Collecting and using personal data: consumers’ awareness and concerns

Abstract

Consumers are becoming increasingly concerned about the privacy of their personal information and information about their purchase behaviors. The current study examines the extent to which consumers are concerned with how their personal information is collected and used, their awareness and knowledge of data collection practices using discount (loyalty) cards, the relationship between demographics and privacy concerns, and the relationship between privacy concerns and purchase behaviors. Results from a telephone survey of 480 consumers suggest that even though consumers are concerned about how personal information is collected and used, very few consumers are aware of how discount (loyalty) cards are used to collect personal level purchase data. Results also suggest that concerns about the use of personal information vary by demographic market segments, and that privacy concerns are significantly related to consumers’ purchasing behaviors on the Internet.