Online Privacy Seriously Lagging

The immense growth in technology and online social media, marketing, and communication tools has led to the proliferation of privacy problems and issues. One only has to access an individual's Facebook or MySpace profile to learn both the most common and clandestine details about him or her and unfortunately, with other online tools and products, such as search engines, online billing, and retailer websites, the amount of information mass conglomerates have gathered about consumers and individuals is both disturbing and irritating. To combat the online privacy issues, the Federal Trade Commission just recently advocated a plan that will allow consumers to decide whether they would like their Internet browsing and buying habits to be monitored. The report recommends having "reasonable" measures for promoting data accuracy, "reasonable" access for consumers to the data collected about them, and most importantly, an option that would allow consumers to "opt-out" of tracking and data collection.  Implementation of this new plan would have serious implications for both consumers and online advertising companies, namely Google, Apple, Yahoo!, and Microsoft amongst others. Online advertising and data collection companies stand to get seriously hurt if consumers are granted the option to opt out of their data collection and tracking mechanisms.

And as for consumers and business, what defines "reasonable" varies substantially. The mere thought of Google allowing access to a meager 10% of the data it has collected about me is a long-shot and highly implausible. Notably, Microsoft took measures into its own hands and announced that "it is going to add a "Do Not Track" feature to its Internet Explorer 9.0 release, so that users will have the option of preventing cookies on their browser from tracking what websites they visit." Microsoft's move to implement this sort of feature is quite clever; by implementing this feature before any serious legislation is passed making such options mandatory, Microsoft is making itself look like the "good guy" and setting an industry standard that others will quickly follow. It’s a bold move in an attempt to protect them against the potential stringent privacy regulation that the FTC might implement. I wouldn't be the least bit surprised to see other online giants following Microsoft's witty step.

The FTC's step towards implementing a plan to combat the comprising of personal data online is a good one, but will it really work? What if online companies take their own personal steps to show they are willing to abide by such legislation only to deter lawmakers from making it compulsory? The growing online privacy debate has sparked numerous comments and concern from consumers and companies alike. Consumers need to much more vigilant and cautious about the content that they post online and make available for the entire world to see and many consumers are still careless about their privacy and personal information while browsing online. Any photos, postings, and personal information can be quickly and easily permanently stored by complete strangers and even sent to remote locations anywhere in the world. Even with the FTC's proposed plan and "do not track" options, many individuals will continue to remain naïve and allow everyone to know everything about them. Hopefully, the FTC's plan can put an end to online privacy breaches and simultaneously prevent future online privacy problems from surfacing.

Groupon + Google = ?

The rise and emergence of Internet has not only led to social networking and media but it has also triggered the launch and expansion of various businesses and industries that thrive and function primarily due to the Internet; examples including online retailers Ebay, OverstockNewegg, and Amazon and some more unique yet surprisingly successful online-based business that have been very lucrative for the creators,  including Zappos, Santa Mail, and FitDeck.

One of the newer online businesses that have recently taken millions of consumers by storm is Groupon. Essentially, Groupon works with local businesses to offer a 'group coupon' to registered users if a specific number of users sign-up for the deal. Groupon works quite well for local businesses by granting them sales, traffic, and potential regular customers while Groupon users that sign-up for the deal enjoy substantial cost savings, and Groupon enjoys a portion of the revenues generated by the offer; it's a great trade-off trade-off for business owners. And not surprisingly, Groupon is not alone in this marketplace, competitors include LivingSocial, BuyWithMe.com, Tippr and the market place is heating up with Amazon investing $175 million into LivingSocial and Google's $6 billion offer for Groupon.

A Sample Groupon offer; Gourmet Donuts Anyone?

There are several reasons why the Groupon business model is successful, notably the benefits for both consumers and business managers; the mutually beneficial exchange relationship commanded by marketing. But with the technology's speedy pace of change, there is no doubt that Groupon will have to mold its business models to match the demands of consumers and business managers alike, whether it be offering specials that focus on user wants or expanding Groupon to other areas and levels, whether it be groceries or deals with larger businesses and franchises. Groupon users do not pay any membership fees but perhaps this feature needs modification.  The ease and inexpensive entry barriers are yet additional constraints that the Groupon business model must combat. Groupon could potentially acquire or merge with other companies in the industry but even then, Groupon could quickly be replaced with another innovative and successful model that we can't even perceive yet. Five or six years ago, I never thought that toolbar advertising and search engines would be so widely used and profitable, and I don't think I'm alone. Groupon, however, could very easily be the future of commerce!

One way Groupon could potentially gain that elusive sustainable and differential competitive advantage is by offering deals and specials that are personalized to the users and notably, I believe this to be one reason why Google has so much interest in Groupon. The amount of information and data that Google has acquired about its users is frightening and raises privacy concerns but Google could very easily take the user and local business information that Groupon has and use it to evolve newer and more desirable offers for consumers and business owners. Google is known for its creativity and brilliance and by integrating a user's Groupon profile with the rest of his or her Google accounts and subscriptions, Google will only become more powerful and that isn't such a good thing. Like Google, Groupon currently outshines its competition but without adjusting its model, Groupon could easily lose market share and fade away. Competitors like OpenTable pose stiff competition for Groupon and factors such as regular clientele and lower expenses might lure business owners to opt working with one of Groupon's competitors. Groupon may very easily just be the latest consumer fad and quickly be replaced with a newer, more consumer-savvy online discount service, which makes Google's $6 billion even more valuable; selling seems like the best option for Groupon but who knows, perhaps Groupon's business model is just the underpinning for an even more compelling and flourishing business model, only time will tell!

