Consumer online privacy: Viewing through customer relationship management lens

Abstract

In the competitive Internet marketplace, online retailers face increasing pressures to gather consumer personal information. With increasing amount of information being collected, online privacy is an issue. If online privacy is not addressed, an unhealthy fear for e-commerce will fester. Relationship marketing aids in the management of privacy issues and develops customer loyalty.This research provide empirical validations that fair organizations can yield competitive CRM advantages, and Social Justice Theory and Regulatory Focus Theory are effective strategic tools that facilitates the development of positive long-term relationship with customers.Two studies are conducted and results indicate that when consumers perceive fair distributive and interactional practices by the organization, they are encouraged to exhibit positive promotion-focused response behaviors, via the mediating influence of trust. When consumers perceive unfair distributive and interactional organization practices, they resort to counteractive prevention-focused behaviors, via the mediating influence of privacy concern. Implications are outlined.