Effects of Brand Awareness and Social Norms on User-Perceived Cyber Privacy Risk

Although users are likely to seek external information sources regarding brand awareness and social norms to evaluate a cyber service, the effects of external information sources on privacy risk perceptions are unknown. This study examined how external information sources affect users' perceptions of cyber privacy risk. Structural equation modeling was used to test the study hypotheses. The findings indicated that social norms directly and indirectly (through perceived effectiveness of a privacy policy and perceived control over information disclosure) negatively influenced perceived cyber privacy risk; however, brand awareness only indirectly affected perceived cyber privacy risk through perceived effectiveness of a privacy policy and perceived control over information disclosure. In developing programs that reduce users' perceptions of risks associated with personal information disclosure, e-marketers should enhance users' perception of the effectiveness of privacy policies and perceived control over information disclosure from the perspective of external information sources.