The Value Of Data Privacy To Consumers? About 65 Cents.

snoopy · Mar 16, 2012

The Value Of Data Privacy To Consumers? About 65 Cents.

What is the value of data privacy to online shoppers? About 65 cents, according to a new study of by researchers in Britain and Germany.

The report: "Study on Monetising Privacy: An Economic Model for Pricing Personal Information" was released in February and presents the results of work by researchers from DIW Berlin, the German Institute for Economic Research, and the University of Cambridge in the UK. The study was sponsored and released by ENISA, the European Network and Information Sharing Agency. In it, researchers found that consumers consistently prefer companies that protect the privacy of their data over companies that don't. Unfortunately, that preference for privacy wasn't very strong. Online consumers in the ENISA-sponsored test were reluctant to spend more than a €.50 (.$65) premium to protect information like their e-mail address and cell phone number from marketers, researchers found, suggesting that the intrinsic value of privacy protections is low for most consumers.

To measure the strength of consumer preferences for data privacy, researchers invited 443 participants into their laboratory in Berlin to shop for cinema tickets. Participants were given the choice of buying tickets from a privacy-friendly firm and a privacy-unfriendly firm. Both companies required a minimum of personal information: full name, date of birth and email address. Depending on treatment, but the privacy-invasive seller also requested the mobile phone number or permission to use the email address for marketing, according to a post describing the experiment on the blog lightbluetouchpaper.
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http://threatpost.com/en_us/blogs/data-privacys-value-consumers-about-65-cents-031412

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