| Concern about information privacy is a major obstacle in the development of trust that can support transactions and cooperative relationships between organizations and their stakeholders such as customers. This research employed a 2x2x2 within-subjects experimental design to explore the effects of customers' informed consent, customers' ability to limit data sharing and access to data, and an organization's secondary use of customer data on customers' perception of an organization's fairness and trustworthiness in managing customers' information privacy and customers' willingness to transact. A covariate based on prior studies that has been used to control variability due to error and accentuate the main effects is customers' negative experience of privacy (NEP). Data were collected from business students at a Southwestern US university. Multivariate analysis of variance, adjusted by a covariate, was used to analyze the data. The results support the hypothesized main effects. Findings from this research have implications for managers, customers, regulators, IS professionals and researchers interested in strategies related to the ethics of business information systems (IS), reputation, and trust relations, which work together as glue for human systems that heavily depend on exchange of sensitive information among. |
