Dealing with Customer Private Information - Case Study Example

Marketing Introduction Marketing executives rely on information in devising entry behavior of their products in any given market. In some instance, the principal company seeking the information may fail to conduct a marketing research or use other shortcut in acquiring such information. The privacy of the customer information is vital because it defines the relationship between the customer and he respective organization. In some situations, firms grapple with the question whether to disclose client’s information or to keep them private. Cervo & Allen (2011 p.67) revealing the client information may not only raise ethical concerns, but also alienates the customers from the business. In attempt to unravel this dilemma, business critics have suggested a number of possible effects that would occur if a firm opts to disclose such information. The case study illustrates the above problem and provides a suggestion on how to handle the problem. Marketing issues at stake The primary marketing issue at stake is the leaking of customer secret information. IFA marketing executives have sought confidential information of customers of ShopSense. The marketing executives of IFA believe that confidential information about consumers of foodstuffs would be useful in developing products for their customers. However, extracting such information from another company such as ShopSense is not easy. A major concern raised against the idea is the detrimental effects that leaking such information may have on the reputation of the company. Establishing confidence of the consumers as well as maintaining a consistent customer takes long. The two firms seem to acknowledge this fact. The relationship between the business and the firm hangs on respects to the mutual agreement consented to by both parties (Russo, 2010 p.167). The deal seems lucrative, but poses serious challenges to ShopSense. Arguably, clients of this firm have demonstrated their trust to the firm. In addition, they have maintained trust to the firm by consistently buying their products from the firm. This means that disclosing the information is an attempt to break the bond between the firm and the clients. The nagging question is who should allow the dissemination of the client’s private information. Compare and contrast the advice provided by different critics. A common observation made by the marketing critics is the sensitivity of the information kept by ShopSense. ShopSense values the customers’ information more than IFA. In this sense, it means that disclosing information about the client would affect their business adversely. Clients of ShopSense seem to confide in the company. However, disclosing such information for financial benefit seems to have a short-term benefit to ShopSense. In business, the benefits derived from any decision dictates the present and the future of the business. The critics have demonstrated their stands concerning the idea. George L Jones for instance argues that the engagement between IFA and ShopSense is valid provided that the clients of ShopSense do not feel the reverberations of the leaked information. Katherine Lemmon argues that the issue in this case is disclosing unintended information to another party. She believes that the consumers are likely to lose the trust they have to the company an aspect that might Influence the overall performance of the ShopSence. In essence, she believes that the decision about disclosing or not disclosing the non intended information would be valid if it would not spark any concerns that would have a negative impacts to the company. Norton and McCallister share the similar information that the scorecard of the ShopSense is the confidence that they have built from their customers. This means that the activity is not only risky, but also attracts ethical concerns. All the critics seem to suggest that the opportunity may not be fruitful at the long run. In all the cases cited, the integrity of the company disclosing this information would be questionable. All the critics have demonstrated that the financial benefit intended from the whole business should not override the loyalty of the customers as demonstrated by the information that they have provided (Entrepreneur Press & Meyerson, 2010.p.126). In this case, it is the responsibility of the company to protect the information of the clients if they intend to win their trust in the future. All the critics tend to focus their arguments on the probable consequences especially the negative influences that would result from the deal. McCallister believes that CEO of the ShopSense should refute any attempts to leak the information of the clients. In this argument, he looks at the ethical aspect of the issue as opposed to the financial gains that the company would derive from the activity. Thus, ethical concerns seem to hold more water than the material gain that the company would derive from the deal (Brogan & Smith, J. 2012.p.121) Norton seems to hold a similar opinion to the opinion of George. The two critics have suggested that the company can evaluate the benefits and the risks of disclosing the information before attempting to disclose it. This view seems to settle at the most lucrative deal as opposed to the ethical or risks that the company may run into. George seems any decision that would encroach into the client’s private information should not attract any legal contest. In the above case, the information at the disposal of the ShopSence includes health risk information that may define the premiums for medicare. At some extent, insurance clients would wish to know where or how the company managed to receive crucial information about them. In such cases, the court may compel the insurance firm to attest to information about the client (Roy, 2012.p.12) The result of such battle would be a backlash that would devour the reputation of both companies, more so, the reputation of the ShopSense. Finally, Norton believes that the company rules should count whenever such decisions crops. Largely, if the company rules define customer’s secrets as a priority, then it has to stick to such choices. On the other hand, Jones has indicated that the data provided might to be accurate or valid because some clients of the firm do the purchases on behalf of others. If this were the case, the information that IFA intends to extract from the ShopSense would be invalid. Largely, the validity of the choice would depend on the principals of the firm against the contemporary choice that it has to make (Falls & Deckers, 2011.p.13). The decision made by the firm should not attract any backlash. I think that some of the opinions