Direct marketing and the use of individual-level consumer information: Determining how and when “privacy” matters

Abstract

The desire to maximize marketing effectiveness and reduce communication costs has increased direct marketers' reliance on computerized databases, customized persuasion, and other consumer information intensive strategies and tactics (28,541. The belief that the success of marketing efforts is positively related to the amount and specificity of individual-level consumer information (7). however, has raised questions about how far companies should be allowed to go in learning about or attempting to persuade consumers (6.40). In the process, privacy has become widely evoked, but often elusive concept. This article develops a framework for addressing privacy concerns that arise when direct marketers utilize consumer information. It does so by identifying the underlying dimensions of the privacy construct and examining the relationships between those dimensions and direct marketers' consumer information practices. This approach not only helps identify situations when privacy matters. but suggests productive strategies and tactics for alleviating consumer concerns related to the use of individual-level consumer information.

Marketing Dataveillance and Digital Privacy: Using Theories of Justice to Understand Consumers’ Online Privacy Concerns

“…When online agents ask permission to collect information or disclose that they will be collecting information consumers become aware that information about them is being or will be collected. Research has shown that privacy concerns tend to be reduced when permission is obtained (Nowak and Phelps, 1995) and heightened when consumers discover information was collected without their awareness (Cespedes and Smith, 1993). This aspect of privacy concerns relates closely to what Palmer (2005) calls ''questions of technique'' -without permission or disclosure (neither of which are routinely practiced) information can be collected in a way that consumers can neither avoid nor detect.…”

“…This dimension of control is often discussed in relation to permission and disclosure (e.g. Cespedes and Smith, 1993;Nowak and Phelps, 1995). When online agents ask permission to collect information or disclose that they will be collecting information consumers become aware that information about them is being or will be collected.…”

“…Current research suggests that one of the primary concerns relating to privacy is the lack of the control consumers have over their personal information (Nowak and Phelps, 1995). Sheehan and Hoy (2000) argue that control consists of two dimensions: awareness of information collection and information usage.…”

“…The conventional understanding of online privacy concerns in marketing is that they consist of two dimensions: awareness and usage of the data outside of the original context (Nowak and Phelps, 1995). It has been suggested that privacy concerns may also entail an assessment of information sensitivity, trust and familiarity with the information collector, and compensation (Sheehan and Hoy, 2000).…”

The effect of Internet general privacy concern on customer behavior

“…A customer's sensitivity to revealing distinct types of personal information differs from one to the next, generating a wide range of privacy concerns [47]. Phelps et al [54] identify 5 data typologies: socio-demographic, lifestyle, buying and consumption habits, financial, and personal identification, considering the last two as particularly sensitive from the customer's point of view.…”