International Conference on Information Society (i-Society 2012)

Personalized Services in Online Shopping: Enjoyment

and Privacy
Ilias O. Pappas, Michail N. Giannakos, Vassilios Chrissikopoulos
Department of Informatics
Ionian University
Corfu, Greece
ilpappas@ionio.gr, mgiannak@ionio.gr, vchris@ionio.gr

Abstract-Enjoyment and privacy are essential ingredients for

behavior [4]. Privacy concenrs when shopping online, like the

successful personalization. However, the current understanding

perception of loosing control, are related with anxiety which

of the influence of personalization is limited. This study extends

means less shopping enjoyment for the customer [5].

personalization literature into the area of enjoyment and privacy

issues related to intention to purchase and into the context of
online shopping. Responses from 148 online customers were used

This paper offers evidence on the use of personalized

services in online shopping, if and how they raise customers'

to examine the effects of personalization on enjoyment, privacy

privacy issues, how they affect customers' enjoyment and their

issues

intention to

and

intention

to

purchase.

Results

show

that

personalization affects positively enjoyment and intention, but

shop online based

on

them. Moreover,

the

influence of privacy on enjoyment and intention to purchase is

has no effect on privacy. Additionally, privacy affects negatively

examined, as well as the relation of enjoyment with intention.

both enjoyment and purchase intentions, while enjoyment has a

It is very interesting to study personalization as it may aid in

positive influence on purchase intentions. This study suggests

solving the problem of choice; customers who shop online

future research directions including the relation of trust with

privacy, as well as different types of emotions, hedonic and
utilitarian dimensions that relate with personalized services.

Keywords-personalization;
shopping; intention
I.

enjoyment;

privacy;

online

have to choose among a vast number of products. Although

personalization technologies have been adopted in electronic
commerce over the past years [6], the roles of personalization,
enjoyment

customer

INTRODUCTION

in

online

shopping

are

a great way to offer personalized services to different customer

categories. Online personalized services influence customers'
reactions, making personalization a reliable mean that will lead
more

often.

Online

intention

to

purchase

online. In

particular,

we

among personalization, enjoyment and privacy and how every

one of these factors influences customers' intention.

as all the collected data can be used to offer better services. The
use of transactional, demographic and behavioral data makes it

buying

together

developed a research model, which examines the relations

Marketing and advertizing use personalization in an attempt

into

privacy

relationships between personalization, enjoyment, privacy and

to communicate in various levels and ways with the customers,

customers

and

understudied. The objective of this paper is to explore the

personalized

environments may affect positively customer's experience and

increase his loyalty [I].

The remainder of the paper is organized as follows. In the

next

section

we

review

the

existing

literature

on

personalization, enjoyment, privacy and intention to purchase.

In section 3, we present the theoretical foundation of the
research model. In section 4, we present the methodology and
the

measures

adopted

for

collecting

data

on

the

online

shopping behavior. The next section presents the empirical

results derived. In the last section of the paper, we discuss the

Online personalization can help companies to build strong

relations with their customers that will last for a long time.

[mdings and conclude by providing theoretical and practical

implications and make recommendations for future research.

Retaining a customer is much more profitable for a company

than finding a new one and keeping a customer happy by
satistying his need increases his intentions to purchase again
[2][3].

Personalization

is

based

on

customer's

personal

information. Hence, the more information a company knows

about the customer, the better services it can offer. The goal of
every company using such systems is not just to fulfill
consumers' needs but also to create needs that the same
company will fulfill in time. Therefore, they need to know as

II.

LITERATURE REVIEW

Personalization is defined, among others, as "the ability to

provide content and services tailored to individuals based on
knowledge about their preferences and behavior" and "the use
of technology and customer information to tailor electronic
commerce interactions between a business and each individual
customer" [7].

much as possible for their customers. Nevertheless, at this point

Nowadays, personalization has an important role for online

privacy concerns start to affect people in a significant way,

vendors when they plan their strategies regarding the services

resulting in negative relation between privacy and purchase

that they offer. It is important to create a customer relationship

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International Conference on Information Society (i-Society 2012)

that will give them the chance to communicate with the

and the result, while others maybe thrilled when they find new

customers

deals or acquire products that will make them feel popular.

directly

personalization

in

and

personally.

e-commerce

Trying

means

dealing

to

offer

with three

problems: identitying a customer, gathering information about

the customer, and processing data to create a service which will

TTT.

