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Consumer privacy in an online world - Ericsson

Consumer privacy in an online world - Ericsson

introduction Ericsson ConsumerLab has done research during the past year on consumer awareness, attitudes and behavior when it comes to privacy, trust and security when using the internet. The report Consumer Privacy in an Online World, covering internet users in US, India, UK, Germany and Sweden, looks into the challenges that internet poses to consumers’ privacy and seeks to understand people’s expectations of over-the-top services, internet players and operators in this regard. Point of departure for the report is the continuous evolution of social media. More and more people are sharing personal information on social networking sites on a daily basis. A driving force behind this development is the smartphone gaining popularity worldwide, making sharing even more convenient and accessible wherever you are. In the long term – given that in the networked society there will be more than 50 billion connected and communicating devices – privacy will become increasingly important. According to the International Data Corporation (IDC), there will be an estimated 35 zettabytes (35x1021 – 35 followed by 21 zeroes bytes) of digital records worldwide 2020. This suggests that it will become even more important for people to safeguard their privacy. But although awareness is increasing, conclusions from the study which forms a basis for this report clearly shows consumers still lack a sense of urgency. Ericsson ConsumerLab – The Voice of the Consumer Ericsson ConsumerLab is a knowledge-based organization, our main offering is insight. We have more than 15 years’ experience in consumer research, which involves studying people’s values and behaviors, including the way they act and think about ICT products and services. We provide consumer insight to influence strategy, marketing and product management within the Ericsson Group. Our knowledge helps operators develop attractive revenue-generating services. We gain our knowledge through a global research program based on annual interviews with 100,000 individuals in more than 40 countries and 10 megacities – statistically representing the views of 1.1 billion people. We use both quantitative and qualitative research, and spend hundreds of hours on in-depth interviews and focus groups with consumers privacy Privacy harm is caused when producers misuse consumers’ personal information, either by own fault or if third parties somehow manage to breach the safeguards trust On an individual level trust is a prerequisite for business success in the online space sharing The act of sharing can primarily be defined as the individual’s allowing of selected others to access their personal information from different cultures. Our research includes general market and consumer trends and in-depth insights into specific areas. To be close to the market and consumers, Ericsson ConsumerLab has team members in most of Ericsson’s market regions. Being part of the Ericsson Group gives us a thorough understanding of the ICT market and business models. This broad knowledge is unique and is the basis for our credibility and integrity. We see the big picture, understand where the individual fits in, and know what this means for future trends and services. www.ericsson.com/consumerlab CONSUMER PRIVACY IN AN ONLINE WORLD – AN ERICSSON CONSUMER INSIGHT SUMMARY REPORT 2

GROWING AWARENESS OF PRIVACY CONCERN Sharing has become a daily habit In a connected world more and more data will be shared online. Consumers are already sharing tremendous amounts about themselves on social networking sites like Facebook, Google+ and Twitter, as well as on local sites such as Orkut in India. As much as 63 percent in the survey say they log on to a social networking site on a daily basis. Many spend hours every day connected to others through social networks online. It is fair to say sharing has become a daily habit – and that it is social networking sites that have paved the way. While new technology is pushing the envelope, consumers are quickly adapting and adopting these new and easy ways of displaying themselves online. And it is not only people who normally consider themselves to be outspoken about their private lives out in the real world who are sharing intimate details on the internet. Individuals are becoming more and more open and are inviting people to events which they would not have invited them to before the era of social networking. People are saying they are being more open and sharing more information now than they would have ever considered or expected just a couple of years ago. Social networking sites are evolving to be more than just a fun pastime – they are becoming tools people use to shape their own identity. Demand for privacy services will increase In the light of these new habits of sharing – how important is privacy for consumers? On the contrary of what one might expect, experts say that nothing indicates that consumers’ wish for privacy is diminishing. Ryan Calo, director of the Consumer Privacy Project at the Stanford Center for Internet & Society, argue that experience is everything when it comes to trust and privacy concern. In the past, our privacy was “protected” by default, since it was complicated in practice to obtain information on one another. Today, when there is tons of information about us easy accessible online, privacy concerns will surge if we land up in situations in which our privacy is threatened. According to Ryan Calo, better legal protection for privacy is needed, but he is also convinced there is a market for commercial services that protect consumers. He sees a growing demand in this area. “People will pay more for something if they can buy it from a site that they perceive has better privacy. So you can use the market to compete over these things.” — Ryan Calo CONSUMER PRIVACY IN AN ONLINE WORLD – AN ERICSSON CONSUMER INSIGHT SUMMARY REPORT Time spent on social networking sites >3 h/day 1-3 h/day

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