A Comparative study Of M-COMMERCE user Privacy CONCERNS: korea vs. USA

1. A Comparative study Of M-COMMERCE user Privacy CONCERNS: korea vs. USA Jim Q. Chen, St. Cloud State University, Minnesota Ruidong Zhang, University of Wisconsin - Eau Claire JaejungLee, PukyongNational University, South Korea DSI Annual Conference, November 18, 2013

2. Presentation Outline • INTRODUCTION • INFORMATION PRIVACY IN M-COMMERCE • THEORETICAL BACKGROUNDS AND HYPOTHESES • DATA COLLECTION • DATA ANALYSES • DISCUSSIONS • CONCLUSIONS

3. Introduction M-commerce • Electronic commerce using mobile devices • Global market (ABI Research): • $65.6 billion in 2011 • $119 billion by 2015 • USA market (Mobile 500): • $20.9 billion 2012 • Estimated $34.2 billion 2013 • Global mobile phone sales last 3 years: • 1.39 billion units (2010) to 1.71 billion units; • Global Smartphone sales last 3 years: • 304.7 million units (2010) to 545.2 million

4. Introduction • Security and Privacy Concerns • Major inhibitors in consumers’ e-commerce activities (Antoniou and Batten 2011; McCole, Ramsey and Williams 2010; Wang and Head 2007; Mallat 2007; Perez 2005; Turner and Dasgupta 2003; Phelps et al. 2001; Portz et al. 2000)

5. Introduction • Very little empirical research on M-commerce privacy concerns; • A better understanding in different cultural contexts will help m-commerce businesses better serve global consumers

6. Introduction This paper investigates the relationships between mobile phone users’ characteristics and their information privacy concerns.

7. Info Privacy in M-commerce • Privacy: right to be left alone. Not to be observed. • Information Privacy: individuals’ right to control over their personal information with respect to its collection, use, and transfer (Belanger and Crossler, 2011; Boritz and No, 2011).

8. Info Privacy in M-commerce Four dimensions (Smith et al. 1996) • Collection • Unauthorized access • Unauthorized secondary use • Data accuracy

9. Info Privacy in M-commerce • M-technologies Increase Concerns • Five Features (Zhang at el. 2002) • Portable • Reachable • Accessible • Localizable • Identifiable

10. Info Privacy in M-Commerce Security Risks Lead to The Concerns • First, mobile devices such as smart phones are inherently less secure than their wired counterparts • Second, mobile devices form ad hoc networks -- security breaches can occur when one of the cooperative nodes in the network is compromised. • Third, data travel through open air space where anyone with the right technology can intercept it.

11. Hypotheses Development • Many studies on privacy & security in desktop e-commerce settings • M-commerce shares many of the same privacy issues with desktop e-commerce, our research will build on existing Internet privacy research findings.

12. Hypotheses Development • Gender is related to privacy concerns (Garbarino and Strahilevitz 2004; Miyazaki and Fernandez 2001;O’Neil 2001; Sheehan 1999) • Age, income level, and education differences also affect their information privacy concerns (Goldfarb and Tucker 2012; Zukowski and Brown 2007; Sheehan 2002; O’Neil 2001) • Internet experience is correlated with privacy concerns (Bellman et al. 2004)

13. Hypotheses Development Cultural differences also have impact on the level of privacy concerns (Bellman et al. 2004; Milberg et al. 1995).

14. Hypotheses Development • H1: The difference between mobile phone users’ information privacy concerns is significant between USA and Korea. • H2: Female mobile phone users are more concerned about all four dimensions of information privacy than male phone users regardless of their nationality. • H3: Mobile phone users’ age is positively correlated to the level of information privacy concern regardless of their nationality. • H4a: Mobile phone users’ income level is positively correlated with their information privacy concerns. • H4b: Mobile phone users’ income level is positively correlated with the frequency with which m-commerce is conducted. • H5a: The length of mobile phone use is negatively correlated with the users’ information privacy concerns, regardless of their nationality. • H5b: The frequency of m-commerce is negatively correlated with users’ information privacy concerns, regardless of their nationality.

15. Data Collection • Survey Instrument • Adapted from the instrument used by Smith et al. (1996) • Subjects • Students from two universities in the mid-western region of the United States and one university in the southern part of Korea. • The survey was voluntary • Response rate 90% at all three sites. • 540 usable responses: 276 from U.S. and 264 from Korea

16. Analyses and Discussions Demographics

17. Analyses and Discussions

18. Hypotheses Test Results

19. Major Conclusions • Culture does have an impact on overall privacy concerns. Western culture values more on individualism, consequently individuals are more concerned about IP. • Female in Asian culture tend to be more cautious, therefore more concerned than their male counterparts. While US female does not seem to be more concerned than their counterparts. • Age, in bother cultures, is positively correlated with IP. • Income and years of mobile device experience is not correlated with IP in either culture.