Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Abstract

Unlocking the Personalized-Privacy Paradox: An Empirical Study of Customer Intention to Use Digital Personalized Services

Author(s): Priyanka, Sadaf Siraj

Advent of digital technologies supported by availability of big data has far reaching consequences for customers as well as marketers. While customers are able to enjoy the personalization made possible by behavioural targeting paving way for value-added services, it also increases customers’ privacy concerns. This generates conflict between the benefits and costs of digital personalized services. The current study draws interlinkages between intentions to use Online Personalization (OP), Privacy Concerns (PC), Ease of Use (EU) & Perceived Usefulness (PU). The study analysed the perception & behaviour of the youth population and sample size was generated using G* Power. The findings suggest that privacy concerns and quality of personalization is negatively and positively associated with intention to use personalized services respectively. The customers were segmented based on their perceived level of personalization by using k-means clustering. Three unique clusters emerged which were named as the Bureaucrats, the Artists and the Scientists.

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