Digital Privacy: Protecting Information

Digital Privacy

Protecting Information

Digital Privacy

Protecting Information

By

Aadinath Pothuvaal

Digital Privacy: Protecting Information

Aadinath Pothuvaal

ISBN - 9789361527142

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Preface

The information environment in which marketers and consumers operate is becoming more complex every day. New technological innovations have accelerated the exchange of information between marketers and consumers, leading to many privacy issues. Examples of technologies that raise privacy concerns include predictive models that identify pregnancies before families know about them, glasses that can discreetly take pictures of people in public, software Phone tracking can be used to observe consumer movements in cities and in stores themselves, and facial recognition software can be used to match a consumer’s image to the body. databases intended to identify individuals in public spaces. These advances raise the question of whether privacy is even possible.

This book looks at digital privacy in the marketplace. It focuses on the exchange of data between merchants and consumers, with special attention to the privacy challenges posed by new information technologies. The purpose of this book is to provide a resource to help readers think more deeply about the impact privacy issues have on consumers and marketers. It covers topics such as:

Why privacy is needed, technological, historical and academic theories of privacy, how exchange markets affect privacy, privacy damages and safeguards What is the current protection as well as the future of privacy.

Contents

1 The Information Environment and the

Privacy Problem 1

1.1 Introduction 1

1.2 The Information Environment 4

1.3 Technology Is Facilitating

Information Exchange 19

1.4 The Privacy Problem 24

SUMMARY 29

Question Hiccups: 29

References 30

2 Why Privacy Is Needed 33

2.1 The Death of Privacy? 37

2.2 Toward a Redefinition of

Privacy and New Behaviors 42

2.3 Why Consumers Want/Need Privacy 49

2.4 Creativity 52

2.5 Protected Communication in

Relationships 55

2.6 Why businesses want/need privacy? 59

SUMMARY 63

Question Hiccups: 64

References 65

3 Perspectives of Privacy: Technology

History and Academic Theories 67

3.1 A Brief History of Privacy and

Technology 73

3.2 Academic Theories 77

3.3 Privacy Boundary Theories 82

3.4 The Privacy-Marketing Cost-Benefit Exchange and Contingencies 85

SUMMARY 89

QUESTION HICCUPS: 90

References 90

4 Information Exchange and Privacy in the

Marketplace 93

4.1 Conceptual Model of Factors

Affecting Information

Exchange 93

4.2 Marketing and Exchange Theory 96

Literature review 96

4.3 Information Exchange 99

4.4 Social Contracts for

Information Exchanges 101

4.5 Technology and Information Context 103

4.6 Marketer Background Factors 108

4.7 Consumer Background Factors 111

SUMMARY 113

QUESTION HICCUPS: 114

References 114

5 Information Based Privacy Harms 117

5.1 Information Sensitivities and

Perceived Risks 118

5.2 The Perceived Risk of Different Information Types 120

5.3 Information Harms in

Exchange 122

5.4 Harms from Information

Collection 127

5.5 Harms from Information

Processing 129

SUMMARY 133

QUESTION HICCUPS: 134

References 134

GLOSSARY 136

Index 141

Chapter 1 The Information Environment and the Privacy Problem

Purpose

In today’s digitized environment, privacy has become a top concern for everyone. The purpose of this document is to understand privacy issues arising from the application of computerized information systems in various domains (e-governance, e-commerce, e-health, e-banking, and e-finance) that is, at various levels: individual, group, organizational, and societal.

1.1 Introduction

Consumers are becoming increasingly aware and uncomfortable with data collection in their daily lives. In fact, you on holiday are probably one of those consumers her. A survey found that 97% of consumers are somewhat or very concerned about the privacy of their personal information. This pervasive concern about the collection and use of consumer data is poised to change the world of marketing as we know it.

Between legislative initiatives like GDPR, Apple’s privacy changes, and products like Firefox that offer consumers better privacy, it’s clear that the heyday of endless, granular consumer data is coming to an end. . But while nearly all consumers demand more privacy, 63% of consumers believe that personalization should be standardized when receiving or accepting promotional offers. This has left marketers wondering how to meet consumer demands without access to rich consumer data.

