Communicating in Support of Privacy Notices. The Fundamental Role of Content and Format

Privacy notices mandated by GDPR are often complex, creating information asymmetry between firms and users, and decreasing transparency in this relationship. This study, grounded in Signaling Theory, explores how the content and format of communications about privacy notices influence perceived app transparency and intention to use the app. A between-subjects experiment using a hypothetical AI-based health app assessed six communication variations, combining content (data collection, processing, dissemination) and format (text vs. infographic). Findings reveal that comprehensive communications enhance perceived app transparency more than partial ones, subsequently increasing users' intention to use the app. Infographics improve app transparency perception, particularly in limited-information scenarios, but offer diminishing returns when more information is provided. These results extend the application of Signaling Theory and provide valuable insights for firms.