Understanding defensive consumer actions – the interplay of privacy concerns, regulations, and internet usage

Consumers often resort to defensive actions, such as fabricating personal information, when they perceive a heightened risk to their online privacy. These actions compromise companies’ ability to customise offerings and personalise communications, presenting a significant challenge to digital engagement strategies. This study investigates how perceptions of government regulations influence the tendency to fabricate personal information, examining the mediating role of online privacy concerns and the moderating role of internet usage in this relationship. Using data collected from an offline survey across various Indian states, we tested the hypotheses through mediation and moderated mediation analyses. The findings reveal that online privacy concerns mediate the relationship between perceptions of legal/regulatory policies and the tendency to fabricate personal information, with internet usage acting as a moderating variable. These insights underscore the critical role of regulatory perceptions, privacy concerns, and internet usage in shaping online consumer behaviour, offering valuable implications for policymakers and businesses striving to enhance trust and transparency in online environments.