Social Media, The Latest Addition to Business

Social Media. Its rise and growth is spreading at a rapid pace; Twitter, just one form of social media, is now growing at an astonishing 1,382% and its not alone; millions of users sign into their Facebook and MySpace accounts several times a day! If I received a penny for every time individuals accessed or used any form of social media, I'd easily be a millionaire, if not billionaire, by now. Social media has numerous forms including Facebook, Twitter, LinkedIn, Flickr, Orkut, Photobucket, and blogging, of course. And with the ever-increasing pace of technology, social media is also changing with new forms and innovations for users to engage in.

Social media presents both challenges and opportunities for individuals and businesses. Social media certainly facilitates communication; an individual might have to wait hours upon hours for pictures to upload from her last vacation to email to various family members or she could simply upload them once onto Facebook or a photo-sharing media site, such as Flickr or Photobucket, for all of her contacts to see. However, the same user might upload thousands of pictures and create hundreds of albums and even add unknown people as friends thus losing her privacy and potentially risking her safety. Privacy and safety are two important issues concerning social media and users need to exercise immense caution as they incorporate social media into their lives. Users need to think twice about the content they post and make available for the world to see. It saddens me that I can know everything about complete strangers by spending less than two minutes on their Facebook profile. We need to stop making ourselves so transparent and vulnerable!

A number of businesses have also begun utilizing various forms of social media as a part of their regular routines and business strategies. At first I was skeptical about successes in business through social media, but with innovation, leadership, and effective execution, social media is quickly becoming interwoven within the infrastructures of a myriad of companies and business. The low cost associated with social media further encourages companies to make use of it. 

Research shows that there are various factors that lead to successful implementation of social media in organizations. I believe one of the key success factors is user-generated responses that allow a company to establish a two-way communication path and actually obtain usable and helpful  information from social media. Companies can create Facebook pages and add 'friends' or gain 'likes' but what benefit(s) does this have? Without feedback or involvement, its basically a dead end. However, by adding content and providing updates, user involvement can increase, generating responses, and potentially leading to information beneficial to the bottom line. A photographer could easily have a Facebook page and add friends, but only by uploading and sharing his portfolio and recent works on Facebook, and getting users to comment and generate interest will word spread about his services. 

But social media also has its costs and potential negativity. One such example is the Dominos Pizza incident in which employees messed with food being prepared for customers and then proceeded to post the video on YouTube; the incident shed much negative publicity on Dominos Pizza and many consumers, including myself, continue to question the food-preparation and management practices of the company. 

With social media being so powerful and persistent, companies and individuals need to carefully assess their level of involvement and usage with various forms of social media. Social media is sharing and often permanent. Both businesses and individuals need to be careful when employing any and all forms of social media; as with any other form of technology, there will be glitches.

Neuromarketing in Action!

I just remembered this scene from 'The Minority Report;" I think it serves as a great example of the creepy side and potential future we may be approaching...

Neuro-Marketing!

A myriad of companies invest millions of dollars on launching market campaigns in hopes of reaping profits and loyal consumers. While the field of marketing has embraced many changes in  recent years, forcing companies to change their approaches to marketing as a result of globalization, the Internet, and other factors, "Neuromarketing" seems to be a growing fad amongst companies and marketers alike. But what is neuromarketing and how did it emerge? Most importantly, what effect does marketing have on us, the consumers?


According to Pradeep, Hans Berger was the first scientist to develop sensors that collected electrical signals emerging from the human brain amd employ electroencephalography (EEG) measurements in the 1920s. Considering the intricate nature and continuing developments and research of the human brain, Berger's application of EEG was clearly well ahead of its time. The EEG measurements picking up the electrical signals of the brain can then be studied to determine an individual's liking, preference, interest, or even discontent with the product or service the individual is experiencing. Neuromarketing is very beneficial for companies and marketers who can now dwell deep into human minds and determine whether their products and services are actually satisfying consumers and what elements of a product are important to consumers.


According to Forbes, numerous companies today are already making successful and lucrative use of neuromarketing, including Google, Hyundai, Microsoft, Disney, and Chevron. One use of neuromarketing that I found particularly interesting was by Frito Lay, a subunit of Pepsico. Executives at Frito Lay abandoned shiny packaging with pictures of  potato chips after their neuromarketing revealed that beige packaging with pictures of potatoes and healthy ingredients stimulated less activity in a region of the brain associated with feelings of guilt; what an interesting way to combat the guilt of consumers watching their waistlines and opting for healthier snacking options. Frito Lay also conducted neuromarketing and traditional focus groups for a commercial for Cheetos. The participants in the focus group viewed a commerical but claimed to not like the commercial possibly because they felt admitting liking the commercial would make them appear mean and cunning to other focus group participants. Nevertheless, neuromarketing revealed otherwise and the EEG tests showed that the female participants in the focus group liked the ad which pushed Frito Lay to begin airing the commercial.

Executives at Frito Lay abandoned shiny packaging with pictures of  potato chips after their neuromarketing revealed that beige packaging with pictures of potatoes and healthy ingredients stimulated less activity in a region of the brain associated with feelings of guilt

Neuromarketing makes sense but it is also raises several questions and concerns. Notably, neuromarketing is effective and beneficial for companies but it diminishes the barricade of privacy for consumers. Being able to see what is and what is not effective to the consumer mind grants companies even greater power in terms of marketing and sales. As a consumer, I like being able to test the effectiveness of a marketing campaign of a company and deciding whether or not to purchase something. As a human being, I prefer to share only certain thoughts and interests with others. For individuals considering taking part in any neuromarketing test, please ponder whether you'd really like for companies can dig deeper into your brain to retrieve information that you weren't willing to share...

Cheers for now,
Summia