User:JaninaTung/sandbox

Privacy issue
Digital marketing is considered as a challenge for privacy because consumers' information is searched, collected, and used in the process of digital marketing without consumers' awareness. The privacy of customers is important because that it is related to customers' perceived value, satisfaction,loyalty, their trust on a company and performance of a company.

Types of information
Basic information：

In the traditional sense, private information mainly includes gender, age, education background, marital status and other basic information.

In the network society, private information also includes personalized digital information such as account passwords.

Activity information：

Private information refers to browsing history, purchasing records, location, social activities and so on

Illegal use of information
At present, the discussion on the consequences of privacy issues caused by digital marketing technology is increasingly focused on the possibility of illegal use of information. The information of consumers may become commodities, which will be exchanged or traded without the consumer's awareness and authorization.

The consumers' information is mainly exchanged or transacted in two forms. One is that the related merchants share those data between each other. The other is that those data are sold by certain recommenders to a third party. For example, the data that can identify the financial status of consumers is very attractive to credit agencies. All these above increases the risk of consumer privacy.

Customer attitude
Some customers tend to choose the latter between right of privacy and other favorable conditions. Evidences shows that some customers are willing to allow merchants to use their personal information if they can have something to gain in return, even just small rewards, even though they do worry about their privacy may be invaded. In addition, digital marketing provide convenience to people. In the minds of some customers, this convenience is more important than their privacy, especially for teens. Nevertheless, most people are very concerned about whether their privacy is protected.

Supervision and administration
Permission marketing seems to be a good way to solve legal issues and privacy issues. It provides a suitable way to let merchants could connect with customers. Consumers can grant licenses only to a few merchants which are chose from a large number of merchants. Permission marketing aims to make digital marketing matches the request of the law and provide consumers with information autonomy and [https://www.sciencedirect.com/science/article/pii/S1094996817300191 Krafft, M., Arden, C. and Verhoef, P. (2017). Permission Marketing and Privacy Concerns — Why Do Customers (Not) Grant Permissions?. Journal of Interactive Marketing]. The other solution is that merchants post privacy logs to promote transparency and accountability.

The General Data Protection Regulation (GDPR) is an example which meet the above requirements. It stipulates that merchants can collect customers' information only for specific, clear and legitimate purposes and deal with them only in a fair, transparent, and legal manner and merchants must protect these data. Customers should be informed that how will their data be used, what will be the effects and other relevant information in a concise, easy-to-understand and free way so that they can clearly determine whether it is necessary to grant authorization or not. Except the right to be informed, the GDPR also provide customers with seven other rights such us the right of access, the right to erasure, the right to restrict processing, the right to object and establishes corresponding accountability system.