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Introducing new products that affect consumer privacy: A mediation model

20.05.2016Comments are closed.


New product adoption;
Technological innovation;
Consumer privacy concerns;
Structural equation modeling.


Caroline Lancelot Miltgen, PhD, AUDENCIA Business School
Jörg Henseler, PhD, University of Twente, Faculty of Engineering Technology
Carsten Gelhard, PhD, University of Twente, Faculty of Engineering Technology
Aleš Popovič, PhD, University of Ljubljana, Faculty of Economics


Many innovative products can only fully deploy their value if they rely on consumers’ personal information. This issue challenges the confidence that consumers have in new innovations, and revolutionizes marketing practices. Malhotra, Kim, and Agarwal’s (2004) framework provides the theoretical basis for hypotheses on the consequences of privacy concerns. An empirical study in the context of four pervasive IT innovations involving various privacy issues helps to test these hypotheses. The findings consistently show that privacy concerns have an adverse effect on consumers’ intention to accept IT innovation. However, trust and risk perceptions both mediate this relationship. By understanding the underlying mechanism, firms can alleviate the potential downsides of their products and increase the odds of their market success.


Journal of Business Research



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