Consumer Motivation and the Privacy Paradox

Abstract

There is a gap between intention and action that people experience when faced with protecting their digital data privacy. Known as the privacy paradox, it is the idea that what a person says they believe (protecting their data privacy is paramount) is not reflective of how they act (relinquishing their data privacy). In other words, what people express about their data privacy is often in opposition to the frequency with which they relinquish their data privacy. The research intends to examine the privacy paradox and consists of two studies, one qualitative and one quantitative. First, focus groups were held, the outcome of which was an attempt at the creation of a typology of words and phrases that consumers use relative to their data privacy. Second, an experiment using Likert scales and Pareto-optimal choice-based conjoint analysis was created based on the typology created in study one, giving insight into what consumers feel are motivators towards protecting or relinquishing their data privacy. The contribution is filling a gap in the existing literature related to the privacy paradox through an analysis of behavior.