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Privacy, Strategic Information Disclosure
and New Customer Acquisition:
Implications for Customer Relationship Management
Abstract
This dissertation research investigates how consumers respond to being targeted,
in particular how they edit their disclosure of identifying information to marketers, when
they are aware marketers will use their information to make future targeting decisions.
Marketers use information from and about consumers to target marketing resources
towards interactions with more profitable consumers and away from less profitable ones.
The explosion of new information technologies and growing strategic focus on customer
relationship management have increased marketers’ opportunities and incentives for finer
targeting decisions. However this finer targeting can raise privacy concerns, leading
some consumers to shield, screen or otherwise disclose inaccurate information. This
disclosure editing by consumers reduces the efficacy of targeting decisions, and thus the
return on marketing investments.
The field research and three progressive experimental studies in this dissertation
develop and test a new theoretical model of consumer information disclosure. Integrating
research in privacy, survey response and interpersonal lying, I propose the relative
alignment of consumer and marketer interests in future interaction affects two underlying
consumer privacy incentives, which in turn leads to systematic variation in disclosure
accuracy. I further propose and show that enabling consumers to volunteer some
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