The Personalization Privacy Paradox: An Empirical Evaluation of Information Transparency and the Willingness to be Profiled Online for Personalization1

Firms today use information about customers to improve service and design personalized offerings. To do this successfully, however, firms must collect consumer information. This study enhances awareness about a central paradox for firms investing in personalization; namely, that consumers who value information transparency are also less likely to participate in personalization. We examine the relationship between information technology features, specifically information transparency features, and consumer willingness to share information for online personalization. Based on a survey of over 400 online consumers, we examine the question of whether customer perceived information transparency is associated with…