. How do firms balance the need for marketing research with consumers right to privacy?
According to the article the primary method firms use to balance marketing and the consumers right to privacy are through opt-in options. Here consumers have a choice to select a do not track option which allows them to better protect their own privacy. However, this function must be selected and is often unknown to consumers. In addition, stores provide consumers certain options to cancel or disengage with certain elements of their loyalty programs. A consumer who is apart of a loyalty program may opt to not receive marketing materials while still being a part of the program overall, for example.
2. Should firms disclose clearly to consumers how much tracking they are doing?
Yes, firms should clearly disclose consumer tracking as it infringes on much of their privacy. According to the article, businesses can much more accurately pinpoint where an individual is located within the store. They can also track shopping behaviors and in certain cases transaction history. Certain companies have even created their own Wi-Fi networks specifically for the purpose of tracking and engaging with consumers for marketing purposes. Much of this occurs without the consumers knowledge and should therefore be disclosed (Choi, 2013).
3. How aware prior to this assignment were you of the amount of tracking you are subject to?
Prior to this assignment, I was not fully aware of the tracking that occurs within the retail sector of the market. In particularly, I had no prior knowledge of MAC addresses and how even Bluetooth devices are subject to tracking. This is particularly troubling considering the proliferation of wireless headphones and other accessories that rely on Bluetooth to function properly.
4. Finally, what if anything, do you feel should be done about these practices?
These practices should be heavily regulated to ensure that consumers are protected. Consumers should be clearly made aware that their behaviors are being tracked through various wireless programs. In addition, consumers should be given very easy methods in which to opt-out of certain element of the program related to tracking.
References
1. Choi C. How loyalty programs can influence the way you shop. Associated Press. May 19, 2013. http://www.lowellsun.com/business/ci_23277858/how-loyalty-programs-can-influence-way-you-shop
