ATTENUATING PERCEIVED PRIVACY RISK OF LOCATION-BASED MOBILE SERVICES

The rapid diffusion of mobile devices has spurred the development and use of location-based mobile services (LBMS). LBMS have the potential to add value to businesses through sale of LBMS applications and targeted marketing of products and services. However, studies have shown that individuals’ intention to use LBMS is plagued by the perceived privacy risks of disclosing location and personal information. This study examines how various consumption values may weaken the negative influence of perceived privacy risk on individuals’ intention to use LBMS based on the multi-dimensional concept of privacy risk, theory of consumption values, and privacy calculus. The attenuating effects of conditional, emotional, epistemic, functional, and social values are studied. Results of a survey of 194 potential users of a LBMS show that conditional, functional, and social values have significant attenuating effects. This study contributes to research by looking beyond the separate and direct effects of perceived privacy risk and consumption values to provide new insights on their joint influences. For practitioners such as LBMS providers and businesses’ marketing managers, the findings highlight the type of values that should be emphasized in designing and promoting LBMS

Resolving the Misalignment between Consumer Privacy Concerns and Ubiquitous IS Design: The Case of Usage-based Insurance

Ubiquitous IS enables novel services and business models, yet require a careful balancing of consumer privacy concerns (PC) – induced by the provision of particular sensors and information types – with functional performance in order to maximize acceptance. For the exemplary case of Usage-based Insurance (UBI), this paper presents a design science approach to the mitigation of PC under parallel consideration of functional system performance. Based on long-term location trajectories from 1’600 vehicles, we assess the predictive power of emulated system designs that substitute location information, presumably the most privacy sensitive type of information in current UBI designs. We find that there are substantial grounds to challenge prevalent design paradigms in UBI and infer general insights from this example for IS researchers and IT professionals, who, when seeking to improve system privacy, often focus on privacy-enhancing technologies instead of considering the socio-technical context of ubiquitous IS

Pengaruh Privasi dan Keamanan Terhadap Niat Menggunakan Payment Fintech

AbstractThe 4.0 industrial revolution demands creativity and innovation in utilizing information technology. Fintech is an innovation in the financial industry, but there are many inherent risks. Therefore, this study aims to analyze the factors that influence consumers to use fintech in the payment process. This study uses theory of planned behavior in shaping research models. The sample in this study was selected using purposive sampling, from which the sampling method obtained 93 respondents. The results showed that security perceptions influence users’ intention to use fintech, transaction security is still considered a major thing for users of payment fintech in Indonesia, because perceived risk is a fundamental obstacle for users considering using Fintech. However, the perception of privacy does not affect user’s intention to use fintech, this result is possible because the technology of fintech payment in Indonesia has given breadth for its users to control their privacy. This research contributes in providing an explanation of how privacy and security can affect user’s intention to use payment fintech.Keywords: Payment fintech; Privacy; Security; Theory of Planned BehaviorAbstrak Revolusi industri 4.0 menuntut kreatifitas dan inovatif dalam memanfaatkan teknologi informasi. Fintech merupakan inovasi dalam industri keuangan, tetapi banyak risiko yang melekat. Oleh karena itu, penelitian ini bertujuan untuk menganalisis faktor yang mempengaruhi konsumen untuk menggunakan fintech dalam proses pembayaran. Penelitian ini menggunakan Theory Planned Behavior dalam membentuk model penelitian. Sampel dalam penelitian ini dipilih menggunakan purposive sampling, dimana dari metode sampling tersebut diperoleh responden sebanyak 93 orang. Hasil penelitian menunjukkan bahwa persepsi keamanan berpengaruh terhadap niat pengguna dalam menggunakan fintech, kemanan bertransaksi masih di anggap suatu hal yang utama bagi pengguna payment fintech di Indonesia, karena risiko yang dirasakan adalah hambatan mendasar bagi pengguna mempertimbangkan penggunaan Fintech. Namun, persepsi privasi tidak berpengaruh terhadap niat pengguna dalam menggunakan fintech, hasil ini dimungkinkan karena teknologi payment fintech di Indonesia telah memberikan keluasan bagi penggunanya untuk mengontrol privasi masing-masing. Penelitian ini memberikan kontribusi dalam memberikan penjelasan tentang bagaimana privasi dan keamanan dapat mempengaruhi niat pengguna untuk menggunakan payment fintech.Katakunci: Keamanan; Payment fintech; Privasi; Theory of Planned Behavio