Privacy paradox – consumers data sharing preferences for advertising

Abstract

The data driven world today has multiple sources of data collection – from usage patterns to voice-based profiling of consumers. Through this paper, we aim to examine the industry practice of data collection by companies that provide goods and services and its use for personalized advertising. Further, the marginal willingness of the companies to pay for consumers’ voice-based data (or the analyses derived from it) is also understood. The questions of how accurate these targeted advertisements can be, what, and how much, is the additional benefits producers can get out of this are explored in this paper. On the consumers’ side, the willingness of the consumers to share their data is also understood. The questions of how accurate these advertisements can be, do consumers value it, and if yes, how much are explored in this paper. Inferences are then draw about the intersection between the consumer and producer to understand whether personalized advertising using data collection through methods like speech analytics lead to a better market outcome.