Understanding privacy concerns

Abstract

The need to maximize advertising effectiveness and minimize communication costs has increased direct marketers’ and packaged-goods advertisers’ reliance on individual-level consumer information. The use of such information, however, has raised a number of questions regarding consumer privacy. This study therefore attempts to increase direct marketers’ understanding of privacy issues by examining how well informed consumers are with respect to information gathering and use practices. The results of a regional survey of 266 adults 18 years old and older suggested: 1) privacy is an important concern; 2) many people are not very knowledgeable about specific direct marketing practices; 3) consumer concern is affected by type of practice and specificity of information; and 4) most favor restrictions on the gathering and use of personal information. Overall, the results suggest consumer ignorance may be a significant contributor to privacy concerns and that a strong committment to consumer education may be necessary to avoid government regulation and legislation.