The objective of this study is to scrutinize the intricate relationship among privacy concerns, trust in consumption and its effect on technology adoption. Furthermore, this article examines the moderating influence of users' perceptions of prestige, providing a comprehensive analysis of the dynamic interplay between these elements.
This study employed a quantitative approach, utilizing three experimental studies (Study 1: n = 215, Study 2: n = 165, Study 3: n = 457) and a two-way ANOVA to investigate the impact of privacy concerns on trust and the adoption of new social media and digital commerce. A mediation analysis using SPSS 25.0 (PROCESS) examines perceived prestige as a moderator and trust as a mediator between privacy concerns and adoption.
Our study highlights managerial strategies for navigating the digital landscape, emphasizing user privacy concerns and the efficacy of data-driven engagement. Findings suggest leveraging prestige and exclusive services to enhance privacy, strengthen user relationships and increase business visibility.
Our research contributes to managerial intensifying apprehensions regarding user privacy within these virtual domains, particularly vis-à-vis corporations' augmented data acquisition stratagems as an efficacious mechanism for engendering user engagement and bespoke services.
Companies can take advantage of the discussion and findings, assessing that for their highly innovative and market-differentiated products, leading to positions of social prominence, in which status and/or prestige can be identified in the context of consumption, the increase and clarity of data use processes, data security and transparency should be priorities to guarantee consumption not only for the innovative social added value.
Our study innovatively demonstrates that prestige perception, brand reputation and privacy concerns encourage digital adoption. Through three comprehensive studies, we reveal the “privacy paradox,” where the allure of prestige and trust overcomes privacy concerns, highlighting the role of status in fostering digital engagement amidst privacy challenges and enhancing consumer behavior understanding.
