Why Ethical Value and Privacy Concerns Matter in the Online Context : Authenticity and Trust Formations

While ethical values and privacy concerns are considered factors that influence online consumers’ decision-making process, few studies have examined the interaction effect between the two factors in the online brand development process. Therefore, this study proposed a research model to maximize the effectiveness of e-travel agents’ ethical business on brand loyalty with a consideration of the roles of authenticity and two dimensions of trust. To do so, this study collected data from 405 online customers of e-travel agent websites. The empirical results indicated that consumers’ perception of an e-travel agent’s ethical values leads to higher levels of authenticity, trust, and brand loyalty. However, the empirical findings also addressed that the impact of authenticity on cognitive trust became significantly weaker under the high level of online privacy concerns. A deep understanding of the interaction between authenticity/brand trust and online privacy concerns is critical in the online brand development context