Concern for Information Privacy and Intention to Transact Online

There are several factors restricting the development of online-shopping in China, the imperfect privacy protection law and consumers´ distrust are the main barriers. By using a sample of 759 Chinese students, our study examined the IUIPC instrument and analyzed the relationship between Internet users´ information privacy concerns and their intention to transact online. Consistent with prior findings, the results suggest that IUIPC as a second-order factor structure instrument shows acceptable reliability and validity. The results also indicate that Internet users´ trust in online companies´ information practices fully moderate the relationship between their information privacy concerns and intentions to transact online. Our findings implicate that the key ways to improve the Chinese B-C commerce development are to reduce the Internet users´ information privacy concern and promote their trust in Internet-management through privacy notices.