Privacy, Trust, and Behavioral Intensions in Electronic Commerce: A Comparison of American and Taiwanese Perceptions

Abstract

Although the Internet has opened the door for businesses and consumers around the globe, many issues and challenges remain in order to take full advantage of this unprecedented opportunity. More specifically, businesses engaged in electronic commerce can take advantage of current technologies that allow them to collect vast amounts of information about their customers. Although many companies use this information to tailor products and services to improve their relationship with their customers, many people simply do not trust most organizations that require the exchange of personal information. Recent studies suggest that many people either decline to provide this information over the Internet or simply provide false information. As electronic commerce companies extend their reach globally, the issues concerningprivacy and trust must be extended beyond a single national culture. This study proposes and tests a Privacy-Trust-Behavioral Intention Model from a global perspective. More specifically, this study compares American and Taiwanese perceptions concerning online privacy and how it relates to the level of trust with a company’s electronic commerce Web site. In turn, the model suggests that trust is an important intermediary variable that influences behavioral intentions for online transactions.