Implementing Privacy Dimensions within an Electronic Storefront

Abstract

Many electronic businesses will attempt to distinguish themselves from their competition and gain a competitive advantage by customizing their Web sites, in order to build a strong relationship with their customers. This will require the collection and use of personal information and data concerning the customer’s online activities. Although new technologies provide an opportunity for enhanced collection, storage, use, and analysis of this data, concerns about privacy may create a barrier for many electronic businesses. For example, studies suggest that many people have yet to shop or provide personal information online due to a lack of trust. Moreover, many others tend to fabricate personal information. To this end, many electronic businesses have attempted to ease customers’ concerns about privacy by posting privacy policies or statements, or by complying with a particular seal program. Recently, the Federal Trade Commission has proposed four privacy dimensions that promote fair information practices. These dimensions include: (1) notice/awareness, (2) access/participation, (3) choice/consent, and (4) security/integrity. An electronic storefront was developed to include these privacy dimensions as part of a study to learn how privacy influences trust and, in turn, how trust influences behavioral intentions to purchase online. The empirical evidence from this study strongly suggests that electronic businesses can benefit by including these privacy dimensions in their Web sites. This chapter will focus on how these dimensions can be implemented within an electronic storefront.