A number of factors influence consumer perspectives on privacy and data; concerns vary for any particular brand or product category. Moreover, the general backdrop of headline news about data breaches and unauthorized data sharing raises the anxiety for some consumers, whether they are affected or not.

Parks Associates research shows:

• An increasing number of consumers have actually become victims of identity theft, leaving them with a heightened concern for the real-world consequences of re-establishing identity and monitoring credit records for unauthorized purchases.
• Consumer willingness to share data for advertising and marketing purposes differs significantly from their willingness to share data for product improvement. Consumers often appreciate the opportunity to share data that improves their product’s performance; however, sharing for more ads is viewed skeptically. When data sharing is framed in terms of an exchange for discounts or perks of value, consumers are more likely to share their data.
• Privacy concerns about certain devices vary by whether a consumer owns or intends to purchase the device, as opposed to someone who has no actual experience with the device. Concerns rise once a consumer owns a device and becomes more familiar with its functions.

As the IoT diffuses, data will increasingly become a currency that consumers either intentionally exchange or risk in return for perceived rewards. The dawning IoT age will likely see much more conscious consumer decision-making about exchanging data for value propositions that make sense to them. Still, the always-on connectivity of the Internet with billions of devices trafficking data throughout the IoT will produce massive data traffic and storage, creating an unparalleled level of risk. 

Parks Associates examines the risks and rewards for consumer big data in the IoT in the industry report Privacy and Big Data: Safeguarding the Consumer. For more information, click here.

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