HYPOTHESES AND MODEL DEVELOPMENT

be customized for a certain customer (e.g. recommender

The aim of the study is threefold; first the study investigates

systems) [8].

the influence of personalization on privacy, enjoyment and

Personalization's goal is to indentity and satisty a special

customer or user need. E-commerce, and its transactions which
involve selling and buying, is a field of application offered for
using personalization methods and

techniques. Hence,

commerce beyond eshops, includes recommendation systems

intention to purchase, then the relationships between privacy,

enjoyment

and

intention

to

purchase

and

finally

the

relationship between enjoyment and intention. Tn our study,

grounded on the view of the literature we adopt the respective
constructs and develop the research model.

and comparison agents.

The

broad

researched

field

[8][9].

of
It

personalization
has

focused,

has

among

been

widely

others,

on

recommender systems [10]. Most recommendation tools ask

too much information from the customer. Although these tools
seem like a very good solution to the problems of too much
information and too many choices,

they are not widely

accepted from consumers [11]. Particularly, these tools will

first ask a number of questions in order to learn the customers'
needs and preferences and eventually provide the proper
recommendation. However, gathering and using consumers'
information has a downside; it may be considered as an
invasion to the consumers' privacy. Salomann et al.[12],
pointed out the importance of privacy and security aspects in
the field of customer relationship management (CRM). Data
from consumers can be collected either by directly asking them
(explicitly) or by inferring information about them without
their knowledge or consent (implicitly) [13]. When customers
are asked for their personal data it is very likely to share them
with the company in order to gain access to its service,

A.

Personalization
Personalization is important for a customer that his ultimate

goal is to create a relationship with an online vendor. As stated

before personalized services aim to aid the customers decide
when it comes to online purchases by recommending certain
products or services. Komiak and Benbasat [20], posit that
higher personalized recommendation agents can offer better
services to a customer because they understand him and his
preferences in a better way. Also, personalization attitudes,
depending on the provided service, have a positive effect on
customers' intention to purchase [21]. Based on the fact that
personalization requires a lot of private data from the customer,
while its goal is to provide a solution to his problem of choice,
the customer may develop mixed emotions towards it and
towards the services that are provided [22], while shopping
online is a procedure that customers enjoy [19]. Nevertheless,
asking a customer for personal information may lead to privacy
violations. Customers have to choose between their privacy
and personalized services, but eventually they have to trade it

although, many companies do not ask them and customers

in order to shop online [15]. Hence, we propose that:

realize the privacy violation only when the first personalized

Hi:

Personalization will have a negative impact on privacy.

H2:

Personalization will have a positive impact on enjoyment.

H3:

Personalization will have a positive impact on intention to

purchase.

B.

Privacy

emails arrive [14]. Researchers have tried to understand how

customers evaluate their privacy and how they decide to trade
it for tangible or intangible benefits [15]. Such benefits are
those offered through personalization and recommendation
tools.
Murray et al.[I6], argue that no matter the great usefulness
of any recommendation tool, their ease of use seems to be more
important for the customer. Research has focused on making
recommendation agents more useful in an attempt to offer
more specific and personalized services, because it is clear that
the more useful a technology is the more likely is to be
adopted. Moreover, until now there is limited research on the
acceptance of recommendation systems from customers and
their effect on customers' loyalty [17].
Shopping

enjoyment,

and

by

extent

The paradox of privacy in online shopping is that the better

services the customer wants, based on his needs, the more
personal information he has to reveal. Previous studies revealed
that customers feel that their privacy has been violated when
they receive recommendations based on previous purchases or
even their browsing habits [23]. Feeling such a violation can
diminish the enjoyment that occurs from purchasing online. It
has been found that privacy concerns influence negatively

enjoyment

when

receiving personalized services, plays an important role in

customers behavior towards online shopping [18]. Enjoyment
is related to many types of shopping, while the experience of
the shopping procedure is defined by the customers' beliefs
and affects the way they feel about it [19]. Some people may

customers' online behavior and attitude [24].

