Does the Change of Consumer Behavior Caused by Social Media Change Business Organizations’...

Does the Change of Consumer Behavior Caused by Social Media Change Business

Organizations’ Personal Information Handling?

Hiroshi Koga Kansai University Faculty of Informatics Data Mining Applied Research Center

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The Third Asian privacy Scholars Network ConferencePanel 9: Privacy Awareness and Readiness in Society

• People who hide the privacy information by Street View of Google

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0. OUTLINE

• INTORDUCTION and OBJECTIVE• Consumer Behavior Process• AMTUL and Personal Information• AISAS and personal Information• CONCLUSION

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1-1. INTRODUCTION

It is alleged that the advent of the search economy and the development of Internet communities and online advertising have transformed consumer behavior.　Dentsu(電通 ), a leading advertising company in Japan, insists that the behavior has shifted from AIDMA (Attention, Interest, Desire, Memory, and Action) to AISAS (Attention, Interest, Search, Action, and Share). Furthermore, due to the proliferation of social media, consumer behavior is allegedly being changed into SISP (Sympathy, Interest, participation, and Share & Spread).

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1-2. INTRODUCTION

This means that business organizations may now urgently be required to review and revise their ways of collecting, processing and using consumers' personal information in accordance with the changing consumer behavior, and the revision would bring about a new phase of the abuse/protection of personal information and privacy.

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2. OBJECTIVE

In this study, I’d like to investigate whether the changing consumer behavior has changed business organizations' ways of handling personal information.

The implications of recent online marketing activities including Frequent Shoppers Program for personal information and privacy protection will be considered as part of this study.

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3. Consumer Behavior Process

• AIDMAAttention → Interest → Desire → Memory → Action

• AMTULAttention → Awareness → Memory → Trial → Usage → Loyalty

• AISASAttention → Interest → Search → Action → Share

• SIPSSympathy → Interest → participation → Share & Spread

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4-1. AMTUL and Personal data

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4-2. AMTUL and CRM/FSP

• Customer bonding/ Intimacy– Maximize Life Time Value– Frequent Shoppers Program– RFM analysis• Recency, Frequency, Manetary

– Market Basket Analysis • Lift value, Confidence value

• Economy is emphasized!

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4-3. Case study: Target 1/3

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4-4. Case study: Target 2/3

• As Target’s computers crawled through the data, he was able to identify about 25 products that, when analyzed together, allowed him to assign each shopper a “pregnancy prediction” score. More important, he could also estimate her due date to within a small window, so Target could send coupons timed to very specific stages of her pregnancy.

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4-5. Case study: Target 3/3

• Earlier a father had stormed into a store near Minneapolis and complained to the manager that his daughter was receiving coupons for cribs and baby clothes in the mail.

• After, he finds himself in the uncomfortable position of having to apologize to a Target employee.

• Emphasis on excessive economy cause privacy issues

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4-6. The Pitfall of FSP

• Emphasis on excessive economy– Purchaser (customer) to sell your personal

information– Retailers seek the economic relationship.

• Commitment and trust is the keyword of the bonds does not come out.

• Currency Crisis in FSP

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4-7. Currency Crisis in FSP

• Accounting Standards In Japan– No provision of the point system– However, the point is debt.– There is a need for provision.

• Act on Settlement of Fund; 資金決算法2009 Japan– Ordinance on Security Deposit for Issuance of

Prepaid Payment Instrument– Currently, the point is excluded.

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5-1. AISAS and Personal Data

• Search and Share– Real Price, Experience, Complaint and so on.– People to provide personal information actively.– People want to show their ideas.

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5-3. Case Study: COOKPAD 1/4

• COOKPAD is Japan’s top recipe site allowing visitors to upload and search through original, user-created recipes. Currently being used by almost 80-90% of all Japanese women in their 20-30s, COOKPAD has become an essential tool in enabling families to enjoy cooking across Japan. As of July 2012, COOKPAD had a total of 20 million users and more than 1.2 million registered recipes.

(From http://info.cookpad.com/en/service)

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5-4. Case Study: COOKPAD 2/4

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5-5. Case Study: COOKPAD 3/4

• COOKPAD adopts cooperation strategy with real store.– With 7 Supermarket chain (462 nationwide stores)

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5-6. Case Study: COOKPAD 4/4

• COOKPAD was realize the matching the COOKPAD ID and membership card (shopping card).

• As a result, such as sales promotion in the shop and service development using the purchase history has become possible.

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5-7. Beyond The Pitfall of FSP

• customers are in favor of the disclosure of personal information, such as ID.– Personal information is not exchanged as currency.– personal Information added new value come back

customer.

• Bonding beyond economy has been built.–　○　 Desire to achieve a better life– 　 ×　 Desire to make shopping cheaper

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6. COCLUSION

• AMTUL is focus on customer loyalty.– But, paradoxically, royalties implies value beyond the

monetary, is told only economic value there.– Personal information is regarded as money– Data analysis can lead to privacy issues.

• In AISAS, something beyond the monetary value is being talked about.– The inside of the community, the content associated with

the personal data has been shared, it appears likely to cause privacy issues so low.

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7. ACKNOWLEGEMENT

• Thank you for your attention!

• A part of this research was supported by the Ministry of Education, Culture, Sports, Science and Technology as a Support Project for Strategic Collaboration between Private Universities (2009-2013).

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