Upload
others
View
10
Download
0
Embed Size (px)
Citation preview
The Privacy Paradox:
a Construal Level Theory perspective
Master thesis
Author: Jasmijn Koster (10963707)
University of Amsterdam, Faculty of Economics and Business
MSc. in Business Administration – Marketing Track
Under supervision of:
Dr. J. Demmers, PhD candidate and Marketing Lecturer at the University of Amsterdam
January 29, 2016
2
Statement of Originality
This document is written by student Jasmijn Koster, who declares to take full responsibility for
the contents of this document. I declare that the text and the work presented in this document is
original and that no sources other than those mentioned in the text and its references have been
used in creating it. The Faculty of Economics and Business is responsible solely for the
supervision of completion of the work, not for the contents.
3
TABLE OF CONTENTS
ABSTRACT ................................................................................................................... 5
1. INTRODUCTION ................................................................................................ 6
2. THEORETICAL FRAMEWORK ....................................................................... 8
2.1. Privacy .......................................................................................................... 8
2.1.1. Privacy paradox ............................................................................................ 8
2.2. Construal Level Theory .............................................................................. 10
2.2.1. Low and high level construals. ................................................................ 10
2.2.2. Psychological distance. ............................................................................ 11
2.3. Online information disclosure ........................................................................... 13
2.3.1. Costs and risks. ........................................................................................ 13
2.3.2. Intrinsic and extrinsic benefits. ................................................................ 13
2.4. Relationship between Construal Level Theory and the privacy paradox ... 15
3. STUDY 1............................................................................................................ 19
Manipulation of the temporal distance of benefits and costs ................................... 19
3.1. Method ........................................................................................................ 19
3.1.1. Design and procedure. ............................................................................ 19
3.1.2. Participants.............................................................................................. 21
3.2. Results ......................................................................................................... 21
3.2.1. Testing for assumptions of ANOVA ....................................................... 21
3.2.2. Demographic variables ............................................................................ 22
3.2.3. Manipulation checks of temporal distance .............................................. 23
3.2.4. Temporal distance of benefits and costs on disclosure of personal data . 24
4
4. STUDY 2............................................................................................................ 25
Manipulation of the mind-set and temporal distance of benefits and costs ............. 25
4.1. Method ........................................................................................................ 25
4.1.1. Design and procedure. ............................................................................ 25
4.1.2. Participants.............................................................................................. 27
4.2. Results ......................................................................................................... 27
4.2.1. Testing for assumptions of ANOVA ....................................................... 27
4.2.2. Demographic variables ............................................................................ 28
4.2.3. Manipulation checks of temporal distance .............................................. 29
4.2.4. Main effects and interaction effect .......................................................... 30
5. DISCUSSION AND CONCLUSION ................................................................ 34
5.1. Study 1 ........................................................................................................ 34
5.2. Study 2 ........................................................................................................ 36
6. LIMITATIONS AND FUTURE RESEARCH .................................................. 38
REFERENCES ............................................................................................................. 40
APPENDIX A: STIMULI DEVELOPMENT ............................................................. 46
APPENDIX B: STUDY 1 ONLINE QUESTIONNAIRE ........................................... 51
APPENDIX C: STUDY 2 ONLINE QUESTIONNAIRE ........................................... 53
5
ABSTRACT
In general, people claim to be anxious about the information that is available about them online,
yet, they are still inclined to share personal data. This research searches for the underlying
explanation of this privacy paradox by taking the potential influence of Construal Level Theory
into account. Two studies examined the prediction that CLT influences consumer reliance on
benefits and costs of online information disclosure. Respondents were allocated to three online
information disclosure scenarios and exposed to either a proximal benefits/distant costs,
proximal costs/distant benefits, or control condition (Study 1). Results showed that consumers
rely on the benefits or costs of disclosing personal information that have the highest proximity
of occurring. These results support the principle CLT, according to which the more proximal
an activity is, the more concrete it is evaluated. The inclination to disclose personal information
thus derives from the psychological distance. Subsequently, Study 2 was based on the
hypothesis that temporal distance affects consumer reliance on benefits and costs of disclosing
personal information, such that participants rely on consequences that are congruent with their
mind-set. Respondents were allocated to two scenarios in which they had to disclose personal
information. Simultaneously, they were exposed to a manipulation of the mind-set and a
manipulation of temporal distance similar to the one executed in Study 1. However, results
revealed no significant interaction effect of consumer mind-set and temporal distance on the
inclination to disclose personal information. In conclusion, the results indicate that temporal
distance is underlying for the inclination to disclose personal information, yet, mind-set does
not moderate this outcome. Future research is required to expose whether an altered
manipulation of CLT explains the privacy paradox.
Keywords: Construal Level Theory, privacy paradox, temporal distance, mind-set,
online information disclosure
6
1. INTRODUCTION
The digital age has facilitated the accessibility of big data, providing companies and online
networks with increased access to online consumer behaviour (Awad & Krishnan, 2006a). The
availability of this information initiated from the integration of social media in everyday life,
which has become an essential tool for consumers to stay in contact with close friends and
acquaintances (Debatin, Lovejoy, Horn, & Hughes, 2009). Marketers can use this data-rich
environment for implementing cookies, data mining, and phishing, providing themselves with
the opportunity to specify their marketing tools and improve the targeting of messages (Arons,
van den Driest, & Weed, 2014). The way marketers engage with customers has changed
remarkably and Arons et al. (2014) accentuate that high performers’ marketing approaches
outdo other marketers in their ability to leverage customer insights, to integrate data on why
consumers are behaving in a certain way, and to deliver a rich customer experience in the long
run. Even though it seems that the collection and usage of big data is always in the best interest
of the consumer, the presence of personal information online might also be exploited
negatively. Not only companies with marketing-related intentions have access to this data, the
disclosed information can be misused for other purposes as well. Harassment, hacking, and
identity theft pose severe risks to online users’ privacy (Debatin et al., 2009). Online consumer
privacy is currently a debatable issue and consumers care more about their privacy now than
they did several years ago. Prior research has shown that in 2009 33% of the Internet users was
anxious about the amount of personal data that is available about them online, a percentage
which has grown to 50% in 2013 (Rainie et al., 2013). These numbers would indicate that
consumers behave accordingly, by being cautious in providing personal information on the
Internet. However, even though consumers report high values of privacy concerns, they still
display behaviour that contradicts their concerns (Rivenbark, 2010). Different explanations for
this incongruity are provided in previous literature. Firstly, Dinev & Hart (2006) posit that a
7
consumer’s final decision on whether or not to disclose personal information online is
determined by a privacy calculus. In addition, Fournier & Avery (2011) theorise that the social
exchange theory, wherein consumers ‘objectively’ weigh benefits and costs when engaging in
social interaction, provides insights in the privacy paradox. Secondly, Dinev & Hart (2006) and
Metzger (2004) theorise that trust and previous information disclosing behaviour are the most
important antecedents to privacy concerns. Lastly, Deuker (2010) suggests that the privacy
paradox can be explained by consumers’ unawareness of the consequences of disclosing data
and, accordingly, Gross & Acquisti (2005) suppose that consumers tend to underestimate the
privacy dangers of disclosing personal data.
This study will start with a literature review to search for the fundamental theories
underlying the issue of the privacy paradox. As a starting point, Acquisti & Grossklags (2004)
propose theories on the differences between privacy attitudes and privacy behaviour.
Subsequently, researching the concept of Construal Level Theory (CLT) will be of high
importance as this paper aims to bridge the gap between privacy concerns and the inclination
to disclose personal data. In their research, Trope, Liberman, & Wakslak (2007) studied
construal levels and they focused on the influence of psychological distance on consumer
behaviour, which might be a foundation of the privacy paradox. After bridging these two
theories, the methodology for the survey will be set up and the approach for the research will
be explained. In the first study, I will measure the effects of temporal distance on online
information disclosure behaviour, and more importantly, the effect on behaviour when the
temporal distance is manipulated. Thereafter, the second study will explore whether this effect
is reliant upon the congruence between mind-set and psychological distance of benefits and
costs. The collected data will be displayed, after which an analysis of the results will take place.
This research will conclude with an in-depth discussion on the proposed hypotheses, followed
by the implications, limitations, and recommendations for future research.
8
2. THEORETICAL FRAMEWORK
2.1. Privacy
According to Warren & Brandeis (1890), privacy can be defined as “the right to be let alone”
(p. 205), and privacy concerns arise whenever personal information or other sensitive
information is collected and stored. Consumers desire to control or manage their own
information, but due to advances in digital technologies and the increasing information
gathering by third parties, concerns about information privacy have risen (Bélanger & Crossler,
2011; Phelps, Nowak, & Ferrell, 2000). However, even though consumers report high values
of privacy concerns, they still display behaviour that contradicts their concerns (Rivenbark,
2010). One possible explanation for this privacy paradox is that it is interpreted incorrectly.
