1. 2015 National BDPA Technology Conference Big Data: Cool, Creepy or Privacy Violation? Arlonda Stevens August 18-22, 2015 Washington, DC

2. Presentation Objectives You will… 1.Be able to define “creepy” 2.Understand key factors that lead to perceived creepiness 3.Gain a broader awareness as to why you need to protect consumer data from misuse and abuse 4.Learn new ways to minimize perceived creepiness 2015 National BDPA Annual Technology Conference 2

3. Agenda  Cool or Creepy?  What Is Creepy?  Problem of Practice  Motivation for Study  Research, Findings & Creepy Quadrant  Impact of Creepiness on the Firm  Minimize Creepy  Trust  Transparency  Control  Conclusion  Discussion  Questions and Answers 2015 National BDPA Annual Technology Conference 3

4. Dilbert on Data 2015 National BDPA Annual Technology Conference 4

5. Cool, Creepy or Privacy Violation? What is your reaction? You are a member of the Loyalty and Rewards program at your local grocery store. In order to reap the savings benefits your card is swiped at the beginning of your purchase. At the end of your purchase, along with your receipt, you receive coupons for products that you frequently purchase. 2015 National BDPA Annual Technology Conference 5

6. Cool, Creepy or Privacy Violation? *Ur, B., Leon, P. G., Cranor, L. F., Shay, R., & Wang, Y. (2012, July). Smart, useful, scary, creepy: perceptions of online behavioral advertising. In Proceedings of the Eighth Symposium on Usable Privacy and Security (p. 4). ACM. 2015 National BDPA Annual Technology Conference 6

7. Cool, Creepy or Privacy Violation? PORSCHE MAKES DIRECT MAIL PERSONAL... AND A LITTLE BIT CREEPY 2015 National BDPA Annual Technology Conference https://vimeo.com/46439060 7

8. What Is Creepy?  Eerie feeling  Scary  Big Brother Watching  Invasion of Privacy  Unexpected Use of Information  Know too much NO UNIFIED DEFINITION, BUT A COMMON 2015 National BDPA Annual Technology Conference 8 Feeling

9. Problem of Practic e THEY SAY WE SAY  Marketers  Data Brokers  Data Aggregators  Online Advertisers  Government  Internet Users  Consumers  Privacy Advocates Problem: Increasing consumer concern over the collection, use and sharing of personal information and the analytics resulting in inferred profiles and behavior 9

10. Motivation For Stud y  Term frequently used to describe marketing messages  Growing consumer concern over collection and use of data  91% of consumers concerned about data collection and use practices (Pew Research Report, 2014)  Collision of Marketing & Privacy  Personalized Communication – based on Big Data Analytics  Right Message, Right Person, Right Time  Big data benefits at the expense of consumer privacy 2015 National BDPA Annual Technology Conference What is really behind the word “creepy” – what do we really mean? 10

11. Phase I - Research Overview Phase I: Qualitative - What is Creepy? Towards Understanding That Eerie Feeling When It Seems the Internet "Knows" You Two Questions 1.What is Creepy? 2.What key factors make a personalized communication or ad creepy? 2015 National BDPA Annual Technology Conference 11

12. Phase II - Research Overview Phase II: Quantitative -Demystifying Creepy Marketing Communications Two More Questions 1.To what extent does online information privacy concerns, perceived surveillance, perceived anonymity and transparency affect an unsolicited personalized marketing communication to be perceived as “creepy” 2.To what extent does consumer-firm trust mediate these factors on perceived creepiness? 2015 National BDPA Annual Technology Conference 12

13. Defining Creepy Creepy is… An emotional reaction to an experience, interaction or unsolicited communication where personal information has been unknowingly collected and used invoking feelings of apprehensiveness and unsettlement. 2015 National BDPA Annual Technology Conference 13

14. Creepy is about emotional reaction 2015 National BDPA Annual Technology Conference 14

15. 8 Key Findings 1.Creepy Is Widespread 2.Creepy and Privacy Intrusive are related, BUT Different 3.“THEY” are in Control 4.Lack of Control led to safeguarding information even when nothing to hide 2015 National BDPA Annual Technology Conference 15

16. 8 Key Findings 5.Experience Of Creepy Does Not Diminish Internet Usage 6.Transparency has a negative effect on the perceived creepiness 7.Control has a negative effect on perceived creepiness 8.Online privacy concerns has a positive effect on perceived creepiness 2015 National BDPA Annual Technology Conference 16

17. What Creepy Is Not 2015 National BDPA Annual Technology Conference 17 Creepy doesn’t necessarily mean a privacy intrusion

18. 2015 National BDPA Annual Technology Conference Transparency ~ Control ~ Trust 18

19. So what! & Why Does This Matter?  Awareness of consumer concerns expectations  Marketers & Technologists, Data handlers understand interplay of transparency, trust and control  Companies change behaviors  Avoid harm  Protect brand and reputation  Avoid government sanctions  Trust/Distrust – Consumer Firm Know creepy to avoid creepy! 2015 National BDPA Annual Technology Conference 19

20. What Can You Do? Transparency ~ Control ~ Trust  Privacy By Design  Protect and Safeguard Customer Information from nefarious uses  Voice of Reason – just because we can, should we?  Be Transparent ~ Disclosure  Consumer Control ~ Opt Out 2015 National BDPA Annual Technology Conference 20

21. You Can… Implement Privacy By Design (PbD)  Concept developed by the former Information and Privacy Commissioner of Ontario, Dr. Ann Cavoukian in the 90’s,  Imbed privacy throughout the design process 2015 National BDPA Annual Technology Conference 21

22. Privacy By Design (PbD) Founded on 7 Key Principles 1.Proactive not Reactive; Preventative not Remedial 2.Privacy as the Default Setting 3.Privacy Embedded into Design 4.Full Functionality – Positive-Sum, not Zero-Sum 5.End-to-End Security – Full Lifecycle Protection 6.Visibility and Transparency – Keep it Open 7.Respect for User Privacy – Keep it User-Centric 2015 National BDPA Annual Technology Conference 22

23. You Can… Protect and Safeguard Customer Information from nefarious uses  Technology  Processes  Educate Data Handlers 2015 National BDPA Annual Technology Conference 23

24. You Can… Voice of Reason – just because we can, should we?  Able to inform colleagues about uses and misuses of data  Consumer perspective 2015 National BDPA Annual Technology Conference 24

25. You Can… Be Transparent  Disclosure to consumers on data collection, use and sharing practices  Cookies used or other tracking tactics and devices  Privacy Notice 2015 National BDPA Annual Technology Conference 25

26. You Can… Provide Consumers with Control  Allow consumers to Opt Out  Allow consumers to obtain information that you have about them  Allow consumers to correct inaccurate information 2015 National BDPA Annual Technology Conference 26

27. Big Data 2015 National BDPA Annual Technology Conference 27 Cool, Creepy or Privacy Violation?

28. Conclusion  Comments & Discussion  Questions & Answers 2015 National BDPA Annual Technology Conference 28

29. Contact Information Arlonda Stevens, Privacy Advisor PNC Bank arlonda.stevens@pnc.com 216-488-8113 PhD. Candidate, 2016 Weatherhead School of Management Case Western Reserve University, Cleveland, Ohio Email: ams383@case.edu 2015 National BDPA Annual Technology Conference 29