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Electronic Commerce and Data Privacy 221 A total of 172 usable responses were submitted. Respondents were 63% men and 37% women. Sixty-two percent of the respondents were in the 18-29 age group; 26% were in the 30-49 age group; 12% were in the 50 and over age group. The respondents reported their education level as follows: 5% have a high school education or less, 42% have some college, and 53% are college graduates. Questionnaire Development The questionnaire was developed from scales and techniques used in prior research. Each section was coded in hypertext markup language (HTML), JavaScript, and Active Server Pages (ASP). JavaScript was used to ensure that certain responses were completed. ASP was used to select a random Web page for the respondent to examine and to submit the responses from the completed questionnaire to the database used to collect the data. Once the questionnaire was completed, several colleagues reviewed it to check for completeness and understandability. Several other individuals (outside academia) were asked to test the questionnaire by completing the survey online and provide comments concerning any problems. The responses confirmed that the questionnaire was clear and understandable. Internal consistency of the appropriate scales was calculated using Cronbach’s alpha. The alpha for PRIVCON was 0.72, 0.88 for IMPPP, and 0.92 for TK. All the alphas were above the cutoff value suggested by Nunally (1978) of 0.70 for hypothesized measures of a construct. The questionnaire items can be found in the appendix. Measures Several measures were required to evaluate the hypotheses. The following section describes each scale and the variable it measures. Privacy Concern. Measurement of an individual’s privacy concern (PRIVCON) was obtained by using items taken from existing scales (Culnan, 1993; Louis et al., 1999; Smith et al., 1996). Respondents scored all items on a 5-point Likert-type scale, with Strongly Disagree to Strongly Agree. Actual E-Commerce Activity. The respondent’s actual e-commerce activity (ACTUAL) was obtained by using a scale adapted from a previous study (Louis et al., 1999). Respondents were asked questions concerning e-commerce activities during the past year. For each item, the respondent chose between the following responses: Never, 1-2 times, 3-5 times, 5-10 times, and Over 10 times. Importance of Privacy Policy. The perceived importance of a Web Site’s privacy policy (IMPPP) was measured using a scale adapted from a previous study (Louis et al., 1999). The respondents rated the importance of components of an organization’s privacy policy on a 5-point Likert-type scale ranging from Not At All Important to Absolutely Essential. Regulatory Preference. Regulatory preference (REGPREF) was assessed by using a similar method to Milberg et al. (2000). Respondents were asked to indicate Copyright © 2003, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited.
222 Henderson, Snyder and Byrd their agreement or disagreement (using a 5-point Likert-type scale, with Strongly Disagree and Strongly Agree as the endpoints) with the following questions: “the government should enact additional laws in order to protect the privacy of individuals...” and “Industries should rely on self-regulation in order to protect personal information collected...” The difference between the two measures (preference rating for governmental intervention minus preference rating for industry selfregulation) was used to indicate the degree to which the respondent preferred government regulation to industry self-regulation (Milberg et al., 2000). Purchasing Habits. A consumer’s propensity to purchase (PH) merchandise without the benefit of seeing and touching the item(s) before purchasing them was assessed using two items used by Culnan (1993). These items assessed whether the consumer had purchased items by mail or phone during the past year. Another item that covers Internet purchases was added. The respondents chose between the following responses: Never, 1-2 times, 3-5 times, 5-10 times, and Over 10 times. Perceived Usefulness. Perceived usefulness (PERUSE) was assessed by asking the respondents how strongly they agree or disagree with a question concerning benefits of using the Internet as opposed to any potential privacy problems. Respondents rated the item on a 5-point Likert-type scale anchored by Strongly Disagree and Strongly Agree. Prior Privacy Invasion Experience. Respondents were asked whether they had ever had a prior privacy invasion experience (PIE). The respondent checked either yes or no. A space was provided for an explanation of the privacy invasion experience. Technology Knowledge. Technology knowledge (TK) was assessed by asking the respondent to rate the level of expertise with computer and Internet technology. For each item, the respondent chose between the following responses: Not at all knowledgeable, Somewhat knowledgeable, Knowledgeable, Very knowledgeable. Demographic Items. Respondents were asked three demographic items: gender, age, and education. The range of responses for age was as follows: 18-29, 30-49, and 50+. Education was assessed using the following possible responses: High school or less, Some college, and College graduate. RESULTS Method of Analysis EQS was used to determine the relationships among the variables shown in the path diagram shown in the model in Figure 1. EQS, a structural equation modeling software developed by Bentler (1990), implements a general mathematical and statistical approach to the analysis of linear structural equations. Using EQS, the researcher is able to check the overall goodness of fit of the proposed model and to Copyright © 2003, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited.
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Acquisition Editor: Mehdi Khosrow-P
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The Economic and Social Impacts of
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