Effects of personalized e-mail messages on privacy risk: Moderating roles of control and intimacy

Abstract

New communication platforms have enabled firms to collect personal data on their consumers and provide more personalized services. Personalized service facilitates interpersonal communication and interactions based on consumers' personal and preference information, and therefore constitutes a way to improve firm-customer relationships. However, such personalized services may be vulnerable to privacy issues. This study investigates the effects of personalized e-mail messages (an archetypal example of personalized service) on consumers' risk perceptions and two moderating variables: consumers' control and message intimacy. In three experiments, we show that an increase in the level of personalization in e-mail messages increases consumers' privacy risk perceptions. However, giving consumers more control over their personal information and adding intimate cues to e-mail messages moderate the negative effects of personalized e-mail messages on their privacy risk perceptions. The study provides important implications for both academics and managers in developing and employing personalized service in new media communication.