Direct Marketing and Consumer Privacy in the Online Environment: Effects on Australian Children - Case Study Example

Marketing Research Report Direct Marketing and Consumer Privacy in the Online Environment: Effects on Australian Children and Young People 1.0 Chapter One: Introduction 1.1 Background The internet has significantly changed the way in which business is conducted today particularly in relations to direct marketing. Over time, internet-based technologies have provided businesses with numerous tools and platforms where they can effectively target customers directly and promote their various products and services (Yannopoulos 1-2). Despite of the various benefits associated with the use of internet in direct marketing, concerns have been raised regarding the ethical and privacy issues that emerge as a result of using the internet in direct marketing (Caudill & Murphy 7-8). Some marketers consider the internet to be the “Wild West” mainly due to the fact that it is a marketing platform that is difficult to regulate and vulnerable to unethical practices than any other media platform (Sheehan 156). According to a report by the Australian Law Reform Commission direct marketing approaches over the internet significantly violate right to privacy especially for children and young people. Some marketing approaches often tend to collect confidential personal information through survey forms, contest and registration pages among many other means. Despite of these violations to individual right to privacy, many argue that the Privacy Act of Australia provides insufficient privacy protection for children and young people in the online environment (ALRC 2014). Reports submitted by the Obesity Prevention Policy Coalition (OPPC) and Young Media Australia (YMA) showed that direct marketing through the internet violates the privacy of Australian children and young people privacy through intrusion of personal information and space, direct interaction, and unsupervised access to children under 14 years. Additionally, these reports showed that direct marketing through the internet unfairly manipulates children who do not fully understand the implications of disclosing personal information online (ALRC 2014). Similarly Curtin (45-47) observes that some marketing sites often use sophisticated software to harvests and store the browsing history of their users. Afterwards, they use such information to target users by sending unsolicited advertisements about products and services through users’ emails so as to convince them to make purchases (Curtin 45-47). Moreover, many online marketers have been found to employ unfair and deceptive forms of marketing to vulnerable young computer users. Sheehan (162-163) observes that some studies have found that one of the major ways through which online marketers manipulate and exhibit unethical marketing practices is by constantly targeting young children with advertisements about junk foods with high fat or sugar contents. As a result, many children are compelled to purchase unhealthy food products. This in turn has a negative impact on their health. Sheehan (162-163) further observes that studies show that, children’s high exposure to junk food advertisements has increased by 85%. Furthermore, many online marketers target unsuspecting children and young people in ads and promotions through online games, contest, and social networking opportunities so as to obtain their names, ages, e-mail addresses, postal addresses, phone numbers, family member demographics, and other personal information (Kitchen 78). In reference to the privacy violations that children and young people experience while using the internet, Woodard (55-56) notes that just like adults, children and young people have the right to privacy. Thus they should be protected against unethical and manipulative direct internet marketing. However, Kitchen (80-81) argues that efforts to safeguard children and young people against unethical and manipulative practices in direct internet marketing have not been fruitful. Efforts to protect children and young people against unethical direct marketing practices have been thwarted by a number of factors. Firstly, there is a lack of clear understanding on the effects that unethical practices in direct internet marketing has on children and young people. Secondly, there are no uniform or clear regulations that guide, govern and regulate direct internet marketing practices particularly when it comes to the privacy of children and young people. Moreover, there is a lack of clarity on the different online direct marketing ethical principles and approaches towards children and young people in general. Lastly, there is significant gap in knowledge on the measures that parents, guardians and the government can take or implement in order to safeguard children and young people against unethical and manipulative practices in direct internet marketing (Jones & Moore 41-43; Kitchen 77-80). 1.2 Problem Definition Direct online marketing practices imposes significant risks to children’s and young people’s privacy, safety and overall wellbeing. Nevertheless, there is a lack of clarity regarding the specific regulations, ethical practices and measures that can be used to govern direct online marketing practices and safeguard the privacy of children and young people. Therefore, it is critical for this study to investigate the effects of direct online marketing on children and establish specific regulations, ethical practices and measures that can be used to govern direct online marketing practices and safeguard the privacy of children and young people. 