How Chinese Web Users Value Their Personal Information: An Empirical Study on WeChat Users

Area of Science:

• Behavioral Economics
• Information Economics
• Consumer Psychology

Background:

• The burgeoning digital economy necessitates understanding user valuation of personal information (PI).
• Establishing a formal personal information market in China requires insights into user perceptions and motivations.
• Existing research lacks comprehensive data on Chinese web users' monetary valuation of their digital identity.

Purpose of the Study:

• To investigate Chinese web users' monetary valuation of personal information (PI).
• To identify the psychological driving factors influencing this valuation.
• To inform the development of a personal information market in China.

Main Methods:

• A survey was conducted among 710 Chinese WeChat users.
• Participants' perceptions of the monetary value of their PI were assessed.
• Analysis focused on willingness-to-pay (WTP) and willingness-to-accept (WTA) metrics.

Main Results:

• The endowment effect was observed in Chinese web users' valuation of PI.
• Willingness-to-pay (WTP) is primarily driven by privacy concern and intimacy of disclosure.
• Willingness-to-accept (WTA) is influenced by privacy concern, intimacy of disclosure, and psychological ownership.

Conclusions:

• Market players can leverage identified driving factors to enhance PI valuation and user retention.
• A segment of users will opt for paid, privacy-guaranteed services.
• The emergence of a formal PI market may lead to the formation of distinct privacy-focused consumer segments.