Personal Information of Consumers - Essay Example

However, the emergence of the Internet as a purchasing medium has also meant that consumer privacy may be compromised, since it is possible for online marketers to access information about consumers in a manner that the consumers may be unable to detect, such as through the use of cookies, spyware, and adware to capture a richer base of data than that which is actually divulged by the consumer. (Ashworth and Free, 2006)

In order to complete an online transaction, a consumer must of necessity divulge personal and financial information online, which poses a significant threat to the privacy of the consumer, since unauthorized individuals may hack into such information and misuse it. In recognition of the danger of leaking such sensitive information, the Fair and Accurate Credit Transaction Act was signed into law on December 4, 2003, designed to allow consumers to safeguard their sensitive information and make it federally actionable when such data is used inappropriately. (Moye 2006) .

While consumer concern over the unauthorized use of their financial information is justified,  such activities are carried only by a minority of individuals, therefore if consumers react to this by completely blocking off the provision of any kind of information, this may ultimately compromise their own interests.

When consumers provide information about their preferences and purchasing patterns online, they can enjoy the benefits of online shopping with all its attendant convenience and savings in time and energy. Moreover, marketers use such information for product targeting that is in accordance with the personal preferences and tastes of the consumer, thereby allowing the consumer access to a wide variety of personalized goods and services. Therefore, the time that a consumer may spend on the Internet browsing products will be very fruitful in finding products and services that are in line with his/her needs and requirements. Since marketers are able to accurately assess which kinds of products sell and which ones don’t, this also results in the elimination of the time and effort required in manufacturing items that do not move well, also saving time for the consumer in browsing among too many products.

However without the facility of personal consumer information, especially in regard to age, gender, personal preferences, etc, it becomes difficult for markets to appropriately target their products. Customers are also benefited in several ways in terms of savings of time and in the streamlining of products to their choice. It results in increased convenience for the customer, apart from a wider range in the selection available on suitable products, through the elimination of items that do not move well. Indication of customer preferences may also help manufacturers to more accurately estimate future customer needs as well, which would be of benefit to the customer in the availability of suitable products.