When and how consumers are willing to exchange data with retailers: An exploratory segmentation. (January 2022)

• Record Type: Journal Article
• Authors: Pallant, Jason I.; Pallant, Jessica L.; Sands, Sean J.; Ferraro, Carla R.; Afifi, Eslam
• Is Part Of: Journal of retailing and consumer services. Volume 64(2022)
• Publication Date: 2022-01
• Subjects: Consumer data -- Data exchange -- Data privacy -- Privacy calculus -- Personalization; Retail trade -- Periodicals; Service industries -- Periodicals; Customer services -- Periodicals; Commerce de détail -- Périodiques; Service à la clientèle -- Périodiques; Customer services; Retail trade; Periodicals; 658.87
• DOI: 10.1016/j.jretconser.2021.102774
• Languages: English
• ISSNs: 0969-6989

Abstract

Abstract: Consumer data is a crucial resource for retailers. Yet accessing this data increasingly requires consumers to willingly participate in data exchange. This paper draws on social exchange theory and privacy calculus to investigate differences in consumer willingness to exchange data with retailers. Consumers are also profiled on their perceptions of retailer's use and abuse of data, along with the antecedents and outcomes of these perceptions. We employ a cross-sectional quantitative survey and collect data from a sample of 463 US consumers. For statistical analysis, we employ a latent class segmentation and identify six consumer segments which differ in their perceptions of the consumer-retailer data exchange. The key drivers of these segment differences include privacy concerns, technology readiness, and general trust of, and engagement with, retail brands. The segments also differ in their subsequent views towards the use and abuse of their data by retailers, including willingness to exchange data. Hence, when accessing and utilizing consumer data, it is important that brands identify different segments, and adapt their approach accordingly. Highlights: Consumers differ in perceived benefits and costs of data exchange with retailers. Six segments exist within three categories: Indifferent, Protectors, and Advocates. Segments are driven by privacy, trust, engagement and technology readiness. Segments differ in appeal of uses of data by brands including personalization.