Literature illustrates that privacy attitudes are described on a broad, general level while privacy
intentions and behaviour are defined narrowly. Thus, the comparison of these different entities
might lead to deceiving results (Acquisti & Grossklags, 2004). This justification for the privacy
paradox, however, is not entirely agreed upon and possible explanations for the incongruity are
scrutinised extensively in prior literature.
2.1.1. Privacy paradox. Firstly, according to Fournier & Avery (2011), younger
generations seem to be quite comfortable with the exchange of privacy for benefits as they are
more likely to act according to the social exchange theory. Social exchange theory states that
consumers ‘objectively’ weigh benefits and costs when engaging in social interaction. A
consumer grants certain value to individual beneficial and precarious aspects, forming a so-
called privacy calculus (Dinev & Hart, 2006; Li, Sarathy, & Xu, 2010). When one driver
outweighs the other, it would determine a consumer’s final decision on whether or not to
disclose personal information online. Nonetheless, when researchers approached privacy
concerns by assuming that consumers engage in a cost-benefit trade-off, it appeared that when
it came to privacy, consumers behaved irrationally (Keith, Thompson, Hale, Lowry, & Greer,
9
2013). One reason for this finding is that privacy decision-making is only partially a rational
trade-off; it is also affected by misperceptions of benefits and costs, emotions, and social norms
(Acquisti & Grossklags, 2004). Again, this discrepancy between consumers’ attitudes and their
actual disclosure behaviour is the foundation of the privacy paradox (Acquisti & Grossklags,
2004; Debatin et al., 2009; Gross & Acquisti, 2005; Norberg, Horne, & Horne, 2007; Wilson
& Valacich, 2012). Although objectively irrational, the behaviour of individuals is considered
to be subjectively rational within the given level of privacy awareness. Along the lines of
subjective behaviour, Dinev & Hart (2006) theorise that trust is one of the most important
antecedents to privacy concerns. Accordingly, Metzger (2004) posits that consumers value trust
when interpersonal exchange situations take place. Expected trust is the inclination to believe
that others act in a consumer’s best interest, thus when trust is perceived to be high, the
perceived cost would be low and vice versa. Secondly, Metzger (2004) approaches the privacy
paradox by affirming that consumers believe that after they have disclosed their personal
information once, it would not be a problem to repeat their behaviour. This would indicate that
future disclosure of personal information is not necessarily associated with perceived risk, but
rather with the antecedent of past behaviour of having done it before (Metzger, 2004). Thirdly,
an obvious source of privacy uncertainty arises from information asymmetry, wherein
consumers are not fully aware of what information companies have and for what purpose it is
used (Acquisti, Brandimarte, & Loewenstein, 2015). Most of the time, consumers solely want
to disclose information for efficiency reasons, to receive tailored advertisements, and to enjoy
personalisation of products. In these situations, consumers freely choose to exchange their
personal information to get a benefit in return (Deuker, 2010). Privacy paradoxical behaviour
can be explained by individuals’ limited capabilities in accessing and processing decision
relevant information or due to different perspectives on privacy (Awad & Krishnan, 2006b).
Accordingly, Gross & Acquisti (2005) suppose that consumers tend to underestimate the
10
privacy dangers of disclosing personal data, given that data protection guidelines are often
accepted without being read. It can be proposed that this contradicting behaviour initiates from
a mental representation of the benefits and costs, which is a consequence of the inclination to
disclose personal information.
It has been shown above that several studies developed theories to explain why
consumers’ inclination to disclose personal data is not consistent with their actual knowledge
on the risks of sharing personal information. However, none of those studies bridged an
element’s psychological distance and consumer mind-set, both elements of CLT, to the privacy
paradox. Therefore, it will be of high importance to research whether consumer reliance on
benefits and costs, and its subsequent information disclosure behaviour is dependent upon the
proximity of these elements rather than on the benefits and costs itself.
2.2. Construal Level Theory
Construal Level Theory describes the relation between psychological distance and the extent to
which a person’s mental state is abstract or concrete. The theory proposes that the more distant
an object is from an individual, the more abstract the object will be perceived, while nearby
objects will be processed in a low-level concrete mind-set (Bar-Anan, Liberman, Trope, &
Algom, 2007; Liberman & Trope, 1998; Liberman, Sagristano, & Trope, 2002; Liberman,
Trope, & Stephan, 2007; Liberman, Trope, McCrea, & Sherman, 2007; Trope & Liberman,
2003; Trope & Liberman, 2010; Trope, Liberman, & Wakslak, 2007). The differences in these
mental states are acknowledged by CLT, and they occur because the amount of concrete or
abstract information varies.
2.2.1. Low and high level construals. Events and objects can be described according
to their level of abstraction. Low-level construals are relatively contextualised and represent
subordinate means (the “how” of the activity), whereas high-level construals are more abstract
11
and emphasise superordinate purposes (the “why” of the activity) (Trope et al., 2007). Prior
research shows that accentuating the costs of a certain situation is effective when paired with a
low-level, concrete mind-set, while emphasising the benefits is effective when paired with a
high-level, abstract mind-set. These results show that when people are in an abstract mind-set,
they are more likely to rely on the benefits of disclosing data than people in a concrete mind-
set (White, MacDonnell, & Dahl, 2011). This demonstrates that psychological distance is a
subjective representation of something close or far away from the self. For example, when
benefits of disclosing data are presented in the distant future, it will be described with the use
of higher level construals than when the benefits are expected to be proximal.
2.2.2. Psychological distance. In CLT, psychological distance refers to the distance
of an object from the direct experience, which comprises several interrelated dimensions;
temporal, hypothetical, social, and spatial distance (Trope et al., 2007). The different
dimensions of psychological distance affect mental construal and correspondingly guide
predictions (Nussbaum, Trope, & Liberman, 2003), evaluations (Bar-Anan et al., 2007;
Henderson, Trope, & Carnevale, 2006; Kim, Zhang, & Li, 2008), and behaviour (Henderson et
al., 2006; Trope et al., 2007). One of the psychological dimensions, temporal distance, refers
to distance in time; how much time separates the perceiver’s present time and the event (Herzog,
Hansen, & Wänke, 2007). For example, the temporal distance of a certain element can be
presented as a proximal situation or as a situation in the distant future. An important distinction
can be made between desirability concerns, which involve the value of the end-state, and
feasibility concerns which involve the means to reach the end-state (Trope et al., 2007). This
implies that as psychological distance increases, a person will anticipate on desirability rather
than feasibility (Liberman & Trope, 1998; Trope et al., 2007), which can be interpreted as
seeing the distant future as more positive but maybe less realistic than the near future (Eyal,
Liberman, Trope, & Walther, 2004; Mitchell, Thompson, Peterson, & Cronk, 1997; Savitsky,
12
Medvec, Charlton, & Gilovich, 1998; Trope & Liberman, 2003). A second relevant dimension
of CLT is hypothetical distance. Hypothetical distance refers to the likelihood of an event
occurring. According to CLT, an event that has a high hypothetical distance will be processed
at a high level construal and is unlikely to occur, while a low hypothetical distance will be
processed at a low level construal and is relatively likely to occur (Bar-Anan et al., 2007; Trope
& Liberman, 2003; Trope & Liberman, 2010; Trope et al., 2007). Depending on their personal
perception of hypothetical distance, people might perceive certain situations to be more
probable than others.
Although construal level and psychological distance are related, they do not refer to the
exact same thing. Psychological distance refers to the perception of when or whether an event
occurs, while construal level refers to the perception of what will occur (Trope et al., 2007).
Nonetheless, the literature has reached a consensus that the relation between psychological
distance and construal level is bi-directional, which indicates that manipulations of level of
construal affect psychological distance in relatively the same way as psychological distance
influences level of construal (Trope & Liberman, 2010; Trope et al., 2007). It is for this reason
that the second study focusses on the congruence between the mind-set and the psychological
distance of the benefits and costs of disclosing personal data. With regards to online privacy,
when consumers are in a concrete mind-set and they are offered certain benefits with a low
temporal distance, they will be more likely to act upon these temporally close benefits.
Accordingly, when consumers are in an abstract mind-set and they are offered certain benefits
with a high temporal distance, they will be more likely to act upon these temporally far benefits.
Indeed, this provides evidence that a bi-directional link between temporal distance and mind-
set exists (Wakslak & Trope, 2009). Wakslak & Trope (2009) revealed that when participants
were asked to focus on abstract aspects rather than concrete aspects, they would see the activity
13
as temporally distant. These assumptions are an important starting point for this study when
manipulating the temporal distance of the benefits and costs and the mind-set of the participants.
2.3. Online information disclosure
On a daily basis consumers are active in the online environment. They log in on websites with
their personal information and they accept cookies, leaving a trail of data for companies to
accumulate and store. This information is critical for companies for targeting individuals with
customised products and, conversely, consumers benefit when they are receiving relevant
information (Chen & Popovich, 2003). However, the collected information might be misused,
after which consumers are exposed to the consequences of big data.
