Privacy-Usefulness Trade(off): Consumer Perceptions of the Information Exchange in the Context of the Internet of Things
(A2024-119811)

AUTHORS

Aleksandra Mikhailova, Stockholm School of Economics; Jonas Colliander, Stockholm School of Economics

ABSTRACT

Nowadays the internet has outgrown PCs and mobile devices, integrating into home appliances, symbolizing the emergence of the Internet of Things (IoT). Where the internet thrives, valuable consumer information follows suit. This leads to home appliances equipped with internet connection, sensors, and even cameras, gaining broad access to consumer data, also including insights into intimate aspects of daily life. This nature of the information collected by IoT devices, distinct from conventional online consumer information, presents a novel context for privacy-related research. Results of 2 experimental studies indicate that when IoT devices access intimate consumer information to deliver tailored advertising, it amplifies the perceived usefulness of the device (along with attitudes and intentions), but not privacy concerns. These findings offer novel insights into consumer privacy calculus theory within IoT marketing communications, encouraging future research in this domain.