1. 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 2013/07/09The 3rd Asian Privacy Scholars Network1 The Third Asian privacy Scholars Network Conference Panel 9: Privacy Awareness and Readiness in Society

2. People who hide the privacy information by Street View of Google 2013/07/09The 3rd Asian Privacy Scholars Network2

3. 0. OUTLINE INTORDUCTION and OBJECTIVE Consumer Behavior Process AMTUL and Personal Information AISAS and personal Information CONCLUSION 2013/07/09The 3rd Asian Privacy Scholars Network3

4. 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). 2013/07/09The 3rd Asian Privacy Scholars Network4

5. 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. 2013/07/09The 3rd Asian Privacy Scholars Network5

6. 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. 2013/07/09The 3rd Asian Privacy Scholars Network6

7. 3. Consumer Behavior Process AIDMA Attention → Interest → Desire → Memory → Action AMTUL Attention → A wareness → Memory → Trial → Usage → L oyalty AISAS Attention → Interest → Search → Action → Share SIPS Sympathy → Interest → participation → Share & Spread 2013/07/09The 3rd Asian Privacy Scholars Network7

8. 4-1. AMTUL and Personal data 2013/07/09The 3rd Asian Privacy Scholars Network8

9. 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! 2013/07/09The 3rd Asian Privacy Scholars Network9

10. 4-3. Case study: Target 1/3 2013/07/09The 3rd Asian Privacy Scholars Network10

11. 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. 2013/07/09The 3rd Asian Privacy Scholars Network11

12. 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 2013/07/09The 3rd Asian Privacy Scholars Network12

13. 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 2013/07/09The 3rd Asian Privacy Scholars Network13

14. 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. 2013/07/09The 3rd Asian Privacy Scholars Network14

15. 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. 2013/07/09The 3rd Asian Privacy Scholars Network15

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17. 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) 2013/07/09The 3rd Asian Privacy Scholars Network17

18. 5-4. Case Study: COOKPAD 2/4 2013/07/09The 3rd Asian Privacy Scholars Network18

19. 5-5. Case Study: COOKPAD 3/4 COOKPAD adopts cooperation strategy with real store. – With 7 Supermarket chain (462 nationwide stores) 2013/07/09The 3rd Asian Privacy Scholars Network19

20. 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. 2013/07/09The 3rd Asian Privacy Scholars Network20

21. 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 2013/07/09The 3rd Asian Privacy Scholars Network21

22. 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. 2013/07/09The 3rd Asian Privacy Scholars Network22

23. 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). The 3rd Asian Privacy Scholars Network2013/07/0923