2.3.1. Costs and risks. Whenever consumers disclose personal information online,
they are exposed to potential risks and intrusion of their privacy. Youn (2005) developed
relevant components of perceived risk that consumers can encounter during their presence on
the Internet. First of all, time risk refers to the perception that time would be wasted in receiving,
checking, and removing unsolicited spam mail. Consumers not only feel that they are wasting
time, research also showed that consumers feel their privacy is being violated when they receive
unsolicited e-mail messages from companies (Miyazaki & Fernandez, 2001). Secondly,
consumers will have a feeling of physical risk when they expect their personal information to
be misused by companies. Correspondingly, websites might not use it solely for their own gain,
they might share or sell information to third-party companies, leading to unauthorised access to
personal information (Miyazaki & Fernandez, 2001). The usage of data by third-party
companies is seen as one of the most significant risks that consumers face, presenting
companies with an important role to reassure consumers and offer benefits in return.
2.3.2. Intrinsic and extrinsic benefits. An increasing amount of companies are
collecting big data to target products and services at the right consumers. Social exchange
14
theory posits that not only companies but also consumers can benefit from the accessibility of
personal information online. In exchange for consumers’ personal information businesses can
provide them with benefits to offset the costs and when the exchange is perceived to be
beneficial, consumers are likely to enter into a relationship with a company (Hui, Tan, & Goh,
2006; Li et al., 2010). It has been shown that consumers’ willingness to provide information
online may be influenced by the benefits they would obtain from voluntary disclosure (Youn,
2005). According to Hui et al. (2006), benefits can be categorised in those providing intrinsic
and those providing extrinsic motivation.
When people are intrinsically motivated, they may perform a task simply because the
act of performing the task offers them benefits. Pleasure and novelty are two of the intrinsic
benefits that Hui et al. (2006) describe. Pleasure can be defined as gaining an enjoyable
experience and novelty refers to the desire of gaining knowledge on a topic of interest. When
people are extrinsically motivated, they may perform an action to obtain benefits that serve as
a means to achieve other goals. Time saving is an important extrinsic benefit; it might offer the
consumer the convenience of faster login. Likewise, the resource exchange theory posits tha t
consumers are likely to trade privacy for speed and convenience of transactions. At the same
time, monetary benefits such as receiving loyalty points directly affect the willingness of
consumers to disclose personal information online (Hui et al., 2006).
According to the privacy calculus, a trade-off of these benefits and costs should lead
consumers to make informed decisions (Acquisti & Grossklags, 2004), yet, prior research on
the privacy paradox shows that consumers do not always act rationally. Several explanations
have been put forward, but none of those posited CLT as a possible explanation for this
irrational behaviour. Future research is needed to fully understand consumers’ intentions and
actual behaviour concerning privacy related issues. Therefore, the following section puts
forward a possible explanation for this discrepancy.
15
2.4. Relationship between Construal Level Theory and the privacy paradox
A consumer’s decision to disclose information is influenced by perceived benefits, risks, and
privacy concerns. A consumer grants certain value to individual beneficial and precarious
aspects, forming a so-called privacy calculus (Dinev & Hart, 2006; Li et al., 2010). When one
driver outweighs the other, it would determine a consumer’s final decision on whether or not to
disclose personal information online. Accordingly, the standard economics model assumes that
inter-temporal preferences are time-consistent, which would indicate that the moment in time
someone discloses information should not make a difference (O'Donoghue & Rabin, 2001).
However, evidence shows that people exhibit time-inconsistent behaviour, which implies that
a consumer’s preference for benefits gets stronger as the moment of gratification gets closer,
confirming present bias (Hardisty, Appelt, & Weber, 2013).
Consumers tend to over-value immediate rewards at the expense of long-term intentions
(O'Donoghue & Rabin, 2001). This implies that when the consequences are immediate, a
consumer should be more likely to put a higher weight on it. Correspondingly, as consequences
are temporally further away their relevance reduces (Trope et al., 2007). Research on construal
level shows that when people are in a concrete mind-set, they are more likely to rely on the
benefits and costs that are more proximal. Likewise, when people are in an abstract mind-set,
they are more likely to rely on the benefits and costs that are more distant. Both propositions
provide evidence for bridging present bias to construal level theory, granting an explanation for
the privacy paradox (Hardisty et al., 2013). This proposition indicates that psychological
distance and the privacy paradox might not be as detached as initially seems. According to the
privacy paradox, consumers disclose privacy related information for immediate benefits
(Acquisti, 2004). If this is true, consumer reliance on benefits or costs of personal data
disclosure should be influenced by the psychological distance of these benefits or costs (Trope
et al., 2007). Consistent with literature on present bias, people tend to be impatient and simply
16
want to have gains or benefits immediately to satisfy their desire for positive outcomes
(Hardisty et al., 2013). Research on CLT allows the researcher to enhance the principle of
present bias by proposing that merely under a concrete mind-set consumers have the tendency
to rely on proximal benefits or costs, proving a congruence between mind-set and psychological
distance of these benefits and costs. Therefore, the effect of the temporal distance on consumer
reliance on benefits and costs is assumed to be moderated by a consumer’s abstract or concrete
mind-set. Literature on CLT and the privacy paradox lead to the assumption that in typical
disclosure situations the benefits of disclosing personal data online are perceived as
psychologically closer than the costs of disclosing personal data online, providing proof that
consumers habitually rely on benefits (Trope et al., 2007).
Therefore, in this study, CLT will be applied to the existing literature on the privacy
paradox to show its effect on consumer behaviour and decision making. This research is based
on the proposition that manipulating the psychological distance of benefits and costs as well as
a consumer’s mind-set alters his inclination to disclose personal data. These aspects will be the
central issue in this research, as the results will provide evidence for the research question of
this study:
“How does the temporal distance of benefits and costs influence consumer reliance on benefits
and costs and its deriving information disclosure behaviour in the online environment?”
In order to support the research question, two consecutive studies will be executed.
The first study will focus on manipulating the temporal distance of benefits and costs to
measure the effect it has on the inclination to disclose personal data. According to CLT, benefits
and costs that have a low temporal distance will be proximal to occur, whereas benefits and
costs that have a high temporal distance will be perceived as distant. In addition, literature on
the privacy paradox shows that consumers are more likely to disclose personal data when they
have to behave instantaneously, rather than when they express their future concerns in advance.
17
This study will find proof that manipulating the temporal distance influences consumer reliance
on benefits and costs of disclosing personal data. The manipulation of this research will be
performed on the temporal distance of benefits and costs, therefore the following hypothesis
will be tested:
H1: Consumer reliance on benefits and costs is dependent upon the temporal distance of these
elements, such that people will base their decision more on the benefits when benefits are
proximal and costs are distant but more on the costs when costs are proximal and benefits are
distant.
The second study will compare the results of Study 1 to the effect of the consumer’ s
mind-set on the reliance on benefits and costs. In the present study, the effect of the temporal
distance on consumer reliance on benefits and costs will be moderated by the consumer mind-
set. This study will indicate that when participants are in a concrete mind-set, they are more
likely to rely on the benefits and costs that are more proximal. Likewise, when participants are
in an abstract mind-set, they are more likely to rely on the benefits and costs that are more
distant. This study will be executed in such a way that when benefits are temporally proximal
and costs are temporally distant, people in a concrete mind-set rely on benefits and people in
an abstract mind-set rely on costs, and when costs are temporally proximal and benefits are
temporally distant, people in a concrete mind-set rely on costs and people in an abstract mind-
set rely on benefits. For this study, the researchers are expecting an interaction effect of mind-
set and temporal distance. The manipulation of this study was performed on the mind-set of the
participant and on the temporal distance of benefits and costs. Therefore, the following
hypothesis will be tested:
H2: The effect of the temporal distance on consumer reliance on benefits and costs is moderated
by the consumer mind-set. Such that participants rely on consequences that are congruent with
their mind-set.
18
The following conceptual model provides a visual representation of the proposed hypothesis
presented above.
Consumer mind-set
Temporal distance
of benefits and
costs
Inclination to
disclose personal
data
Figure 1. Conceptual model – The effect of the temporal distance of benefits and costs on the inclination to disclose personal data is moderated by the consumer mind-set.
19
3. STUDY 1
Manipulation of the temporal distance of benefits and costs
3.1. Method
To test whether consumer reliance on benefits and costs and its subsequent information
disclosure behaviour is dependent upon temporal distance of these elements and not on the
benefits and costs itself, this research manipulated the temporal distance of benefits and costs.
To support the hypothesis, Study 1 consisted of three groups; 1) the first group of participants
was exposed to temporally proximal benefits and temporally distant costs, 2) the second group
of participants was exposed to temporally proximal costs and temporally distant benefits, and
3) the third group of participants functioned as a control group whereby the proximity of
temporal distance of benefits and costs were open for the participant’s own interpretation. The
information disclosure behaviour of the control group was expected to display a similar pattern
as the first group of participants, which supports the assumption that in typical disclosure
situations the benefits of disclosing personal data are perceived as psychologically closer than
the costs, providing proof that consumers habitually rely on benefits.
