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Retailer-Customers Relationships in the Online Setting: An Empirical Investigation to Overcome Privacy Concerns and Improve Information Sharing

Retailer-Customers Relationships in the Online Setting: An Empirical Investigation to Overcome Privacy Concerns and Improve Information Sharing
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Author(s): Sandro Castaldo (Bocconi University, Italy)and Monica Grosso (EMLYON Business School, France)
Copyright: 2014
Pages: 22
Source title: Handbook of Research on Retailer-Consumer Relationship Development
Source Author(s)/Editor(s): Fabio Musso (University of Urbino, Department of Economics, Society and Politics (DESP), Italy)and Elena Druica (University of Bucharest, Department of Economic and Administrative Sciences, Romania)
DOI: 10.4018/978-1-4666-6074-8.ch022

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Abstract

Internet merchants are compelled to collect personal information from customers in order to deliver goods and services effectively. However, the ease with which data can be acquired and disseminated across the Web has led to many potential customers demonstrating growing concerns about disclosing personal information. This chapter analyzes the interaction between two strategies that firms can use to alter potential customers' cost/benefit evaluation and increase information disclosure: the development of initial trust and compensation. The derived hypotheses are tested by means of two experimental studies, whose findings are compared across two different consumer target groups.

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