Do context and personality matter? Trust and privacy concerns in disclosing private information online

Research and business practice have already established the central role of trust in business, particularly in online interactions. Many online business exchanges require the disclosure of sensitive personal information on a regular basis. Simultaneously, customers are reluctant to disclose private information online due to concerns about privacy. Thus, trust plays a critical role in such disclosures. However, a number of factors could influence the extent of customers' trust and their willingness to disclose their private information. In this study, we explore the critical roles of two sets of factors: the sensitivity of the context within which the private information is disclosed and the customer's personality. Our theory building is based on the contextualization of the theory of reasoned action (TRA-Privacy) and its synthesis with Prospect theory. Our theory argues that context sensitivity as a moderator and individuals' salient attributes in terms of personality types and privacy concern are critical factors impacting trust and the willingness to disclose personal information. Our results indicate that context moderates the parameters and path structure of the trust model and that the influence of personality on privacy concern and trust depends on the nature of the context. Applying these "who" and "where" aspects of theory building, the study opens a new avenue of context-related research that can further increase the specificity and richness of trust and privacy research. The study also provides a new perspective in trust scholarship, therein requiring the examination of three inter-related components: trustee, trustor and the context of trust.