data privacy: implications for market researchers

© 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.

Data Privacy: Implications for market researchers

May 8, 2015

Bay Area Research Forum Conference

Valerie Lykes │ [email protected] │ J.D. PowerKristin Cavallaro │ [email protected] │ SSI Gina Pingitore │ [email protected] │ J.D. Power

2 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.

Situation

Consumer concerns about personal data continue to be of global importance

86% of consumers in 9 countries agree or strongly agree they have lost control over their personal information and its use

Ave. cost to companies for a data breach was $3.5M

• Reputation• Lost customer

loyaltySource: http://www.informationisbeautiful.net/visualizations/worlds-biggest-data-breaches-hacks/


What We Examined

Re-examined consumers’ attitudes towards privacy• Evaluated whether these

attitudes have changed over time• Expanded our across

markets assessment Assessed the degree to which

concerns predict behavior�̶If so, what are implications of increased concern on survey taking?


How We Did It

Using SSI’s panels, we surveyed adult consumers (18- 67+) in nine markets:

• United States (n ≈ 4,200)• China (n≈2,000)• India (n≈2,000)• Germany (n≈3,000)• Japan (n≈2,500)• Brazil (n≈2,200)• United Kingdom (n≈4,500)• Australia (n≈2,200)• Canada (n≈3,200)

Data weighted to be representative of each country’s age distribution


US Consumer’s Opinions About Management of Personal Data Over Time

0%

20%

40%

60%

80%

100% 80%51%

82%66%

89%

59%

1999 2012 2014

Concerns about how personal data is collected and used has increased among US consumers. Additionally, confidence that existing laws protect consumers has declined since 2012, possibly leading to more restrictions.


Cohort Differences in US Privacy Concerns 2012-2014

Gen Y Gen X Boomer Pre-Boomer%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Existing laws and organizational practices provide a reasonable level of protection for consumer

privacy today

2012 2014

% A

gree

\Str

ongl

y Ag

ree

Gen Y Gen X Boomer Pre-Boomer0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Consumers have lost control over how personal in-formation is collected and used by companies.

2012 2014

% A

gree

\Str

ongl

y Ag

ree

Older consumers feel they have lost control more than Gen Y. Gen Y strongest agreement that existing laws/org policies are sufficient to protect privacy.


Are Concerns Also Increasing in Other Countries?

Concern over how personal information is being collected/used is up in all 3 countries. Only India reports existing laws and practices to be acceptable to protect privacy.

2012 20140%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Consumers have lost control over how personal information is collected and used by compa-

nies.

USChinaIndia

% A

gree

\Str

ongl

y Ag

ree

2012 20140%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Existing laws and organizational practices provide a reasonable level of protection for

consumer privacy today

USChinaIndia

% A

gree

\Str

ongl

y Ag

ree


Nearly All Other Mature Markets Have Similar Concerns About the Collection and Use of Personal Information

Globally, consumers feel they do not control their personal information, though emerging markets are not as concerned

US China India Australia Brazil Canada Germany Japan UK0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

89%81% 81%

88% 85% 85% 89% 89% 90%

%Ag

ree/

Stro

ngly

Agr

ee

Consumers have lost control over how personal information is collected and used by companies


But Attitudes About Legal and Organization Protection Varies More Widely

Loss of control is high for all, but not all consumers are equal in their concern about how the law and companies are protecting their privacy- this depends on the market they operate in


10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

59%

45%

84%

70% 66% 64%

33%

59%65%

%Ag

ree/

Stro

ngly

Agr

ee

Existing laws and organizational practices provide a reasonable level of protection for consumer privacy today


What we have concluded so far…

Privacy concerns are increasing globallyDifferences by cohort• Gen Y least concerned

Differences by country• Emerging Markets least concerned

But, do these concerns predict attitudes & behaviors?


Larger differences between high and low privacy concern are seen when consumers have “no consent” in how their data is being used compared to “indirect consent”

Avg. 7.5% Δ

Avg. 14% Δ

A product you viewed is advertised on other websites

Your email provider scans your email to advertise to you better

An app you downloaded tracks your location and stores the data

Your review is used in a company restaurant report

Books are suggested to you based on your book purchase history

0.54488

0.66068

0.63697

0.47784

0.43955

0.69915

0.79743

0.77348

0.55521

0.51405

High Concern Low Concern

Privacy Concerns Predicts Attitudes Towards Privacy Scenarios

Indirect Consent

No Consent


Online Activity Not Predicted by Concern

Those with higher levels of privacy concern do more internet-aided shopping than their counterparts.

