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Consumer privacy in an online world - Ericsson

Consumer privacy in an online world - Ericsson

Willingness to pay for security and control By looking at the survey results, it is obvious there is a growing consumer demand for services protecting mobile phones from viruses and intrusion, as well as for apps and services that let the user be in control. Martin Ortlieb, Google, foresee that companies handling consumer data will need to be transparent and to let people be in control over their own personal information. “Giving access to those settings is the way to make it easy for people to be in charge of what data is being stored. I find that if you don’t let people know this, and you’re not very clear on your policies, that can make people very suspicious.” — Martin Ortlieb Apps and services that let you know who has access to your personal information online, as well as let you control your information being shared and stored online, are considered worth paying for according to the respondents in the survey. 36 percent would want to pay for an app or service that lets you know who has access to your personal information. 36 percent would also want to pay to browse the internet anonymously, and 24 percent say they are willing to pay for the ability to erase selected personal information that is stored online. Opportunities in a connected world 1. “Personalized offerings” E.g. discount based on interest/usage 2. “KNOWLEDGE & CONTROL offerings” E.g. let consumers know who has access to their personal information 3. “Protection offerings” Protection against e.g. intrusion and virus 4. “hygiene level – privacy by design” Branding Personalized offerings At the same time, consumers feel it is okay for companies to gather information about them as long as it is considered beneficial. This can for example be achieved by offering consumers targeted and personalized ads. People overall tend to appreciate targeted ads – likely because they would prefer it over the alternative of spam and uninteresting advertisements. This is especially true if they are financially compensated for letting companies use their personal information for commercial purposes, for example by receiving discounts or coupons in return. 44 percent of the respondents in the survey say they would consider receiving discounts and offers on products or services based on their personal interests a positive aspect of companies accessing their personal data. People also tend to be pragmatic when it comes to these matters. As one respondent from the US said during a focus group interview: CONSUMER PRIVACY IN AN ONLINE WORLD – AN ERICSSON CONSUMER INSIGHT SUMMARY REPORT “If it was between not having Google and Google advertising – I’ll take Google advertising.” — Lindsay, 27, US Still, it is essential that the consumers feel they are behind the steering wheel. An intuitive user control is needed, and furthermore, consumer trust must never be violated. While people say they consider receiving discounts and offers based on their personal data the most positive aspect of companies accessing their personal information, they feel most negative towards receiving personalized ads based on what they share on social networking sites. 10

Positive aspects of commercial companies using personal data Discounts and offers on products/services based on my personal interests Discounts and offers on products/services based on my gender, age group, zip code etc. Discounted calling plans in exchange for accessing my personal information Discounts and offers on products/services based on my current location Discount coupons based on my personal surfing/calling habits Free online services in exchange for accessing my personal information Discounts and offers on products/services based on my income span, my sexual orientation etc. Personalized online ads based on the information I share on social networking services Base: 3818 internet users in US, UK, Germany, Sweden & India. 21% 18% Facts about the survey Quantitative study Online web questionnaire among internet users age 15-54. 3818 respondents in five countries: US, Sweden, India, UK and Germany Qualitative study 13 focus groups of smartphone owners ages 16-20 and 25-35. 84 interview respondents in: US (New York City, NY and Davis,CA), Sweden (Stockholm and Hässleholm) and India (Bangalore) Ericsson ConsumerLab conducted the research in Q1 and Q2 2011. 31% 29% 34% 34% 34% 44% Expert interviews 5 expert interviews, mapping the academic debate. Daniel Solove George Washington University Law School, Washington, DC Martin Ortlieb Researcher at Google, Zürich CONSUMER PRIVACY IN AN ONLINE WORLD – AN ERICSSON CONSUMER INSIGHT SUMMARY REPORT Ryan Calo Stanford Center for Internet & Society Susan Freiwald University of San Francisco School of Law Joseph Turow University of Pennsylvania Annenberg School of Communication 11

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