3.1.1. Design and procedure. I conducted an experimental design to examine the
effect of the temporal distance of benefits and costs occurring on the inclination to disclose
personal data. A 3x3 study was conducted: 3 (between-subjects: proximal benefits/distant costs
vs. proximal costs/distant benefits vs. control) x 3 (within-subjects: a website visit vs. Facebook
login vs. subscribing for a loyalty card). Each participant took part in all three scenarios, and
for each of these scenarios they were randomly assigned to only one of the temporal distance
conditions. Participants read a short story that was manipulated by the researcher; it emphasised
either proximal benefits and distant costs or proximal costs and distant benefits, or the short
20
story did not emphasise the temporal distance (control condition of the manipulated temporal
distance).
All constructs were measured using a multi-item, five-point Likert-type scale, and to
ensure construct validity scales from previous studies were adapted wherever possible. All three
groups of participants were exposed to the same questions so the data could be analysed on the
same constructs. This was done to find support that CLT is the underlying mechanism for the
privacy paradox. To measure the likelihood of disclosing personal data, a Likert scale was used
with “very unlikely” and “very likely” as anchors (Sparks & Browning, 2011), and respondents
had to describe on what information they based their decision. With the use of the same Likert
scale, the likelihood of consequences and/or benefits of disclosing personal data was measured.
The likelihood of benefits and costs occurring was examined to exclude that the hypothetical
distance influenced the results. To measure if respondents believe disclosing personal
information can be used to optimise a company’s products, to display relevant content, to make
the browsing experience more efficient, or to save time the next time logging in, a Likert scale
was used with “strongly disagree” and “strongly agree” as anchors (Jamieson, 2004). With the
use of the same Likert scale, respondents were asked to what extent they agreed with the fact
that accepting cookies, logging in with Facebook and subscribing for a loyalty card are used to
pass information on to third parties or to target consumers with unsolicited spam. Existing forms
of measurement of these constructs were used and adapted to the understanding of the
constructs in this research (Miyazaki & Fernandez, 2001; Youn, 2005). Subsequently, the
expected timespan of benefits and costs of disclosing personal data actually occurring were
probed as a manipulation check of the temporal distance. CLT research uses time periods such
as next year or two-to-six months to represent distant future events, whereas time periods such
as one month, next week, or tomorrow represent near future events (Nussbaum et al., 2003).
21
3.1.2. Participants. The population for this study consisted of male and female
students from different levels of education in The Netherlands. The size of this population was
retrieved from Centraal Bureau van de Statistiek (CBS)1 and consists of 1.185.257 students in
2014-2015. With a margin of error of 5% and a confidence level of 95%, the recommended
sample size was 385 respondents, indicating that a sample of 128 participants per scenario was
acknowledged to be sufficient2. Since the population is quite large and the researcher did not
have access to all the students in the population, a convenience sample was carried out. The
survey was distributed online across various social media to reach the target group. For this
study, students were chosen because they are naturally part of the population of interest as they
have experience using the Internet. During the period of data collection, a total of 143 students
were assigned to all three scenarios.
3.2. Results
3.2.1. Testing for assumptions of ANOVA
Missing values and outliers
All variables under investigation were checked for missing data. The amount of missing data
was < 10% for all dependent variables, which implied that some respondents did not finish the
questionnaire. For the correlation analyses, pairwise deletion of these cases was used. The
outliers were examined to ensure no data entry or instrument errors were made and, fortunately,
no outliers were detected.
1 http://www.stamos.nl/index.rfx?verb=showitem&item=8.27&view=table 2 http://www.raosoft.com/samplesize.html
22
Homogeneity of variances
Levene’s test indicated that the assumption of homogeneity of variance had not been violated
with regards to the manipulation of the temporal distance for the inclination to disclose personal
data (p = .199), the likelihood of costs (p = .882), the likelihood of benefits (p = .172), the
timespan of the costs (p = .575), and the timespan of the benefits (p = .057).
3.2.2. Demographic variables
First preliminary analyses compared demographic variables to the main variable of interest; the
inclination to disclose personal data. Bivariate correlations showed no significant correlation
between age (M = 24.5, SD = 5.33) and the inclination to disclose personal data, r(125) = .06,
p = .520. Also, there was no significant correlation between gender (40% male, 60% female)
and the inclination to disclose personal data, r(124) = -.07, p = .425. The results suggested no
significant correlations between the study variables. Hence, none of the demographic variables
were used as covariates in subsequent analyses.
Hypothesis 1: Consumer reliance on benefits and costs is dependent upon the temporal
distance of these elements, such that people will base their decision more on the benefits when
benefits are proximal and costs are distant but more on the costs when costs are proximal and
benefits are distant.
The results of Study 1 should indicate that respondents act according to the element (benefit or
cost) that has the closest proximity of occurring. Accordingly, results should indicate that
participants are more likely to disclose personal data in the proximal benefits/distant costs
condition than in the proximal costs/distant benefits condition. Several manipulation checks
had to be executed to confirm this hypothesis.
23
3.2.3. Manipulation checks of temporal distance on the timespan of benefits and costs
The manipulation of temporal distance should have significantly influenced the timespan of
benefits and costs occurring. Indicating that participants who are in the proximal
benefits/distant costs condition are more likely to disclose personal data than people in the
proximal costs/distant benefits condition.
Two manipulation checks were conducted to find evidence that the manipulation of
temporal distance had succeeded. Participants were asked within what timespan they expected
to encounter benefits or costs. The researcher predicted that when consumers were participating
in the proximal benefits/distant costs condition, they would indicate the temporal distance of
the benefits to be significantly lower than the temporal distance of the costs. Likewise, in the
proximal costs/distant benefits condition, participants were expected to evaluate the temporal
distance of the costs to be significantly lower than the temporal distance of the benefits.
A one-way ANOVA showed that there was a statistically significant difference between
the proximal benefits/distant costs condition (M = 2.65, SD = 1.34) and the proximal
costs/distant benefits condition (M = 2.03, SD = 1.31) for timespan of the costs, F(1, 126) =
6.86, p = .010, η² = 0.05. However, a one-way ANOVA showed that there was no significant
difference between the proximal benefits/distant costs condition (M = 1.66, SD = 1.10) and the
proximal costs/distant benefits condition (M = 2.02, SD = 1.27) for timespan of the benefits,
F(1, 126) = 2.82, p = .096, η² = 0.02.
To confirm that these results are attributable to the manipulated temporal distance and
not to the perceived hypothetical distance, the likelihood of benefits and costs occurring was
measured. As expected, analyses did not yield significant results between participants in the
proximal benefits/distant costs condition (M = 3.78, SD = 1.02) and participants in the proximal
costs/distant benefits condition (M = 4.02, SD = 1.06) in reporting the likelihood of costs, F(1,
127) = 1.67, p = .198, η² = 0.01. Likewise, no significant results were found between
24
participants in the proximal benefits/distant costs condition (M = 3.87, SD = 0.92) and
participants in the proximal costs/distant benefits condition (M = 3.65, SD = 1.03) in reporting
the likelihood of benefits, F(1, 127) = 1.65, p = .202, η² = 0.01.
3.2.4. Temporal distance of benefits and costs on disclosure of personal data
The manipulation of temporal distance of benefits and costs should have significantly
influenced the inclination to disclose personal information. Indicating that participants who are
in the proximal benefits/distant costs condition are more likely to disclose personal data than
people in the proximal costs/distant benefits condition. A one-way ANOVA yielded a
significant main effect that participants were more likely to disclose personal data in the
proximal benefits/distant costs condition (M = 3.23, SD = 1.31) than in the proximal
costs/distant benefits condition (M = 2.72, SD = 1.41), F(1, 140) = 4.92, p = .028, η² = 0.03.
This significant result supports the hypothesis, showing that as temporal distance of the costs
increases, the inclination to disclose personal data will increase.
25
4. STUDY 2
Manipulation of the mind-set and temporal distance of benefits and costs
4.1. Method
Study 2 examined to what extent consumer reliance on benefits and costs and its subsequent
inclination to disclose personal information was dependent upon these elements, by
manipulating mind-set and temporal distance of benefits and costs. Under a concrete mind-set,
consumers should have the tendency to rely on proximal benefits or costs, proving a congruence
between mind-set and psychological distance of these benefits and costs. This study explored
if indeed the effect of the temporal distance on consumer reliance on benefits and costs was
moderated by the consumer’s abstract or concrete mind-set. Results should indicate whether
this effect is reliant upon the congruence between mind-set and psychological distance of
benefits and costs.
Study 2 consisted of three groups of mind-set manipulations; 1) concrete mind-set, 2)
abstract mind-set, and 3) a control group. Furthermore, the study consisted of three
manipulations of temporal distance; 1) the first group of participants was exposed to temporally
proximal benefits and temporally distant costs, 2) the second group of participants was exposed
to temporally proximal costs and temporally distant benefits, and 3) the third group of
participants functioned as a control group whereby the proximity of temporal distance of
benefits and costs was not emphasised.
