a relatively larger effect.     

When does personalization work on social media? a posteriori segmentation of consumers

The aim of this research is to find a segment of consumers of fashion products based on their personal visions of personalization of shoppable ads on mobile social media. To meet this objective, three operational objectives are defined. First, a theoretical model is evaluated based on the stimulus-organism-response framework (S–O–R). This examines, with a PLS-SEM approach, how the stimulation of personalization will affect consumers' internal cognitive state (perceived usefulness) and consequently generates a behavioral response (intention to buy). Second, we look for fashion consumer segments based on their perception of personalization through prediction-oriented segmentation (PLS-POS). Third, the segments are explained based on three constructs that were considered important in fashion consumption through mobile social networks: purchase intention, concern for privacy, and perception of trend. The inclusion of personalization and the perception of usefulness of advertisements can greatly help the intention to purchase clothing to be understood. The application of a posterior segmentation helps to better understand the different types of users exposed to shoppable ads on mobile social networks and their relationship with the purchase intention, concern for privacy and trend. While the measures and scales were tested in a context of mobile clothing trade, the methodology can be applied to other types of products or services.

     

Constraint-based and dedication-based mechanisms for encouraging online self-disclosure: Is personalization the only thing that matters?

Consumer-generated self-disclosure is better than firm-generated advertising and sales reports in increasing contact opportunities and also more credible for firms to foster alignment with future market expectations. Previous research mostly assesses online self-disclosure from the rational approach of anticipated benefits and privacy risks without considering the “privacy paradox” phenomenon (users behave contrarily to privacy concern) in social networking sites (SNSs). We develop a theoretical model, grounded in constraint-based (lock-in) and dedication-based (trust-building) mechanisms and social identity theory, to predict online self-disclosure. We test the proposed theoretical model by surveying 395 consumers with participation experience in an online SNS. Different from the rational approach behind personalization, we advance knowledge on how to apply social identity, as well as constraint-based and dedication-based mechanisms, to motivate online self-disclosure induced by consumers. We provide theoretical and practical insights based on our research findings for managing the motivational mechanisms of online self-disclosure.     

Willing to pay for quality personalization? Trade-off between quality and privacy

Online personalization presents recommendations of products and services based on customers’ past online purchases or browsing behavior. Personalization applications reduce information overload and provide value-added services. However, their adoption is hindered by customers’ concerns about information privacy. This paper reports on research undertaken to determine whether a high-quality recommendation service will encourage customers to use online personalization. We collected data through a series of online experiments to examine the impacts of privacy and quality on personalization usage and on users’ willingness to pay and to disclose information when using news and financial services. Our findings suggest that under certain circumstances, perceived personalization quality can outweigh the impact of privacy concerns. This implies that service providers can improve the perceived quality of personalization services being offered in order to offset customer privacy concerns. Nevertheless, the impact of perceived quality on personalization usage is weaker for customers who have experienced privacy invasion in the past. The results show that customers who are likely to use online personalization are also likely to pay for the service. This finding suggests that, despite privacy concerns, there is an opportunity for businesses to monetize high-quality personalization.     

Examining the impact of privacy, trust and risk perceptions beyond monetary transactions: An integrated model

Much interest in privacy and trust studies is about shopping, but privacy research in other forms of online activities is beginning to emerge. This study examined the antecedents of privacy, trust and risk as well as their joint effect on two similar but fundamentally different activities: online transactions and retrieval of privileged information. Both activities involve the delivery of private user information, but the latter gives some leeway for users to control (or even falsify) their true identity. User shopping experience in the present study moderated the relationships and strengths of constructs. The effect of Internet literacy, social awareness and disposition to trust on privacy concern and trust was weaker for experienced shoppers. Privacy concern, trust and risk assessment played a lesser role on the two activity variables for those who were more experienced. Perceived privacy risk stood out as a strong antecedent for respondents in both experience groups, but the effect of Internet literacy, social awareness and disposition on trust was statistically insignificant for the same group. Further practical and managerial implications are provided.     

