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To increase their revenue from electronic commerce, more and more Internet businesses are soliciting personal information from consumers in order to target products and services at the right consumers. But when deciding whether to disclose their personal information to Internet businesses, consumers may weigh the concerns of giving up information privacy against the benefits of information disclosure. This article examines how Internet businesses can motivate consumers to disclose their personal information. Based on a synthesis of the literature, the article identifies seven types of extrinsic or intrinsic benefits that Internet businesses can provide when soliciting personal information from consumers. Through comprehensive conceptual and empirical validation processes, the article develops an instrument that allows Internet businesses to gauge the preference of consumers for the various types of benefits. By testing a set of nomological networks, some ideas are presented to Internet businesses about what types of benefits may be more effective given the personality traits of particular consumer populations. Besides providing a foundation for efforts aimed at developing theories on information, privacy and information disclosure, the results of this research provide useful suggestions to Internet businesses on how best to solicit personal information from consumers. Implications for research and practical application are discussed.
Hui et al. (Wed,) studied this question.