Database marketing: investigating privacy concerns

Journal of Marketing Communications

ISSN: 1352-7266 (Print) 1466-4445 (Online) Journal homepage: http://www.tandfonline.com/loi/rjmc20

Database marketing: investigating privacy concerns Maurice Patterson , Lisa O'Malley & Martin Evans To cite this article: Maurice Patterson , Lisa O'Malley & Martin Evans (1997) Database marketing: investigating privacy concerns, Journal of Marketing Communications, 3:3, 151-174, DOI: 10.1080/135272697345943 To link to this article: http://dx.doi.org/10.1080/135272697345943

Published online: 09 Dec 2010.

Submit your article to this journal

Article views: 122

View related articles

Citing articles: 7 View citing articles

Full Terms & Conditions of access and use can be found at http://www.tandfonline.com/action/journalInformation?journalCode=rjmc20 Download by: [University of Limerick]

Date: 11 November 2015, At: 01:51

JOURNAL OF MARKETING COMMUNICATIONS 3 151–174 (1997)

Database marketing: investigating privacy concerns MAURICE PATTERSON, 1 LISA O’MALLEY2 and MARTIN EVANS 3

University of Glamorgan Business School, Pontypridd, Mid-Glamorgan, CF37 1DL; 2Cardiff Business School; 3Bristol Business School

Downloaded by [University of Limerick] at 01:51 11 November 2015

1

The rise of direct and database marketing has been well docum ented. There have also been som e discussions of the parallel rise in consum er concerns with regard to the industry. Much of what has been written has been within a US context and there is a clear need to investigate the extent to which these issues also concern UK consumers. This paper reports the results of a qualitative study which identi es the issues which are appropriate for consideration within a UK context. The results of qualitative group discussions are discussed and supported by the broader literature review. Additionally, the paper proposes an integrative model of privacy and its antecedent variables as a foundation for further research. KEYWORDS: Direct marketing; database marketing; privacy; consumer concerns INTRODUCTION In attempting to satisfy the needs of customers with ever more individualized tastes, UK companies have endeavoured to improve their targeting abilities. This inherently involves the demand by marketers for consumer information, both on a greater and more personalized scale. Thus the rise of the information industry in Britain has gathered pace (Evans et al., 1996). However, there are diseconomies associated with such growth. There has been a concomitant rise in consumer concern in relation to database marketing practices (Patterson et al., 1996). Such concerns include privacy issues, the environmental impact of direct marketing and the exclusion of some consumers from marketing offers as a result of database proling. The sheer pace of growth of UK database marketing, and the volume of direct communications it has produced, has alerted public attention to the actions of industry participants. Some proponents of database marketing suggest that consumer fears have arisen largely as a result of increased media coverage during recent years. However, it is likely, as has been shown in the US (Phelps et al., 1994), that public concerns had evolved and were evident even before media coverage became widespread. Camenisch (1991, p.246) indicates that marketing is a societal enterprise, occurring ‘in society, with society’s permission and support, and purportedly, in part for society’s benet’. On this basis he argues that marketing should be subject, at least partially, to the moral expectations of society. Yet it appears that most managers have given little or no thought to the various social issues which database marketing entails (Cespedes and Smith, 1993). Even To whom correspondence should be addressed. 1352–7266 # 1997 Chapman & Hall


152

PATTERSON, O’MALLEY AND EVANS

much academic literature seems to have satised itself largely with the industry side of the equation (Whalen et al., 1991). A number of consumer privacy concerns with regard to direct and database marketing have been identied in the literature. These include issues such as information privacy (Cespedes and Smith, 1993; Davenport and Cronin, 1991; Gandy, 1993; Patterson et al., 1996; Petrison and Wang, 1995; Westin, 1967), physical=interaction privacy (Cespedes and Smith, 1993; Fletcher and Peters, 1996; Patterson et al., 1996; Petrison and Wang, 1995), and accuracy (Gandy, 1993; Bloom et al., 1994b; Patterson et al., 1996). However, since much of this literature is based within a US context, the extent to which these issues concern UK consumers is as yet uncertain. Additionally, lack of consensus with regard to the denition of privacy (Nowak and Phelps, 1995) has resulted in complications in terms of operationalizing the concept. Too often ‘privacy’ has been used in a generic sense, thus providing little depth of explanation. In addressing these issues, it is the aim of this paper to: · provide a thorough literature review pertaining to privacy issues in relation to direct and database marketing; · report the ndings of an exploratory qualitative study conducted in the UK to assess consumer attitudes toward direct and database marketing practices; · propose an integrative model of privacy issues and their mediating variables as a foundation for further research.

LITERATURE REVIEW

The issues Privacy is not a new concern, and as such, there exists a substantial literature on this topic. The purpose of this section is not to critique these diverse contributions, but to provide a comprehensive review of the privacy literature within the marketing domain. Within the context of direct and database marketing, privacy encompasses the specic issues of information privacy, physical=interaction privacy and accuracy.

Information privacy Information privacy refers to the ability of individuals to determine the nature and extent of information about them being communicated to others (Westin, 1967). The debate centres around the argument between consumers’ rights to determine what happens to their personal information and companies’ rights to information access for business purposes (Simitis, 1987). Consumers are generally quite happy to supply information in order to facilitate a specic exchange, but they do have assumptions about the utilization of that information and give limited consideration to uses outside that specic transaction (Gandy, 1993; Cespedes and Smith, 1993). This means that it may be dangerous for direct marketers to conclude that because consumers continue to supply information that they do not have any tangible concerns. Marketers for their part tend to believe that as they have used valuable resources compiling databases, that the information held on them is their property to do with as they see t (Cespedes and Smith, 1993). They also argue that they have no interest in highly personalized information, but clearly they have. While they may not have any great use for some of the

DATABASE MARKETING: INVESTIGATING PRIVACY CONCERNS

153

information they hold now, they are reluctant to remove it from their databases in case it offers greater utility in the future.


Physical=interaction privacy Physical=interaction privacy relates to the physical intrusion of marketing communications into the daily lives of consumers. It is generally deemed to be of less direct concern to consumers than information privacy issues (Cespedes and Smith, 1993). Database marketing in the UK differs greatly from its American counterpart in that it remains very much an industry in its infancy, and as such many mistakes continue to be made. Many marketers have yet to perfect their targeting techniques and ‘indiscriminate mailings still abound’, (di Talamo, 1991, p.43). This has contributed much to consumer dissatisfaction with database marketers in this country. Much of the direct communication received by consumers is used by companies in prospecting for new business. However, consumers have little or no control over the prospecting efforts of companies (Waldrop, 1994) and ‘being an unwanted target can produce psychological and economic harm’, (Bloom et al., 1994a, p.294). In terms of traditional marketing communications, consumers have the ability to screen out unwanted communications by means of zapping, zipping and nipping (Kitchen, 1986), and they possess control over the solicitation of further information. Direct communications are likely to cause far greater difculties in this regard, although the degree to which this is manifested in consumer concern is uncertain. Opt-outs are available, but when consumers opt-out ‘what they really mean ... is that there are certain things they want and certain things they don’t want’, (Waldrop, 1994, p.48). The situation as it stands does not allow for consumer selectivity.