Personalization–privacy paradox and consumer conflict with the use of location-based mobile commerce

This study empirically explored consumers’ response to the personalization–privacy paradox arising from the use of location-based mobile commerce (LBMC) and investigated the factors affecting consumers’ psychological and behavioral reactions to the paradox. A self-administered online consumer survey was conducted using a South Korean sample comprising those with experience using LBMC, and data from 517 respondents were analyzed. Using cluster analysis, consumers were categorized into four groups according to their responses regarding perceived personalization benefits and privacy risks: indifferent (n = 87), personalization oriented (n = 113), privacy oriented (n = 152), and ambivalent (n = 165). The results revealed significant differences across consumer groups in the antecedents and outcomes of the personalization–privacy paradox. Multiple regression analysis showed that factors influence the two outcome variables of the personalization–privacy paradox: internal conflict (psychological outcome) and continued use intention of LBMC (behavioral outcome). In conclusion, this study showed that consumer involvement, self-efficacy, and technology optimism significantly affected both outcome variables, whereas technology insecurity influenced internal conflict, and consumer trust influenced continued use intention. This study contributes to the current literature and provides practical implications for marketers and retailers aiming to succeed in the mobile commerce environment.     

Mobile social commerce: The booster for brand loyalty?

In view of the deficiencies in current literature, this study seeks to examine if mobile social commerce continuance usage influences brand loyalty among customers, and assessed the inhibitor role of privacy concern in mobile social commerce usage intention. Privacy concern was measured by using concern for social media information privacy (CFSMIP). Therefore, this study proposes and empirically validated a model that combines CFSMIP, brand loyalty, and Expectation Confirmation Model, in the Asian context. The results suggested that users' CFSMIP does not inhibit them from the continuous usage of mobile social commerce, and influences their perceived usefulness on mobile social commerce positively. Moreover, all the paths in the baseline model of Expectation Confirmation Model have been reconfirmed in this study. Besides, users' continuance usage and satisfaction on mobile social commerce are proven to be boosters for brand loyalty. Relevant managerial implications are then discussed.     

Understanding Perceived Trust to Reduce Regret

Trust is fundamental for promoting the use of online services, such as e‐commerce or e‐health. Understanding how users perceive trust online is a precondition to create trustworthy marketplaces. In this article, we present a domain‐independent general trust perception model that helps us to understand how users make online trust decisions and how we can help them in making the right decisions, which minimize future regret. We also present the results of a user study describing the weight that different factors in the model (e.g., security, look&feel, and privacy) have on perceived trust. The study identifies the existence of a positive correlation between the user's knowledge and the importance placed on factors such as security and privacy. This indicates that the impact factors as security and privacy have on perceived trust is higher in users with higher knowledge.     

When changing the look of privacy policies affects user trust: An experimental study

The majority of Internet users do not read privacy policies because of their lengthy verbose format, although they are still the main source of information for users about how their data are collected and used. Consequently, as shown by many studies, users do not trust online services with respect to the use of their private data. Furthermore, they find it unfair that their data are used to generate revenue by online services without their knowledge or without their benefit from this.In this paper, we take as main assumption that the control of their private data and also caring about their interests would restore the trust of users. Based on an empirical model, we conducted an experimental comparative study of user trust by offering to two groups of participants the possibility to adhere to a service with a privacy policy presented in one of two different formats: the first, a conventional privacy policy and the second, designed according to the privacy policy model studied in this paper.We collected, through a survey, 717 responses from participants. The results show that allowing personalization and management in privacy policies affects user trust and makes online services appear more trustworthy to their users.     

Uncovering the dual influence processes for click-through intention in the mobile social platform: An elaboration likelihood model perspective

The burgeoning growth of mobile social platforms has gained the attention of advertisers, and the way how to stimulate users’ click-through intention in the virtual social community is becoming a research focus of scholars. Drawing on the elaboration likelihood model (ELM), this study develops a theoretical framework to examine the mediation effects of cognitive vs. affective trust on the relationship between dual routes (central route vs. peripheral route) and users’ click-through intention in the context of mobile social platforms. Particularly, users’ prior product experience is incorporated in the research model to examine its moderating effect on the influence processes. A scenario-based survey is conducted in China, and the partial least square method is used to analyze the data. Empirical results suggest that perceived content personalization is positively associated with cognitive trust, and its influence is stronger for experienced users with the recommended product. Social recommendation is positively associated with affective trust, and its impact is higher for users without prior product experience. Advertiser reputation is positively associated with both cognitive trust and affective trust, and its effect on cognitive trust is stronger for users without prior product experience, while its impact on affective trust is higher for users with prior product experience. Moreover, cognitive trust is positively associated with affective trust, and the two trust mechanisms have positive influences on click-through intention toward the recommended product. We discuss theoretical and practical implications in the final section.     

