Now showing 1 - 7 of 7
  • Publication
    Should service firms introduce algorithmic advice to their existing customers? The moderating effect of service relationships
    An increasing number of service firms are introducing algorithmic advice to their customers. In this research, we examine the introduction of such tools from a relational perspective and show that the type of relationship a customer has with a service firm moderates his or her response to algorithmic advice. Studies 1 and 2 find that customers in communal relationships are more reluctant to use algorithmic advice instead of human advice than customers in exchange relationships. Study 3 shows that offering customers algorithmic advice may harm communal relationships but not exchange relationships. Building on these findings, Studies 4, 5, and 6 examine how firms can mitigate the potentially negative relational consequences of algorithmic advice. While a fallback option that signals that customers can request additional human advice if needed is effective in preventing relational damages in communal relationships, this same intervention backfires in exchange relationships. These findings have important implications by showing that managers need to consider the relational consequences of introducing algorithmic advice to existing customers.
  • Publication
    “Touching” services: tangible objects create an emotional connection to services even before their first use
    Although research suggests that physical elements of the servicescape play an important role in the service process, there is little research on the impact of tangible objects that companies give to consumers such as membership cards, pens, mugs, or fashion articles. Drawing on research about embodied cognition, this paper investigates how and under which conditions the provision of tangible service objects affects consumers. Three experimental studies were conducted, in which participants received different objects they could either touch or just see. These studies indicate that touching a service object metaphorically translates into a perceived mental connection towards the service. More specifically, physically connecting to a service object leads to a stronger psychological connection to the corresponding service, which, in turn, increases behavioral intentions. The results also demonstrate that providing a tangible object only has an impact when the object is of high aesthetic appeal. These findings suggest that providing tangible service objects is an effective way for service providers to build an emotional connection with potential customers and to strengthen the emotional connections of existing customers.
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  • Publication
    Blissfully Ignorant: The Effects of General Privacy Concerns, General Institutional Trust, and Affect in the Privacy Calculus
    Existing research on information privacy has mostly relied on the privacy calculus model, which views privacy-related decision-making as a rational process where individuals weigh the anticipated risks of disclosing personal data against the potential benefits. In this research, we develop an extension to the privacy calculus model, arguing that the situation-specific assessment of risks and benefits is bounded by (1) pre-existing attitudes or dispositions, such as general privacy concerns or general institutional trust, and (2) limited cognitive resources and heuristic thinking. An experimental study, employing two samples from the USA and Switzerland, examined consumer responses to a new smartphone application that collects driving behavior data and provided converging support for these predictions. Specifically, the results revealed that a situation-specific assessment of risks and benefits fully mediates the effect of dispositional factors on information disclosure. In addition, the results showed that privacy assessment is influenced by momentary affective states, indicating that consumers underestimate the risks of information disclosure when confronted with a user interface that elicits positive affect.
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    Scopus© Citations 289
  • Publication
    Thinking Styles and Privacy Decisions: Need for Cognition, Faith into Intuition, and the Privacy Calculus
    Investigating cognitive processes that underlie privacy-related decisions, prior research has primarily adopted a "privacy calculus" view, indicating privacy-related decisions to constitute rational anticipations of risks and benefits connected to data disclosure. Referring to psychological limitations and heuristic thinking, however, recent research has discussed notions of bounded rationality in this context. Adopting this view, the current research argues that privacy decisions are guided by thinking styles, i.e. individual preferences to decide in an either rational or intuitive way. Results of a survey indicated that individuals high in rational thinking, as reflected by a high need for cognition, anticipated and weighed risk and benefits more thoroughly. In contrast, individuals relying on experiential thinking (as reflected by a high faith into intuition) overleaped rational considerations and relied on their hunches rather than a privacy calculus when assessing intentions to disclose information. Theoretical and practical implications of these findings are discussed.
  • Publication
    Rethinking Privacy Decisions: Pre-Existing Attitudes, Pre-Existing Emotional States, and a Situational Privacy Calculus
    (Association for Information Systems, 2015-05-27) ; ; ;
    As a potential explanation to measured inconsistencies between stated privacy concerns and actual disclosing behavior, denoted as the "privacy paradox", scholars have proposed a systematic distinction between situational privacy considerations and pre-existing, superordinate factors that shape the decisive situation without being directly connected to the situation itself. Deploying an experimental approach, we explored the dynamics of two types of such pre-existing factors, namely (1) pre-existing attitudes (such as general privacy concerns and general institutional trust) and (2) pre-existing emotional states (such as an individual's current mood) in shaping situation-specific risk and benefit considerations (i.e., a situational privacy calculus). Compared to a negative emotional state, individuals in a positive emotional state were found to perceive lowered situation-specific privacy risks, even if the sources of this state were unrelated to the decisive situation at hand. Moreover, results indicated that pre-existing attitudes may be partially or even fully overridden by situational risk and benefit considerations. Adopting a differentiated view on privacy decision-making, these findings imply that the privacy paradox could be driven by a gap between pre-existing cognitive and affective factors on the one side, and situation-specific considerations and decisions on the other. Implications for researchers and practitioners are discussed.
  • Publication
    Privacy Paradox Revised: Pre-Existing Attitudes, Psychological Ownership, and Actual Disclosure
    (Association for Information Sytems, 2014-12-15) ; ;
    Prior research has pointed to discrepancies between users' privacy concerns and disclosure behaviors, denoted as the privacy paradox, and repeatedly highlighted the importance to find explanations for this dichotomy. In this regard, three approaches have been proposed by prior literature: (1) use of actual disclosure behavior rather than behavioral intentions, (2) systematic distinction between pre-existing attitudes and situation-specific privacy considerations, and (3) limited and irrational cognitive processes during decision-making. The current research proposes an experiment capable to test these three assumptions simultaneously. More precisely, the authors aim to explore the contextual nature of privacy-related decisions by systematically manipulating (1) individuals' psychological ownership with regard to own private information, and (2) individuals' affective states, while measuring (3) pre-existing attitudes as well as situation-specific risk and benefit perceptions, and (4) intentions as well as actual disclosure. Thus, the proposed study strives to uniquely add to the understanding of the privacy paradox.