Privacy Risk Perceptions in the Connected Car Context

Abstract

Connected car services are rapidly diffusing as they promise to significantly enhance the overall driving experience. Because they rely on the collection and exploitation of car data, however, such services are associated with significant privacy risks. Following guidelines on contextualized theorizing, this paper examines how individuals perceive these risks and how their privacy risk perceptions in turn influence their decision-making, i.e., their willingness to share car data with the car manufacturer or other service providers. We conducted a multi-method study, including interviews and a survey in Germany. We found that individuals’ level of perceived privacy risk is determined by their evaluation of the general likelihood of IS-specific threats and the belief of personal exposure to such threats. Two cognitive factors, need for cognition and institutional trust, are found to moderate the effect that perceived privacy risk has on individuals’ willingness to share car data in exchange for connected car services.