Impact of data privacy practices on mobile app adoption

Abstract

Rapid growth in mobile applications has changed people's ideas about accessing services, communicating, and performing daily activities. It has also posed a barrier in using these applications because of increasing data privacy-related issues. The present study investigates the impact of data privacy practices on mobile app adoption, considering perceptions, trust, transparency, security measures, and data-sharing behaviors. Following a qualitative research design, the study was done by conducting seven semi-structured interviews with mobile app users in Lahore, Pakistan, from different professional and educational backgrounds. Thematic analysis was employed to derive major patterns and insights regarding privacy-driven adoption behavior. Findings reveal that users become much discomforted towards applications that require excessive and unnecessary personal information, significantly deterring their adoption intention. Transparencies within the privacy policies, particularly full and clear disclosure of data usage, appeared to be significant determinants creating trust among users. Trust was conceptualized as a mediating variable to use in linking privacy practices to the adoption decisions, especially for applications handling sensitive financial or personal data. Visible security features, such as encryption, two-factor authentication, and login alert, among others, positively influenced the hastening tendencies of users towards the adoption of mobile applications. The authors have also categorized users based on their selective data-sharing approaches whereby sensitive information would be withheld unless absolutely required for the core app functionality. It contributes to the literature by providing a round perspective on how privacy practices influence mobile app adoption on the user side. Findings of this study are helpful for the app developers, marketers, and policymakers with the need for privacy-centric design, transparent communication, and sound security measures to build up trust, adoption, and continuous user engagement.