What is privacy in the world of digital marketing?

Simply put, privacy is the right of consumers to delegate how their data is used by third-party companies and organizations. Personal, demographic and financial details are only some of the information that may be disclosed. These details help marketers create more personalized experiences, but more and more consumers are concerned that their privacy is being compromised. Thankfully, data-driven marketers who respect privacy and want to engage consumers on a hyper-segmented level have options.

Fig 1.1 Information Privacy

https://www.google.com/url?sa=i&url=https%3A%2F%2Fptop.only.wip.la%3A443%2Fhttps%2Fmedium.com%2F%40venkatakrishna.jonnalagadda%2Fthe-value-of-protecting-privacy-and-information-technology-e6818732afa3&psig=AOvVaw2FEY-Ot1LxYf2WfFn9dSTh&ust=1670873235748000&source=images&cd=vfe&ved=0CBAQjRxqFwoTCKj4ov-l8vsCFQAAAAAdAAAAABAE

The changing consumer privacy landscape

The data protection and privacy landscape has changed significantly in recent years. While some consumers and thought leaders have been debating the importance of privacy for over a decade, it wasn’t until 2016 that he proposed a set of privacy regulations in the EU called GDPR. When passed in 2018, the organization must allow EU users to opt-in to the collection of personal data, sparking a series of similar regulations around the world. The Privacy Act (CCPA) was passed, establishing new privacy rights for California consumers.

Many of these regulations are fueled by a string of privacy scandals that have impacted consumers, including: Consider, for example, the infamous Cambridge Analytica case. These events have left the public wondering how data is stored and used in ways they don’t approve of, undermining consumer trust, and how some companies access, collect, store, and control consumer data. It prompted me to re-evaluate my usage. In recent years, the following companies have taken significant steps to limit access to consumer data.

Apple has made significant changes for 2021, limiting tracking on iPhones. As a result, the Big 4 tech companies lost $278 billion.

Firefox now blocks tracking cookies by default. DuckDuckGo, a search engine that enhances user privacy, saw a 65% increase in traffic, which peaked around 2018.

Google has released a new version of Google Analytics to address privacy concerns.

Organizations are beginning to feel the impact of this legal and cultural change on privacy, with 97% planning to spend more on protecting consumer data. But staying compliant and meeting consumer demands is only part of the story. Certain business functions face greater challenges than others due to privacy concerns. Marketing teams may be hit hardest.

Why is privacy important to today’s marketers?

All the changes in data protection laws in recent years have hit marketing teams particularly hard. According to a recent survey by Gartner, nearly 1 in 5 of his marketers said data privacy compliance across all marketing channels is their top concern. Unsurprisingly, this growing focus on privacy negatively impacts the marketer’s ability to quickly gather and derive insights, even rendering some of his previous investments in technology obsolete. I have. In fact, 73% of marketers worry that privacy concerns will negatively impact their analytics efforts. But analysis is only half the battle. Marketers are guardians and custodians of their company’s brand image, and ignoring these privacy concerns as they choose or need can have a negative impact on brand equity. Research has found that misuse of users’ data can have a severe impact on their business, with nearly 8 out of 10 customers reporting that their data was used without their knowledge., says they are willing to abandon the brand. This leaves marketers stuck between rocks and rocks: consumer opinion on one side and analytical skills on the other.

Here are his three ways to adapt to new digital marketing and privacy restrictions.

1. Make your website more transparent

Include easily accessible pop-ups on your website for privacy laws, cookies, and terms of use. This allows customers to easily opt out of data sharing and use the website more securely.

2. Engage with consumers at the macro level

Another way to mitigate emerging privacy challenges is to streamline your creative strategy. See metrics at the macro level as well as create customized ad experiences. This allows you to target a significant number of consumers without requiring specific data.

3. Give back to your customers

A great way to connect with your customers is through insight into customer satisfaction. We offer promotional discount codes in exchange for personal insights and information. In this way, we make it clear that data exchange is voluntary for customers who wish to opt out.

