Public Puts Premiums Before Privacy in Online Arena: Study
The flow of data between consumers and marketers will change as consumers realize their information has value, and not because of data abuse fears. Furthermore, premiums and convenience of use will trump privacy concerns as factors guiding consumer patronage.
These are the findings of “Privacy Issues Affecting E-Marketers’ Ability to Sell Online,” a new Leader Perspective panel study from the New York-based Winterberry Group.
The panel, consisting of industry consultants, vendors and marketers, agreed that privacy concerns, currently given play in the media, will subside as consumers become accustomed to Internet shopping. While consumers realize that sharing their information can enhance their shopping experience, they will also increasingly become aware that it has value, and will demand compensation.
Marketers, alerted to the potential pitfalls from recent cases like the ToySmart bankruptcy, in which a file of consumer names was put up for auction by a defunct company, are modifying their privacy policies to allow for a wider range of uses for gathered data.
Marriage of data between the online and offline world, such as was attempted by DoubleClick, is considered a more significant invasion of privacy. But according to members of the panel, e-marketers consider online purchase behavior and self-volunteered information sufficient for their customization practices.
But the effect of this will be minimal. According to the study, privacy policy content ranks far down on the list of influences on consumer decision drivers. Instead, consumers tend to focus on branding, convenience and value. And, given a series of good interactions with the marketer, consumers will come to “skip the legalese” of privacy statements.