1.3 Research Objectives and Questions The main objective of this study is to investigate the effects of direct online marketing on children particularly in relations to their privacy. This study also seeks to establish specific regulations, ethical practices and measures that are used to govern direct online marketing practices and safeguard the privacy of children and young people. Some of the key research questions that this research study will seek to answer include; How do direct online marketing practices infringe on the privacy of children and young people? What are the effects of online direct marketing practices on children and young people? Is the Australian Privacy Protection Act enough to protect children and young people against the exploitation and unethical practices of some online direct marketers? What are the different online direct marketing ethical principles and approaches towards children? What measures do parents take in order to safeguard the privacy of their children? What measures has the Australian government implemented over the years in order to enhance ethical direct online marketing practices and safeguard the privacy of children and young people? 2.0 Chapter Two: Methodology 2.1 Research Design In order to effectively address the objectives of this study and answer the identified research questions, a qualitative research design was used. According to Mack, Woodsong & Family Health International (1-3), a qualitative research design is a type of scientific research approach that uses a set of pre-defined procedures for collecting and analysing data in order to investigate specific research issues and produce findings that address the identified research questions. On the other hand, Merriam (13-14) observes that, a qualitative research design is a technique that uses different interpretative techniques to describe, decode, interpret and analyse so as to establish meaning about a particular research issue. Similarly, Klenke (7-8) argues that a qualitative research design is a scientific inquiry process that is often used to explore human or social issues by interpreting and analysing the views of research participants. In this study, a qualitative research design was used mainly because it was suitable for addressing the outlines research questions. This approach was suitable for exploring intangible aspect of research such as individual behaviour and experiences (Mack et al 1-3). Moreover, unlike the quantitative research design which solely focuses on providing general information, measurements and quantifying relationships between different variables, a qualitative research design is more flexible and provides more in-depth and specific information (Mack et al 2-7; Murray 1-2). 2.2 Research Participants This study involved a total of 15 research participants who were recruited through convenient sampling. Brown (71-72) notes that, sampling involves selecting a small sample of research participants to represent the overall population that the research is based in. Sampling is essential in all research studies that incorporate a large population. In this study, convenient sampling was used due to its suitability. Convenient sampling involves selecting a small sample of research participants due to their proximity or accessibility (Statpac 1). Through convenient sampling a total of 15 participants were selected. Among these participants, 3 were legal professionals (lawyers) specializing in internet law, 5 participants were young people between the ages of 15 to 17 years and 7 of the participants were parents (29 to 46 years) with children the between the ages of 8 years to 17years. When selecting research participants several factors were taken in account. Firstly, among the 3 legal professionals selected to participate in the study, factors such as their specialization and experience in internet law were taken into account. Secondly, among the 5 young participants selected their age, level of education and frequency of exposure to online marketing were taken into account. On the other hand, the 7 parents involved in this study were selected based on their age, educational background and knowledge about their children’s frequency of exposure to online marketing. 2.3 Data Collection In this study, interviews were used as the primary method of data collection. An interview can be described as a qualitative method of data collection where a researcher (interviewer) collects data by engaging in a purposeful conversation with a research respondent (interviewee) so as to obtain information that will help to answer the identified research questions. Interviews help to establish in-depth understanding about specific research issues (Debasish 146-147). In this study, brief semi-structured interviews were conducted face to face with the research participants. In this case, a set of questions were pre-determined before the interview, nevertheless additional questions were asked so as to obtain more clear information. Each interview session took a total of 15 minutes. Interview guides were used to facilitate the interview sessions (See appendix). Interviews conducted with the 3 legal professionals sought to establish three key factors. Firstly, how direct online marketing practices infringe on the privacy of children and young people. Secondly, whether Australian Privacy Protection Act is enough to protect children and young people against the exploitation and unethical practices of some online direct marketers and lastly, the measures that the Australian government has implemented over the years in order to enhance ethical practices and safeguard the privacy of children and young people. Interviews conducted with the 5 children between the ages of 15 to 17 years sought to establish how direct online marketing practices infringes on the privacy of children and young people. These interviews also aimed at establishing the effects that online direct marketing practices have on children and young people. Lastly, interviews conducted with 7 parents (29 to 46 years) with children the between the ages of 8 years to 17years aimed at establishing how direct online marketing practices infringe on the privacy of children and young people, the effects that online direct marketing practices have on children and young people and the measures that parents take in order to safeguard the privacy of their children. The use of interviews in this study was very beneficial mainly because it helped to obtain in-depth data about the effects of direct online marketing on children particularly in relations to privacy. It also helped to obtain in-depth data about the specific regulations, ethical practices and measures that are used to govern direct online marketing practices and safeguard the privacy of children and young people. Generally, the use of interviews as a method of data collection provides the researcher with the platform or opportunity to seek more information or clarification particularly in a case where research participants provide vague responses (Wood & Ross-Kerr 182-183). 