Hence, we

propose that:
H4:

Privacy will have a negative impact on enjoyment.

H5:

Privacy will have a negative impact on intention to

purchase.

shop when they are in a bad mood as they enjoy the process

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International Conference on Information Society (i-Society 2012)

H5

Privacy

Intention to Purchase

HI

H6

Enjoyment

Personal ization
H2

Figure I. Research Model

Enjoyment

C.

TABLE 1.

Various customer emotions arise during consumption and

Demographic Profile

affect their behavior. In online shopping, positive emotions

such

as

enjoyment,

customers'

future

are

important

behavior

[25].

because

The

they

enjoyment

Male
Female

customer feels when shopping online, affects positively his

Single
Married
Divorced

have showed that enjoyment has a strong positive effect on

intentions

[26].

Shopping

enjoyment

has

an

important effect on customers behavior [18]. Hence,

we

0-17

Enjoyment will have a positive impact on intention to

purchase.

49.3%

116

78.4%

27

18.2%

3.4%

4.1%

18-24

39

26.4%

25-29

51

34.5%

30-39

35

23.6%

40+

17

11.5%

Middle School
High School
University
Post Graduate

aforementioned theoretical and empirical research. In addition

Fig. 1 clearly states the set of hypotheses that have been
formulated and examined in this paper.
B.

METHODOLOGY

50.7%

73

Edncation

In Fig. 1, we present the research model based on the

IV.

75

Age

propose that:
H6:

Marital Status

attitude towards online shopping. Moreover, previous studies

customers'

No

Gender

affect
that

Users' demographic profile

0.7%

22

14.9%

68

45.9%

57

38.5%

Measures
The questionnaire was divided into two parts. The first part

included questions on the demographics of the sample (age,

A.

Sampling

gender, education). The second part included measures of the

Our research methodology included a survey conducted

through

the

delivery

and

collection

of

individual

questionnaires. A number of different methods were recruited

for attracting respondents; questionnaires distributed in various
places (universities, public areas) and e-mails were sent to
different mailing lists. It was made clear that there was no

various constructs identified in the literature review section.

Table IT lists the operational definitions of the constructs in this
theoretical model as well as the studies from which the
measures were adopted. In all cases, 7-point Likert scales, in
which 1 indicates "completely disagree" and 7 "completely
agree", were used to measure the model's variables.

reward for the respondents and the participation was voluntary.

The survey was open during the last two weeks of November
2011. We aimed at about 600 Greek users of online shopping,
148 of which fmally responded.
As Table I shows, the sample of respondents was composed
of almost equally men (50.7%) and women (49.3%). In terms
of age, the majority of the respondents (34.5%) were between
25 and 29, while the second more frequent age group (26.4%)
involved people between 18 and 24. Finally, the vast majority
of the respondents (84.4%) included graduates or post-graduate
students.

978-1-908320-05/6/$25.002012 IEEE

TABLE II.
Constrnct

Construct definition and instrument development

Operational Definition

Measuring the customers' privacy

issues when using personalized
Privacy (PR)
services.
ITailoring content and services to
the
buyer's
personal
Personalization (PER) atch
interests or preferences.
customers'
Measuring
the
Enjoyment (ENJ)
njoyment
when
using
personalized services.
onsumers' intention to shop
Intention to Purchase
pnline based on personalized
(INT)
services.

Sonrce
[6]

[27]

[26]

[28][29]

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International Conference on Information Society (i-Society 2012)

TABLE III.

Descriptive statistics and correlations of latent variables

Data Analysis

C.

Constrnct

Structural equation modeling was conducted using AMOS

version 18.0 software, based on [30]. At fIrst, a measurement

Construct Mean

model was created based on a confirmatory factor analysis, and

then the structural model was built in order to test the
hypothesized relationships.

1)

Reliability and validity:

The constructs used in this

research were evaluated in terms of reliability and validity.

Reliability

was

examined

based

on

the

Cronbach

alpha

indicator which needs to be higher than 0.7 for every factor.

