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Consumer trust: privacy policies and third‐party seals

Dane Peterson (College of Business Administration, Missouri State University, Springfield, Missouri, USA)
David Meinert (College of Business Administration, Missouri State University, Springfield, Missouri, USA)
John Criswell II (Shelter Insurance Companies, Columbia, Missouri, USA)
Martin Crossland (School of Business, Oral Roberts University, Tulsa, Oklahoma, USA)

Journal of Small Business and Enterprise Development

ISSN: 1462-6004

Article publication date: 30 October 2007

Abstract

Purpose

This study aims to compare the effectiveness of third‐party seals with self‐reported privacy policy statements with regard to the willingness of potential e‐commerce customers to provide web sites with various types of personal information.

Design/methodology/approach

A survey was administered to 374 graduate business students at two Midwestern universities in the USA.

Findings

The results indicated that third‐party seals were not as effective as self‐reported privacy statements with a strong guarantee of security.

Research limitations/implications

This study did not provide any evidence to support the necessity for small enterprises to incur the added costs in terms of money and time required to obtain a third‐party seal. Rather the results suggest small enterprises may increase consumer trust more effectively through strong privacy policy statements.

Originality/value

This study provides useful information on the effectiveness of third‐party seals with self‐reported privacy policy statements with regard to the willingness of potential e‐commerce customers to provide web sites with various types of personal information.

Keywords

Citation

Peterson, D., Meinert, D., Criswell, J. and Crossland, M. (2007), "Consumer trust: privacy policies and third‐party seals", Journal of Small Business and Enterprise Development, Vol. 14 No. 4, pp. 654-669. https://doi.org/10.1108/14626000710832758

Publisher

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Emerald Group Publishing Limited

Copyright © 2007, Emerald Group Publishing Limited