Understanding situational online information disclosure as a privacy calculus

The effect of situational factors is largely ignored by current studies on information privacy. This paper theorized and empirically tested how an individual's decision-making on information disclosure is driven by competing situational benefits and risk factors. The results of this study indicate that, in the context of an e-commerce transaction with an unfamiliar vendor, information disclosure is the result of competing influences of exchange benefits and two types of privacy beliefs (privacy protection belief and privacy risk belief). In addition, the effect of monetary rewards is dependent upon the fairness of information exchange. Monetary rewards could undermine information disclosure when information collected has low relevance to the purpose of the e-commerce transaction.