The importance of trust: Online privacy issues and the consumer’s relationship with free products and services

With the ability to connect with friends and strangers via the internet (through free social networks, forums and blogs, and free mobile applications), the dissemination of personal information online is on the increase. But this online freedom can result in ‘real life’ problems – the spread of personal information beyond the owner’s wishes, or even greater vulnerability to criminal activity. With online privacy hitting the headlines recently[1]and the Mobile Entertainment Forum launching their Privacy in Mobile Applications Initiative[2], issues of privacy and trust have come to the forefront of consumer consciousness.

Website owners and application developers who offer free products and services, such as Google, Facebook, and Twitter, are currently struggling to strike a balance between maximising the utility of the personal data they receive whilst meeting the needs of their consumers for a trusted, non-invasive service. There are two ways businesses can proceed: minimising consumer concerns about trust, or maximising the advantage of using the service, website or application. These approaches can be used simultaneously and are theoretically most effective when combined.

The recent actions of the world’s biggest social network reveal its beliefs and ideals for digital society; openness and one identity. However, theories suggest that self identity is process of story-telling under constant revision. With our research showing that social networkers are actively sharing different amounts of personal information across different networks, the future of digital society lies in giving users more control over their personal and private identities online.

In April 2010, the actions of the world’s most used social networking site struck several chords of concern in our digital society. In changing default privacy settings for users, Facebook placed privacy as central to the internet paradigm. Discussion, debate and protest from social networkers, internet users, reporters, commentators and the 1,400 people based at the corporation’s HQ in California were focussed on notions of privacy.

A recent UK study finds consumers have less faith in Facebook than either Microsoft or Google to keep their personal information private

Social networking sites typically involve disclosing often very personal information to your circle of friends and to this end, it is important to have faith that the social networking brand will respect the privacy of this information.  Recent research by GfK Technology indicates, however, that Facebook has lower levels of trust in keeping personal information private than either Microsoft or Google.  Given the remarkably high levels of usage of Facebook this is clearly a concern for the brand owners.

This illustrates the dilemma facing organisations such as Facebook – whilst consumer behaviour or personal information can be key to creating new services that are enjoyed by users, there is often a sense of unease about data being used in this way.  Furthermore, as is likely the case with Facebook, the illicit activity of unscrupulous users of the service (such as those posing as friends in order to conduct fraud of some description) has a knock-on effect for the brand.