Online vendors use personal information to deliver customized services efficiently to their customers. Both users and vendors value the relationship building made possible using personal data. However, the use of personally identifying data gives rise to the potential for privacy invasion. When consumers must disclose personal information, they are forced to perform a risk-benefit analysis in which the risks of disclosing one's personal information are weighted against the potential benefits of the disclosure. While some researchers note that consumers maximize benefits in deciding whether to disclose personal information, others argue that consumers lack sufficient information and power to make educated, balanced decisions regarding disclosing their private information. We add to the privacy discussion by arguing that a real negotiation position for both parties can help realize the full benefits of online personalization. We propose a model for mitigating the tension between the benefits of personalization and the risks to privacy invasion. This framework informs our future work which seeks to develop rich and deep understandings of negotiated, privacy-concerned personalization.
Kunene, K. Niki; Andoh-Baidoo, Francis Kofi; and Kasper, George M., "The Role of Negotiation in Privacy-Enhanced E-Commerce Transactions" (2008). SAIS 2008 Proceedings. 14.