A Nomological Network of Customers’ Privacy Perceptions : Linking Artifact Design to Shopping Efficiency

The explosive growth of mobile devices and their widespread acceptance by customers along with the potential benefits of autoID technologies have prompted retailers to consider adoption of emerging technologies. Their motives are to enhance in-store customer shopping experience and to acquire an advantage in the competitive retail environment. Two inter-related issues nevertheless have been a hindrance: mobile shopping application usability and customers’ privacy concerns. Drawing on a recently developed conceptualisation of mobile application usability and the multidimensional developmental theory of privacy, we tackle these two issues. We theorise about the impact of artifact design on mobile application usability and the consequent impact of usability on customers’ privacy concerns and shop-ping efficiency. We tested our hypotheses in two retail store laboratory studies in which the participants were assigned to two different shopping tasks: general browsing (n = 194) and goal-directed shopping (n = 190). We found that adhering to mobile application usability principles could mitigate privacy concerns and consequently, improve shopping efficiency. Our findings suggest new avenues to alleviate customers’ privacy concerns using artifact design, thus complementing conventional approaches that focus on preventive measures to deal with the issue of privacy concerns