Validation analysis consists of convergent and discriminant
validity. Establishing validity requires that Average Variance
Extracted

(AVE)

should be

greater than

0.50

[31],

SD

CR

AVE

PER

PR

ENJ

INT

PER

4.68

1.60

0.924

0.764

0.874

PR

4.68

1.59

0.921

0.855

-0.019

0.923

ENJ

4.13

1.54

0.928

0.693

0.561

-0.128

0.832

INT

4.15

1.64

0.930

0.625

0.577

-0.248

0.767 0.791
(AVE). Off-

Note: Diagonal elements (in bold) are the square root of the average variance extracted

iagonal elements are the correlations among constructs. For discriminant validity, diagonal element
should be larger than off-diagonal elements. PER, Personalization; PR, Privacy; ENJ, Enjoyment; INT,
ntention to Purchase

the

correlation between the different variables in the confirmatory

models should not exceed 0.8 points, as this would suggest low
discrimination, and that the square root of each factor's average
variance extracted (AVE) is larger than its correlations with

The fit indices of the research model are presented on table

4. All values are within the recommended range. SpecifIcally,
2
X /df= 1.52, CFT= 0.98 and RMSEA= 0.06.

other factors [30].

2)

Goodness offit:

TABLE IV.

Goodness of fit indices describe how

Overall model fit indices for the model

well the model fIts its data. Here, several fIt indices were used
to

assess

model-data

fit.

Root

mean

square

error

of

Model fit indices

Results

Recommended Value

X2/df

1.52 (X2 = 72.9; df = 48)

<= 0.3

CFI

0.98

>= 0.9

RMSEA

0.06

<= 0.08

afProximation (RMSEA), comparative fIt index (CFI) and

X /df ratio were all used to evaluate model-data fit [27].

RMSEA less than 0.05 suggests good model-data fIt; between

0.05 and 0.08 it suggests reasonable model-data fit and
between 0.08 and 0.01 suggests acceptable model data fIt. CFI
indices greater than 0.90 suggest good model-data fit and
greater than 0.80 suggest adequate model-data fIt. A
less than 3 is acceptable.

l/df ratio
The estimated path coeffIcients of the structural model

V.

were examined in order to evaluate the hypotheses. Figure 2

FINDINGS

exhibits the analysis of the research model. The results are as

First, an analysis of reliability and validity was carried out.

Reliability testing, based on the Cronbach alpha indicator, as
seen on Table Ill, shows acceptable indices of internal
consistency because they all exceed the cut-off level of 0.70.
Validation testing results can be seen on table 3. AVE for all
constructs is higher from the level of 0.50, all correlations are
lower than 0.80 and square root AVEs for all constructs are
larger from their correlations.

follows. Personalization has a significant effect only on

enjoyment and intention to purchase. It affects positively both
enjoyment supporting H2, and intention to purchase, but with
less

signifIcance,

On

the

other

Intention to

Purchase
(R2=0.72)

0.02

0.70***

Personalization
0.65**

Enjoyment
(R2=0.37)

***p<O.OOl; **p<O.Ol; *p<O.l

Figure 2. SEM Analysis of the research model

978-1-908320-05/6/$25.002012 IEEE

hand,

a significant effect on both enjoyment and intention to

purchase is presented.

(R2=0.00)

H3.

HI. Regarding the effects derived from privacy, we found that

-0.16**

Privacy

supporting

personalization has no significant effect on privacy rejecting

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International Conference on Information Society (i-Society 2012)

This effect is negative on both enjoyment, supporting H4, and

customer reveals willingly his personal information, but do not

intention

higher

take into account how that affects his shopping enjoyment.

significance). Finally, the effect of enjoyment on intention to

Moreover, [26] examine the effects of enjoyment on online

purchase

purchasing intensity, but they do not study the effects of

to
was

purchase,
found

H5

supporting

significant

as

(with

well.

Tn

particular,

enjoyment affects intention to purchase positively, supporting

privacy issues on enjoyment or online shopping intentions.

H6.

