Kai Lung Hui

Online information disclosure: Motivators and measurements

To increase their revenue from electronic commerce, more and more Internet businesses are soliciting personal information from consumers in order to target products and services at the right consumers. But when deciding whether to disclose their personal information to Internet businesses, consumers may weigh the concerns of giving up information privacy against the benefits of information disclosure. This article examines how Internet businesses can motivate consumers to disclose their personal information. Based on a synthesis of the literature, the article identifies seven types of extrinsic or intrinsic benefits that Internet businesses can provide when soliciting personal information from consumers. Through comprehensive conceptual and empirical validation processes, the article develops an instrument that allows Internet businesses to gauge the preference of consumers for the various types of benefits. By testing a set of nomological networks, some ideas are presented to Internet businesses about what types of benefits may be more effective given the personality traits of particular consumer populations. Besides providing a foundation for efforts aimed at developing theories on information, privacy and information disclosure, the results of this research provide useful suggestions to Internet businesses on how best to solicit personal information from consumers. Implications for research and practical application are discussed.

Identifying early adopters of new IT products: a case of Windows 95

This paper presents the findings of an empirical study into factors identifying early adopters of new IT products. Drawing two well-researched concepts (opinion leadership and consumer innovativeness) developed in the marketing field, several hypotheses were formulated to test against data collected from 145 microcomputer users who had or had not adopted Windows 95. The findings indicate that early adopters tend to be younger males who are of opinion leadership type, like to seek novel information, and have a lot of computer experience. Implications of the findings, from both a research and a managerial perspective are discussed.

Consumer Privacy and Marketing Avoidance: A Static Model

We introduce the concept of marketing avoidance---consumer efforts to conceal themselves and to deflect marketing. The setting is one in which sellers market some item through solicitations to potential consumers, who differ in their benefit from the item and suffer harm from receiving solicitations. Concealment by one consumer induces sellers to shift solicitations to other consumers, whereas deflection does not. Solicitations cause two externalities: direct harm on consumers and the (indirect) cost of consumer concealment and deflection. We find that in markets where the marginal cost of solicitation is sufficiently low, efforts by low-benefit consumers to conceal themselves will increase the cost-effectiveness of solicitations and lead sellers to market more. However, concealment by high-benefit consumers leads sellers to market less. Furthermore, concealment by low-benefit consumers increases direct privacy harm, and consumer welfare is higher with deflection than concealment. Finally, it is optimal to impose a charge on solicitations.

Classifying digital products

A framework for classifying digital products is essential for devising successful e-commerce strategies.

A Choice Model for the Selection of Computer Vendors and Its Empirical Estimation

Despite the important role of vendors in the IT procurement process, very few studies have considered vendor characteristics and their effects on the decision outcome of IT managers. In this paper,we present a discrete choice model to examine the effects of vendor characteristics on the purchase decisions of IT managers. Our intent is to empirically assess the effects of product variety, brand name, average price, and network externalities in the selection of computer vendors. To ensure that the effects are not technology-dependent, we deliberately use long time series data to calibrate the model.Annual data at the vendor level from 1965 to 1993 is used to infer the choice criteria of IT managers in three computer categories: mainframe, minis, and small systems. Our empirical findings indicate that a broader product line and a strong brand can effectively enhance the choice probability of a vendor. Implications of these findings and possible extensions are also discussed.Despite the important role of vendors in the IT procurement process, very few studies have considered vendor characteristics and their effects on the decision outcome of IT managers. In this paper,we present a discrete choice model to examine the effects of vendor characteristics on the purchase decisions of IT managers. Our intent is to empirically assess the effects of product variety, brand name, average price, and network externalities in the selection of computer vendors. To ensure that the effects are not technology-dependent, we deliberately use long time series data to calibrate the model.Annual data at the vendor level from 1965 to 1993 is used to infer the choice criteria of IT managers in three computer categories: mainframe, minis, and small systems. Our empirical findings indicate that a broader product line and a strong brand can effectively enhance the choice probability of a vendor. Implications of these findings and possible extensions are also discussed.

Analyzing Online Information Privacy Concerns: An Information Processing Theory Approach

The advent of the Internet has made the transmission of personally identifiable information common and often inadvertent to the user. As a consequence, individuals worry that companies misuse their information. Firms have tried to mitigate this concern in two ways: (1) offering privacy policies regarding the handling and use of personal information, (2) offering benefits such as financial gains or convenience. In this paper, we interpret these actions in the context of the information processing theory of motivation. Information processing theories, in the context of motivated behavior also known as expectancy theories, are built on the premise that people process information about behavior-outcome relationships. We empirically validate predictions that the means to mitigate privacy concerns are associated with positive valences resulting in an increase in motivational score. Further, we investigate these means in trade-off situation, where a firm may only offer partially complete privacy protection and/or some benefits

The challenges of personal data markets and privacy

Personal data is increasingly conceived as a tradable asset. Markets for personal information are emerging and new ways of valuating individuals’ data are being proposed. At the same time, legal obligations over protection of personal data and individuals’ concerns over its privacy persist. This article outlines some of the economic, technical, social, and ethical issues associated with personal data markets, focusing on the privacy challenges they raise.

Information Security Outsourcing with System Interdependency and Mandatory Security Requirement

The rapid growth of computer networks has led to a proliferation of information security standards. To meet these security standards, some organizations outsource security protection to a managed security service provider (MSSP). However, this may give rise to system interdependency risks. This paper analyzes how such system interdependency risks interact with a mandatory security requirement to affect the equilibrium behaviors of an MSSP and its clients. We show that a mandatory security requirement will increase the MSSPs effort and motivate it to serve more clients. Although more clients can benefit from the MSSPs protection, they are also subjected to greater system interdependency risks. Social welfare will decrease if the mandatory security requirement is high, and imposing verifiability may exacerbate social welfare losses. Our results imply that recent initiatives such as issuing certification to enforce computer security protection, or encouraging auditing of managed security services, may not be advisable.

Personal data markets

Personal data is increasingly conceived as a tradable asset. Markets for personal information are emerging and new ways of valuating individuals’ data are being proposed. At the same time, legal obligations over protection of personal data and individuals’ concerns over its privacy persist. This article outlines some of the economic, technical, social, and ethical issues associated with personal data markets, focusing on the privacy challenges they raise.

Newspaper Reports and Consumer Choice: Evidence from the Do Not Call Registry

Despite annual expenditures on public relations exceeding