Is Consumer Privacy Ethical?

Whether or not it is ethical that companies are gathering detailed customer data through loyalty programs depends on how far the company goes to get information about their consumer. Loyalty programs are the marketing efforts that reward, and encourage loyal buying behavior, the behavior that is potentially beneficial to the firm.  For example, I believe loyalty programs are beneficial therefore, ethical. Consumers are able to receive points, coupons, deals, and have the advantage over the "non-loyal"customers as a reward for shopping with the retailer. This helps the consumer’s wallets and helps retailers’ consumer traffic.

The idea of companies gathering that much information  is somewhat intimidating, surreal, and off guarding. At first, with all the information the company may have about you is unbelievable; I was shocked at how much they knew about my personal shopping habits and history. I have to admit, it was also a bit disturbing .Then after a while I realized how beneficial loyalty programs can be; companies are trying to help their consumers with their shopping making it a more pleasing experience. I appreciate the retailer taking account of what is purchased and offers deals surrounding that product and products related to it. I think the intent is ethical but the first glance it appears the opposite.

 These loyalty programs and information they have about us benefits us in the long run. Why not let these companies draw these critical points on consumer behavior and reward us for shopping with them by  thanking us with the new deals and showering us with coupons? At the same time I feel that consumers should be aware of consumer privacy and if they believe it is unethical then should not participate in loyalty programs and minimize shopping online. Companies are doing what’s best for them and what they believe is best for the consumer. 

The internet and social networking companies thrive on data, for some companies, it’s a matter of trying to attract consumers’ interests and buying habits based on their searches, web visits and purchases. Forbes makes a good point, knowing what a consumer cares about gives companies the opportunity to target specific ads and offers for their customer. Ads and promotions customers see will have a higher chance of interesting the customer than random messages. Therefore, I believe the loyalty programs create more effective shopping for their business and the consumer.

Brands are increasingly monitoring and analyzing consumer behavior on social media to refine behavioral targeting. In the article from Business Weekly, some retailers are using mobile based technology to track shoppers in the malls and stores. This draws the line, leading to the unethical aspect of consumer privacy. How far will retailers go to get information about their consumer? I agree that consumers should have the option of whether they are being tracked or not. Their choice of privacy is important and if retailers retailers don't give them the option for their information to private, this will create distrust among the customer and retailer . For example, if I was shopping for personal reasons, I would not like technology know what I am buying or where I am buying if it is personal. Technology is becoming more advanced and I think the future use of technology retailers are using to receive information about their consumers is going in an unethical path.