A Study On Trade-Off Between Benefit And Cost When Using Online Service

Abstract

The research tests for the trade-off model calculus for Group-on Usage. Trade-off calculus means a person who considers among variety of factors in 2 groups: cost and benefit to make decision whether to use Group-on. Privacy is a potential value which some people always state that customer cannot achieve when shopping online. Customers make decision to disclosure a certain level of privacy in order to receive for some benefits in the process of shopping online. That is the trade-off calculus. In this study, our group focus on analyze the trade-off between Privacy cost and Personal Benefit. Basing on the previous research of Dinev and Hart in 2006 for the same problem, we make hypotheses with 2 factors belong privacy cost: Privacy concern and Perception of vulnerability; 3 factors belong to personal benefit: trust, interest, and ability to control. A theoretical model is built based on the research of Dinev and Hart include 5 hypotheses of 5 independent variables and 1 dependent variable. After conducting data from 289 respondents, we implement some kind of test and analysis, include: Reliability of scale, exploratory factor, correlation and regression, discrimination. The result of research find out that Privacy Concerns have negative impact on Group-on usage even very low levels of influence. Meanwhile Personal Interest and Trust are two important factors which have a strong influence on Group-on Usage, especially is Personal Interest. Perception of Vulnerability and Ability to Control are excluded from the initial model because there is no correlation with Group-on Usage because of the situation of the market and customer in Vietnam. Overall, the impact of Personal Benefit is overwhelming from impact of Privacy Cost. These findings are very important to point out the right direction for Company which works in Group-on area in attracting attention of target customers.