4.1.1. Design and procedure. We conducted an experimental design to examine the
effect of the manipulation of the mind-set and the manipulation of temporal distance of benefits
and costs on the inclination to disclose personal data. A 3x3x3 study was conducted: 3
(between-subjects: concrete mind-set vs. abstract mind-set vs. control) x 3 (between-subjects:
proximal benefits/distant costs vs. proximal costs/distant benefits vs. control) x 3 (between-
26
subjects: a website visit vs. Facebook login vs. sharing data with app). Each participant took
part in two of the three scenarios, and for each of these scenarios they were randomly assigned
to only one of the manipulated mind-set conditions and one of the manipulated temporal
distance conditions. The outcomes of this testing should support H2 by showing a relation
between 1) concrete mind-set & proximal benefits/distant costs, 2) concrete mind-set &
proximal costs/distant benefits, 3) abstract mind-set & proximal benefits/distant costs, and 4)
abstract mind-set & proximal costs/distant benefits.
All constructs were measured using multi-item Likert-type scales, and to ensure
construct validity scales from previous studies were adapted wherever possible. All participants
were exposed to the same questions to analyse the data on the same constructs to find support
that CLT is the underlying mechanism for the privacy paradox. In Study 2, participants read a
short story manipulated by the researcher by either stimulating the participant’s concrete mind-
set, abstract mind-set, or by narrating a story on grasshoppers (control condition of the
manipulated mind-set) (Fujita, Trope, Liberman, & Levin-Sagi, 2006). Thereafter, participants
were asked several probing questions to make certain that they had been brought in the right
mind-set. Subsequently, participants got the task to select the identification that best described
their behaviour. Participants were confronted with a statement of an action followed by two
options; an action in terms of either how it was performed, which is consistent with lower-levels
construals or an option of why it was performed, which is consistent with higher-level
construals (Fujita et al., 2006). These questions were based on the Behaviour Identification
Form, containing questions assessing the level at which individuals construe certain activities
(Vallacher & Wegner, 1989).
The second manipulation of this research was performed on the temporal distance of
benefits and costs. Participants were presented a short story on three different scenarios; a
website visit, using Facebook to log in, and sharing data with an app. Participants were
27
presented questions on their likelihood to disclose personal data and they had to describe to
what extend they actually perceived benefits and costs of disclosing data to be disadvantageous
or advantageous. To measure the likelihood of disclosing data, a seven-point Likert scale was
used with “very unlikely” and “very likely” as anchors (Sparks & Browning, 2011). Open-
ended questions were used to record advantages and disadvantages of disclosing personal
information. In addition, a five-point scale was used to verify whether participants saw the
potential positive and negative aspects of sharing data to be disadvantageous or advantageous.
Last of all, the timespan of consequences and/or benefits of disclosing personal data occurring
was measured. The expected timespan of benefits and costs actually occurring was probed as a
manipulation check. CLT research uses time periods such as next month, half a year, and a year
to represent distant future events, whereas time periods such as immediately, tomorrow, or next
week to represent near future events (Nussbaum et al., 2003).
4.1.2. Participants. The population for this study consisted of male and female
participants from different levels of education from all countries. Since the population is quite
large and the researcher did not have access to all the students in the population, a convenience
sample was carried out. The survey was distributed online across various social media to reach
the target group. During the period of data collection, a total of 178 participants were assigned
to two of the three scenarios.
4.2. Results
4.2.1. Testing for assumptions of ANOVA
Missing values and outliers
All variables under investigation were checked for missing data. The amount of missing data
was < 10% for all dependent variables, which implies that some respondents did not finish the
28
questionnaire. The outliers were examined to ensure no data entry or instrument errors were
made and, fortunately, no outliers were detected.
Homogeneity of variance
Levene’s test indicated that the assumption of homogeneity of variance had not been violated
with regards to the manipulation of the temporal distance for the inclination to disclose personal
data (p = .545) and the timespan of the costs (p = .054). However, the assumption of
homogeneity of variance was violated for the timespan of the benefits (p < .001). Levene’s test
indicated that the assumption of homogeneity of variance had not been violated with regards to
the manipulation of the mind-set for the inclination to disclose personal data (p = .746).
4.2.2. Demographic variables
First preliminary analyses compared demographic variables to the main variable of interest; the
inclination to disclose personal data. Bivariate correlations showed a significant correlation
between age (M = 25.7, SD = 8.08) and the inclination to disclose personal data, r(160) = -.21,
p = .007. This might be explained by the fact that younger generations seem more comfortable
with the exchange of privacy as they are more likely to act according to the social exchange
theory. Also, consumers of the current generation are more likely to disclose personal data
because they believe that both authenticity and reputation originate from their online presence
(Sprague, 2007). There was no significant correlation between gender (36% male, 64% female)
and the inclination to disclose personal data, r(162) = -.13, p = .110. No significant correlation
was found between education and the inclination to disclose personal data, r(162) = -.02, p =
.805, and the same was true for time spend online and the inclination to disclose personal data,
r(162) = .13, p = .103. Hence, the demographic variables above were not used as covariates in
subsequent analyses.
29
Hypothesis 2: The effect of the temporal distance on consumer reliance on benefits and costs
is moderated by the consumer mind-set. Such that participants rely on consequences that are
congruent with their mind-set.
The results of Study 2 should indicate that respondents act according to the element (benefit or
cost) that is congruent with their mind-set. Accordingly, the results should indicate that when
participants are in a concrete mind-set, they are more likely to rely on the benefits and costs
that are more proximal. Several manipulation checks had to be executed to confirm this
hypothesis.
4.2.3. Manipulation checks of temporal distance on the timespan of the costs and benefits
A one-way ANOVA on timespan of the costs showed that there was a statistically significant
difference between the proximal benefits/distant costs condition (M = 3.67, SD = 2.25), the
proximal costs/distant benefits condition (M = 2.42, SD = 1.88), and the control condition (M
= 3.78, SD = 2.21), F(2, 161) = 6.96, p = .001, η² = 0.08. The significant outcome of this
ANOVA indicates that there is a difference between the three conditions, however planned
contrasts had to be carried out to find the origin of the significant results.
Planned contrasts revealed that any manipulation of the temporal distance of the benefits
and costs significantly influenced the perceived time span of the costs compared to the control
group, t(161) = 2.07, p = .039. Predominantly, contrasts revealed a significant difference
between the proximal benefits/distant costs condition and the proximal costs/distant benefits
condition, t(161) = -3.10, p = .002, d = 0.60. This indicates that in the proximal benefits/distant
costs condition, costs are perceived to be temporally further away than in the proximal
costs/distant benefits condition, meaning that the manipulation of temporal distance was
successful. It is assumed that in typical disclosure situations (control condition) people rely
more on the proximal benefits than on the proximal costs. As expected, planned contrasts
30
showed no significant difference between the proximal benefits/distant costs condition, and the
control condition t(161) = 0.26, p = .796, d = 0.05.
A one-way ANOVA on the timespan of the benefits showed that there was a statistically
significant difference between the proximal benefits/distant costs condition (M = 1.60, SD =
1.36), the proximal costs/distant benefits condition (M = 2.42, SD = 2.07), and the control
condition (M = 1.41, SD = 1.09), F(2, 161) = 6.45, p = .002, η² = 0.08. The significant outcome
of this ANOVA indicates that there is a difference between the three conditions, however
planned contrasts had to be carried out to find the origin of the significant results.
Planned contrasts revealed that any manipulation of the temporal distance of the benefits
and costs significantly influenced the perceived time span of the benefits compared to the
control group, t(161) = -2.32, p = .022. Predominantly, contrasts revealed a significant
difference between the proximal benefits/distant costs condition and the proximal costs/distant
benefits condition, t(161) = 2.74, p = .007, d = 0.47. This indicates that in the proximal
benefits/distant costs condition, benefits are perceived to be temporally closer than in the
proximal costs/distant benefits condition, meaning that the manipulation of temporal distance
was successful. It is assumed that in typical disclosure situations (control condition) people rely
more on the proximal benefits than on the proximal costs. As expected, planned contrasts
showed no significant difference between the proximal benefits/distant costs condition, and the
control condition t(161) = -0.64, p = .521, d = 0.15.
4.2.4. Main effects and interaction effect of the mind-set, temporal distance, and scenario
on the inclination to disclose personal data
For the reason that all manipulation checks were successful, a factorial ANOVA was conducted
to measure the effect of the independent variables on the dependent variable and to find
31
evidence to support the hypothesis. The first three analyses focused on the main effect of all
three independent variables on the inclination to disclose personal data (DV). Subsequently,
analyses were performed to find an interaction effect of mind-set and temporal distance on the
inclination to disclose personal data.
