Consumer Information Privacy: a Building Block for Marketing Leadership

Increasingly, violations of consumers’ personal information are altering the way consumers feel about divulging their personal information to organisations. It is proposed that by identifying which consumers react in which ways to different uses of their personal information, distinct market segments could be constructed. Such segments could offer businesses an opportunity to act responsibly by discriminating their information use in dependence of the segment needs, creating opportunities for competitive advantage and market leadership. This paper provides a brief overview on information privacy, marketing relationships and market leadership; and empirically explores general and personal privacy concerns and behaviour segments in terms of privacy issues using a data set from South Africa. The results indicate that consumers can be grouped into eight different privacy-sensitive segments which offer good opportunities for differentiated communication strategies.