Customer Information Management: Contemporary Issues of Privacy and Trust

Abstract

Marketing evolution has shown that consumer information is vital for the profitability of modern organisations (Deighton, 1996; Graeff and Harmon, 2002, Acquisti, Brandimarte and Loewenstein, 2015). Through correct use of consumer information and the synthesis of big datasets, organisations are enabled to build customer loyalty while expanding their customer base through customised advertising, personalised products and individualised attention for customers (Bello-Orgaz et al. 2016; Dubey et al. 2016). Nevertheless, previous organisational practises revolved around the unconsented acquisition and use of customer information. The latter is an ethical matter currently tackled by data protection initiatives in the UK, Central Europe and the US (Midata and GDPR for UK and Central Europe; Cyber-Security Initiatives for US) in order to derive to sustainable solutions. Imperative to the process of sustainable development in regard to customer information management practises is the understanding of how customers perceive privacy as well as what factors can alleviate disclosure concerns through reciprocal information exchanges and the instilment of trust. Therefore, deeper understanding of how customer information is collected as well as how individuals perceive privacy that ultimately leads to engaging in or abstaining from information divulgence, is key.