Annalect's research reveals a significant increase in consumer concern about online privacy and data breaches, with 12% of consumers ceasing shopping at retailers affected by breaches. The data breaches in 2013 led to negative perceptions of retailers, and consumers now hold them primarily responsible. As a result, brand protection has shifted to include data protection, with many consumers taking specific actions to safeguard their personal information.

1. Retail Data Breaches
Spike Concern and Alter
Shopping Behaviors
According to Annalect’s research, online privacy continues to be a news-worthy topic for
both consumers and advertisers. Over the past year, consumers’ concerns over their
individual privacy has jumped 11% with the NSA PRISM disclosure leak in June 2013, and
the numerous retailer data breaches (Target, Neiman Marcus) starting in November 2013.
Retailers and Marketers Beware
12%
of consumers say they’ve
stopped shopping at
the retailer/company where
a data breach occurred
72%
of consumers say
their perception of the
retailer/company
changed for the worse
Consumers are More
Aware of Data Breaches
NSA leaks and credit /debit card data breaches have made the
In 2013, the Identity Theft Resource
Center recorded a total of 614
data breaches -- a 30%
increase from 2012
So far, in 2014, there have been a
recorded 546 data breaches
and a total of 18,953,433
records exposed
concept of privacy concern more real to consumers.
51%
Since the breaches in 2013,
Annalect’s research found that
1-in- 5
consumers claimed to have been impacted by a data breach
Who’s Responsible?
Consumers say that retailers are responsible for these data breaches
How did consumers respond?
32 23 18 15
60% 60%
8% 13% 8% -4%
Data protection is now an
element of brand protection
47%
55%
68% 65%
45%
lack of control of how my
personal information is
being used
information is being
shared without my
knowledge
information is being
shared without my
consent
don’t know enough about
how my information is
collected and used
Q2 2013 Q2 2014
During the past year, consumers’ concern about data protection has increased to the level where they are taking
specific actions in response to data breaches to protect against future harms. For example, one out of every eight
consumers say they’ve stopped shopping at the retailer where a data breach occurred. This is significant because
in most data breaches at retailers, the breach aects multiple companies including the retailer, its credit card
processing vendor, the credit card issuers, and security vendors. In response, consumers appear to be holding the
retailers mainly responsible. Consumers’ avoidance of retailers that have experienced data breaches is evidence
that Data Protection is now an important element of Brand Protection.
For more information, please contact Data Policy
and Annalect Primary Research
Data@annalect.com
Research@annalect.com
annalect.com
/ annalect
/ annalectgroup
/ company/annalect-group
Source: Annalect’s 2013 and 2014
Online Consumer Privacy Study
Annalect conducted a longitudinal study in
2013 and 2014 among adults 18+, who use
the Internet at least once a month. The results
shown are from Q2, 2013 and Q2, 2014.
50 say retailer/company with whom
the purchase was made
is responsible
17 say credit /debit card company of
the card used in the purchase
is responsible
9say store charge card
company is responsible
resulting in negative brand perceptions.
**
39
of consumers now check
their credit card
statements regulary
of consumers have not
done anything
of consumers have
canceled the credit card
eected by the
data breach
of consumers have
changed their online
passwords on
retailers’ websites
of consumers have been
making purchases more
often with cash
One in eight shoppers say they've stopped shopping at the retailer/company
where a data breach occurred.
What are the Concerns?
Privacy concerns in major categories increased significantly in just one year.