Lee and Park [21], study the influence of online service

2
Square multiple correlations (R ) are presented on figure 2 as
2
well. The R of privacy was zero as its only predictor had no
2
effect on it. The R of enjoyment was 0.37 and that of
intention to purchase was 0.72. Values higher than 0.26, imply

personalization on purchase intentions taking into account the

effects

subjective

norms

on

customers'

attitudes.

is related with subjective norms.

high effect of the predictors of enjoyment and intention to

purchase respectively.

of

Nevertheless, they do not measure shopping enjoyment, which

Our

study

is

one

of

the

few

so

far

that

includes

personalization as a predictor variable, while examining its

relation with privacy and enjoyment. Our findings provide

VI.

useful insights for both practitioners and researchers. The

DISCUSSION AND CONCLUSIONS

Tn order to understand customers' intentions towards

online

shopping

we

explored

the

relations

between

personalization, privacy, enjoyment and intention to purchase.

Our findings indicate that while personalized services do not
affect

customers'

privacy

issues,

they

influence

their

enjoyment as well as their intention to purchase. Tn particular,

personalization does not influence privacy, but has a positive
effect

on

both

enjoyment

and

intention

to

purchase.

Additionally, we found that privacy has negative effects on

enjoyment and intention to purchase, while enjoyment has a
positive effect on intention.

results

online will raise their enjoyment if they use personalized

services (HI). This may be due to the way these services

will raise the intention of customers to shop online (H3),

probably because it answers to their needs by providing the
right services or products, similar to the findings of [21].
Nevertheless, we found that personalization has no significant
effect on the privacy issues of the customers (HI), maybe
because when individuals choose to use personalized services
they accept and expect some privacy violations, for which
they probably have already been informed. Moreover, studies
have showed that when customers are informed properly and
assured for their privacy they are willing to share they
personal information in order to receive personalized services
[32]. Our results contradict with previous studies that have
found negative relation between privacy and personalization
[24]. Regarding privacy, it has a negative effect on both
enjoyment (H4) and intention to purchase (H5), which was

the

importance

of

personalization

on

is important to increase enjoyment and purchase intentions.

Personalization was not found to have a significant effect on
privacy issues, adding to the statement that when personalized
services are offered properly and the individual is well
informed, using such services does not affect his privacy
issues. Nevertheless, the issue remains that with high privacy
comes low enjoyment and intention to purchase. We provide
evidence that using personalization as an online marketing
which

will

act

as

it

promises

without

exploiting

customers' personal data, will help practitioners to keep their

customers happy, which may eventually lead to spending more
money and making more purchases.

work, offering the right product at the right time, making the
process easier and more enjoyable. Similarly, personalization

out

intention to purchase. Hence, providing personalized services

tool,

Our results further demonstrate that customers shopping

point

customers shopping enjoyment, which in tum affects strongly

As with all empirical studies, there are some limitations.

First, the empirical data used in this study include mostly
Greek online shopping customers. Second, the findings are
based

on

self-reported

data;

other

interviews, observations) could

methods

provide

(e.g.

depth

complimentary

picture of the findings. Third, we only investigate enjoyment

while, some other aspects of individual emotions, such as
anxiety, anger or happiness that have been proved to affect
people's behavior [33] were not included in the study. Further
research on these aspects would valuable contribute on the
understanding

of

customers'

emotions

on

personalized

services. Tn addition, it would be interesting to see how

privacy would affect trust issues towards the online vendors
that offer personalized services and if and how intention to
purchase leads to actual purchases. Hedonic and utilitarian
shopping motivations could be included as well.

expected as having high privacy concerns, being unwilling to

ACKNOWLEDGMENT

share information while it is the only way to shop online, will

reduce the positive feelings that occur when shopping online

The authors wish to thank the respondents to the survey

reducing enjoyment and future intentions. Finally, enjoyment

who kindly spent their time and effort in sharing their valuable

has a significant effect on intention to purchase (H6), which

experience.

was expected because the better a customer feels with a

service the more likely he is to use it. Our results concur with
previous studies, which mention that shopping enjoyment has
an important effect on customers' behavior [18]. As such, all
our hypotheses except HI are supported.

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