Online Privacy…Is there such a thing?

Online Privacy…Is there such a thing?

When a person visits a web site, sometimes the site will track that person’s internet browsing routines.  The reason why companies track the browsing activity is to view consumer likes and to learn how to better market their product or service.  Now that internet users know that companies track, the people are not happy.  So the Federal Trade Commission (FTC) has issued new regulation recommendations to help protect consumer privacy via internet. 

First, the FTC suggests that companies should embed into their daily operations a “privacy by design” as stated by the FTC web site.  Second, the companies should simply state that the web site will be collecting data from the consumer.  According to the New York Times article by Wyatt and Vega, the FTC even suggest a button that says do not track, which is very similar to the privacy from telemarketer’s national do not call list.  Lastly, the FTC suggests that information practices of each company should be really easy to access. 

In my opinion, the new FTC suggestions will help to improve the privacy for consumers and especially a huge deal for the consumers who actually desire more access into protecting their privacy on the internet.  But what do you think?  Can your browsing activities really be kept private?  There is no real way that consumers to know for certain that their computers aren’t being tracked. 

Think about it,

Jefo

Groupon...Good Deal or Bad Deal?

 

How does Groupon work? Groupon is an online business that specializes in offering its’ customers really good deals to restaurants and services around the country.  Why would Google acquire Groupon? As referenced from a New York Times article by Evelyn M. Rusli and Claire Cain Miller, Google is not officially publicizing about the possible purchase of Groupon.  An estimated deal of $5 to $6 billion is in the works; however, the deal could still fail.  If Google proceeds with the deal, this would be their largest payout.  The second was to its 2007 purchase of DoubleClick, an online advertising company, for $3.1 billion.  Groupon is a good way for people to experience something new and exciting and without paying full price.  With the current recession, people are more willing to go out maybe once a month to treat themselves and why not a better way than to buy a heavily discounted product or service through Groupon.  This is probably one of the reasons why Google desires to acquire Groupon. 

 

One of Groupon’s biggest competitors, LivingSocial, has already been scooped up from Amazon for a cool $175 million.  Although it’s a lower offer than the Google’s projected offer, LivingSocial company is smaller than Groupon.  Amazon believes that they can raise the value of LivingSocial to $1 billion dollars according to an article off the Fast Company website by David Zax.  Another reason why Google is looking to purchase Groupon is for the chance to increase its valuation, as the previous example indicates.  Google is one of the largest search engines worldwide.  If Groupon decides to let Google buy, do you think that Google can increase the value significantly?  Or do you think it would be a bad investment on Google’s part? 

 

Think about it,

Jefo    

 

Sources:  http://www.fastcompany.com/1707138/groupon-competitor-livingsocial-gets-175-million-from-amazon, http://dealbook.nytimes.com/2010/11/30/google-is-said-to-be-close-to-buying-groupon/,%20http://searchengineland.com/google-to-buy-groupon-for-5-to-6-billion-57250 and http://www.groupon.com/miami/

Does Neuromarketing and Consumer Purchases Go Hand in Hand?

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Neuromarketing is a phenomenon that combines the psychological components and neuroscience to determine how marketing campaigns affect people.  So instead of consumers telling us what they think about the advertisement, neuromarketing is more of a scientific factor into what consumers may not verbally tell us about the advertisement.  This can be a better way or a good supplement to a traditional survey to measure people’s feelings towards a marketing campaign because people can lie, intentionally or unintentionally, and inform the company what they think the company wants to hear.  If the consumer does not offer truthful feedback about the product or service, the company may never know how to improve a problem or fix a problem.  Simple measuring techniques to neuromarketing include dilation of the pupils, muscle movement, and temperature of the skin. 

Neuromarketing can assist with finding out when people are excited about certain products, but will this really help to forecast the purchasing power of consumers? 

The Times online article states that in 2006, Big Business spent a cool $8 million on marketing strategies including figuring out customers potential spending habits and advertising products and services.  Now that it’s 2010, I am almost certain that companies are spending more on marketing and may now include neuromarketing (with the acknowledged participant being compensated). 

Neuromarketing will help companies and it is very beneficial; however, there are other factors that companies must think about like consumer preference, price, and geographical locations among others.  Basically, although a potential consumer may have a positive feeling (proven from neuromarketing) towards a product or service, other reasons can prevent the consumer from purchasing. 

Think about it,

Jefo

Source:  http://www.fastcompany.com/1700207/campaign-ads-and-neuromarketing?partner=homepage_newsletter and http://www.time.com/time/magazine/article/0,9171,1580370-1,00.html