Privacy vs.

convenience: how we enable data mining

Sandy Abrah Tim Gillissen

| |

Cameron Bedard Neela Santosh

Presentation overview

S 1. What is data mining

S 2. Capturing data
S 3. Benefits and drawbacks for consumers S 4. Benefits and ethical issues from a marketing

perspective
S 5. Management issues of data mining
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What is Data Mining?

S Collecting data
S Credit card transactions
S Purchase history S Customer information

S Social accounts
S Bank information S E-commerce data

S Marketing purposes S Customer benefits

Data mining is extracting information from data sources

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Capturing data

S Web browsing tracked via information stored on

individuals browser
S Targeted ads S Social networking sites (Facebook, Twitter, etc.)

S Retail outlets
S Consumers volunteer their information
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Volume

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Capturing data

S Target uses Guest ID number

S Presidential Campaign Example

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Benefits of Data Mining for Consumers

S Convenience
S Personal recommendations
S Transaction history S Right offer, at right time, and right place S Amazon wish list

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Risks of Data Mining for Consumers

S Drawback
S Privacy issues
S Security issues

S Data breaches
S PSN Network 2011

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Data Mining for Marketing Purposes

Benefits
S Gain competitive advantage
S Understand consumer needs S Design better product S Eliminate obsolete product

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Data Mining for Marketing Purposes

Ethical issues
S
S S S

Confidentiality
Manipulation of data Consumers feels been constantly stocked Intrusion of private space

S Product Safety
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Manage data issues

S Seven things to ensure management of data issues: S User permission to share data. S Organization should be transparent handling the data S Organization should notice customers when they are changing
S

S
S S

their privacy policies Default option should keep privacy options same. All the data should be removed when user deleted their account Customers should have access to their information Organization should provide easy solution to delete their information directly
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Trustworthiness

S 4 important trust indices:

S Third party privacy seals.

S Factors for trustworthiness:

S Technical competence- this is

S Privacy statements.
S Third party security seals. S Security features.

measurement of web merchant to e commerce transaction correctly. S Effective customer interface. S Web trust privacy seals their privacy terms.

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Questions?

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Work cited

Baker, L. B., & Finkle, J. (2011, April 26). Sony PlayStation suffers massive data breach. Retrieved October 8, 2013, from Reuters: http://www.reuters.com/article/2011/04/26/us-sony-stoldendataidUSTRE73P6WB20110426

BEEMER, C. (1997). Predatory Marketing. New york: Wiliam Morrow and Company. Chonko, L. B. (1995). Ethical Decision Making In Mrketing. Califonia: SAGE Publications Ltd.
Belanger, F., Hiller, J. S., & Smith, W. J. (2002). Trustworthiness in electronic commerce: the role of privacy, security, and site attributes. The Journal of Strategic Information Systems, 11(3), 245-270. CreativityMarketingC. ( 2012 , september 27). Ethical and privacy issues around creative uses of Big Data. Retrieved october 12, 2013, from youtube.com: http://www.youtube.com/watch?v=KyjowwzdhJQ Duhigg, C. (2012, February 16). How Companies Learn Your Secretes. Retrieved October 1, 2013, from nytimes.com: http://www.nytimes.com/2012/02/19/magazine/shopping-habits.html?pagewanted=all Farnam, T. (2012, April 6). Obama has aggressive Internet strategy to woo supporters. Retrieved October 2, 2013, from washingtonpost.com: http://articles.washingtonpost.com/2012-0406/politics/35453381_1_online-ads-ad-firm-ad-space/2

Work cited continued

FBI. (2006, december). Retrieved 10 10, 2013, from Fbi website: http://www.fbi.gov/news/stories/2006/december George, R. M., & Maria-E., B. (1998). A Business Perspective on Database Marketing and Consumer Privacy Practices. Retrieved 10 11, 2013, from msi@msi.org: http://www.msi.org/reports/a-businessperspective-on-database-marketing-and-consumer-privacy-practices/ Johnson, J. (2009, July 28). Targeted advertising and advertising avoidance. Retrieved October 1, 2013, from nyu.edu: http://www.econ.as.nyu.edu/docs/IO/12543/Johnson_20091027.pdf Kxen. (2011, October 28). What is Predictive Analytics / Data Mining? Retrieved on October 8, 2013, van Youtube: http://www.youtube.com/watch?v=BjznLJcgSFI NJIT. (2010, May 25). What is Data Mining? Retrieved October 7, 2013, fromYoutube: http://www.youtube.com/watch?v=R-sGvh6tI04 Press, T. C. (2013, October 3). Digital personalities could influence information retailers have about shoppers. Retrieved October 4, 2013, from Times Colonist.com: http://www.timescolonist.com/business/money/digital-personalities-could-influence-information-retailers-haveabout-shoppers1.647607

Work cited continued

Privacy vs. Convenience. (2013, October 4). Retrieved October 8, 2013, from Beyond: http://www.beyond.com/articles/privacy-vs-convenience-13329-article.html

Privacy vs. Convenience: It's Up to You. (2013, May 14). Retrieved October 12, 2013, from Businessweek: http://www.businessweek.com/stories/2003-05-14/privacy-vs-dot-convenience-its-up-to-you
SCHMIDT, E. (2010, september 10). Tech crunch.com. Retrieved 10 10, 2013, from Tech crunch website: http://techcrunch.com/2010/09/07/eric-schmidt-ifa/ Turban, E., Volonino, L., & Wood, G. R. (2013). Informatino Technology for Management. Wiley.

Wang, R. R., , , & , (2013). Beware trading privacy for convenience. Retrieved from http://blogs.hbr.org/2013/06/beware-trading-privacy-for-con/ http://articles.washingtonpost.com/2012-04-06/politics/35453381_1_online-ads-ad-firm-ad-space/2