The Impact on Data-Driven Attribution Models

For years, marketers have grown accustomed to leveraging torrents of data to create marketing campaigns and target them toward the perfect audience. However, as consumers take their privacy more seriously, this torrent of data is starting to slow into a modest stream of data. While most marketers can still conduct business as usual with less data, many fear that it’s only a matter of time until that stream of data turns into an inconsistent trickle. This has led many marketers to look to the past for guidance.

Marketing has a long history of providing recommendations based on aggregate data, primarily through Marketing Mix Modeling (MMM). This form of analysis typically took aggregated data from sources such as media exposures and combined it with KPIs such as sales conversions, store visits, or web visits. Unfortunately, many marketers experimenting with these tactics today will find them inadequate compared to models that track people on an individual level. , to treat all consumers as a monolith. In reality, different people react differently to ads and not all traffic is equally valuable. For example, you can buy a set of YouTube ads and a set of his TV ads. Comparing the traffic generated by the two mediums, we can see that TV ads are attracting more traffic. This prompted the team to invest more in television.

Fig 1.2 Information Security

https://www.google.com/url?sa=i&url=https%3A%2F%2Fptop.only.wip.la%3A443%2Fhttps%2Fen.wikipedia.org%2Fwiki%2FInformation_security&psig=AOvVaw2FEY-Ot1LxYf2WfFn9dSTh&ust=1670873235748000&source=images&cd=vfe&ved=0CBAQjRxqFwoTCKj4ov-l8vsCFQAAAAAdAAAAABAJ

How Marketers Move Forward

There’s a reason marketers have relegated analytical models such as marketing-mix modeling to the realm of history. We needed a solution that could provide more accurate insights. Privacy concerns make it difficult for marketers to get a detailed view of their data, but with the right attribution models and the right approach to marketing analytics, it’s possible.

Modern businesses need marketing analytics solutions that can use all available data so that they don’t lose access to relevant insights and their current marketing framework doesn’t collapse. I need a solution that can handle as much data as possible without requiring that much data. Furthermore, a future-proof solution must be able to distinguish between causation and correlation, even if the solution does not have large amounts of data. Combining these two capabilities allows your business to keep up with changing consumer attitudes.

1.2 The Information Environment

Today, we face particular urgency in deciding how to use markets, self-regulation, and government enforcement to protect personal data. There is a growing perception and truth that more and more personal information is being collected in databases and that more and more people have the computers and communication resources to access and edit that personal information.

The economics and technology underlying the use of personal data are fundamentally changing. These changes are very likely to require changes to organizational rules governing the use of personal data. Protection of personal data is an issue across industries. A partial list may include: health records. credit history; banking transactions; local and long distance calls. Pay-per-view, VCR rentals, cable, and other video recordings. Internet service provider records. Purchases made by direct mail or telephone orders. This white paper cannot be expected to identify the optimal mix of markets, self-regulation, and governments to protect privacy across these diverse industries. Instead, this white paper provides an analytical framework for understanding privacy issues across industries.

Armed with an analytical framework, not only will we gain a clearer understanding of what is meant by self-regulation, but it will be critically important in deciding when self-regulation should take precedence over market and governmental approaches. Identify empirical problems that are likely to be The structure of the paper is as follows: To facilitate the analysis, the example of a fictitious Internet Commerce Association (ICA) whose members sell products over the Internet is shown throughout the document.

Part I sets out market-only and government-only implementation models for privacy protection and shows how either the market or government can theoretically ensure a desired level of protection for personal data.

Part II focuses on the critical failures of markets and governments, whereby acting alone by either markets or governments is critical to both privacy and other societal goals as a way to achieve efficiency. want to achieve When markets and governments are unsatisfactory, we are tempted to seek self-regulatory approaches to privacy.

