The Effect of Information Privacy Concern, Privacy Policy on Online Purchase Intention on Students in Bandung

Abstract

This study mainly discusses the concern about sharing personal data with e-commerce companies when consumers make online shopping transactions. This concern includes the use of consumer personal data by e-commerce companies without the consumer's knowledge. This study was conducted using a descriptive analysis design with a quantitative approach method. In this study, 428 Undergraduate Accounting Study Program students were involved as the sample who were selected using a sampling technique, random sampling. The obtained data were then analyzed using the Structural Equation Model (SEM) data processing through PLS. The results of this study form a model that shows that the higher the level of consumer concern over their personal information, the higher the consumer's perception of negative risks during an online transaction. Meanwhile, the higher the privacy policy indicates the lower the consumer's perception of negative risks during an online transaction. Furthermore, the higher the level of consumer concern over personal information, the lower the level of trust while the higher the privacy policy, the higher the trust. Additionally, the lower the level of consumer perceptions of negative risks during an online transaction, the higher the level of trust. Besides, the higher the consumer's trust, the higher the online purchase intention. This model provides an overview in terms of consumer intentions to shop online through information privacy concerns and privacy policies. The model formed might be a solution to be a basic principle in shaping online shopping intentions through information privacy concerns and privacy policies.