Exploring the role of overt vs. covert personalization strategy in privacy calculus

Heng Xu, Cheng Zhang, Pan Shi, Peijian Song

Research output: Chapter in Book/Report/Conference proceedingConference contribution

6 Scopus citations


The emergence of mobile communication and positioning technologies has presented advertisers and marketers with a radically innovative advertising channel: location-awareness marketing (LAM). Despite the vast opportunities offered by LAM, mobile customers' privacy concerns appear to be a major inhibiting factor and social issue in their acceptance of LAM. This study extends the privacy calculus model to explore the personalization-privacy paradox in LAM, with considerations of personal characteristics and two personalization approaches (covert and overt). The research model was tested using data gathered from 545 respondents through an experiment. Structural equations modeling (SEM) using partial least squares (PLS) validated the instrument and the proposed model. Results suggest that the influences of personalization on the privacy risk/benefit beliefs vary upon the type of personalization systems (covert and overt), and that personal characteristics moderate the parameters and path structure of the privacy calculus model. The findings highlight several important theoretical contributions and practical implications for marketers, LAM service providers, merchants, and privacy advocates.

Original languageEnglish (US)
Title of host publicationAcademy of Management 2009 Annual Meeting: Green Management Matters, AOM 2009
StatePublished - 2009
Event69th Annual Meeting of the Academy of Management, AOM 2009 - Chicago, IL, United States
Duration: Aug 7 2009Aug 11 2009


Other69th Annual Meeting of the Academy of Management, AOM 2009
Country/TerritoryUnited States
CityChicago, IL

All Science Journal Classification (ASJC) codes

  • Management Information Systems
  • Management of Technology and Innovation
  • Industrial relations


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