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Practice paper

Segmenting consumers based on willingness to share data for marketing purposes

Martin P. Block and Don E. Schultz
Applied Marketing Analytics: The Peer-Reviewed Journal, 5 (3), 243-255 (2020)
https://doi.org/10.69554/EASM6263

Abstract

Despite new privacy rules and regulations, such as the European Union’s General Data and Protection Regulation and the pending California Consumer Protection Act, not all consumers feel the need for data protection. Recent research has shown that 20–25 per cent of the US adult population are willing to share their personal data with marketers they ‘trust’. The marketing challenge thus becomes how to identify these willing ‘data sharers’. Using a widely available data set, this study illustrates several ‘Big Data-based’ segmentation methodologies to screen this important segment out of the general population, ranging from factor analysis to chi-squared automatic interaction detector (CHAID) decision trees. The results of these analyses identify some unexpected potential segments among these ‘data sharer’ groups, most notably young men who participate in team sports. Thus, the paper argues that rather than looking at privacy regulation as a burden, marketers might well consider it a key element in their toolbox.

Keywords: data privacy; GDPR; CCPA; Big Data; data-sharers; market segmentation

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Author's Biography

Martin P. Block is Professor of Integrated Marketing Communications at the Medill School, Northwestern University and Executive Director of the Retail Analytics Council. His work has been published in many books, academic research journals and trade publications, and his paper on media synergy won the Journal of Advertising Research’s award for best practitioner paper in 2018. Martin received his BA, MA and PhD from Michigan State.

Don E. Schultz is Professor (Emeritus-in-Service) of Integrated Marketing Communications at the Medill School, Northwestern University, Evanston, IL. He holds a BBA from the University of Oklahoma, and an MA and PhD from Michigan State University. He is President of Agora, Inc., a global marketing, communication and branding consulting firm. Schultz is author/co-author of 31 books and 150 trade, academic and professional articles.

Citation

Block, Martin P. and Schultz, Don E. (2020, May 1). Segmenting consumers based on willingness to share data for marketing purposes. In the Applied Marketing Analytics: The Peer-Reviewed Journal, Volume 5, Issue 3. https://doi.org/10.69554/EASM6263.

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cover image, Applied Marketing Analytics: The Peer-Reviewed Journal
Applied Marketing Analytics: The Peer-Reviewed Journal
Volume 5 / Issue 3
© Henry Stewart
Publications LLP

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