Accuracy If consumers are concerned about commercial utilization of their personal information, then this concern may be compounded if inaccuracies in that information result in negative consequences for them. The problem is that as direct marketers handle greater volumes of information, the likelihood of errors being made may rise. This is clearly a cause for concern within the industry. Ensuring accuracy is important, and can facilitate the building of consumer relationships. ‘The establishment of a relationship with the individuals on a database and the development of that relationship can be greatly helped by maintaining a correct record of activity and characteristics which can be used as intelligent segmentation factors’, (Smith, 1994, p.248). The point is that if companies are going to use personal details for marketing or other purposes, then the onus is upon them to ensure that the information they hold is correct and so their treatment of consumers cannot be prejudiced by inaccuracies.

Antecedent variables One of the inherent difculties in operationalizing the privacy construct has been the number of variables which impact upon perceptions of privacy invasion. These ‘antecedent variables’ are assumed to inuence perceptions of privacy both directly and indirectly, and are thus integral to our understanding of privacy. Privacy, within the context of direct and database marketing, is inuenced by a multidimensional mix of factors (Turn, 1985; Gandy, 1993). R eference to the literature highlights that discussions of such factors have been numerous and diverse, although a denitive list of

154



antecedent variables has yet to be produced. That said, such variables are likely to include a cultural dimension (Brezen et al., 1987; Goodwin, 1991; Maynard and Taylor, 1996; Milne et al., 1996; Petrison and Wang 1995); perceived degree of control (Cespedes and Smith, 1993; Deighton et al., 1994; Gardiner Jones, 1991; Goodwin, 1991; Nowak and Phelps, 1995; Westin, 1967); consumer knowledge of direct and database marketing practices in general and of specic instances of data collection and=or use (Culnan, 1995; Foxman and Kilcoyne, 1993; Goodwin, 1991; Nowak and Phelps, 1995); likely consequences (Gandy, 1993); information sensitivity (Davenport and Cronin, 1991; Gandy, 1993; Sherman, 1991); relevance (Cespedes and Smith, 1993; Sherman, 1991); and the organization involved (Cespedes and Smith, 1993; Gandy, 1993).

The cultural dimension Milne et al. (1996) put forward the following model to explain cultural effects on consumer attitudes toward direct marketing and privacy issues (Fig. 1). Given that this model takes into consideration attitudes toward direct marketing and consumer privacy in international markets, the main part of the model is embedded within country-level direct marketing technology and infrastructure. Infrastructure is viewed as important because the level of direct marketing infrastructure will, by consequence, dictate the level of direct marketing activity in a particular country. Thus, in investigating UK direct marketing from a cultural perspective, perhaps the most important variables for consideration are the country’s direct marketing infrastructure and the industry’s state of health. Table 1 highlights UK gures for structural factors. Structural factors relevant to direct marketing tend to be measured by reference to statistics such as levels of domestic mail; penetration of radios, televisions and telephones; GNP; literacy rates and; the percentage of employed women (Milne et al., 1996). These gures would seem to suggest that in structural terms the UK is highly developed. With specic respect to direct marketing, Table 2 suggests that direct methods of marketing communication have gained a distinct foothold in the UK while many commentators indicate that this position is set to improve further (Evans et al., 1996).

Adherence to Individual Rights (Norms)

Country Level Direct Marketing Technology and Infrastructure

Consumer Experience with Dierct Marketing

Individual Demographic Background

(Source: Milne et al., 1996, p.23) FIGURE 1. Cultural effects on consumer attitudes.

Attitude Toward Direct Marketing and Consumer Privacy Issues


TABLE 1.

UK structural statisticsa

Pieces of domestic mail received each year per capita Percentage penetration of radios Percentage penetration of television sets Percentage penetration of telephones Gross National Product Literacy rate (%) Percentage of employed women


a

519 99 98 90 £706 billion 100 66

Compiled from Of ce of National Statistics and Royal Mail sources (1996)

TABLE 2.

Direct marketing statisticsa

Direct mail’s share of the letterbox (%) Consumer volume of direct mail (pieces) Percentage of press ads carrying response device Percentage of companies using telemarketing a

155

29 2015 million 92 39

Compiled from Institute of Direct Marketing Statistics (1996)

Yet despite these gures Roseneld (1994) awarded the UK a grade of C based on US standards, while Petrison and Wang (1995, p.29) claim that ‘the eld of direct marketing ... is now all but non-existent’ in the UK. Clearly these analyses of the UK direct marketing industry are misguided and should be subject to the severest scrutiny. However, it may indeed be true to say that the UK industry is not as highly developed as its US counterpart. Consequently consumer experiences of direct marketing in the UK are more limited. This may in turn explain the fact that although UK consumers have traditionally been protective of their individual privacy (Patterson et al., 1996; Petrison and Wang, 1995), concerns in relation to direct and database marketing have been slow to evolve here. Milne et al. (1996) include adherence to individual rights in their model as it was posited that attitudes toward direct marketing and privacy would differ depending on whether or not consumers favoured individual rights. However, no questions relating to individual rights were included by Milne et al. (1996) in their study and thus, no evidence exists to support the inclusion of individual rights in the model. Consumer experiences with direct marketing are included as attitudes toward direct marketing are likely to be shaped by the level of direct marketing activity within a country. Demographic factors also have an important inuence (Equifax, 1991; Milne and Gordon, 1994; Milne et al., 1996; Nowak and Phelps, 1995; Patterson et al., 1996; Wang and Petrison, 1993). Milne et al. (1996) identied that age, education and to some degree income were predictors of consumer attitudes, but they give no concrete indication as to why this might be. Patterson et al. (1996) however, conclude that because age and income will determine the degree to which consumers are exposed to direct marketing, it will inuence their attitudes toward direct communications.

Control The notion of control is central to our discussion, in that it is the perceived loss of control in various aspects of the exchange process that appears to be the major factor in inuencing


156


privacy concerns. A large proportion of direct communications are unsolicited (di Talamo, 1991); consumers do not have any signicant input into how their personal information is utilized and managed; and in many cases the surrender of information as part of an exchange is conducted with some reluctance. Indeed, an Equifax (1991) study in the US found that 71% of consumers surveyed, professed to having lost all control over the utilization of their personal information. Control has been included in denitions of privacy to a greater or lesser extent by many authors (Altman, 1976; Bok, 1982; Cespedes and Smith, 1993; Deighton et al., 1994; Foddy and Finnighan, 1980; Gardiner Jones, 1991; Kelvin, 1973; Marshall, 1974; Nowak and Phelps, 1995; Westin 1967). Indeed, Lenk (1982) suggests that the focus on privacy is wholly misdirected, as the heart of the problem lies in the increase of power afforded to organizations by information collection at the expense of the individual. However, given our discussion of antecedent variables, it may be inappropriate to dene privacy, as Goodwin (1991) does, simply in terms of control.

Knowledge Consumer knowledge of database marketing practices has also been identied in the literature as a major variable in determining concerns (Culnan, 1995; Foxman and Kilcoyne, 1993; Nowak and Phelps, 1995). Knowledge is likely to be a factor on two distinct levels. First, the amount of knowledge which consumers have about direct marketing practices in general is likely to be important. This knowledge may come as a result of exposure to or experience of these practices. Secondly, knowledge about data collection and=or use within a specic transaction is also likely to be a factor. The more knowledge the consumer possesses regarding data collection and use, the more likely that concerns will be allayed (Table 3). Consumer knowledge has been extended by some authors (Goodwin, 1991; Johnson, 1989; Patterson et al., 1996) to incorporate consumer education. By educating consumers about the benets to be attained from database marketing, about database marketing practices, and about how to protect their privacy, fears regarding threats to privacy may be overcome.

Consequences In supplying personal information, consumers are likely to pay regard to the possible consequences for them of such information surrender. This is especially true if those consequences are negative (Gandy, 1993). In an effort to minimize the effects of this, consumers may actively avoid situations in which they would be required to give information, they may refuse to give information, or they may provide false information.

Information sensitivity The degree of sensitivity which the consumer attaches to a piece of information will determine the level of concern involved. ‘Data subjects place information on their personal TABLE 3.

Consumer knowledge and privacy concernsa

Complete knowledge of collection and use

Knowledge of collection but not use

No knowledge of collection or use

Few privacy concerns

Moderate privacy concerns

Grave privacy concerns

a

Adapted from Nowak and Phelps (1995)


157

shopping habits, or their taste, low on the agenda for protection’ (Davenport and Cronin, 1991, p.18). Most consumers will be quite happy to surrender personal details such as name and address although they could be troubled by the fact that proling may ‘produce sensitive information from that which was not sensitive in its original form’, (Gandy, 1993, p.139). Ideally, marketers should only be using such information as is directly relevant for their marketing purposes, and information that might under any circumstances be considered sensitive should not be treated inappropriately (Sherman, 1991).


Relevance Relevance also has some signicance in determining privacy concerns in that consumers may question efforts by companies to collect information if that information does not appear to be relevant to the transaction at hand. Furthermore, the relevance of the direct communications which a consumer receives is likely to affect the degree to which that consumer is concerned. One possible way to circumvent many of the concerns which consumers have is to ensure that they only receive communications which are of interest to them. ‘If a person is interested in a subject and received an unsolicited telephone call or piece of mail about it, he is not likely to view its receipt as an invasion of privacy....It is relevant’ (Sherman, 1991, p.40). However, this relevance can only be achieved through improvements in targeting, improvements that require the use of personal data on individuals by companies. ‘Better market data makes marketing more efcient, and in competitive markets some of the fruits of efciency are passed on to consumers’ (Blattberg and Deighton, 1991, p.12). Placing restrictions on the uses to which companies put information may only serve to increase the amount of ‘junk’ consumers receive, and consumers themselves recognize this.

The organization How the consumer perceives the organization involved in data collection and use will also pattern the level of concern experienced. If the consumer trusts the organization then fears may be alleviated. Based on the work of Anderson and Narus (1990, p.45), O’Malley et al. (1997, p.6) dene trust as ‘the consumers’ belief that a rm will perform actions that will result in positive outcomes for him, and will not take unexpected actions that will result in negative outcomes’. Therefore, marketers must be seen as trustworthy in order to successfully communicate with and obtain information from consumers. However, because many marketers acquire consumer data through covert means, the result is a reduction of trust towards rms in general. METHODOLOGY This study sought to explore the perceptions of consumers to various forms of database marketing. Much of the previous research addressing privacy concerns with regard to database marketing has been conducted within a largely positivist framework. While it has generated some interesting ndings, there have been problems effectively operationalizing the key concepts. The use of qualitative research in this study is an attempt to generate more lucid insights into these consumer concerns by uncovering dynamic emotional processes. Group discussions have been employed because they ‘are particularly well suited to collecting in-depth, qualitative data about individuals, denitions of problems, opinions, feelings and meanings associated with various phenomena’ (Basch, 1987, p.434). Indeed, the


158


inherent value of a group discussion lies in facilitating understanding of how consumers think (Kruegar, 1994) and groups are particularly effective for exploratory research (Stewart and Shamdasani, 1990). Group discussions were chosen over individual depth interviews because the ‘group dynamic process’ (Mendes de Almeida, 1980) facilitates interaction between respondents thereby providing a stimulating and secure setting in which to express ideas (Basch, 1987). As such, ‘the permissive group environment gives individuals license to divulge emotions that often do not emerge in other forms of questioning’ (Kruegar, 1994, p.11). Given existing problems in operationalizing the concept of privacy, group discussions were considered more appropriate. Calder (1977) distinguishes between exploratory, clinical and phenomenological discussions. The primary purpose of this study is to see the world as consumers see it, which is commensurate with the objective of phenomenological groups. This approach is used to determine the degree of inter-subjectivity regarding various topics, by examination of the ways in which group members interact and relate to each other, and by providing insights about the extent to which their experiences and their ways of describing their experiences are shared (Calder, 1977; Basch, 1987). Patterson et al. (1996) identify a number of criteria which may inuence consumers’ experiences of, and therefore attitudes towards database marketing. Specically, age and social grade were seen to impact upon the level of direct communications consumers received. Thus, these characteristics were reected in the composition of the groups (Table 4). Group participants were selected using a recruitment questionnaire which centred on demographic details and previous exposure to direct marketing. Group homogeneity was maintained in order to promote a positive and open atmosphere conducive to good information sharing (Stewart and Shamdasani, 1990), and because phenomenological groups should be homogeneous (Calder, 1977). The discussion outline was developed following a comprehensive review of existing literature. It introduced the participants to a direct marketing=loyalty scheme scenario and was thereafter exible. The use of a exible guide promoted the maintenance of a good rapport with respondents, facilitated interaction between group members, and provided the opportunity to improvise (Basch, 1987). In terms of analysis, emphasis was placed on extensive verbatim quotes from group members, as the objective was to communicate respondents’ perspectives in their own words (Calder, 1977). Tape-based analysis (Kruegar, 1994) was used, where an abridged transcript was prepared based upon comments directly relating to the research question, and the moderators’ and observers’ written summaries. Axial coding (Kruegar, 1994) and cut-and-

TABLE 4.

Group discussion composition

Group 1 Windsor C2 D Age: 20 –27

Group 3 Bristol BC1 Age: 50‡

Group 5 Cardiff BC1 Age: 39– 49

Group 2 Windsor BC1 Age: 50‡

Group 4 Bristol C2 D Age: 28– 35

Group 6 Cardiff C2 D Age: 36– 45



159

paste techniques were then used, resulting in a comprehensive list of quotations for each of the research issues. There are a number of commonly cited criticisms of group discussions which must be acknowledged. The method is seen to lend itself to providing evidence to support preconceptions (Bellinger et al., 1976), what Kruegar (1994) calls ‘face validity’. This is further exacerbated by the heavy reliance on the moderators’ interpretation of results. These criticisms have been addressed in that the research team involved a number of members, each of whom independently carried out the above analysis. In addition to the group discussions themselves, respondents were required to complete a very brief questionnaire detailing their perceptions of various forms of direct marketing, prior to and after the group discussions. This questionnaire, was designed explicitly with correspondence analysis in mind. Thus the results could then be utilized to triangulate the ndings of the group discussions. Correspondence analysis is a robust, yet relatively simple method of representing multivariate data in the form of user-friendly maps and is a particularly useful means of revealing patterns of association without the need for a priori speculations (Greenacre, 1983). Graphical descriptions of data are extremely useful in that such descriptions are much more easily assimilated and interpreted (Greenacre, 1984). Indeed, graphical descriptions have three major advantages: they can summarize a large amount of data; they can simplify the complexity of the data by appealing to our natural ability to absorb visual images; and, by providing a global view of the data, they facilitate explanation (Greenacre, 1984). Correspondence maps graphically represent the patterns of consumers’ perceptions in terms of the signicant factors within a particular area, and the relationships between those factors (in this case the relationship between direct marketing methods and their attributes). Although mathematically based (employing matrix algebra and eigen values which measure statistical variance), correspondence analysis produces non-mathematical results in that it replaces numbers with space and distance. ‘A distinct advantage of correspondence analysis over other methods yielding joint graphical displays is that it produces two dual displays whose row and column geometries have similar interpretations, facilitating analysis and detection of relationships’ (Hoffman and Franke, 1986, p.213). The analysis searches through the data set, examining the patterns inherent in the data, and then identies similarities and differences between those patterns. The factors and attributes under investigation are then mapped according to the degree of similarity or difference between them; the distance between points is indicative of the similarity between their proles (i.e. the closer different factors are to each other on the map the more similarities they have). Participants are allowed to contribute to the questionnaire at whatever level they feel comfortable and can avoid areas that they don’t feel qualied to comment upon. As they are unaware of the fact that they are creating a map they don’t feel pressurized into giving the ‘right’ answers (Gordon and Langmaid, 1988). For further information on the theory and use of correspondence analysis see Greenacre, 1983; Greenacre, 1984; Carroll et al., 1986; Carroll et al., 1987; Hoffman and Franke, 1986; and Hoffman et al., 1994). A series of correspondence maps were produced for the total sample and for various segments reecting class, gender and age. The ‘before’ maps provided pictures of where respondents ‘were coming from’, while the ‘after’ maps showed how perceptions had changed, if at all, following exposure to the group discussions. Within group discussions, participants both inuence, and are inuenced by others (Kruegar, 1994), and thus it is possible for participants opinions to change during a discussion. This is a particular strength of group discussion, in that it is reective of what occurs in ‘real life’ (Kruegar, 1994). However,

160


analysis of the maps revealed a surprisingly high degree of unanimity across the sample and the before and after comparison revealed that perceptions were resistant to change. This is an important issue which will be addressed later in this paper.

RESEARCH FINDINGS


The ndings of an exploratory qualitative study are reported in order to identify the most salient issues for consideration in future empirical work. In the main, participant responses presented here are typical of all six group discussions although they have not been aggregated. These responses are discussed rst in terms of the antecedent variables, and then in terms of the privacy issue itself.

Control It is evident from the group discussions that control is indeed a vital consideration. Some analytical difculties did arise in that almost every element of these discussions was framed by participants in terms of control. Thus, the clear identication and separation of all the issues for consideration had to be approached with a great degree of caution. The prevalent feeling within the groups was that consumers should be free to make their own purchasing decisions without having countless offers thrust at them. C 2D Males Age: 36–45

‘If you want something you’ll nd it for yourself.’ ‘If I want to nd out about your product I’ll do it.’ ‘Most of us are adult enough to know if we want a loan or something.’ ‘Everybody knows if I want a loan I’ll go and ask.’

While participants voiced their wish to control the initiation of transactions with organizations, they also felt condent in their abilities to withstand the pressure to succumb to direct approaches. However, fears were expressed on behalf of more vulnerable members of society such as the young and old. C 2D Male Age: 36–45

‘Everybody seems to be pushing money your way lately. If you were weak-willed you would be tempted.’

Developments in the area of direct response were viewed much more positively than unsolicited approaches in that they allowed the consumer to maintain a large degree of control. C 2D Males Age: 28–35

‘I buy from QVC and that’s good because you can trust the company and of course its your choice to buy. If you don’t want to watch it then you don’t have to. ‘It’s important to be able to make the decision yourself without being forced.’ ‘Many companies are now using free telephone numbers. That’s very good because again you’ve got control.’


161

BC 1 Female Age: 39–49

‘You feel safe with a catalogue. There’s no pressure and you can return it if you don’t like it. Whereas, with other things, I think you are slightly apprehensive.’

BC 1 Female Age: 50‡

‘If you get offers and things from newspapers then that’s your choice. It’s the unsolicited stuff that really annoys people.’


It was also widely held by group members that, having lost control over the utilization of their personal details in particular, there was little they could do at this stage to retrieve the situation. BC 1 Male Age: 50‡

‘We are all on a database somewhere, whether we like it or not. The information is built up over a number of years and comes from various sources. It doesn’t really matter what you do. The only thing you can do is not answer any questions.’

C 2D Male Age: 28–35

‘I hired a video camera recently, and the sales assistant, she must have been all of sixteen, asked for my post-code. She went on the computer and my details came up on the screen. I wasn’t allowed to look at it but she could do whatever.’

BC 1 Females Age: 50‡

‘We give a terric amount of information out without thinking about it. Like with insurance. The information we give them is very personal really. But to get any kind of insurance now you’ve got to give it to them.’ ‘I thought ex-directory meant ex-directory, and it doesn’t.


‘They seem to know more about you than you can imagine. You’re talking to a complete stranger but they seem to know all about you, like long lost buddies. And I’d like to know how.

C2D Female Age: 20–27

‘They’re going to nd out about you anyway. I’m sure there are places they can go and nd out absolutely anything about you.’


‘I’m interested in photography but the last thing I want is a load of companies phoning me up. If I want something I’ll look for it. I want my interest in photography kept as private as possible’

Knowledge Some participants were quite conversant with database marketing practices and the uses to which information was put, but this proved to be the exception rather than the rule. C 2D Male Age: 28–35

‘They could be using it to help build other stores. Because they can identify their type of customer which will help them, to locate new stores. And they can use it for stock control.’

In general participants tended to be confused and misinformed about what companies were able to do. C 2D Males Age: 28–35

‘They sell your details.’ ‘They can’t sell your address though, can they.’ ‘Yes they can.’ ‘I think you can write to someone to get your name off these mailing lists, can’t you.’

One of the major misconceptions held by many of the group members was that there existed

162



a central computer which contained everybody’s personal information and other companies could access this information for a fee. C 2D Male Age: 28–35

‘You might get yourself off 90%of it, but as someone said, there is a central point. Your name is still there and it just adds and adds and soon you are back in the same boat.


‘They do sell lists, don’t they? Now, whether there’s a company that sells these lists and is a business in itself I don’t know. But the lists get around.’

C 2D Female Age: 20–27

‘Does it go to a central computer and other companies can buy it from them?’

Such confusion can only serve to undermine the consumer’s position thus feeding already prevalent concerns and fears. As long as consumers lack concrete knowledge of these practices concerns are likely to continue.

Information sensitivity Certain types of information were deemed sensitive by the groups although they did acknowledge that sensitivity depends on the circumstances of the consumer. For many, the collection of information such as name and address is seen as legitimate, but any information surrender beyond that is questioned. BC 1 Females Age: 50‡

‘If they want to know salaries and things then that’s a no-no. But where I live, that’s okay because you can get that. That’s not too intrusive.’ ‘I am very careful about the information I give. I wouldn’t give them the new phone number I’ve got. I wouldn’t give them work details and I won’t give them salary details either.’ ‘Well name and address, they can get that from the electoral register. I don’t mind them knowing how old I am or how many kids I’ve got. But I don’t like them asking for telephone numbers or salaries. I just think its rude.’


‘My husband doesn’t like me giving out our telephone number. Name and address that’s ne, but he won’t give out the telephone number.’

C 2D Females Age: 20–27

‘They ask for your name, address and date of birth.’ ‘They don’t really need to know your date of birth, do they?’ ‘Why do they ask for it then?’ ‘They want to know an age bracket, don’t they?’

Part of the reason for being wary of providing details such as salary, is that participants did not truly understand why companies wished to get hold of such information.

Relevance The relevance of direct communications also generated some lively debate. Most of the participants believed that much of the material they were receiving was irrelevant and this was what they classied as ‘junk’.


163


‘I don’t particularly like people sending me stuff. They just get my address and send me stuff I don’t need. A lot of it is no use to me or I’ve already got it.’


‘I used to look forward to the mail but now its rubbish.’

BC 1 Male Age: 50‡

‘A lot of mail that comes through the door doesn’t even get looked at.’


Participants were also critical of the way in which organizations currently use the information that is at their disposal. They seem to expect that marketers use the information they have in a sensible and intelligent way. Most believed that if companies used the data they have more effectively the amount of irrelevant communications consumers received would be reduced. C2D Male Age: 28–35

‘I go overdrawn at the end of every month and have trouble making the repayments but my bank are constantly sending me loan offers. They should know that I can’t afford to take out another loan. They of all people should know because they have all my details and I often deal with them person to person.

The organization In supplying information, participants stated that they were likely to be wary of organizations that did not have a good reputation. It must be stated that the notion of reputation was very subjective and appeared to be synonymous with size. C 2D Females Age: 20–27

I wouldn’t give details to anyone who didn’t have a good reputation.’ I wouldn’t want just anybody getting my phone number, even though its in the book and anybody can get it.’

There was almost universal agreement that there were no real guarantees of condentiality and ‘privacy’ abuses were such that participants had developed a general distrust of companies. Even when companies themselves were seen to be trustworthy, there were fears expressed about the number of people who would have access to personal details within any given company. BC 1 Females Age: 50‡

‘We went ex-directory and haven’t given out our new number. Only to friends, but not to any rms. No banks, no building societies. For fear of it being passed along the line again.’ ‘There’s no guarantee of condentiality. In the old days you could trust people. Not these days.’


‘There is a fear and its on two or three levels. For every company that you give it to, then others are going to contact you. But it can even be the number of people whose hands it passes through. The company may be very trustworthy but individual members of staff might not be.’

Information privacy Information privacy concerns clearly do exist among the group participants. Participants felt very vulnerable and although most were aware of the opt-out clause, there continues to be some concern regarding its effectiveness. Consumers themselves may be unwittingly contributing to the problem. In an attempt to minimize abuses in information privacy consumers may knowingly provide false information (Gandy, 1993) and some participants admitted to such practice. While

164


this may solve the immediate problem, it could also produce difculties with future transactions or lead to a worsening of physical privacy concerns as the subject relevant of offers diminishes. C2D Males Age: 36–45

‘If you give your name once it goes around. The best thing to do is never give your name.’


‘The opt-out box doesn’t stop them selling it.’ BC 1 Female Age: 50‡

I’ve had a couple of phone calls for double glazing and that sort of thing. I get very uptight about phone calls. Well, I’m ex-directory and it annoys me to think that they sell my telephone number to someone else.


‘There is some information they don’t have to get from you because they already have it. If they do a scan on their computer for the last twelve months they can see how much I’ve spent using my Switch card.’

C2D Female Age: 20–27

‘If you wanted your information passed on .... you’d phone them up and give them the information yourself. ‘On the bottom of most forms there’s a box you tick if you don’t want the information to go any further. But does that tick say denitely no.’

Physical=interaction privacy The group discussions pointed to a general rise in the amount of direct communications consumers were receiving. There was concern that the surrender of personal details for any transaction would lead to a virtual ‘blizzard’ of further direct approaches. As a result, some of these consumers are staying clear of situations in which they are required to give details. There is a degree of inconsistency in the responses to issues of physical privacy. When discussing direct mail in isolation participants admitted to being very bothered by it and saw it as a major intrusion. However, when the issue of telemarketing was introduced direct mail became much less important. Telephone calls are viewed as the greatest intrusion and group members were especially vociferous about the timing of these calls. BC 1 Females Age: 39–49

‘It’s nice to be kept in touch, but it all depends on their approach, how they go about it.’ ‘I’ve signed up with the Mailing Preference Service but it still comes. You might as well not waste your breath or waste your time.’


‘Handing over personal details just means more rubbish coming through the letterbox.’

BC 1 Females Age: 39–49

‘I don’t mind just mail through the door to myself, but I do object to the phone calls. Its always inconvenient and you have to be rude to get them off the phone.’ ‘They always have this spiel so you can’t put the phone down on them. You have to be blatantly rude.’ ‘I’ve put a notice on my door not to have junk mail’. ‘I think phone calls are most intrusive. With mail you can throw it away.’ ‘If there was a box to say no phone calls I’d tick it.’ ‘When you pick up the phone you expect it to be a relative or friend on the other end.’


165


‘Callers won’t accept a ‘‘no’’. That’s what aggravates me more than anything.’

C2D Male Age: 28–35

‘I can appreciate that it’s just a job that this person has to do. But if you say no they should accept it.’


‘I don’t mind mail at all. If you don’t want to look at it you can throw it straight in the bin. But a phone call, you are talking to the person, and I’ve had several and I’ve not been able to get rid of them. And I think that’s wrong.’


Accuracy Again some inconsistencies arose here in that initially participants did not seem to be bothered about inaccuracies in information being used by companies. However, when they began to consider the negative consequences which this could cause, group members voiced greater concern. This was especially true in terms of credit ratings and when partners were deceased. There is even a belief that the large quantities of irrelevant information that consumers are receiving, results from inaccurate data. Despite practices such as providing false information, participants do believe that companies should be responsible for maintaining data accuracy, and are distrustful when even basic details are incorrect. C 2D Males Age: 36–45

‘It amazes me sometimes how the mail even gets to me.’ ‘The thing that bothers me is that if they’re making mistakes like this, and everybody has their name spelled wrong on these things just once in a while, that’s one mistake they’ve made. And perhaps they’re credit rating you, you know, and that’s going to be mistaken, and God knows what the consequences could be. You know although I’m solvent, I could be going places, try to use by Barclaycard and all of a sudden I’m shut out and think what the hell is going on? Beginning to rectify it could be bloody awful.’ ‘If your name is wrong. And that’s the most obvious and up-front thing you want to be right.’ ‘What else could be wrong?’ ‘It doesn’t exactly inspire condence does it?’