The main effect of mind-set on the inclination to disclose information was not
significant, F(2, 140) = 0.02, p = .980. Accordingly, the concrete mind-set, abstract mind-set,
and the control group did not differ on the reported amounts of the inclination to disclose
personal data. These results confirm that there is no main effect of mind-set on the inclination
to disclose personal data. The main effect of temporal distance on the inclination to disclose
information was not significant, F(2, 140) = 0.92, p = 0.402. In view of that, the conditions of
proximal benefits/distant costs, proximal costs/distant benefits, and the control group did not
differ on the reported amounts of the inclination to disclose personal data. The main effect of
scenario on inclination to disclose personal data was not significant either, F(2, 140) = 1.38, p
= .256. Likewise, website visit, Facebook login, and sharing data with an app did not differ on
the reported amounts of inclination to disclose personal data. All the analyses above yielded
non-significant results on the main effects, confirming the expectations of the researchers (table
1).
The manipulations of mind-set and temporal distance were expected to significantly
influence the inclination to disclose personal information. This would indicate that when
benefits are temporally proximal and costs are temporally distant, people in a concrete mind -
set rely on benefits and people in an abstract mind-set rely on costs, and when costs are
temporally proximal and benefits are temporally distant, people in a concrete mind-set rely on
costs and people in an abstract mind-set rely on benefits. This assumption was expected to be
true to indicate an interaction effect of mind-set and temporal distance on the inclination to
disclose personal data.
32
A two-way between-groups analysis of variance was conducted to explore the impact of mind-
set and temporal distance on the inclination to disclose personal data. Participants were divided
into three groups according to their manipulated mind-set (Group 1: abstract mind-set, Group
2: concrete mind-set, Group 3: control) and they were allocated to a manipulated temporal
distance condition (Group 1: proximal benefits/distant costs, Group 2: proximal costs/distant
benefits, Group 3: control). The interaction effect between mind-set and temporal distance was
not statistically significant, F(4, 140) = 1.01, p = .405 (table 1).
Table 1. Main effects and interaction effect of the mind-set, temporal distance, and scenario on the inclination to disclose personal data.
Inclination to disclose personal data
Variable
F
p
η²
Mind-set 0.020 .980 .000
Scenario 1.375 .256 .019
Temporal Distance 0.918 .402 .013
Mind-set*Scenario 0.829 .509 .023
Mind-set*Temporal Distance 1.009 .405 .028
Scenario*Temporal Distance 1.629 .170 .044
Mind-set*Scenario*Temporal Distance 0.847 .563 .046
R2 = .137 (Adjusted R2 = -.023)
These results imply that hypothesis 2 was not supported as the mind-set did not significantly
moderate the effect of the temporal distance of benefits and costs on the inclination to disclose
personal data (figure 2).
33
Figure 2. Interaction effect between mind-set and temporal distance on the inclination to disclose personal data
3,000
3,200
3,400
3,600
3,800
4,000
4,200
4,400
4,600
Abstract Concrete Control
Tem
po
ral
dis
tan
ce o
f
ben
efi
ts a
nd
co
sts
Mind-set
Inclination to disclose personal data
Proximal benefits / distant costs Proximal costs / distant benefits
34
5. DISCUSSION AND CONCLUSION
Since online privacy is a controversial topic and no research has been conducted on whether
CLT accounts for the privacy paradox, this study will be of high value to academics. Even
though not all the aspects of the hypotheses were supported, the results have relevant
implications for academic literature and marketers. The fact that consumer reliance on benefits
and costs is dependent upon the temporal distance of these elements is a novel finding, offering
opportunities for marketers to apply this knowledge in their business strategies.
5.1. Study 1
The first study manipulated the temporal distance of benefits and costs to understand the effect
it has on the disclosure of personal data. This effect was expected based on Construal Level
Theory, which reveals that people rely on the element that has the highest proximity of
occurring (Trope et al., 2007). The results of the present study found proof for hypothesis 1,
which predicted that consumer reliance on benefits and costs is dependent upon the temporal
distance of these elements, such that people will base their decision more on the benefits when
benefits are proximal and costs are distant but more on the costs when costs are proximal and
benefits are distant. In sum, consumers will rely more on the benefits (costs) of disclosing
personal data when these benefits (costs) are presented as temporally close.
Generally, based on the results described in Study 1 it can be concluded that participants
were more likely to disclose personal data when the benefits of disclosing personal data were
temporally close in the proximal benefits/distant costs condition than when the costs of
disclosing personal data were temporally close in the proximal costs/distant benefits condition.
The results confirmed the expectations of hypothesis 1, which stated that an increase of the
temporal distance of the costs leads to an increase of the inclination to disclose personal data.
35
However, results did not find evidence that an increase of the temporal distance of the benefits
leads to a decrease of the inclination to disclose personal data.
Overall, these results provide valuable insights for academics and marketers in practice.
Previous research showed that the privacy paradox exists when consumers report high values
of privacy concerns, but still display behaviour that contradicts their concerns. Several
explanations for this paradox have been put forward by academics, but none researched the
influence of psychological distance on the privacy paradox. Psychological distance is widely
acknowledged to demonstrate a subjective representation of something close or far away from
a consumer, presenting marketers opportunities to act accordingly. Firstly, it is advisable for
marketers to emphasise a consumer’s expected benefits of disclosing personal data to amplify
their inclination to disclose information. This supposition arises from the fact that consumers
tend to disclose more personal information when the benefits are expected to be occurring soon.
Secondly, results showed that temporal distance guided consumer predictions and behaviour,
demonstrating that the temporal distance affected consumer reliance on benefits and costs.
Implications for marketers consist of opportunities to reassure consumers that they are acting
in the consumer’s best interest. So, based on CLT, marketers should emphasise immediate
benefits sharing data if they want consumers to disclose personal information. The collection
and processing of this information by companies in turn provides consumers with further
benefits. These findings imply that privacy conscious consumers are more likely to disclose
personal data when the benefits of disclosing personal data are temporally close, providing
evidence that CLT can be an underlying mechanism for the privacy paradox.
The outcomes of the first study gave the researcher input for conducting a second study.
The researcher proposed that the temporal distance of benefits and costs, when moderated by
the mind-set of consumers, influences the inclination to disclose personal data.
36
5.2. Study 2
This study manipulated the mind-set of participants and the temporal distance of benefits and
costs to understand the effect it has on the disclosure of personal data. The results of the second
study indicated that in the proximal benefits/distant costs condition, costs were perceived to be
temporally further away than in the proximal costs/distant benefits condition. Likewise, in the
proximal benefits/distant costs condition, benefits were perceived to be temporally closer than
in the proximal costs/distant benefits condition. As expected, results confirmed that there is no
main effect of mind-set, temporal distance of benefits and costs, or scenario to which the
participants were exposed on the inclination to disclose personal data. These results were
predicted because participants were exposed to a combination of two manipulations. They were
first exposed to a manipulation of the mind-set and subsequently to a manipulation of temporal
distance. This information is valuable because it was expected that the combined manipulation
of both mind-set and temporal distance yielded significant results, and not each independent
variable by itself. Unfortunately, the study did not find concrete evidence to support hypothesis
2, which predicted that there would be an interaction effect of mind-set and temporal distance
on the inclination to disclose personal information. Nevertheless, these results do provide
marketers and academics with some valuable insights in the behaviour of privacy conscious
consumers.
Prior research revealed that consumers are becoming progressively more anxious of the
amount of personal information that is available online. Yet, they display contradicting
behaviour. Consumers are continuously exposed to consequences of sharing data, which makes
it difficult for them to make informed decisions on whether or not to share data. Therefore, the
role of marketers is to make consumers feel at ease and eliminate the contradiction between
attitude and behaviour. Firstly, it is advisable for marketers to clearly communicate the benefits
of sharing personal data. Literature on CLT and the privacy paradox propose that the benefits
37
of disclosing personal data online are perceived as psychologically closer than the costs of
disclosing personal data online. Hence, priming the immediate benefits would positively
influence the consumer’s inclination to disclose personal data. Secondly, implications for
researchers consist of guiding consumers into an adequate mind-set when they are making
decisions on disclosing information. When consumers have to share information immediately,
they act according to their concrete mind-set and habitually rely on the benefits of disclosing
personal data. This assumption arises from the fact that consumers tend to disclose more
personal information when the benefits are expected to be occurring soon. Whereas when
consumers express their privacy concerns they behave according to their abstract mind-set and
rely on the future costs of disclosing personal data.
The present study did not provide sufficient evidence that there is an actual linkage
between mind-set, temporal distance of benefits and costs, and the inclination to disclose
personal information. This meant that there is no proof that when benefits are temporally
proximal and costs are temporally distant, people in a concrete mind-set rely on benefits and
people in an abstract mind-set rely on costs, and when costs are temporally proximal and
benefits are temporally distant, people in a concrete mind-set rely on costs and people in an
abstract mind-set rely on benefits. Even though the results were not evaluated significantly, the
outcomes did show tendency towards supporting the hypothesis.
