TY - GEN A1 - Bornschein, Rico A1 - Schmidt, Lennard A1 - Maier, Erik T1 - The Effect of Consumers´ Perceived Power and Risk in Digital Information Privacy: The Example of Cookie Notices T2 - Journal of Public Policy & Marketing N2 - Recent regulation in the European Union (i.e., the General Data Protection Regulation) affects websites’ information privacy practices. This regulation addresses two dimensions: websites must (1) provide visible notice regarding private information they collect through cookies and (2) give consumers the choice to disagree to such tracking. Policy makers must understand their regulation’s degree of implementation, as well as its effect on consumers. The authors develop a typology of website cookie notices along the dimensions of notice visibility and choice. A field study shows that most websites only offer low notice visibility and limited choice over private information collection. In addition, four experimental studies in the EU and United States explore the effects of information privacy practices. They find that offering choice over whether or which data are collected increases consumer power, whereas visibility of the notice (vs. no notice) only affects risk perceptions. The authors establish the novel suggestion that perceived risk is mitigated if consumers have more choice over their data (indirectly through greater power). Power and risk influence consumers’ affect and purchase intent. KW - consumer power KW - cookie notice KW - General Data Protection Regulation (GDPR) KW - information privacy KW - risk perception Y1 - 2020 U6 - https://doi.org/10.1177/0743915620902143 VL - 39 IS - 2 SP - 135 EP - 154 ER - TY - GEN A1 - Schmidt, Lennard A1 - Bornschein, Rico A1 - Maier, Erik T1 - The effect of privacy choice in cookie notices on consumers´ perceived fairness of frequent price changes T2 - Psychology & Marketing N2 - Recent regulatory changes (i.e., General Data Protection Regulation of the European Union) enforce that seller (e.g., retail and service) and all other websites disclose through cookie notices which data they collect and store. At the same time, websites must allow consumers to disagree to the tracking of their browsing behavior. Despite sellers' concern about the loss of consumer insights—as consumers might disagree to the collection of their browsing data—cookie notices might also have a surprising side-effect: Consumers might accept frequent price changes (from personalized or dynamic pricing) more readily, if they agree through a cookie notice that their behavior can be tracked. Specifically, two experimental studies show that consent to the tracking of browsing behavior increases consumers internal attribution of a price change, as consumers attribute the cause of the change (here: giving up data) to themselves. This increases price fairness perceptions and, in turn, purchase intent. As a result, for online sellers of goods or services the implementation of cookie notice should no longer be thought as a matter to be avoided, but rather a trade-off decision: Loss of a part of consumer insights versus higher acceptance of data-driven marketing mix decisions, such as frequent price changes. KW - attribution theory KW - cookies KW - dynamic pricing KW - GDPR KW - personalized pricing Y1 - 2020 U6 - https://doi.org/10.1002/mar.21356 VL - 37 IS - 9 SP - 1263 EP - 1276 ER -