Abstract
The rapid proliferation of smart devices has led to growing concerns regarding consumer privacy, security, and trust. Despite these concerns, consumers continue to adopt smart devices, a phenomenon known as the privacy paradox. This study investigates the privacy paradox using a person-centered approach, identifying distinct consumer profiles based on privacy-related attitudes. Drawing on the expanded Power-Responsibility Equilibrium (PRE) framework, we conducted a survey (N = 543) and applied latent profile analysis (LPA) to classify consumers according to their privacy concerns, perceived control, and trust in companies and government regulations. Our findings reveal four distinct consumer profiles: (1) Cautious Skeptics, (2) Carefree Trusters, (3) Pragmatic Confidents, and (4) Mistrustful Worriers. We further examine how these profiles influence privacy-protection behaviors, privacy resignation, and smart device adoption. Results from a finite mixture model indicate that while Mistrustful Worriers actively engage in privacy-protective behaviors, their deep mistrust and low perceived control lead to privacy resignation and reluctance to adopt smart devices. In contrast, Carefree Trusters exhibit high adoption intentions, believing in their ability to manage privacy risks effectively. These findings contribute to privacy literature by offering a nuanced understanding of consumer responses to privacy concerns and providing managerial insights for firms to address consumer trust and privacy expectations in the smart device market.