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Kognitio survey finds consumers have continued concerns over appropriate use of personal data

SAN DIEGO, Aug. 3, 2009 -- Marketing experts, take note: while consumers are comfortable with giving you some personal information about themselves, and while they understand that companies do analyze that data, they're not sure you're using the information they're giving you in an ethical manner.

This does not indicate, experts say, that the companies are not using that data ethically - merely that they need to do a better job communicating how the data is being used to enhance consumers' shopping experience.

The results are contained in a new survey conducted by Kognitio((R)), a leading global provider of business intelligence (BI) and data warehousing solutions. The results are being released at the start of The Data Warehousing Institute's World Conference, being held this week in San Diego.

Fewer than one-third of the respondents (28 percent) thought that companies collecting data about them for marketing purposes use that information in an ethical manner. 34 percent said they weren't sure; 38 percent believed that the firms do not use the information ethically.

Conducted earlier this month via social media including Twitter, more than 150 people responded to the survey. By an overwhelming margin, they said they consider the privacy of data collected about them to be important; 41 percent said they have felt this way all along, although 58 percent said their opinions about personally identifiable information (PII) have changed, either gradually or recently.

The issue of data privacy and access to PII has long been of key concern to consumers, and both their willingness to share some of that information as well as their limits are borne out in the Kognitio survey. More than two-thirds (69 percent) say they are willing to allow companies to collect some personal data through vehicles such as card programs and online accounts, but want to limit the type of information collected, and don't want the data shared with other firms. Only three percent of respondents indicated they would be comfortable with the data being shared, if it makes their shopping experience better and more convenient.

"Companies like Kognitio, through its WX2 analytic database, have developed advanced technology, making it possible to rapidly analyze huge amounts of data that helps a wide range of organizations, including: retailers, media companies, syndicated data providers, financial services firms and others better understand their customers," said John K. Thompson, Kognitio's Chief Executive Officer of North American operations. "The survey indicates that marketers must communicate with consumers more effectively, specifically spelling out for them how the information collected about them is being used. If they do so, and build a trustworthy relationship with their customers, the technology will enable everyone to benefit from its capabilities."

Thompson noted that 59 percent of survey respondents were willing to allow companies to identify them, to a degree, on a regional basis, such as by zip code or demographics. At the same time, he noted that 57 percent would not want marketers to use the technology to identify them on a house-by-house basis, even if it meant greater consumer savings. "There is an ongoing concern over privacy," Thompson said. "While the means already exist to match specific data to individual households, ethically responsible companies are quick to respect their customers' wishes first.. Customers are concerned over a potential loss of privacy, and this is of growing concern."

About Kognitio

Kognitio is an innovative, technology-rich company, providing leading-edge solutions to business problems that require the acquisition, rationalization and analysis of large or complex data. Kognitio's award-winning WX2, a 2008 SearchDataManagement.com "Product of the Year," is the industry's fastest and most scalable analytical database on the market, giving firms the ability to turn their raw data into valuable business insight fast, and empowering its customers to realize comprehensive answers to critical business questions.

Globally headquartered in Bracknell, UK, with North American headquarters in Chicago and offices in New York, Kognitio delivers competitive advantage to its clients across a wide range of industries, including telecommunications, financial services and utilities. More information is available by phone at 312.268.5725 and at www.kognitio.com.



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