provided by the marketing experts are viable. However, settling for any of the above opinions require a consented efforts that deliberate on the issue. First, accepting to provide the information about the client private information would demonstrate that the firm respects neither the customers nor value customers (Davenport & Harris, 2007 p12; Decker and Scholz, 2010.p89). In marketing a product, the contribution or the preference of the customer seems to be vital. However, attempt to compromise the preference of the consumer tend to show that the company has lost the touch with the consumers. Subsequently, the company may not command or influence the consumers to accept their views or products. Many consumers often demonstrate trust they have for any given product or company by being loyal to the company’s products (Turner & Shah, 2010 p.45; Smith & Zook, 2011. p.23; Brown & Eisenhardt, 2010.p.134)). In the same manner, confiding secret information to the company should attract trust. The questions bordering on the integrity of the issue at hand seems to make it bogus. I believe that the integrity of the company would promote its survival. The greatest fear is disclosing the information that the clients would receive later. In essence, the information about the clients should not leak to other partners (Shah, 2011.p.123; Richardson & Gosnay, 2011.p.57). I think that in spite of the financial gains that the business would gain the business stand to lose its goodwill. Notably, building business goodwill often takes long (Zarrella, 2011. p12) However, destroying the goodwill may not take much time. Conversely, the overall intention of the company is to maintain and attract more consumers (Dennis & Pitta, 2012.p.45) Unless the company has lost or ignored this principle, it should endeavor to protect the information provided to it by the consumers. I believe the brands sold into the market by ShopSense depend on the relationship between the firm and the clients. I think protecting the clients promote the business in the future (Evans, 2010). Available marketing literature tends to suggest that success of a firm depend on the market share or the customer retention capability (Powell, et.al. 2010.p.34; Osch, et.al. 2011. p. 89; Lovett, 2011.p.77). The issue at hand would comprise the integrity of the company thereby delinking it with its consumers. Arguably, the result would be a decline in market share. Attempts aimed at promoting the viability of any business include developing strategies that would retain the consumers. On the contrary, the above situation defies the will of the consumers at the expense of financial gains. I believe that the gain that the business would receive would not last. In addition, tampering with the client interest seems to attract battles outside the control of the company (Brogan & Smith, 2012.p.96). According to Autonomy (2012, p24-5) business principles should override selfish gains. I believe that the opportunity at hand is not genuine because it attracts legal battles. Available marketing literature shows that firms should conduct their activities ethically. Any contempt as projected as projected in the choice that the company is ShopSense is yet to make would amount to ugly legal battles. Further, such battles would pounce on the reputation of the company. Honesty, courtesy, and trust among other aspects are core values, which attract and maintain the clients inclined to a given business. I believe that ShopSense will not be demonstrating any of the above values if it gives information about its esteemed clients. Nothing seems to compel ShopSense to disclose the information about the clients. Thus, protecting the integrity of the business include upholding the core principles of integrity. Studies investigating consumer trends seems to suggest that consumers tend to maintain the use of certain products because of the preference and trust that they have built with the business (Carroll, 2010.p.97; Baker. & Nofsinger, 2010.p.68). Consumers would demonstrate satisfaction by repeated use of the product especially in the presence of other competing products. However, taste or preference factor tend to dictate the choice of the product. Theories of product branding suggest that consumers often get attracted to new products (Kabani & Brogan, 2011.p.124; Ihlen, et.al. 2011.p.34). In the above case, the existence or the loyalty of the customers is under some contest. This means that move would influence the loyalty of the customers to the firm. The information needed by IFA would predispose ShopSense to ethical war with its customers. Besides, IFA may argue that it would not leak the information to the clients, but it attracts legal or ethical concerns. I think maintaining the customers would dictate that the firms must demonstrate that they love their clients (Henekop & Wittle, 2011.p.79). This means that any information that would make their clients to flee would not be acceptable. Largely, business is about attracting and influencing the consumers into buying the products (Levy & Dyche, 2011.p.124). Failure to convince the consumers would amount to decline in the market share of the business. Subsequently, this attribute would lower the profit margin of the ShopSense. In conclusion, the issue in the case study is the attempt to leak the confidential information of the client. Critics deliberating on the issue have indicated varied opinion concerning the possible impacts of leaking such information. The critics contributing to the issue have indicated that ethical concerns should override any other financial gains that the firm would gain by disclosing information about the clients. Client information is very vital in defining the future of the business. Information leakage may pose serious dangers to the reputation of the firm. First, integrity of the firm would be at stake the moment that the customers will realize that their confidential information is out in the streets. Second, firms should evaluate the possible risks that they may encounter whenever they make controversial decisions. Arguably, the prosperity of the business would depend on the approach taken by the business in handling information about its customers. Adherence to business etiquette is a vital in protecting the interest of the consumers. In additions, businesses should not only look at the immediate financial gains that they are likely to gain from any venture. Fear of legal battles and losing customers are some of the factors that deter businesses from disclosing information about their clients. Bibliography Autonomy. 2012. How to Leverage Big Data to Monetize Customer Experiences. 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