In conclusion, the results of both studies indicate that temporal distance has a
fundamental influence on the inclination to disclose personal information, however, consumer
mind-set does not moderate this effect. So, further research is required to expose whether an
altered manipulation of theories on construal level explains the privacy paradox. Other
dimensions of psychological distance, combined with a manipulated mind-set, might accentuate
the observed results, leading to opportunities for future studies.
38
6. LIMITATIONS AND FUTURE RESEARCH
As the results indicated, the proposed model was not fully supported and several limitations
underlay this problem. One limitation of this study is related to the options for the assessment
of the timespan. In the first study time periods such as tomorrow, next week or one month were
presented as near future events, whereas time periods such as two-to-six months or next year
were presented as distant future events. However, results showed that people found it difficult
to interpret abstract benefits and costs and appoint them to concrete moments in time. For the
second study, different time periods were presented to make the options more accessible for
respondents. In this study the extreme options ‘immediately’ (1) and ‘distant future’ (7) were
chosen more often, but the options ‘next week (2), ‘one month’ (3), and ‘half a year’ (4) were
still intangible for respondents. These outcomes lead to variations in the results, which should
be prevented in further research. Nevertheless, the results showed significant results for the
manipulation of the temporal distance, so the outcomes of the present research were not
jeopardised. Another limitation illustrates that this survey approach provides only a snapshot
of the situation at a certain point in time, yielding little information on the underlying meaning
of the results. For example, participants could have had bad experiences with the proposed
information disclosure situations unbeknownst of the researcher’s awareness. Likewise, at the
time of taking part in the survey participants could have been influenced by unforeseen
environmental factors.
Taking everything into account, future research is needed to modify the research method
and to re-examine the rejected hypothesis. Results showed that there was no interaction effect
of mind-set and temporal distance on the inclination to disclose personal data, which leaves the
underlying reason of the privacy paradox still unanswered. For future research it might be of
importance to consider a couple of aspects. Even though consumers are confronted with
immediate disadvantages of sharing data, results show that they still share their information.
39
This might seem unexpected, but the results from the open-ended questions reveal that
participants decided to share their personal information because otherwise the website would
not grant them access. This consequence leads to variations in the results, compromising the
outcome of the current research. Even though participants were confronted with a proximal
costs/distant benefits situation, some results show a high likelihood of information disclosure,
explained by answers such as “because I always accept cookies”. These results can be explained
by previous research, which showed that future disclosure of personal information is not
necessarily associated with perceived risk, but rather with the antecedent of past behaviour of
having done it before. Lastly, consumers might share their data sooner when they feel that they
do not have the time to consider other alternatives. Some respondents admit that even though
they know the risks, they find it very convenient to log in with their Facebook account instead
of creating several new accounts. These explanations confirm previous research in which saving
time was seen as a positive outcome of sharing personal data. Some of the results described
above seem to contradict each other, so future research should take these limitations into
account and take them as a starting point.
40
REFERENCES
Acquisti, A. (2004). Privacy and security of personal information. Economics of information
security (pp. 179-186) Springer.
Acquisti, A., & Grossklags, J. (2004). Privacy attitudes and privacy behavior. Economics of
information security (pp. 165-178) Springer.
Acquisti, A., Brandimarte, L., & Loewenstein, G. (2015). Privacy and human behavior in the
age of information. Science (New York, N.Y.), 347(6221), 509-514.
doi:10.1126/science.aaa1465
Arons, M. D. S., van den Driest, F., & Weed, K. (2014). The ultimate marketing machine.
Harvard Business Review, 92(7), 54-63.
Awad, N. F., & Krishnan, M. (2006a). The personalization privacy paradox: An empirical
evaluation of information transparency and the willingness to be profiled online for
personalization. MIS Quarterly, 13-28.
Awad, N. F., & Krishnan, M. (2006b). The personalization privacy paradox: An empirical
evaluation of information transparency and the willingness to be profiled online for
personalization. MIS Quarterly, 13-28.
Bar-Anan, Y., Liberman, N., Trope, Y., & Algom, D. (2007). Automatic processing of
psychological distance: Evidence from a stroop task. Journal of Experimental
Psychology: General, 136(4), 610.
Bélanger, F., & Crossler, R. E. (2011). Privacy in the digital age: A review of information
privacy research in information systems. MIS Quarterly, 35(4), 1017-1042.
41
Chen, I. J., & Popovich, K. (2003). Understanding customer relationship management (CRM)
people, process and technology. Business Process Management Journal, 9(5), 672-688.
Debatin, B., Lovejoy, J. P., Horn, A., & Hughes, B. N. (2009). Facebook and online privacy:
Attitudes, behaviors, and unintended consequences. Journal of Computer‐Mediated
Communication, 15(1), 83-108.
Deuker, A. (2010). Addressing the privacy paradox by expanded privacy awareness–the
example of context-aware services. Privacy and identity management for life (pp. 275-
283) Springer.
Dinev, T., & Hart, P. (2006). An extended privacy calculus model for e-commerce
transactions. Information Systems Research, 17(1), 61-80.
Eyal, T., Liberman, N., Trope, Y., & Walther, E. (2004). The pros and cons of temporally
near and distant action. Journal of Personality and Social Psychology, 86(6), 781.
Fujita, K., Trope, Y., Liberman, N., & Levin-Sagi, M. (2006). Construal levels and self-
control. Journal of Personality and Social Psychology, 90(3), 351.
Gross, R., & Acquisti, A. (2005). Information revelation and privacy in online social
networks. Proceedings of the 2005 ACM Workshop on Privacy in the Electronic Society,
71-80.
Hardisty, D. J., Appelt, K. C., & Weber, E. U. (2013). Good or bad, we want it now: Fixed‐
cost present bias for gains and losses explains magnitude asymmetries in intertemporal
choice. Journal of Behavioral Decision Making, 26(4), 348-361.
42
Henderson, M. D., Trope, Y., & Carnevale, P. J. (2006). Negotiation from a near and distant
time perspective. Journal of Personality and Social Psychology, 91(4), 712.
Herzog, S. M., Hansen, J., & Wänke, M. (2007). Temporal distance and ease of retrieval.
Journal of Experimental Social Psychology, 43(3), 483-488.
Hui, K., Tan, B. C., & Goh, C. (2006). Online information disclosure: Motivators and
measurements. ACM Transactions on Internet Technology (TOIT), 6(4), 415-441.
Jamieson, S. (2004). Likert scales: How to (ab) use them. Medical Education, 38(12), 1217-
1218.
Keith, M. J., Thompson, S. C., Hale, J., Lowry, P. B., & Greer, C. (2013). Information
disclosure on mobile devices: Re-examining privacy calculus with actual user behavior.
International Journal of Human-Computer Studies, 71(12), 1163-1173.
Kim, K., Zhang, M., & Li, X. (2008). Effects of temporal and social distance on consumer
evaluations. Journal of Consumer Research, 35(4), 706-713.
Li, H., Sarathy, R., & Xu, H. (2010). Understanding situational online information disclosure
as a privacy calculus. Journal of Computer Information Systems, 51(1), 62.
Liberman, N., Sagristano, M. D., & Trope, Y. (2002). The effect of temporal distance on level
of mental construal. Journal of Experimental Social Psychology, 38(6), 523-534.
Liberman, N., & Trope, Y. (1998). The role of feasibility and desirability considerations in
near and distant future decisions: A test of temporal construal theory. Journal of
Personality and Social Psychology, 75(1), 5.
43
Liberman, N., Trope, Y., McCrea, S. M., & Sherman, S. J. (2007). The effect of level of
construal on the temporal distance of activity enactment. Journal of Experimental Social
Psychology, 43(1), 143-149.
Liberman, N., Trope, Y., & Stephan, E. (2007). Psychological distance. Social Psychology:
Handbook of Basic Principles, 2, 353-383.
Metzger, M. J. (2004). Privacy, trust, and disclosure: Exploring barriers to electronic
commerce. Journal of Computer‐Mediated Communication, 9(4), 00-00.
Mitchell, T. R., Thompson, L., Peterson, E., & Cronk, R. (1997). Temporal adjustments in the
evaluation of events: The “rosy view”. Journal of Experimental Social Psychology,
33(4), 421-448.
Miyazaki, A. D., & Fernandez, A. (2001). Consumer perceptions of privacy and security risks
for online shopping. Journal of Consumer Affairs, 35(1), 27-44.
Norberg, P. A., Horne, D. R., & Horne, D. A. (2007). The privacy paradox: Personal
information disclosure intentions versus behaviors. Journal of Consumer Affairs, 41(1),
100-126.
Nussbaum, S., Trope, Y., & Liberman, N. (2003). Creeping dispositionism: The temporal
dynamics of behavior prediction. Journal of Personality and Social Psychology, 84(3),
485.
O'Donoghue, T., & Rabin, M. (2001). Choice and procrastination. Quarterly Journal of
Economics, 121-160.
44
Phelps, J., Nowak, G., & Ferrell, E. (2000). Privacy concerns and consumer willingness to
provide personal information. Journal of Public Policy & Marketing, 19(1), 27-41.
