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Digital Privacy Governance and User Satisfaction: The Mediating Role of Trust and the Moderating Role of Tech-Savviness

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Abstract

Digital privacy governance is a significant management issue to digital platforms aiming at building on their user trust, service quality, and customer satisfaction. This paper focuses on the role of digital privacy policies and security features in user satisfaction in China, where trust is the mediating variable, and tech-savviness is the moderating factor. The paper places privacy policies and security features as organizational governance practices to assist digital platforms to minimize perceived risk, foster user confidence, and enhance satisfaction in technology-driven service settings. A quantitative research design was used and 500 users of digital platforms in China were surveyed using structured questionnaires. Smart-PLS and structural equation modeling were used to analyze the proposed model. The measurement model was tested using factor loadings, reliability, convergent and discriminant validity, HTMT ratios, Fornell-Larcker criterion and cross-loadings and bootstrapping was used to test the direct and mediating and moderating effects. The results indicate that the issue of trust is core in increasing user satisfaction. The security features and the digital privacy policy enhance trust to a significant extent, leading to user satisfaction. The results further confirm that trust mediates the relationship between digital privacy policies, security features, and user satisfaction. Tech-savviness is also a significant moderator as it enhances the impacts of digital privacy policies and security features on trust, and users who are more digitally competent are more sensitive to privacy and security practices. The research paper adds to the literature on digital management and privacy governance by describing how platform-level privacy policy, technical security features, user trust, and digital competence interact to influence user satisfaction. In practice, the results offer practical advice to the managers of digital platforms, service providers, and policymakers to develop clear privacy policies, secure digital systems, and user-friendly digital literacy campaigns in technology-intensive markets like China.

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