Value Congruence and Trust Online: Their Impact on Privacy and Price Premiums
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Value Congruence and Trust Online: Their Impact on Privacy and Pr ...

Chapter 2:  Literature Review
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sold to third parties, tend to give false or misleading information to organizations so as to safeguard their privacy. This creates a quandary for organizations because they waste resources gathering erroneous information and have to perform costly data clean-up before it can be effectively used. The poor quality of data can easily lift related costs to 8%–10% of revenues (Redman, 1998). The potential risk associated with data inaccuracy makes it imperative for companies to encourage their customers to become more willing to share accurate personal information.

Cazier et al. (2003a) tested the effect of trust on information disclosure and the effects of value congruence on information disclosure directly using a logistic regression model specified as follows:

where Yij represents the predicted odds of the individual sharing the information based on the input variables. β0j is the constant and indicates the log odds of providing the information to the site for the baseline group (value neutral and trust level three). A constant of 0 indicates a 50-50 chance of providing the information. The greater the magnitude of a positive constant, the higher the baseline probability of sharing the item and the greater the magnitude of a negative constant the lower the baseline probability of sharing the information. The term β1j is the main effect of value congruence on the probability of sharing the information. A positive estimate represents an increased likelihood that members of this group will share this information compared to the baseline group. β2j is the main effect for the value conflict group.