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Figure 1: Research Model<br />
ANTECEDENT<br />
VARIABLES<br />
PH<br />
PERUSE<br />
PRIVCON<br />
Electronic Commerce and Data Privacy 217<br />
IMPPP<br />
ACTUAL REGPREF<br />
PRIVACY CONCERNS<br />
Privacy is a multidimensional concept. Agranoff (1991) defined information<br />
privacy in terms of three issues: data collection, data accuracy, and data confidentiality.<br />
Smith et al. (1996) identified four dimensions that constitute the construct<br />
“individual privacy concerns” (PRIVCON). The four factors are: collection, unauthorized<br />
secondary use, improper access, and errors.<br />
The collection dimension involves concern that extensive amounts of PII are<br />
collected and stored in databases. Unauthorized secondary use deals with information that<br />
is collected for one purpose but is used for another, secondary purpose (internally within<br />
the organization collecting the PII) without authorization from the individuals. Improper<br />
access is concerned with data about individuals that are available to people without proper<br />
authorization from the individual (i.e., information sold or rented to a third party). The last<br />
area of concern involves inadequate protections against deliberate and accidental errors<br />
in personal data (Smith et al., 1996).<br />
The results of several studies, governmental, industry and academic, show that<br />
individuals are concerned about the privacy of their personal information (Cranor<br />
et al., 1999; Culnan, 1993; Harris et al., 1991, 1994, 1996; Louis et el., 1999;<br />
Milberg et al., 1995; Milberg, Smith & Burke, 2000; Smith 1993, 1994; Smith et al.,<br />
1996; Stone et al., 1983).<br />
ACTUAL E-COMMERCE ACTIVITY<br />
Prior research suggests that individuals with higher levels of concern about<br />
their information privacy may be more likely to refuse to participate in activities that<br />
require them to provide personal information (Smith et al., 1996; Stone et al., 1983).<br />
Understanding the behaviors that cause individuals to accept or reject computers<br />
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