Advances in Economics, Management and Political Sciences

- The Open Access Proceedings Series for Conferences


Proceedings of the 2nd International Conference on Financial Technology and Business Analysis

Series Vol. 64 , 28 December 2023


Open Access | Article

Willingness-to-Pay for Privacy: A Study on IPhone

Xuanyu Wang * 1
1 Beijing 21st Century International School

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 64, 104-111
Published 28 December 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Xuanyu Wang. Willingness-to-Pay for Privacy: A Study on IPhone. AEMPS (2023) Vol. 64: 104-111. DOI: 10.54254/2754-1169/64/20231509.

Abstract

This research employs the iPhone as a case study and conducts a survey to investigate consumers' willingness-to-pay (WTP) for privacy. We discover that consumers not only value their privacy in the digital realm but are also willing to invest considerably in privacy-protection services. What makes our findings particularly intriguing is the relationship between consumers' privacy habits and their willingness-to-pay. Surprisingly, individuals who may exhibit lower vigilance in safeguarding their privacy online paradoxically demonstrate a higher willingness-to-pay for services that ensure their data protection. Our research not only sheds light on consumer behavior but also provides invaluable strategic implications for businesses, especially tech giants like Apple. By leveraging privacy protection as a key selling point, firms can not only cater to the increasing concerns of privacy-conscious consumers but also elevate their products to a new level of desirability. Effectively communicating the robust privacy features of products like the iPhone empowers companies to justify premium pricing, enhancing their revenue streams while simultaneously fostering a safer digital environment for their users. This study stands as a testament to the symbiotic relationship between consumer demand for privacy and businesses' strategic innovation, driving the evolution of both technology and user protection in the digital age.

Keywords

Willingness-to-pay (WTP), consumer privacy, big data

References

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2. Horowitz, J. K., & McConnell, K. E. (2002). A review of WTA/WTP studies. Journal of environmental economics and Management, 44(3), 426-447.

3. Belleflamme, P., & Vergote, W. (2016). Monopoly price discrimination and privacy: The hidden cost of hiding. Economics Letters, 149, 141-144.

4. Conitzer, V., Taylor, C. R., & Wagman, L. (2012). Hide and seek: Costly consumer privacy in a market with repeat purchases. Marketing Science, 31(2), 277-292.

5. Taylor, C. R. (2004). Consumer privacy and the market for customer information. RAND Journal of Economics, 631-650.

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7. Tsai, J. Y., Egelman, S., Cranor, L., & Acquisti, A. (2011). The effect of online privacy information on purchasing behavior: An experimental study. Information systems research, 22(2), 254-268.

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Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
ISBN (Print)
978-1-83558-229-9
ISBN (Online)
978-1-83558-230-5
Published Date
28 December 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/64/20231509
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated