Customer Trust: Methods of Online Retail Companies - Research Proposal Example

Longenecker et al (2006) offer that a primary issue to Internet users is privacy-related, in terms of the retailers' potential utilization of spyware or ad-tracking programmes designed to transmit marketing research. In this particular instance, the usage of cookies is discussed, which are 'small text files placed on a user's web browser often without the user's knowledge or consent' (Siegel, 2006). Cookies are generated by a retailer's server and are used in order to gather information and track the online habits of customers.

In essence, cookies might be more narrowly defined as an invasive marketing tool which assaults online user privacy by enveloping their personal computer applications. Many consumers and privacy advocates alike are strongly opposed to the routine utilization of cookies, as they fear that far too much personal information is gathered covertly and outside of the authority granted to online retailers. However, contemporary marketers suggest that consumers should embrace the usage of cookies, as these files are beneficial in eliminating the need for password entry or re-entering site registration information (Siegel, 2006).

Some online retailers are very open and straightforward about their policies regarding the utilization of cookies, while others secretly plant cookies within the user's web browser, sometimes causing application issues on the individuals' computer system. Regardless of each individual retailers' policies regarding gathering data through cookies, most consumers are well-versed in the implications regarding cookies and find these policies to be invasive and untrustworthy.