Consum er attitudes towards direct marketing approaches In an effort to triangulate the ndings of the group discussions, a brief questionnaire was used to assess participant opinions of various forms of direct marketing. Correspondence analysis (Fig. 2) vividly depicts that consumers’ perceptions of the various forms of direct marketing, are inuenced heavily by negative considerations rather than by positive ones. This nding was consistently repeated in the group discussions and clearly suggests that these issues need to be tackled by the industry as a matter of urgency. Since the data has been taken through an orthogonal transformation, there is no covariance and therefore the total amount of variance explained is the sum of the eigen values. Explaining variance essentially relates to how much information is lost or kept by representing the data in maps. The analysis here explained 92%of the data in the rst two factors making it unnecessary to represent the data in more than two dimensions. The horizontal axis (which explains 88%of the data) is very important in determining perceptions, and the map is thus graphically divided between favourable (left) and unfavourable (right) sides. In addition, the further from the centre of the map a factor is, the more distinctive or discriminated it is. As is evident from Fig. 2

166

PATTERSON, O’MALLEY AND EVANS Factor 1 (88%) Horizontal / F actor 2 (4%) Vertical *Reliable way to buy

*SOLICITED MAIL

*Occasionally respond *Check offers *Like to be reminded

UNADDRESSED LEAFLET*

*Offers tempting

Can’t understand why approached*


*For me

*Not for me

*FREEPHONE/PRESS

Irritates me*

UNSOLICITED MAIL*

*CATALOGUE

Intrusive* Don’t like this approach*

*Becoming more interested

Seldom of interest*

PHONE*

*Very informative *Convenient way to buy *Older people *FREEPHONE/TV

*Younger people

FIGURE 2. Correspondence map for total sample.

participants considered each of the direct marketing methods to be relatively distinctive (i.e. none of the methods are viewed as being typical of all direct communications methods). Consumer concerns manifest themselves in negative associations towards unsolicited telephone calls, unsolicited mail and unaddressed leaets which are grouped together (thus indicating similarities in perceptions) on the right-hand side of the map with negative attributes such as ‘intrusive’, ‘don’t like this approach’, ‘irritates me’, ‘seldom of interest’ and ‘not for me’. Solicited mail, catalogues and direct response mechanisms on the other hand were viewed in a more positive light being grouped together on the favourable left side of the map with attributes such as ‘offers tempting’, ‘for me’, ‘becoming more interested’, ‘very informative’, ‘convenient way to buy’ and ‘reliable way to buy’. It is likely that these methods are viewed positively because they enable the consumer to request further information, initiate a dialogue, or make a purchase and in this sense retain control. Table 5 shows the percentage inuence of each form of direct marketing in shaping the whole map. Catalogues (22%) and Freephone=Press (16%) clearly organized favourable


TABLE 5. the map

Percentage in uence of forms of direct marketing on the shape of

Phones Catalogues Freephone=Press Unsolicited Mail Unaddressed Lea ets Freephone=TV Solicited Mail


167

34 22 16 12 8 5 3

perceptions on the left although Solicited Mail and Freephone=TV had little inuence. Telephone approaches (34%), Unsolicited Mail (12%) and Unaddressed Leaets (08%) organized the unfavourable right side of the map. Table 6 displays the percentage inuence of each attribute in shaping the whole map. The top four inuential attributes; Intrusive (12%), Don’t like this approach (11%), Irritates me (10%) and Seldom of interest (10%) are all negative and are closely associated with Phone, Unsolicited Mail and Unaddressed Leaets. Attributes with positive associations clearly had less inuence in organizing the map. DISCUSSION The earlier literature review suggests that privacy concerns embody a number of specic issues, information privacy, physical=interaction privacy and accuracy. The ndings of exploratory group discussions serve to reinforce this conceptualization. The literature also suggests that there are a number of factors which inuence how consumers both perceive and react to these privacy issues. This literature is both diverse and disparate, and suggests that variables such as culture, the organization, perceived degree of control, relevance, knowledge and consequences are particularly important. Based on this literature, and our empirical ndings, we propose an integrative model which encompasses privacy concerns and their TABLE 6.

Percentage in uence of attributes on the shape of the map

Intrusive Don’t like this approach Irritates me Seldom of interest Offers appealing Convenient way to buy Reliable way to buy Can’t understand approach Check offers Very informative For older people For younger people Becoming more interested Like to be reminded

12 11 10 10 8 8 6 5 3 2 2 2 2 1

168

PATTERSON, O’MALLEY AND EVANS The Interaction-Specific Environment Culture Perceived Degree of Control Consequences

The Organization

The Ideological Environment

Information Privacy

The Cultural Environment

Physical/Interaction Privacy

Relevance

Sensitivity


Accuracy

Knowledge

FIGURE 3. Consumer concerns and antecedent variables.

antecedent variables (see Fig. 3). Essentially we suggest that antecedent variables can be conceptualized as comprising three distinct levels. Level 1 incorporates interaction-speci® c variables, level 2 comprises the ideological environment, and level 3 the cultural environment. ·

The interaction-speci® c environment will inuence the degree to which a consumer perceives a particular offer or request to be an invasion of his or her privacy. At this level, perceived invasions of privacy are a function of the company involved, and the extent to which the consumer believes the offer=request to be relevant. Specically regarding information privacy, the sensitivity of the information required and the possibility of suffering negative consequences are particularly relevant. If the consumer has a history of dealing with a particular organization, and believes that organization to be trustworthy, the likelihood of that offer=request being considered intrusive diminishes. Therefore, consumer perceptions of specic instances of privacy invasion are a result of cognitive evaluation of this particular instance. · The ideological environment mediates cognitive evaluation of specic transactions, and reects the ‘affective’ dimension. The ideological environment comprises consumer perceptions with regard to the level of control they have, and should have in the exchange process. This is inuenced both directly and indirectly by their knowledge of database practices, existing legislation, and the process of seeking redress when privacy intrusions occur. Given the link between exposure to direct marketing and demographics, it is conceivable that this ideological environment is segment specic. · The cultural environment is the macro-environment in which direct and database marketing occurs. Using Milne et al.’s (1996) conceptualization, this includes country-level direct marketing technology and infrastructure, adherence to individual rights (norms), and consumer’s experience of direct marketing. The variable ‘norms’ (although not explicitly tested) is likely to be wider than those norms which directly refer to direct marketing, but may be particularly important in dealing with the privacy issue. Thus norms might


169


include whether constitutional rights to privacy exist, etc. The model presented here is not intended to be a denitive model of privacy and its antecedent variables. However, it does represent an initial attempt to integrate existing research in this area, and as such is an important contribution. The model is intended to be both dynamic and integrative in that variables at each level both inuence and are inuenced by variables at other levels. For example, the interaction-specic environment and ideological environments are interactive in terms of their inuence on consumers perception of privacy invasions. Consumers evaluate each interaction based upon cognitive elements, which are in turn inuenced by their ideological disposition. In a similar way, the outcome of a single interaction may cause a consumer to re-evaluate their ideological position. This will then be the ideological position subsequently referred to in further interaction-specic evaluations. Equally, the broader cultural environment is subject to change, although such changes are likely to be incremental. The contribution of this model is primarily in terms of highlighting directions for future research. For example, the model indicates that consumers react differently to the same offer=request because of their cognitive and ideological evaluations. This suggests, that further research into privacy should focus upon the impact of antecedent variables at each of these specic levels. Research is therefore required to improve our denitions and conceptualizations of both interaction-specic, and ideological variables. This presents a signicant methodological problem, in that it is difcult to incorporate the degree of specicity required in order to make this research meaningful. In the short term, research should continue to be within, rather than between countries, and should focus upon specic interactions. IMPLICATIONS FOR DIRECT MARKETING AND MARKETING COMMUNICATIONS This study has a number of implications for organizations who rely solely on direct marketing, and for the increasing number of organizations who incorporate direct techniques into integrated communication programmes. Among the most widely cited reasons for incorporating direct techniques into communications programmes is that they facilitate interaction between the customer and the organization. Despite this, the results of our study indicate that consumers do not perceive themselves to be participants in a dialogue. On the contrary, they perceive themselves to be the passive and unwilling recipients of excessive and generally uninteresting, organizational communication. Specically, direct techniques are viewed in a largely negative light. A second rationale given for embracing direct marketing is that it is more cost-effective than traditional mass media. On this basis the cost to the organization of utilizing direct marketing communications is relatively low even when ineffective targeting results in high levels of wastage. This effectively translates within the industry into a lack of concern for low response rates. This study suggests that traditional measures of cost should be broadened to incorporate the costs of unfavourable attitudes brought about by intrusion, perceived loss of control, irrelevance and the disreputable behaviour of individual organizations. Concerns over information privacy, physical privacy, accuracy and the environment were reected in each of the groups. Since ‘group discussions are particularly valid for demonstrating values and cognition’s that are common to a group of consumers, i.e. uniform in that particular social group’ (Mendes de Almeida, 1980, p.115) we can conclude that these


