What motivates consumers to disclose their personal information? Exploring the effect of exchanged benefits in social media advertising
Team: Soyon Kwon, Naeun Lauren Kim
Program: Design Graduate Program
With the increasing collection of consumer data in the digital realm, often in exchange for benefits like increased convenience and discounts, concerns about privacy rights and intrusive practices have emerged. Consumers, in response, seek avoidance methods such as ad-blocking tools and geolocation tracking deactivation. Employing the framework of privacy calculus, this study focuses on the impact of exchanged benefits on consumers’ willingness to disclose information in social media advertising. By analyzing data from Instagram users in the US, the study found that monetary reward and personalized product recommendation have significant impact on consumers’ behavioral intentions. The findings elucidate which factors elevate consumers’ perceived benefits from social media ads, and whether these perceptions influence their intention to disclose personal information, ultimately leading to click-through the ad and purchase the product. This research addresses a critical gap in understanding the dynamics of consumer privacy in the context of social media advertising. The study provides valuable insights for advertisers navigating the challenges and opportunities of social media marketing, enhancing their understanding of consumer information disclosure and privacy considerations.
Keywords: privacy calculus, social media advertising, information disclosure, exchanged benefits
