Online Consumer Privacy
(A2021-102331)

AUTHORS

Klaus Miller, Goethe University Frankfurt; Bernd Skiera, Goethe-University Frankfurt, Germany; Elisa Montaguti , University of Bologna ; Niels Holtrop, Maastricht University; Lennart Kraft, Goethe University Frankfurt; Alexander Bleier, Frankfurt School of Finance & Management

ABSTRACT

"This session aims to assemble the latest research on online consumer privacy protection. Race for Data: Who Gained from Re-permission E-mails in the GDPR Enforcement? D’Assergio, Manchanda, Montaguti, and Valentini On May 25, 2018, following the introduction of the GDPR, European and non-European companies interacting with EU citizens undertook a massive data re-permission-request campaign. This colossal wave of requests offered us the opportunity to investigate how companies across industries and countries framed their requests and investigate the themes firms used as relate to the firms' data strategies. We show that most firms extensively used persuasive arguments aimed at increasing consumers' likelihood of relinquishing their data. Firms can use our research to shape their permission requests. Policymakers may learn from our study that re-permission requests may hamper the effectiveness of privacy policies. Short- and Medium-Term Effects of GDPR on Consumer Privacy and Online Tracking Holtrop GPDR’s introduction on May 25, 2018 aimed to enhance the privacy of European consumers. However, knowledge on GDPR’s impact remains scarce. This study explores how GDPR’s introduction affected online tracking of consumer’s actions. We document reductions in the number of firms tracking consumers and the presence of trackers on websites across most website categories; the former effect however does not persist beyond the first month of GDPR. The data also provide some evidence that introduced privacy controls (e.g. cookie banners) have an effect; the decrease in tracking and cookies is larger for websites which consumers evaluate as less trustworthy, more privacy concerning and having more sensitive data. Richness and Accuracy of Online Consumer Profiling Kraft, Miller, and Skiera Consumer profiles contain information on internet users which advertiser can use to target ads. The beliefs of consumers of what advertisers know about them are often based on publications from the popular press outlining the supposedly vast amounts of personal data that internet firms such as Google and Facebook have access to. Consequently, consumers are very much concerned about their privacy online. However, our study covering the data of about 2.8 billion users from a large European ad exchange suggests, that consumer profiles are relatively scarce, mediocre in their richness of information, and relatively weak in terms of the accuracy of demographic information. Consumer Privacy and the Future of Data-based Innovation and Marketing Bleier, Goldfarb, and Tucker Digitization makes it easier for firms to build their innovation and marketing efforts around consumers' personal data. In this research, we employ a privacy perspective based on contextual integrity to examine how such practices can trigger privacy concerns. We propose that small entrepreneurial firms are often at a particular disadvantage compared to large incumbent firms. At the same time, we also highlight that there are several strategies firms can use to mitigate privacy concerns and that in some circumstances, privacy concerns may also exert positive effects on data-driven marketing by stimulating privacy innovation and providing a source of competitive advantage."