How concerned is the public about the privacy of their personal information? Has their concern changed over the past two years in light of recent privacy breaches? Previous research by J.D. Power and SSI in 2012 revealed cohort differences in personal data sharing, with older generations engaging in less online behavior and having more serious concerns about consumer privacy. Overall in the US, 68% of people agreed or strongly agreed that existing laws and organizational practices provided a reasonable level of protection for consumer privacy, however 81% of respondents also felt that consumers had lost control over their personal information and its collection/use by companies. As privacy issues continue to be at the forefront of consumer’s minds, does this translate into higher percentages of respondents in 2014 that believe current laws are not sufficient to protect consumer information and that control over their personal information has continued to degrade? And, perhaps most importantly, how do these perceptions over privacy impact actual consumer behavior (if at all)? This presentation will focus on changes over time in privacy perceptions, differences among markets, and the relationship between consumers with higher levels of privacy concern and their attitudes and behaviors (e.g. providing false information, setting profile to private). Most importantly, the presentation addresses how this may directly impact market researchers- such as a consumer’s willingness to participate in surveys due to privacy concerns.

1. © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
Data Privacy: Implications
for market researchers
May 8, 2015
Bay Area Research Forum Conference
Valerie Lykes │ valerie.lykes@jdpa.com │ J.D. Power
Kristin Cavallaro │ Kristin.Cavallaro@SurveySampling.com │ SSI
Gina Pingitore │ gina.pingitore@jdpa.com │ J.D. Power

2. 2 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
Situation
 Consumer concerns about
personal data continue to
be of global importance
 86% of consumers in 9
countries agree or strongly
agree they have lost control
over their personal
information and its use
 Ave. cost to companies for
a data breach was $3.5M
• Reputation
• Lost customer loyalty
Source: http://www.informationisbeautiful.net/visualizations/worlds-biggest-data-breaches-hacks/

3. 3 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
What We Examined
 Re-examined consumers’
attitudes towards privacy
• Evaluated whether these
attitudes have changed
over time
• Expanded our across
markets assessment
 Assessed the degree to which
concerns predict behavior
̶ If so, what are
implications of increased
concern on survey
taking?

4. 4 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
How We Did It
 Using SSI’s panels, we surveyed
adult consumers (18- 67+) in nine
markets:
• United States (n ≈ 4,200)
• China (n≈2,000)
• India (n≈2,000)
• Germany (n≈3,000)
• Japan (n≈2,500)
• Brazil (n≈2,200)
• United Kingdom (n≈4,500)
• Australia (n≈2,200)
• Canada (n≈3,200)
 Data weighted to be representative of
each country’s age distribution

5. 5 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
US Consumer’s Opinions About Management of Personal
Data Over Time
80%
51%
82%
66%
89%
59%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Consumers have lost control over how personal information is
collected and used by companies.
Existing laws and organizational practices provide a reasonable
level of protection for consumer privacy today
1999 2012 2014
Concerns about how personal data is collected and used has increased among US consumers.
Additionally, confidence that existing laws protect consumers has declined since 2012, possibly
leading to more restrictions.

6. 6 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
Cohort Differences in US Privacy Concerns 2012-2014
%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Gen Y Gen X Boomer Pre-Boomer
%AgreeStronglyAgree
Existing laws and organizational practices provide
a reasonable level of protection for consumer
privacy today
2012 2014
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Gen Y Gen X Boomer Pre-Boomer
%AgreeStronglyAgree
Consumers have lost control over how personal
information is collected and used by companies.
2012 2014
Older consumers feel they have lost control more than Gen Y. Gen Y strongest
agreement that existing laws/org policies are sufficient to protect privacy.

7. 7 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
Are Concerns Also Increasing in Other Countries?
Concern over how personal information is being collected/used is up in all 3 countries.
Only India reports existing laws and practices to be acceptable to protect privacy.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2014
%AgreeStronglyAgree
Consumers have lost control over how personal
information is collected and used by companies.
US
China
India
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2014
%AgreeStronglyAgree
Existing laws and organizational practices
provide a reasonable level of protection for
consumer privacy today
US
China
India

8. 8 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
Nearly All Other Mature Markets Have Similar Concerns
About the Collection and Use of Personal Information
Globally, consumers feel they do not control their personal information, though emerging
markets are not as concerned
89%
81% 81%
88% 85% 85%
89% 89% 90%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
US China India Australia Brazil Canada Germany Japan UK
%Agree/StronglyAgree
Consumers have lost control over how personal information
is collected and used by companies

9. 9 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
But Attitudes About Legal and Organization Protection Varies
More Widely
Loss of control is high for all, but not all consumers are equal in their concern about how the
law and companies are protecting their privacy- this depends on the market they operate in
59%
45%
84%
70% 66% 64%
33%
59%
65%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
US China India Australia Brazil Canada Germany Japan UK
%Agree/StronglyAgree
Existing laws and organizational practices provide a
reasonable level of protection for consumer privacy today

10. 10 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
What we have concluded so far…
Privacy concerns are increasing globally
Differences by cohort
• Gen Y least concerned
Differences by country
• Emerging Markets least concerned
But, do these concerns predict attitudes &
behaviors?