Understanding the Intention of Using Mobile Social Networking Apps Across Cultures

Understanding the user acceptance of mobile social networking apps in different cultures can provide powerful insights for managers and marketers of social networking apps to develop effective globalized and localized strategies to attract users worldwide. Following the theory of planned behavior, this study develops a research model of privacy concern (PC), privacy risk (PR), and perceived enjoyment (PE) as attitudinal beliefs, subjective norm (SN) as normative belief, and smartphone self-efficacy (SE) as control belief to understand users’ intention to use mobile social networking apps. In particular, the impact of culture was investigated, considering the user base of mobile social networking apps is distributed globally and culturally diversified, and cultural values have direct impact on behavior. The research model was validated by survey data collected from 151 participants in the U.S. and 170 participants in South Korea. The data analysis results show that perceived enjoyment and subjective norm are the most important drivers behind users’ intention to use mobile social networking apps for both countries. No significant difference was found for the effects of privacy risk and subjective norm upon users’ intention to use mobile social networking apps across cultures. Implications of the findings upon theory and practice are discussed.     

Understanding online customers’ ties to merchants: the moderating influence of trust on the relationship between switching costs and e-loyalty

Fostering customer loyalty is a key objective for online businesses. Initial transactions with new customers are less profitable than transactions with existing customers, making loyalty an important strategy. Drawing on research examining online customer loyalty (termed e-loyalty), switching costs, and trust, this study provides an empirical test of the relative influence of trust vs switching costs on e-loyalty for e-service providers. We further examine whether trust moderates the relationship between switching costs and e-loyalty. We propose that in the presence of high customer trust, e-service providers should have less need to rely on switching costs as a driver of e-loyalty. We test the hypothesized relationships using data collected from 299 repeat users of online travel services. Our results confirm that trust is a more important predictor of e-loyalty than switching costs. In addition, we find that the impact of switching costs on e-loyalty depends on the level of trust felt by customers. This study extends our understanding of customer loyalty, switching costs, and trust in e-commerce environments and provides practical, theory-driven guidelines to e-businesses seeking to develop customer loyalty programmes.     

Privacy concern and online personalization: The moderating effects of information control and compensation

Firms have at their disposal an increasing amount of personal information about consumers gathered through various means. Studies find that personalizing online interactions improves customer relationships and increases desirable behaviors, such as positive word-of-mouth and increased purchase intent. However, other research suggests that the use of personal information stimulates privacy concern, which has a negative effect on behavior. This study examines potential moderators of the negative effects of privacy concern on behavioral intentions in the context of personalized online interactions. Results show that increasing perceived information control reduces the negative effect of privacy concern on intentions to engage in positive behaviors. In contrast, the offer of compensation has no effect on the relationship between privacy concern and these behavioral intentions. However, compensation increases the salience of trust to privacy concern.     

Understanding consumers’ continuance intention towards mobile advertising: a theoretical framework and empirical study

While issues regarding mobile advertising have captured the interest and attention of both practitioners and academics, in practice success stories are rare. An understanding of the continuance intention to use such services can provide insights into failed mobile marketing campaigns, and help to improve the implementation of future ones. Therefore, it is important to examine the underlying drivers of loyalty with regard to mobile advertising. This study uses the expectation–confirmation model in conjunction with the perspectives of value and trust to derive an integrated model to better understand the motivations behind consumers’ continued use of mobile advertising. We conducted an empirical study consisting of an online survey of 508 consumers who had experience with mobile advertising. The results show that perceived value, perceived usefulness, and satisfaction all directly influence continuance intention. Furthermore, consumer satisfaction has a crucial intervening role in the relationships that perceived value, perceived usefulness, and confirmation have with continuance intention. The theoretical and practical implications of the findings are discussed. One key limitation of this research is that the majority of respondents were students, although this group is the chief user of mobile advertising. Future research could be extended to consider other drivers of loyalty in this context, such as cultural differences and personal behavioural characteristics.     

