Who is responsible for customers’ privacy? Effects of first versus third party handling of privacy contracts on continuance intentions

E-commerce data management has become an extensive network of interrelated players that links companies providing goods or services (first parties) with analyse, manage otherwise use customers’ (third parties). In consequence, privacy is now the combined responsibility first and third parties. We introduce concept contract to investigate effect versus party handling on customer reactions, including fulfilment breach. An online experiment 296 participants confirmed differences in affects continuance intentions. This link mediated through perceived feelings violation. Although actions led somewhat stronger both (mis)handling affected intentions cognitive affective reactions. Our findings demonstrate individuals make little distinction between responsibilities, indicating contracts extend beyond original relationship retailer. It further demonstrates offer a strong theoretical framework understand reactions across different situations. Conceptually, our study shifts from dualistic towards perspective subjectively held obligations, offering important pointers guide organizations’ management. • Privacy create relationships based interests emotions. involve not only parties but also Both mishandling affect Third no direct for party.