# of sites/social networks participated in (0-12)

# of Internet Shopping Activities (0-6)

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0

3.7

4.0

3.7

4.2



Privacy Concerns Predict Online Behaviors

Regretted posting personal info

Post personal pics to social media sites

Post personal pics to photo sharing sites

Write about personal life

Give false information

71%

72%

54%

65%

44%

76%

61%

46%

57%

47%


% At Least Somewhat Often

False information rates about equal – concern doesn’t affect

providing false info

Trend for remaining is the same- higher

privacy concern leads to lower incidence of

behavior


Are There Differences by Countries?

Privacy concern does influence frequency of setting one’s profile to private, but still differences between markets

UK

Japan

Germany

Canada

Brazil

Australia

India

China

US

50%

18%

49%

48%

44%

48%

36%

31%

51%

61%

28%

67%

61%

57%

68%

51%

48%

64%


%Often/Always Set Profile to Private


Who Should Have Access to Your Data?


10%

20%

30%

40%

50%

60%

Companies Whose Products/Services you purchaseAge Cell # Health Information Web Activity

Emerging markets less concerned about companies having access to personal information including health information and cell number


Who Should Have Access to Your Data?


10%

20%

30%

40%

50%

60%

GovernmentAge Cell # Health Information Web Activity

Emerging markets less concerned about government having cell # and tracking web activity


Rate of Information Falsifications by Country

False information is provided in all countries, but the frequency of false information provided is most concerning in China and Germany.

U.S. China India Australia Brazil Canada Germany Japan UK0%

10%

20%

30%

40%

50%

21%

31%

23%20%

17%

23%26%

13%

21%

% S

ometi

mes

/Ofte

n


What Types of Information Do People Falsify?

Consumers’ opinions are one of the least frequently cited types of false information reported. PII most frequently falsified.

*Most prevalent “Other” responses include phone/mobile number, work/job, and salary

Type of False Information Provided by Country US China India Australia Brazil Canada Germany Japan UK

Name 40% 61% 34% 43% 36% 47% 43% 34% 39%

Location 49% 54% 42% 45% 60% 54% 47% 31% 44%

Age 41% 41% 36% 44% 36% 47% 34% 32% 38%

Gender 16% 22% 23% 15% 11% 18% 10% 20% 14%Things you are interested in 21% 18% 32% 20% 28% 20% 21% 29% 22%

Your opinions 15% 15% 21% 14% 11% 14% 8% 22% 15%What you read, watch, or listen to 15% 11% 24% 13% 14% 16% 14% 22% 15%

Other 16% 3% 13% 16% 9% 12% 18% 7% 21%


Younger Adults Provide False Information More Often

Gen Y Gen X Boomers Pre-Boomers0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

32%

24%

16%

9%

How often do you provide false information?

% S

ometi

mes

/Ofte

n


And the Pattern is Consistent Across Countries

US China India Australia Brazil Canada Germany Japan UK0

10

20

30

40

50

60

70

80

90

100

Frequency of providing false information

Gen YGen XBoomerPre-Boomer

0=N

ever

, 100

=Ofte

n


Conclusions

Privacy concerns continue to increase globally• Concern high across 9 markets• Younger generations not as concerned• Younger generations more online participation

�̶Function of age or generation? Concern go down as Gen Y grows up?

Concerns are linked to behaviors and attitudes• False info, profiles set to private, fewer blog and

social network posts.• Directly impacts market researchers

�̶Consumers decline to participate for privacy reasons


Privacy Concerns Influence Reason to Decline to Take Surveys

Not interested in topic

No time

Privacy Concerns

Inadequate Incentive

Had to download software/app

37%

47%

14%

18%

22%

35%

45%

26%

21%

29%

Why Panelists Declined to Participate in a Survey



Concern Impact by Country on Survey Participation

UK

Japan

Germany

Canada

Brazil

Australia

India

China

US

39%

31%

44%

41%

22%

40%

32%

25%

39%

48%

34%

52%

47%

25%

42%

28%

35%

48%

Declined to Take a Survey in Last Year



Questions?

data privacy: implications for market researchers

Marketing