Understanding customers' loyalty intentions towards online shopping: an integration of technology acceptance model and fairness theory

As with any other information system (IS), the success of online shopping depends largely on customer satisfaction and other factors that will eventually increase customers' loyalty intentions. This article integrates two major variables of technology acceptance model (TAM), trust, and fairness to construct a model for investigating the motivations behind customers' loyalty intentions towards online shopping. The hypothesised model is validated empirically using data collected from 311 customers of an online shopping store. The results indicated that distributive, procedural and interactional fairness were strong predictors of trust, which in turn influenced satisfaction. Distributive fairness and interactional fairness exhibited significant positive effects on satisfaction. Perceived usefulness and satisfaction influenced loyalty intention towards online shopping. Perceived ease of use acts indirectly on loyalty intention through the mediating effect of perceived usefulness. Implications for theory and practice and future research directions are discussed.     

Mobile technology acceptance model: An investigation using mobile users to explore smartphone credit card

Smartphone credit card (SCC) is an emerging payment method using NFC-enabled smartphones. The proximity payment allows consumers to pay their products and services by waving their smartphones with a NFC reader. While there are advantageous adopting SCC, the adoption rate has not been encouraging. Interestingly, existing research work on past information technology and system models have so far focused primarily on organizational context and adopted specifically for work. Furthermore, past antecedents were mainly constructed using electronic commerce literatures which do not reflect the actual mobile environment. In contrast SCC is mainly adopted voluntarily by mobile users and for personal purposes. Thus this leads to the difficulty in drawing meaningful conclusion. The study addresses these limitations by proposing a new mobile technology acceptance model (MTAM) which consists of mobile usefulness (MU) and mobile ease of use (MEU) to determine SCC adoption. In anticipating on the complexity which exists in the mobile environment, additional mobile constructs namely mobile perceived security risk (MPSR), mobile perceived trust (MPT), mobile perceived compatibility (MPC) and mobile perceived financial resources (MPFR) were incorporated into the parsimonious MTAM. The integrated model was applied to 459 mobile users through a questionnaire approach and tested using partial least square-structural equation modelling-artificial neural network (PLS-SEM-ANN) has provided a new impact and a possible new research methodology paradigm as it is able to capture both linear and non-linear relationships. While the model confirms the role of MU in MTAM, MEU needs for more attention in practice. The results from the extended model showed that only three of the proposed hypotheses were non-significant in this study and thus warrant further investigation. The study contributes to academia by proposing new mobile constructs that brings together MTAM to assess the likelihood of mobile users to adopt SCC. The study also offers several important managerial implications which can be generalized to the mobile studies of other transportation, hotel, banking, and tourism industries.     

Do context and personality matter? Trust and privacy concerns in disclosing private information online

Research and business practice have already established the central role of trust in business, particularly in online interactions. Many online business exchanges require the disclosure of sensitive personal information on a regular basis. Simultaneously, customers are reluctant to disclose private information online due to concerns about privacy. Thus, trust plays a critical role in such disclosures. However, a number of factors could influence the extent of customers’ trust and their willingness to disclose their private information. In this study, we explore the critical roles of two sets of factors: the sensitivity of the context within which the private information is disclosed and the customer's personality. Our theory building is based on the contextualization of the theory of reasoned action (TRA-Privacy) and its synthesis with Prospect theory. Our theory argues that context sensitivity as a moderator and individuals’ salient attributes in terms of personality types and privacy concern are critical factors impacting trust and the willingness to disclose personal information. Our results indicate that context moderates the parameters and path structure of the trust model and that the influence of personality on privacy concern and trust depends on the nature of the context. Applying these “who” and “where” aspects of theory building, the study opens a new avenue of context-related research that can further increase the specificity and richness of trust and privacy research. The study also provides a new perspective in trust scholarship, therein requiring the examination of three inter-related components: trustee, trustor and the context of trust.     

The relationship between perceived e-service quality and brand equity: A simultaneous equations system approach

Using the data collected from the online banking users in Taiwan, we build a hierarchical model of e-banking service quality and investigate the relationships among e-service quality, trust, satisfaction, loyalty, and brand equity. Moreover, the simultaneous equations system approach is also applied to transfer the traditional satisfaction-loyalty path into the simultaneous relationships between trust and loyalty, and between satisfaction and loyalty. As the structural form coefficients demonstrate the direct relations between our research constructs, the reduced form estimates further disclose the total impacts of the quality of e-banking service on trust, satisfaction, loyalty, and brand equity, respectively. The results indicate that the perceived quality formed through interaction with an online banking service positively affects customer trust and satisfaction, which in turn influence loyalty and brand equity. The significant simultaneous relationships between trust and loyalty, and between satisfaction and loyalty, are confirmed by our data, implying that these relationships must be determined simultaneously, rather than sequentially.