Rainie, L., Kiesler, S., Kang, R., Madden, M., Duggan, M., Brown, S., & Dabbish, L. (2013).
Anonymity, privacy, and security online. Pew Research Center,
Rivenbark, D. (2010). Uncertainty, Identification, and Privacy: Experiments in Individual
Decision-Making.
Savitsky, K., Medvec, V. H., Charlton, A. E., & Gilovich, T. (1998). " What, me worry?":
Arousal, misattribution, and the effect of temporal distance on confidence. Personality
and Social Psychology Bulletin, 24(5), 529-536.
Sparks, B. A., & Browning, V. (2011). The impact of online reviews on hotel booking
intentions and perception of trust. Tourism Management, 32(6), 1310-1323.
Sprague, R. (2007). Rethinking information privacy in an age of online transparency. Hofstra
Lab.& Emp.LJ, 25, 395.
Trope, Y., & Liberman, N. (2003). Temporal construal. Psychological Review, 110(3), 403.
Trope, Y., & Liberman, N. (2010). Construal-level theory of psychological distance.
Psychological Review, 117(2), 440.
Trope, Y., Liberman, N., & Wakslak, C. (2007). Construal levels and psychological distance:
Effects on representation, prediction, evaluation, and behavior. Journal of Consumer
Psychology: The Official Journal of the Society for Consumer Psychology, 17(2), 83-95.
doi:10.1016/S1057-7408(07)70013
45
Vallacher, R. R., & Wegner, D. M. (1989). Levels of personal agency: Individual variation in
action identification. Journal of Personality and Social Psychology, 57(4), 660.
Wakslak, C., & Trope, Y. (2009). The effect of construal level on subjective probability
estimates. Psychological Science, 20(1), 52-58. doi:10.1111/j.1467-9280.2008.02250.
White, K., MacDonnell, R., & Dahl, D. W. (2011). It's the mind-set that matters: The role of
construal level and message framing in influencing consumer efficacy and conservation
behaviors. Journal of Marketing Research, 48(3), 472-485.
Wilson, D., & Valacich, J. S. (2012). Unpacking the privacy paradox: Irrational decision-
making within the privacy calculus.
Youn, S. (2005). Teenagers' perceptions of online privacy and coping behaviors: A risk–
benefit appraisal approach. Journal of Broadcasting & Electronic Media, 49(1), 86-110.
46
APPENDIX A: STIMULI DEVELOPMENT
Scenario, temporal distance, and mind-set manipulations
In order to develop comprehensible, realistic scenarios, the researcher visited numerous
websites and studied the way they communicated their privacy policy. A combination of these
statements led to the scenarios as described below. The implementation of the manipulation of
temporal distance and mind-set was retrieved from existing literature.
Proximal benefits/distant costs condition
Study 1 and 2: Website visit
You visit a website and are asked to accept cookies. The cookie notification states that accepting
them will immediately make the website faster, offer you a personalized interface, and improve
the overall user experience. However, it also states that that the website will sell your personal
data to third parties for commercial purposes in the future.
Study 1 and 2: Facebook login
You visit a website and are asked to log in with your Facebook account. The cookie notification
states that accepting cookies will immediately let you log in and offer you a personalized
interface based on your Facebook preferences. However, it also states that the website will sell
your personal data that is available on Facebook to third parties for commercial purposes in the
future.
Study 1: Loyalty card
You visit a website and you get the offer to become a loyalty cardholder. To become a member,
you need to provide the website with personal information. The Terms of Service notification
states that by accepting you will immediately receive a welcoming gift, personalised discounts
47
and loyalty points. However, it also states that the website will sell your personal data to third
parties for commercial purposes in the future.
Study 2: Fitness-app
You have installed a fitness-app on your smartphone. Every day, it tracks your daily activities
and assists you with personal training. It immediately encourages you to stay fit and to live
healthy. However, by using the fitness-app your personal data will be sold to third parties for
commercial purposes in the future.
Proximal costs/distant benefits condition
Study 1 and 2: Website visit
You visit a website and are asked to accept cookies. The cookie notification states that accepting
them will make the website faster, offer you a personalized interface, and improve the overall
user experience in the future. However, it also states that the website will immediately sell your
personal data to third parties for commercial purposes.
Study 1 and 2: Facebook login
You visit a website and are asked to log in with your Facebook account. The cookie notification
states that accepting cookies will let you log in and offer you a personalized interface based on
your Facebook preferences in the future. However, it also states that the website will
immediately sell your personal data to third parties for commercial purposes.
Study 1: Loyalty card
You visit a website and you get the offer to become a loyalty cardholder. To become a member,
you need to provide the website with personal information. The Terms of Service notification
48
states that by accepting you receive a welcoming gift, personalised discounts and loyalty points
in the future. However, it also states that the website will immediately sell your personal data
to third parties for commercial purposes.
Study 2: Fitness-app
You have installed a fitness-app on your smartphone. Every day, it tracks your daily activities
and assists you with personal training. It encourages you to stay fit and to live healthy in the
future. However, by using the fitness-app your personal data will be sold to third parties for
commercial purposes immediately.
Control condition of temporal distance
Study 1 and 2: Website visit
You visit a website and are asked to accept cookies. The cookie notification states that accepting
them will make the website faster, offer you a personalized interface, and improve the overall
user experience. However, it also states that that the website will sell your personal data to third
parties for commercial purposes.
Study 1 and 2: Facebook login
You visit a website and are asked to log in with your Facebook account. The cookie notification
states that accepting cookies will let you log in and offer you a personalized interface based on
your Facebook preferences. However, it also states that the website will sell your personal data
to third parties for commercial purposes.
49
Study 1: Loyalty card
You visit a website and you get the offer to become a loyalty cardholder. To become a member,
you need to provide the website with personal information. The Terms of Service notification
states that when you accept you will be offered a welcoming gift, personalised discounts and
loyalty points. However, it will allow the website to sell your personal data to third parties for
commercial purposes.
Study 2: Fitness-app
You have installed a fitness-app on your smartphone. Every day, it tracks your daily activities
and assists you with personal training. It encourages you to stay fit and to live healthy. However,
by using the fitness-app your personal data will be sold to third parties for commercial purposes.
Abstract mind-set
For everything we do, there is always a reason behind why we do it. Moreover, we often can
trace the causes of our behaviour back to broad lifegoals that we have. For example, imagine
that you are currently following a study.
Why are you doing this? Perhaps because you want to become educated.
Why do you want to educate yourself? Perhaps to specialize yourself in a certain way.
Why do you want to become a specialist? Maybe because you want to find a good job.
Why do you want to find a good job? Perhaps because you feel that doing so can make you
successful in life.
Research suggests that engaging in thought exercises like above, in which one thinks about how
one's actions relate to one's ultimate life goal, can improve people's life satisfaction.
In the following exercise we are testing such a technique and we intend to focus your attention
on why you do the things you do. For this thought exercise, please consider the following
activity: 'maintaining and improving your physical health'.
50
Concrete mind-set
For everything we do, there is always a process behind how we do it. Moreover, we often can
follow our broad lifegoals down to our very specific behaviour. For example, you are hoping
to become to become successful in life.
How are you doing this? Perhaps finding a good job can help.
How do you want to find a good job? Perhaps by educating yourself.
How do you want to educate yourself? Maybe by following a study.
How do you follow a study? For example, by going to school.
Research suggests that engaging in thought exercises like above, in which one ultimate life
goals can be expressed through specific actions, can improve people's life satisfaction.
In the following exercise, we are testing such a technique and we intend to focus your attention
how you do the things you do. For this thought exercise, please consider the following activity:
'maintaining and improving your physical health'.
Control mind-set
Grasshoppers are found in gardens, fields, on crops and forests in almost all climates
worldwide. Grasshoppers are herbivores, which means that they eat only plants. Grasshoppers
will live about one year and there are over 18.000 different species worldwide. Grasshoppers
have five eyes and no ears, but can still hear with a special organ on their abdomen cal led a
tympanal organ. Their large back legs are used for hopping and making music. They make their
sound (music) by rubbing their wings or legs together. They can jump 20 times the length of
their body. Grasshoppers' smaller front legs are used for eating and walking.
51
APPENDIX B: STUDY 1 ONLINE QUESTIONNAIRE
52
53
APPENDIX C: STUDY 2 ONLINE QUESTIONNAIRE
Manipulation of mind-set
1. Abstract mind-set manipulation:
Why do you maintain and improve your physical health?
Why?
Why?
Why?
2. Concrete mind-set manipulation:
How do you maintain and improve your physical health?
How?
How?
How?
3. Control mind-set:
Please take in mind the grasshopper and fill out below any idea or element that you
perceive to be related to grasshoppers.
What else do you perceive to be related to grasshoppers?
What else do you perceive to be related to grasshoppers?
What else do you perceive to be related to grasshoppers?
54
55
Part 2 of questionnaire
Manipulation of temporal distance and “website visit” scenario
56