Online Data Collection and Personal Privacy-a Review of the Literature

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Introduction
The growth of the internet enters into marketing world (Kımıloğlu, 2004). The internet is used as another marketing tool in several purposes; a cost-effective advertising channel (Eri, Islam and Daud, 2011), a resource for customers’ personal data obtaining (Pope and Lowen, 2009), and a market place (Lwin, Wirtz and Williams, 2007). Apart from those rising benefits, there are also problems and ethical issues growing aside. Privacy seems to be the biggest issue that marketers have to deal with the growth marketing use of the internet (Pitta, Franzak and Laric, 2003; Miyazaki, 2008). Many researches found that privacy could have effects on trust, loyalty, and attitude on customers toward companies doing business on the internet. Therefore, there is a challenge for marketers to minimize those issues. Though, FTC (Federal Trade Commission) privacy principles are applied within companies, self-regulation is practical preferred throughout the diversity of the regulations in each country (Kımıloğlu, 2004 cited to Peeples, 2002).

The purpose of this review is to criticize the impacts from the use of the internet as a marketing tool to collect personal data. The review focuses only on trust, attitude, and intention of buying and willingness of sharing information which are affected by personal privacy concern and the implementation of privacy policy including self- and government regulation, and other techniques. The framework of the review will be based on following components.

Figure 1 Above components (Figure 1) can be categorized into three parts; 1

1. The increased of data collection and personal privacy concern on customers are a challenge to marketers. The need of data collection is introduced followed by how data is collected and its approaches. The review compiles the link between data collection and personal privacy, also the effects of personal privacy concerns on both customers whose data is collected and marketers who is a collector. 2. The effects of personal privacy on customers’ trust, attitude, and their intention to buy or willingness to share information. The discussion is carried out among the correlation of personal privacy, trust, attitude, and intention to buy or willingness to share information of customers. The implementation of privacy policy is introduced in relating to trust. 3. The effects of privacy policy and government regulation on customers’ privacy concern. Several methods of privacy control could be conducted. Privacy policy (self-regulation), government regulation, and other techniques are the options. There’s a bond between trust, personal privacy concern, and privacy implementation.

The increased of data collection and personal privacy concern on customers are a challenge to marketers Customers are now attempting to find information related to their favorable interest (Eri, Islam and Daud, 2011). Therefore, in order for marketer to generate and provide better customized and personalized information to come closer to what customers need and want, the demand of customer’s information for marketer is increasing (Kımıloğlu, 2004; Eri, Islam and Daud, 2011; Christiansen, 2011). Since the internet provides great opportunities in collecting personal data (Kımıloğlu, 2004; Pope and Lowen, 2009; Christiansen, 2011), marketers use the internet to connect to customers at personal level (Christiansen, 2011) and obtain the personal data in several ways.

Christiansen (2011) reveals difference ways of collecting personal data from the internet such as using cookies; text files stored in customer’s hard drive tracking consumer’s online activities on visited websites (Miyazaki, 2008). Forum and review websites where people voluntary post and comment their personal information and opinions are another valuable resources for collecting the data. Three main approaches of personal data collection are defined by Christiansen (2011) as follows: 1.Collecting personal data to create...
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