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Electronic Commerce and Data Privacy: The Impact of Privacy Concerns on Electronic Commerce Use and Regulatory Preferences
Abstract
Electronic commerce (e-commerce) has had a profound effect on the way we conduct business. It has impacted economies, markets, industry structures, and the flow of products through the supply chain. Despite the phenomenal growth of e-commerce and the potential impact on the revenues of businesses, there are problems with the capabilities of this technology. Organizations are amassing huge quantities of personal data about consumers. As a result, consumers are very concerned about the protection of their personal information and they want something done about the problem. This study examined the relationships between consumer privacy concerns, actual e-commerce activity, the importance of privacy policies, and regulatory preference. Using a model developed from existing literature and theory, an online questionnaire was developed to gauge the concerns of consumers. The results indicated that consumers are concerned about the protection of their personal information and feel that privacy policies are important. Consumers also indicated that they preferred government regulation to industry self-regulation to protect their personal information.
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