11. 11 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
Larger differences between high and low privacy concern are seen when consumers have “no
consent” in how their data is being used compared to “indirect consent”
Avg.
7.5% Δ
Avg.
14% Δ
54%
66%
64%
48%
44%
70%
80%
77%
56%
51%
A product you viewed is advertised on
other websites
Your email provider scans your email
to advertise to you better
An app you downloaded tracks your
location and stores the data
Your review is used in a company
restaurant report
Books are suggested to you based on
your book purchase history
High Concern Low Concern
Privacy Concerns Predicts Attitudes Towards Privacy Scenarios
Indirect Consent
No Consent

12. 12 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
Online Activity Not Predicted by Concern
Those with higher levels of privacy concern do more internet-aided shopping than their
counterparts.
3.7
4.0
3.7
4.2
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
# of sites/social networks participated in
(0-12)
# of Internet Shopping Activities (0-6)
High Concern Low Concern

13. 13 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
Privacy Concerns Predict Online Behaviors
71%
72%
54%
65%
44%
76%
61%
46%
57%
47%
Regretted posting personal
info
Post personal pics to social
media sites
Post personal pics to photo
sharing sites
Write about personal life
Give false information
% At Least Somewhat Often
High Concern Low Concern
False information rates about
equal – concern doesn’t affect
providing false info
Trend for remaining
is the same- higher
privacy concern
leads to lower
incidence of
behavior

14. 14 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
Are There Differences by Countries?
Privacy concern does influence frequency of setting one’s profile to private, but still
differences between markets
50%
18%
49%
48%
44%
48%
36%
31%
51%
61%
28%
67%
61%
57%
68%
51%
48%
64%
UK
Japan
Germany
Canada
Brazil
Australia
India
China
US
%Often/Always Set Profile to Private
High Concern Low Concern

15. 15 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
Who Should Have Access to Your Data?
0%
10%
20%
30%
40%
50%
60%
US China India Australia Brazil Canada Germany Japan UK
Companies Whose Products/Services you purchase
Age Cell # Health Information Web Activity
Emerging markets less concerned about companies having access to personal information
including health information and cell number

16. 16 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
Who Should Have Access to Your Data?
0%
10%
20%
30%
40%
50%
60%
US China India Australia Brazil Canada Germany Japan UK
Government
Age Cell # Health Information Web Activity
Emerging markets less concerned about government having cell # and tracking web
activity

17. 17 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
Rate of Information Falsifications by Country
False information is provided in all countries, but the frequency of false information provided
is most concerning in China and Germany.
21%
31%
23%
20%
17%
23%
26%
13%
21%
0%
10%
20%
30%
40%
50%
U.S. China India Australia Brazil Canada Germany Japan UK
%Sometimes/Often

18. 18 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
What Types of Information Do People Falsify?
Consumers’ opinions are one of the least frequently cited types of false information reported.
PII most frequently falsified.
*Most prevalent “Other” responses include phone/mobile number, work/job, and salary
Type of False Information Provided by Country
US China India Australia Brazil Canada Germany Japan UK
Name 40% 61% 34% 43% 36% 47% 43% 34% 39%
Location 49% 54% 42% 45% 60% 54% 47% 31% 44%
Age 41% 41% 36% 44% 36% 47% 34% 32% 38%
Gender 16% 22% 23% 15% 11% 18% 10% 20% 14%
Things you are
interested in 21% 18% 32% 20% 28% 20% 21% 29% 22%
Your opinions 15% 15% 21% 14% 11% 14% 8% 22% 15%
What you read, watch,
or listen to 15% 11% 24% 13% 14% 16% 14% 22% 15%
Other 16% 3% 13% 16% 9% 12% 18% 7% 21%

19. 19 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
Younger Adults Provide False Information More Often
32%
24%
16%
9%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Gen Y Gen X Boomers Pre-Boomers
%Sometimes/Often
How often do you provide false information?

20. 20 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
And the Pattern is Consistent Across Countries
0
10
20
30
40
50
60
70
80
90
100
US China India Australia Brazil Canada Germany Japan UK
0=Never,100=Often
Frequency of providing false information
Gen Y
Gen X
Boomer
Pre-Boomer

21. 21 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
Conclusions
 Privacy concerns continue to increase globally
• Concern high across 9 markets
• Younger generations not as concerned
• Younger generations more online participation
̶ Function of age or generation? Concern go down as
Gen Y grows up?
 Concerns are linked to behaviors and attitudes
• False info, profiles set to private, fewer blog and
social network posts.
• Directly impacts market researchers
̶ Consumers decline to participate for privacy reasons

22. 22 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
Privacy Concerns Influence Reason to Decline to Take Surveys
37%
47%
14%
18%
22%
35%
45%
26%
21%
29%
Not interested in topic
No time
Privacy Concerns
Inadequate Incentive
Had to download software/app
Why Panelists Declined to Participate in a Survey
High Concern Low Concern

23. 23 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
Concern Impact by Country on Survey Participation
39%
31%
44%
41%
22%
40%
32%
25%
39%
48%
34%
52%
47%
25%
42%
28%
35%
48%
UK
Japan
Germany
Canada
Brazil
Australia
India
China
US
Declined to Take a Survey in Last Year
High Concern Low Concern

24. 24 © 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.
Questions?