170


concerns are shared by consumers, irrespective of age, gender or social class. However, it is important to note that our discussion is not intended to reect how strongly these feelings are held. This will be measured in a later quantitative study. The actions of any individual company clearly have an impact on how consumers evaluate a particular interaction in terms of privacy invasions. This has important implications for the industry’s policing of direct and database marketing activities, and highlights the need for effective self-regulation. The ideological environment has a direct inuence on the cognitive evaluations which consumers make with regard to direct and database marketing practices. In order to create an ideological environment where consumers are more favourably disposed to direct and database marketing practices a number of issues need to be tackled immediately. Because consumer attitudes are a product of their knowledge (or lack of it) of database practices and consequences (Gandy, 1993), and because UK consumers remain confused and misinformed about these practices and consequences, consumer education must be tackled with conviction. Fostering positive associations with direct and database marketing may, however, be problematic. Our research has indicated that, even at this relatively early stage in the development of the industry in the UK, consumer attitudes are resistant to change. The underlying causes of concern may not be tackled by education alone. Perceived loss of control is such a strong antecedent variable that efforts must be made to allow the consumer to regain some of the initiative. The correspondence analysis clearly underlines the much more positive associations consumers have with regard to direct response techniques. Thus, a move towards direct response mechanisms, and dialogue with existing customers, rather than traditional direct approaches should be the way forward for direct marketers. One of the difculties for organizations lies in how they might best convey trustworthiness to consumers. R eputation is built up over time and thus current practices do have implications for future practices. At the very least openness is required. Companies should make it explicit to consumers exactly what it is they do and don’t do with customer information. Additionally, consumers should be made aware which information is necessary for specic transactions and which is being used for alternative purposes. Inherent in any drive toward trustworthiness would also be the maintenance of accurate customer records and the abandonment of short-termism epitomised by the sale and sharing of customer data. CONCLUSIONS At the outset of this paper it was proposed that marketers who utilize direct and database marketing should consider the social issues which such approaches entail, at least from a moral=ethical perspective. However, practising marketers (and some academics) often contend that conducting business in the real world does not allow for such luxuries. This paper attempts to provide a compelling argument in favour of attending to moral=ethical issues because it does make good business sense in todays marketing environment. Furthermore, the target audience for this message includes not only those organizations who’s primary communication methods are directly targeted, but also the increasing number of organizations who incorporate some element of direct marketing into their integrated communications programmes. Given the rate at which direct communications have been growing over the last 10 years, this represents a sizeable proportion of UK organizations. This paper has attempted to integrate the expansive literature on privacy issues in order to promote greater understanding within a framework which has managerial relevance. In



171

attempting to do so it has incorporated the concerns of real consumers. These are the very consumers who are the targets of direct communications, the very consumers with whom many organizations claim to have a dialogue and the very consumers with whom such organizations wish to build long-term relationships and engender loyalty. This study proposes that many of the techniques currently utilized by the industry are contributing to a consumer ideology which is resistant to the physical intrusion of direct marketing. Furthermore, it is posited that consumers are also concerned about the means by which information about them is obtained, manipulated and utilized. Thus it seems, despite industry claims to the contrary, information privacy, physical=interaction privacy and accuracy are clearly very real concerns among UK consumers. The paper presents an integrative framework which suggests that privacy concerns are directly inuenced by three levels of antecedent variables. Of particular interest for organizations utilizing direct marketing is the interaction-specic environment, which proposes that negative perceptions associated with direct marketing may be transferred toward the organization initiating interaction. Such organizations would do well to limit unsolicited approaches, and in particular, the use of outbound telemarketing. Correspondence analysis vividly indicates that direct response mechanisms are viewed far more favourably than unsolicited communications. As the millennium approaches, marketing communicators need to devote greater attention to direct response. It allows consumers who are interested to initiate meaningful dialogue with organizations and to retain some modicum of control over the interaction, and is thus unlikely to be the focus of consumer concern. Equally, it is less intrusive for consumers who are not interested, and is therefore unlikely to engender negative perceptions. Additionally, direct response advertising facilitates the development of consensual databases, which should of greater use in building relationships. Because traditional advertising is facing a critical period in its history, organizations are facing a dilemma: ‘how do they build and sustain brand values in this very fragmented environment?’ (Lannon, 1995, p.161). The answer lies in the utilization of direct response advertising, because advertising remains the ideal way in which an organization can generate broad popularity through appealing, entertaining imagery with public access and because the direct element facilitates the building of more individualized relationships with consumers. While the cultural environment is unlikely to change in the short term, the proposed model suggests that the actions of individual companies and the industry as a whole can and do inuence consumer attitudes. As such, co-ordinated and deliberate activities by the industry in terms of enlightened self-interest, self-regulation and consumer education are substantial issues which should be tackled immediately. Increasingly, consumers see their control (the essence of consumer sovereignty) being eroded by the actions of organizations. As such, the utility of direct and database marketing within an integrated communications framework is brought into question. Marketing communicators need to take these issues on board. They need to evaluate the use of direct approaches not only from a cost per thousand basis, but, more fundamentally, in terms of the cost of negative consumer perceptions.

ACKNOWLEGEMENTS The authors would like to thank Alex Moskvin and Sheena Mitchell for their input during earlier stages of this research.

