KOREASCHOLAR

Over the course of the past decades, technological advancements accompanied a plethora of new types of data and consumer insights (e.g., Erevelles, Fukawa, & Swayne, 2016). Companies value opportunities provided by the availability of large data sets for their business strategy. Customers, however, are wary, as these analyses require the collection and storage of large amounts of personal information. Therefore, it is vital for companies to understand what customers perceive to be fair with regard to their personal data (e.g., Malhotra, Kim, & Agarwal, 2004). However, research still lacks deeper insights into customers’ expectations of fair data handling (Marketing Science Institute, 2016). Yet, only few studies have covered the field of expectations regarding fair data collection and use (Earp, Antón, Aiman-Smith, & Stufflebeam, 2005; Milne & Bahl, 2010). Importantly, however, previous studies have frequently neglected how companies’ fulfillment of customers’ expectations translates into subsequent consumer behavior. Moreover, we have yet to understand if companies’ actual behavior meets customers’ expectations. Grounded on psychological contract and justice theory, we investigate how customers want their data to be handled and in which ways they want to be informed about its usage, while also exploring how customer expectations translate into subsequent behavioral intentions. Additionally, we shed light on current company behavior, thus analyzing if customers’ expectations of fair data collection and usage are aligned with company perspectives. Responding to calls for a mixed methods approach in business research (e.g., Harrison, 2013; Woodside, 2010), we undertook qualitative and quantitative studies to address our research goals. In Study 1, we conduct in-depth interviews with customers and experts to gain an overview of customer expectations with regard to fair data collection and usage. Based on these findings, we conducted a quantitative study (Study 2) investigating each of the customer expectations identified in the prior study. The findings of Study 2 reveal that customers expect a simplification of privacy statements as well as easier control options for their data. Moreover, customers are willing to switch to a competitor, if it better fulfills expectations. Study 3 applies a content analysis of company homepages and privacy statements. Aligning the results from Study 2 and Study 3, we demonstrate that companies currently do not sufficiently meet customers’ expectation of fair data collection and usage.

• Antje Niemann(Ludwig-Maximilians-University Munich, Germany)
• Manfred Schwaiger(Ludwig-Maximilians-University Munich, Germany)
• Nicole Jasmin Heß(Ludwig-Maximilians-University Munich, Germany)