Why free does not mean fair: Investigating users’ distributive equity perceptions of data-driven services |
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| Institution: | 1. Universitat Politècnica de València, Spain;2. University of Valencia, Spain;3. ESIC Business & Marketing School, Spain;1. University at Albany (SUNY), 399A School of Business, Albany, NY, 12222, USA;2. University of Tennessee at Knoxville, School of Information Sciences, 444 Communications Building, Knoxville, TN, USA;3. Development Management Institute, 5th Floor, Gandhi Maidan, Patna, Bihar, India;1. Department of Business Information & Analytics, Daniels College of Business, University of Denver, 2101 S. University Blvd, Denver, CO, USA;2. Department of Computer Information Systems, J. Mack Robinson College of Business, Georgia State University, 35 Broad Street, Atlanta, GA, USA;1. Wright State University, 3640 Colonel Glenn Highway, Dayton, OH, 45435, USA;2. Department of Information Technology and Operations Management, Nanyang Technological University, 50 Nanyang Avenue, Singapore, 639798 |
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| Abstract: | Individuals are supposed to perform a privacy risk-benefit analysis when deciding to transact with a free data-driven service provider. Building on equity theory, this article suggests that users incorporate the net value for providers in their trade-off. Based on two pre-studies and an experimental survey study among 200 free data-driven service users, we provide evidence that users’ balance their own net value (benefits minus risks) as well as providers’ net value from monetizing users’ data. This leads to distributive equity perceptions which, in turn, affect users’ satisfaction with the service and thus long-term success of the user-provider-relationship. In this vein, a distributive equity scale for the context of data-driven services is developed. Implications for research, providers and users are discussed. |
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| Keywords: | Information privacy Equity theory Distributive equity Free data-driven business models Value of data |
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