172



REFERENCES Altman, I. (1976) Privacy: a conceptual analysis. Environment and Behaviour, 18(March), 7– 29. Anderson, J.C. and Narus, J.A. (1990) A model of distributor rm and manufacturer rm working partnerships. Journal of Marketing, 54(January), 42– 58. Basch, C.E. (1987) Focus group interview: an underutilized research technique for improving theory and practice in health education. Health Education Quarterly 14(4), 411– 48. Bellinger, D.N., Bernhardt, K.L. and Goldstucker J.L. (1976) Qualitative Marketing Research. Chicago: American Marketing Association. Blattberg, R.C. and Deighton, J. (1991) Interactive marketing: exploiting the age of addressability. Sloan Management Review Fall, 5– 14. Bloom, P.N., Adler, R. and Milne, G.R. (1994a) Identifying the legal and ethical risks and costs of using new information technologies to support marketing programs. In Blattberg, R.C. Glazer, R. and Little, J.D.C. (eds) The Marketing Information Revolution, Boston, MA: Harvard Business School Press, pp. 289–305. Bloom, P.N., Milne, G.R. and Adler, R. (1994b) Avoiding misuse of new information technologies: legal and societal considerations. Journal of Marketing, 58(January), 98– 110. Bok, S. (1982) Secrets: On the Ethics of Concealment and Revelation. New York: Pantheon. Brezen, T.A., Block, M.P. and Schultz, D.E. (1987) Consumers perceptions of direct marketing techniques. Journal of Direct Marketing, 1(1), 38– 49. Calder, J. (1977) Focus groups and the nature of qualitative marketing. Journal of Marketing Research XIV, 353– 64. Camenisch, P.F. (1991) Marketing ethics: some dimensions of the challenge. Journal of Business Ethics 10, 239– 48. Carroll, J.D., Green, P.E. and Schaffer, C.M. (1986) Interpoint distance comparisons in correspondence analysis. Journal of Marketing Research XXIII(August), 271– 280. Carroll, J.D., Green, P.E. and Schaffer, C.M. (1987) Comparing interpoint distances in correspondence analysis. Journal of Marketing Research, XXIV(November), 445–450. Cespedes, F.V. and Smith, H.J. (1993) Database marketing: new rules for policy and practice. Sloan Management Review Sum m er, 7– 22. Culnan, M. (1995) Consumer awareness of name removal procedures: implications for direct marketing. Journal of Direct Marketing 9(2), 10– 19. Davenport, E. and Cronin, B. (1991) From tuple to text: some thoughts on personal data in the UK. In Meadows, J. (ed.) Information Technology and the Individual. London: Pinter Publishers. Deighton, J., Peppers, D. and Rogers, M. (1994) Consumer transaction databases: present status and prospects. In Blattberg, R.C., Glazer, R. and Little, J.D.C. (eds) The Marketing Information Revolution. Boston, MA: Harvard Business School Press, pp. 58–79. di Talamo, N. (1991) Private secrets. Direct Marketing, April, 42–4. Equifax (1991) Harris-Equifax Consumer Privacy Survey. Atlanta: Equifax Inc. Evans, M.J., O’Malley, L. and Patterson, M. (1996) Direct marketing communications in the UK: a study of growth past, present and future. Journal of Marketing Communications, 2(1), 51–65. Fletcher, K. and Peters, L. (1996) Issues in customer information management. Journal of the Market Research Society, 38(2), 145– 60. Foddy, W.H. and W.R. Finnighan (1980) The concept of privacy from a symbolic interactionist perspective. Journal of the Theory of Social Behaviour 10, 1– 17. Foxman, E.R. and Kilcoyne, P. (1993) Information technology, marketing practice, and consumer privacy: ethical issues. Journal of Public Policy and Marketing 12(1), 106– 19. Gandy, O.H. (1993) The Panoptic Sort: A Political Economy of Personal Information. Boulder, CO: Westview Press. Gardiner Jones, M. (1991) Privacy: A Signicant Marketing Issue for the 1990s, Journal of Public Policy and Marketing 10(1), 133– 48.



173

Goodwin, C. (1991) Privacy: recognition of a consumer right. Journal of Public Policy and Marketing 10(1), 149–66. Gordon, W. and Langmaid, R. (1988) Qualitative Market Research. Aldershot: Gower. Greenacre, M.J. (1983) Correspondence Analysis. London: Academic Press. Greenacre, M.J. (1984) Theory and Applications of Correspondence Analysis. London: Academic Press. Hoffman, D.L. and Franke, G.R. (1986) Correspondence analysis: graphical representation of categorical data in marketing research. Journal of Marketing Research XXIII(August), 213– 27. Hoffman, D.L., de Leeuw, J. and Arjunji, R.V. (1994) Multiple correspondence analysis, in Bagozzi, R.P. (ed.) Advanced Methods of Marketing Research. Oxford: Basil Blackwell, pp. 260– 94. Johnson, J.E. (1989) Is direct marketing an invasion of privacy? Sales and Marketing Management in Canada, 30(March), 18– 22. Kelvin, P. (1973) A social-psychological examination of privacy. British Journal of Social and Clinical Psychology 12(September), 248– 61. Kitchen, P. (1986) Zipping, zapping and nipping. International Journal of Advertising 5, 343– 52. Kruegar, R.A. (1994) Focus Groups: A Practical Guide for Applied Research, 2nd edn. Thousand Oaks, CA: Sage Publications. Lannon, J. (1995) Mosaics of meaning: anthropology and marketing. Journal of Brand Management 2(3), 155– 168. Lenk, K. (1982) Information technology and society. In Friedrichs, G. and Schaff, A. (eds) Microelectronics and Society: For Better or Worse. Oxford: Pergamon Press, pp. 273– 310. Marshall, N.J. (1974) Dimensions of privacy preference. Multivariate Behavioural Research 9(July), 255– 71. Maynard, M.L. and Taylor, C.R. (1996) A comparative analysis of Japanese and U.S. attitudes toward direct marketing. Journal of direct Marketing 10(1), 34–44. Mendes de Almeida, P. (1980) A review of group discussion methodology. European Research 8(3), 114– 20. Milne, G.R., Beckman, J. and Taubman, M.L. (1996) Consumer attitudes toward privacy and direct marketing in Argentina. Journal of Direct Marketing, 10(1), 22– 33. Milne, G.R. and Gordon, M.E. (1994) A segmentation study of consumers’ attitudes toward direct mail. Journal of Direct Marketing, 8(2), 45–52. Nowak, G.J. and Phelps, J. (1995) Direct marketing and the use of individual-level consumer information: determining how and when ‘privacy’ matters. Journal of Direct Marketing 9(3), 46– 60. O’Malley, L., Patterson, M. and Evans, M.J. (1997) Intimacy or intrusion? The privacy dilemma for relationship marketing in consumer markets. Journal of Marketing Management (forthcoming). Patterson, M., O’Malley, L. and Evans, M.J. (1996) The growth of direct marketing and consumer attitudinal response to the privacy issue. Journal of Targeting Measurement and Analysis for Marketing, 4(3), 201– 13. Petrison, L.A. and Wang, P. (1995) Exploring the dimensions of consumer privacy: an analysis of coverage in British and American media. Journal of Direct Marketing 9(4), 19–37. Phelps, J.E., Gozenbach, W.J. and Johnson, E.A. (1994) Press coverage and public perception of direct marketing and consumer privacy. Journal of Direct Marketing 8(2), 9– 22. Roseneld, J.R. (1994) Direct marketing worldwide. Journal of Direct Marketing 8(1), 79– 82. Sherman, R.L. (1991) Rethinking privacy issues. Direct Marketing, April, 40–4. Simitis, (1987) Reviewing privacy in an information society. 135 University of Pennsylvania Law Review, 595. Smith, R. (1994) Setting and maintaining data quality: an overview. Journal of Database Marketing 1(3), 247– 53. Stewart, D.W. and Shamdasani, P.N. (1990) Focus Groups Theory and Practice, Applied Social Research Methods Series, 20, Newbury Park, CA: Sage Publications. Turn, R. (1985) Privacy protection. Annual Review of Information Science and Technology, 20, 27– 50. Waldrop, J. (1994) The business of privacy. American Demographics, October, 46– 54. Wang, P. and Petrison, L.A. (1993) Direct marketing activities and personal privacy. Journal of Direct Marketing 7(1), 7– 19.

174



Westin, A. (1967) Privacy and Freedom. New York: Atheneum. Whalen, J., Pitts, R.E. and Wong, J.K. (1991) Exploring the structure of ethical attributions as a component of the consumer decision model: the vicarious versus personal perspective. Journal of Business Ethics 10, 285– 93.