Theory , Trust and Privacy Concern

Relationship marketing typically requires organizations to continually collect customer information. Two distinct approaches co-exist to encourage customers to disclose information: reducing privacy concern and building trust, which in the past have been examined in isolation. In the present study, Regulatory Focus Theory was used to integrate both approaches and examine their distinct response behaviors concurrently. The findings were robust across two studies with different methods and contexts. As suggested in the proposed model, trust and privacy concern were the two central mediating variables with differentiated effects on promotion and prevention-focused behaviors. Specifically, trust mediated fairness perceptions on promotion-focused behaviors (i.e., relational behavior, relationship investment and repatronage intentions), whereas privacy concern mediated fairness perceptions on prevention-focused behaviors (i.e., defensive, deflective and disruptive behaviors). Implications for theory and practice are discussed.