2.4 Data Analysis Following the data collection process, the data gathered was subjected through a process of data analysis. Data analysis can be described as a process through which data collected is compiled, organised and evaluated critically so as to obtain useful information or meaning that can help to address the identified research questions (OIRA 1). In this study, the data collected was analysed based on a qualitative data analysis framework developed by Miles and Huberman (1994). This framework is suitable for identifying, comparing and analysing data patterns and themes. It involves a series of three key procedures namely; data reduction, data display, conclusion drawing and verification (Miles and Huberman 11-16). Figure 1: Miles and Huberman (1994, p. 12) Framework of Data Analysis Based on Miles and Huberman (1994) framework, the first step of data analysis involves data reduction. This process involves identifying key data areas or categories that directly relate to the objectives or research questions of the study. The data reduction process often helps the researcher to identify important categories of data that are relevant to the study and that can be used to address the identified research objectives or question (Miles and Huberman 11-16).For example in this study, categories of data that show the effects of direct online marketing on children and the specific regulations, ethical practices and measures that are used to govern direct online marketing practices and safeguard the privacy of children and young people were identified. The second step of data analysis involves data display. This process involves compiling, organising and diagrammatically displaying the reduced data categories (Miles and Huberman 11-16). In this study, tables were used to present the reduced data categories. The third step of the data analysis process involves drawing conclusion. According to Miles and Huberman, this process involves critically evaluating the data themes or patterns in the diagrammatical display and using them to address the identified research questions. The last step involves verifying data. This process involves critically reviewing data so as to ensure that the conclusion made in the previous step are in accurate , valid and in-line with the data collected. It also involves comparing the conclusion drawn with relevant literature (Miles & Huberman 11-16). 3.0 Chapter Three: Results and Discussion 3.1 Results As observed in the previous section, the data collection process involved conducting three categories of interviews. The first category of interviews involved interview sessions with 3 legal professionals. The second category of interviews involved interview sessions with 5 young people between the 15 to 17 years. The third category of interviews involved sessions with 7 parents with children the between the ages of 8 years to 17years. From these categories, data was collected about different research issues. Figure 2 presents an overview of the data collected in the various interview categories conducted. Interview Categories Data Themes/ Categories 3 Legal Professionals in Internet Law How direct online marketing practices infringe on the privacy of children and young people. Sufficiency of the Australian Privacy Protection Act in protecting children and young people against the exploitation and unethical practices of some online direct marketers. Measures implemented by the Australian government in order to enhance ethical practices and safeguard the privacy of children and young people online. 5 young people between the 15 to 17 years How direct online marketing practices infringe on the privacy of children and young people. Effects of online direct marketing practices on children and young people. 7 parents with children the between the ages of 8 years to 17years. - How direct online marketing practices infringe on the privacy of children and young people. -Effects of online direct marketing practices on children and young people. - Measures that parents take in order to safeguard the privacy of their children. Figure 2: Data collected in three interview categories References Australian Law Reform Commission (ALRC) 2014, Particular Privacy Issues Affecting Children and Young People, viewed October 2 2014< Brown, J 2001, Using Surveys in Language Programs, Cambridge University Press, Cambridge. Caudill, E.M. & Murphy, P.E., 2000, “Consumer Online Privacy: Legal and Ethical Issues, “ Journal of Public Policy & Marketing vol. 19, no. 1, pp. 7-19. Curtin, M., 2002, Developing Trust: Online Privacy and Security, Apress, London. Debasish, S. & Das, B 2009, Business Communication, PHI Learning, New Delhi. Kitchen, P. J., 2013, The Dominant Influence of Marketing in the 21st Century: The MarketingLeviathan, Palgrave Macmillan, UK. Klenke, K 2008, Qualitative Research in the study of leadership, Emerald Publishing, Bradford. Jones, R. & Moore, R., 2013, Information Technology and Traditional Legal concepts, Routledge, London. 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