Reducing online privacy risk to facilitate eservice adoption the influence of perceived ease of use and corporate credibility

• Published in: The Journal of services marketing Vol. 24; no. 3; pp. 219 - 229
• Main Authors: Featherman, Mauricio S., Miyazaki, Anthony D., Sprott, David E.
• Format: Journal Article
• Language: English
• Published: Emerald Group Publishing Limited 25.05.2010
• Subjects: Banking; Internet; Privacy; Risk management
• ISSN: 0887-6045; 2054-1651
• DOI: 10.1108/08876041011040622

Purpose The paper aims to examine ways to reduce privacy risk and its effects so that adoption of eservices can be enhanced. Designmethodologyapproach Consumers that form a viable target market for an eservice are presented with the task of experiencing the eservice and expressing their attitudes and intentions toward it. Structural equation modeling is used to analyze the responses. Findings The paper finds that consumer beliefs that the eservice will be easy to use and that the eservice provider is credible and capable reduce privacy risk and its effects, thus enhancing adoption likelihood. Research limitationsimplications The focus on a financial services product online bill paying suggests that similar research should be conducted with other highrisk eservices such as those dealing with healthcare and lowerrisk eservices such as subscription services and social networks. Practical implications In addition to addressing consumers' privacy risk directly, eservice providers can also reduce privacy risk and its effects by enhancing corporate credibility and perceived ease of use of the service. Increased assessments of privacy risk perceptions and efforts to reduce those perceptions will likely yield higher usage rates for eservices. Originalityvalue The use of the technology acceptance model from information systems research, combined with a multifaceted conceptualization of privacy risk, moves the examination of privacy risk to a higher level, particularly in light of the examination of the additional factors of perceived ease of use and corporate credibility.