The Consumer says:"Do Not Track Me"

Recently, I updated my web browser from Internet Explorer 8 (IE8) to Internet Explorer 9 (IE9). It was not because I understood the benefits of IE9, but it seemed like the next best thing if I wanted to enhance the efficiency of my browsing capability. Unknowingly, I embarked on a journey formulated by Microsoft to improve its transparency and commitment to online privacy and security issues.

It is a quite an intense debate with regards to the level of control that a consumer has over their online activities,  when advertisers have the ability to track web searches. Thus, these advertisers are able to tailor their advertising activities (pop ups etc.) based on an individuals browsing history. How do you think Ebay, or even Amazon is able to display products that you recently viewed?So, how do they get a hold of this personal information? These web browsers (internet explorer, firefox, safari) store a cookie, (not a chocolate chip), but a small piece of text onto a user's hard disk, which can later be retrieved. The pieces of information are stored as name-value pairs, that allow servers to customize their site and/or online advertisements based on your past activities.

Microsoft's answer to the unprotected, rapid sharing of user information is IE9, which provides a consumer with a new "opt-in mechanism ("Tracking Protection") to identify and block many forms of undesired tracking". Furthermore, an additional component of IE9 is the "Tracking Protection list", which allows a consumer to control who (third-party advertisers) tracks their online activities. Much more information about IE9 could on Microsoft's blog in an article entitled IE9 and Privacy: Introducing Tracking Protection.

Here is a brief video that demonstrates how IE9 protects consumer information



Microsoft's approach  to online privacy through IE9, is a system that directly correlates with the recent U.S. Federal Trade Commission's (FTC) interest in including a "DO NOT TRACK" button on web browsers. This button would enable users to minimize the spread of their personal online information, for they are given the option to allow online advertisers to "TRACK" or "Not to TRACK" their online-activities.Isn't it about time consumers have a certain degree of online control concerning the spread of their information, and how it is used?  However, without the initiative taken by organizations like Microsoft,  online privacy issues and the concept of the "Do not track" option would be ignored, especially by online-advertisers who object the "Do not track" initiative, as described in the article Web Privacy "Inadequate".

It is a step forward for the consumer; however it requires supporting legislation to ensure that organizations like Microsoft and Apple place every effort to protect the online privacy rights of the user. The regulatory aspects have been discussed in the FTC's preliminary report. It is important to recognize, that thus far, web browsers have understood the safety and business need to maintain a secure relationship with consumers. But the desire to sustain relationships with online advertisers should not supersede the security issues of the consumer.

Let's not forget, I am also a consumer, and I would appreciate if my online activities were not trackable, and I had complete access to my information, and who receives it and how it is utilized. That sounds practical enough. Plus, I know that I have the full support of all the people that matter in this situation, the consumer.
Let's balance innovation and privacy.
Your Business Prodigy,
Alcina
Sources
http://www.ftc.gov/opa/2010/12/privacyreport.shtm
http://arstechnica.com/web/news/2010/12/ftc-its-do-not-track-time-for-the-net.ars

http://online.wsj.com/article/SB20001424052748704594804575648670826747094.html#ixzz17p3TY3qq

"I'm not buying until I get my Groupon"

For all you bargain hunters, I got the deal for you, and its called GROUPON. Considered by Forbes as one of the fastest growing company on the web, Andrew Mason (founder) has technologically reinvented the way that the financially strict consumer clips coupons. A savvy way to explain the whole prinicple behind Groupon is the combination of the elements of coupons and group buying, as a way to strategically get customers into businesses, and ultimatey for these businesses to retain these customers. 

So, how does Groupon do business?

With collective buying power, Groupon is able to negotiate with companies, where these said companies offer deep discounts to consumers in return for consumers with a deep seated interest in discounts. I have a friend who structures her social activities around Groupons. Her rationalization - why pay close to $50 for a manicure and pedicure at a salon, with deals like $25 for both could be accessed through sites like Groupon. She has been to salons, restaurants, and skydiving with her groupons. There is definitely no argument there when it comes to its social benefits.

The disadvantage to this type of living from the businesses' perspective is that there is no way that as a consumer you are doing anything, or spending any money without a deep discount. Thus, Groupon and other copycat sites like LivingSocial inc., BuyWithMe Inc. and Bloomspot Inc. caters to a certain type of consumer, the coupon clipper.

It is definitely a great marketing platform for the business because it brings a large number of consumers to the business, but in the long run does the business really benefit?

Analyse it from the perspective of the organization, yes, the doors are constantly flipping open during the "scheduled" period of the groupon (groupons do have expiration dates). However, what is the quantitative impact of groupons after the fact. Do these or more consumers return, even in the absense of groupons? Or would these said consumers only return if there was another deep discount?

I definitely would not doubt that busiensses have repeat clients, but this specifically leans on variables such as, the quality of the good and/or service received. Thus, it is the responsibility of the business to ensure that these groupon holders are not only driven by competitive price initiatives, but also are attracted to the quality of the goods and services, and the atmosphere (just to name a few variables), which may have a significant impact. Obviously, this is based on the assumption that most groupon seekers are first time users of the good and/or service.   

Otherwise, in order to retain these consumers, the business would have to be consistent in terms of its significant price offerings on Gourpon. As previously mentioned, groupons attract a certain type of consumer, thus, the main question is whether this is the type of consumer that the business is aming to attract.

However, could we consider that "type" of consumer, all consumers, because we are all ready for some kind of discount.

Not sure if I am structuring my much needed social activities around the Groupon phenomenon, but its one of those ideas that after research you think "Why didn't I think about that?" especially, with large comapnies like Google noting the power of the group coupon phenomenon and placing a "deep non-discounted" offer on the table. In the article Why is Google Chasing the Groupon craze, it is understandable why Groupon is a hot topic, but with the growing number of copycat sites, with the same "deal of the day" motive, it might be ideal to take up google on their offer. I am not sure how far into the future the idea would stretch, without marketshare being thinly spread over the growing number of online group coupon sites.

Nonetheless, it is a great idea to grasp the immediate attention of the technolgically diligent and discount driven consumer. But, the business needs to determine whether it is the strategic business approach that would benefit the organization in the long run. Note, it definitely is not a risky investment, but proves to generate consumer interest in the shortterm.

Your business prodigy,
Alcina

Sources

http://blogs.wsj.com/deals/2010/11/19/why-is-google-chasing-the-groupon-craze/

http://www.forbes.com/forbes/2010/0830/entrepreneurs-groupon-facebook-twitter-next-web-phenom.html

http://www.groupon.com/fort-lauderdale/subscribe?utm_source=Google&utm_medium=cpc&utm_campaign=Search&utm_term=groupon&d=Florida_-_Fort_Lauderdale&g=Groupon&m=e&k_clickID=0e47f782-2267-48a9-6388-00004c3933b9