THE ROLE OF PRIVACY RISK ON ADOPTION AND PURCHASE INTENTION OF CLOUD PREMIUM SERVICE

• Main Author: Rizka Dewi Tjondronegoro, R.A.
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72152
• Institution: Institut Teknologi Bandung

Users generated more data than before, increasing the demand for storing data online. Cloud providers respond to this trend by offering a freemium business model where users can try the products for free with limited capacity. Thus, it is crucial for providers to be able to convert their non-paying free users into premium users or paying customers. However, there are privacy risks among consumers that might hinder conversion into paid users, and the studies still remain underexplored. This paper aims to investigate the perceived privacy risk role and its impact on technology adoption; performance expectancy and price value, and the purchase intention of cloud services. The data was collected from 153 cloud users currently using the free plan, who expressed their attitudes and intentions toward it using a survey-based methodology. The paper discovered a positive influence of performance expectancy and price value towards intention the of premium cloud services, whereas privacy risk has no negative moderating effect between performance expectancy and price value toward purchase intention. This paper contributes to the perceived privacy risk and consumer behavior theories by integrating the two elements. Managers and cloud providers should increase the user-friendly environment in clouds and take into account how they market and package their promotion offerings to obtain more paid users.