Analyzing Online Information Privacy Concerns: An Information Processing Theory Approach

The advent of the Internet has made the transmission of personally identifiable information common and often inadvertent to the user. As a consequence, individuals worry that companies misuse their information. Firms have tried to mitigate this concern in two ways: (1) offering privacy policies regarding the handling and use of personal information, (2) offering benefits such as financial gains or convenience. In this paper, we interpret these actions in the context of the information processing theory of motivation. Information processing theories, in the context of motivated behavior also known as expectancy theories, are built on the premise that people process information about behavior-outcome relationships. We empirically validate predictions that the means to mitigate privacy concerns are associated with positive valences resulting in an increase in motivational score. Further, we investigate these means in trade-off situation, where a firm may only offer partially complete privacy protection and/or some benefits