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2016_Theories of Marketing Mid Exam Question 2
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Question 2) Consumer power: shifts in marketing relationshipsAcquisti, Brandimarte, and Loewenstein (2015) describe the privacy paradox as the discrepancy between
attitudes and behavior with regards to privacy related preferences.
a) Find and describe a real-life example of the privacy paradox (not the examples mentioned during the
lecture). Be very clear about the discrepancy and explain why there is a discrepancy between the
attitude and behavior in your example, based on the literature on privacy preferences.
People regard bank account data as their private information, the divulgence of which is likely to lead to
an unpredicted financial loss. So normally people say they won’t expose their bank information. At the
same time, WeChat users still upload their personal banking information such as IBAN, password and
card holder name onto this instant messenger. This begs the question why do they share their privacy
for possible public viewing even though their attitudes are passive?
First, users can enjoy the convenience brought by sharing their bank details. After bounding their bank
cards with WeChat, users can use WeChat to pay in online and offline stores, which means users can pay
just by mobile phones. What’s more, WeChat payment records every transaction clearly and
automatically generates an expense distribution chart which helps to arrange users’ life spending.
Therefore, users are willing to sacrifice their privacy for this ‘smart life’.
Second, users’ desires for sharing the feelings with others. WeChat payment enables users send lucky
money with wishes to their friends or relatives while texting. Users can show their care and blessing to
others in such a novel way. As sending lucky money to each other becomes an emergent way to socialize
with people, lots of users start to adopt it and upload their bank data.
Third, “antecedents” influences users’ behavior, which is the malleability of privacy preferences. As
background, WeChat is the most popular social tool in China and is owned by one of the largest internet
companies in the world- Tencent. The company develops various prestigious online social platforms and
tools and earns good reputation. Although users have concern about sharing their privacy, their trust to
the security and prestige of WeChat propels them to upload their private banking information.
Comments from pro
Describe discrepancy: ie behavior vs ie attitude- evidence of discrepancy
Explain why: tangible vs intangible ; malleability of privacy preference
b) Explain the relevance of your example in a marketing context and analyze how this affects the firm-
customer relationship. (Please explain how marketers can capitalize on the inconsistency between
attitudes and behavior, or perhaps should beware of this inconsistency to prevent harmful
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