Fig 1.3 Information Environment

https://www.google.com/url?sa=i&url=https%3A%2F%2Fptop.only.wip.la%3A443%2Fhttps%2Fwww.gao.gov%2Fproducts%2Fgao-21-525t&psig=AOvVaw26QZVO7v_KvwdEMEat6mBI&ust=1670873402183000&source=images&cd=vfe&ved=0CBAQjRxqFwoTCMCN0M6m8vsCFQAAAAAdAAAAABAE

Part III defines self-regulation and emphasizes that industry regulation has the same separation of powers structure as government regulation. It is not enough to be for or against self-regulation. Instead, it should be clear at every stage of the process whether self-regulation is desirable.

Once self-regulation is defined, Part IV provides a discussion of why it is superior to markets and governments. In particular, self-regulation may benefit from the potential for industry expertise and community standards. Self-regulation can produce certain types of public goods, such as: B. Improving industry technical standards or reputation for privacy protection. Self-regulation is also useful when the alternative is mandatory and perhaps less desirable government regulation.

Part V contains the most important criticisms of self-regulation. It criticizes the rationale set out in Part IV and examines long-standing concerns that self-regulation fosters antitrust and other adverse effects on third parties. Finally, the conclusion summarizes the discussion and highlights major empirical issues comparing markets, self-regulation, and governments in protecting personal data. Pure Market and Pure Enforcement Models for Privacy Protection The overall purpose of this document is to understand the role of markets, self-regulation, and governments in the protection of personal data. The first step is to see how much privacy is protected by a system based entirely on the market (pure market model) or a system based entirely on government.

Fig 1.4 Information Warfare

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In a pure market model, the industry’s incentive to protect privacy is purely financial. It is currently believed that companies that disclose personal information about their customers are not legally enforceable. Customers may be directly attracted to a strong privacy policy or push back against a data breach. In at least some cases, privacy can be a prominent marketing argument that entices consumers to switch from one company to another.

Nationally advertises not to use customer call recordings to contact potential new customers. A company’s privacy policy can therefore be part of an overall marketing effort to build brand equity and an image of quality service. A bad customer experience or bad reputation regarding a company’s privacy practices can affect the company’s overall reputation.

More broadly, the industry as a whole can benefit from building a privacy-preserving reputation. To take a famous example, Swiss banking as an industry has definitely benefited from its reputation for protecting customer privacy in the past. In the pure market model described so far, he has two important constraints on corporate privacy policies. The first resistance stems from consumer preferences. The more consumers are willing to change their purchasing decisions because of their privacy policies, the greater the market discipline for companies. A second constraint arises from public opinion about corporate privacy practices.

Advertising influences consumer choices by better informing which companies are to their liking. Such advertising prospects encourage businesses to adapt to customer preferences. The public can also shape consumer preferences over time, such as making them more concerned as a group about potential privacy issues. As such, there is a dynamic element to the pure market model, with both customer preferences and business practices likely to evolve over time as awareness and concerns about privacy itself evolve.

The effectiveness of the public as a business barrier depends on factors such as: For example, how well the media can identify privacy issues, how widespread coverage of the issue is, and how strongly customers respond to stories. At the other end of the spectrum from the pure market model is the pure enforcement model. The assumption here is that market discipline has little or no effect on protecting individual privacy. Instead, individual privacy rights are protected by law enforcement. Data protection rules are set by governments through laws, government regulations, or court decisions. Certain parties, such as government agencies and wronged citizens, may bring lawsuits to enforce these rules. Litigation is intended to achieve the dual goals of redress and deterrence. Compensation occurs when the person whose privacy is violated is paid according to the extent of the violation. Deterrence focuses on corporate incentives. Companies that violate privacy must face the expected costs of privacy violations (in the form of fines and penalties).

Limitations of pure market and pure enforcement models

In theory, either a pure market approach or a pure enforcement approach could lead to the best privacy protection. If market discipline is strong enough, businesses will find it unprofitable to use personal information in ways that customers find objectionable. Businesses are also discouraged from violating customer privacy if legal rules are well defined and enforcement is effective enough. In practice, there are significant limitations to the extent to which markets and law enforcement protect privacy. This section of the paper discusses some of the key market and government mistakes made when protecting privacy. Once the nature