eTRUST INTERNET PRIVACY STUDY

Summary of Market Survey Results
prepared for eTRUST

By The Boston Consulting Group
Two Embarcadero Center
San Francisco, California 94111
telephone: 415-732-8000
e-mail:
etrust.study@bcg.com
March 12, 1997

5/3/97

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eTRUST INTERNET PRIVACY STUDY

Summary of Market Survey Results prepared for eTRUST By The Boston Consulting Group Two Embarcadero Center San Francisco, California 94111 telephone: 415-732-8000 e-mail: etrust.study@bcg.com March 12, 1997

PROLOGUE

PRIVACY IS A MAJOR CONCERN ON THE INTERNET
To a Greater Extent Than in the Physical World

PRIVACY IS AN IMPORTANT ELEMENT OF CONSUMER TRUST
Trust Spans Issues of Privacy, Security and Authentication

SUMMARY OF KEY FINDINGS (I)
Consumer and Merchant Perspectives on Privacy

SUMMARY OF KEY FINDINGS (II)
Consumer and Merchant Perspectives on Privacy

CONSUMERS’ PRIVACY CONCERNS ARE LIMITING INTERNET ACTIVITY AND THE GROWTH OF E-COMMERCE

PRIVACY IS A CONSISTENT, SIGNIFICANT CONCERN FOR INTERNET CONSUMERS

PRIVACY IS AN ISSUE ACROSS ALL AGES AND INCOMES

A LARGE PROPORTION OF CONSUMERS SEE SECURITY AND PRIVACY AS OVERLAPPING ISSUES

CONSUMERS INDICATE PRIVACY ASSURANCE HAS GREATER VALUE THAN DISCLOSURE ALONE (I)

CONSUMERS INDICATE PRIVACY ASSURANCE HAS GREATER VALUE THAN DISCLOSURE ALONE (II)

CONSUMER WILLINGNESS TO DISCLOSE VARIES WITH TYPE OF INFORMATION AND KIND OF BUSINESS

CONSUMERS ARE LESS WILLING TO DISCLOSE PERSONAL INFORMATION TO UNFAMILIAR COMPANIES

MOST WEB SITES TODAY REPRESENT SMALLER, LESS WELL KNOWN COMPANIES

DISCLOSURE OF PRIVACY PRACTICES INCREASES CONSUMER COMFORT IN GIVING INFORMATION
Levels the Playing Field For Companies with Low Brand Recognition

PRIVACY ASSURANCE IS LIKELY TO BOLSTER E-COMMERCE Consumers Want to Know That Their Information Will Be Treated Responsibly

PRIVACY ASSURANCE COULD HAVE UP TO A $6 BILLION IMPACT ON E-COMMERCE BY 2000
If Privacy Programs Are Adopted by Commerce Sites(1)

MERCHANTS SURVEYED EXPRESS INTEREST IN AN INTERNET PRIVACY ASSURANCE PROGRAM
But Level of Interest Varies With Size of Firm

SMALL AND MEDIUM-SIZED COMPANIES HAVE THE GREATEST INTEREST IN PRIVACY ASSURANCE

PRIVACY ASSURANCE PERCEIVED PRIMARILY AS OFFERING BROAD SOCIAL BENEFITS
Businesses Also Foresee Some Direct Economic Benefits

SUMMARY (I)

SUMMARY (II)

Author: The Boston Consulting Group

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