The role of perceived privacy and perceived security in online market

Individuals mostly hesitate to use services offered via Internet due to their suspicions regarding the level of offered (1) protection of their privacy and (2) security of performing online transactions. Privacy is mostly concerned with the identifiable user data and users´ rights to have control over their data. On the other hand, security provides the physical, logical, and procedural safeguards that are needed to keep the data private. Privacy cannot be achieved without obtaining security practice, nor will the usage of security mechanisms guarantee protection of privacy. Despite being closely linked in practice, privacy and security are perceived as separate issues by online users. Therefore, in this article the relationship between various privacy factors (factors that influence users´ privacy concerns) and the perception of security protection during users´ online activities is discussed. The role that perceived privacy and perceived security have in the e-service users´ evaluation of a service is investigated.