Electronic Profiling and Consumer Behavior

1
Electronic Profiling and Consumer Behavior Dr.
Elia Zureik
UNESCO Chair in Applied Research in Education
Higher Colleges of Technology Sharjah Womens
College May 31st, 2005
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Lecture Outline

• 1- Video Clips
• Tom Cruise in Minority Report
• Will Smith in Enemy of the State
• 2-Types of Monitoring
• Diagram I
• Diagram II
• 3- Closed Circuit Television Cameras
• (CCTV)
• 4- What is RFID?
• 5- What is Data Mining?
• 6- What is Knowledge Discovery?
• 7- What is Biometric?

• 8-Profiling and Social Sorting
• Who and How
• Is profiling Good? Is it Bad? Is it Both?
• 9-The Consumer as a Target
• Databases
• Commercial
• Governmental
• The Web Cookie Trap
• 10-The Middle East Electronic Consumer
• Trust and Values
• Will it Catch on?
• 11-How to Study Surveillance/Privacy
• Example of International Survey

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Diagram I Evolution of Control Technologies
From Monitoring Behaviour to Monitoring the Body
Soft Technologies Obtrusive (Monitoring of
Behaviour)
Visual monitoring Telephone monitoring (content
and number) Computer-based counting Archiving and
screening of email Internet access control
Movement Control Internal External Active
badges Geo-positioning systems CCTV Radio
Frequency Identification Web Cameras Personal
tracking Vehicle tracking
Access Control (Biometrics)
Fingerprinting Hand geometry Facial scanning Eye
(iris, retina) scanning Voice analysis Signature
analysis Footprint (gait, stride) Body
odour Acoustic Emissions
Hard Technologies Intrusive (Monitoring of
the Body)
 DNA / Drug testing Personality profile Lie
detectors Brainwave analysis
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Diagram II Types of Surveillance Technologies in
the Workplace and other Organizational Settings
i. Electronic Cash Registers and Product Scanning
Systems ii. Keystroke Counting iii. Programs that
document and archive activities on an employees
computer iv. Access to computer files via work
group software and other programs. Also includes
activity awareness systems (i.e., peer group
monitoring of desktop activities) v. Programs
that track the use of other technologies
(A) Computer Accounting
i. Archiving of email messages. ii. Screening
emails and blocking those deemed offensive.
(B) Programs that monitor the content and usage
of email.
(1) Monitoring Employee Performance
i. Documenting and archiving all activity on the
Internet. ii. Blocking access to specific
websites.
(C) Internet Access Control Software
i. Monitoring the content of phone conversations
(usually by listening in on another line) ii.
Telephone call accounting (tracks and records
information about phone calls)
(D) Monitoring of Telephone Use
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Diagram 1I .Contd 1/
i. Active badges ii. Closed circuit televisions
and video monitoring iii. Web cameras and peer
group monitoring (also known as peripheral group
monitoring)
(E) Tracking employees within the walls of the
company
(2) Tracking Movement
(F) Tracking employees outside the walls of the
company (e.g. using GPS technology)
i. Vehicle tracking ii. Personal tracking
(G) Identification Badges and Cards, Passwords,
and Passes
(3) Access Control
i. Fingerprinting and Hand Geometry ii. Face iii.
Eye or Iris iv. Voice v. Signature and
Handwriting vi. Others (footprint, odor)
(H) Biometric Technologies
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Diagram 1I .Contd 2/
(I) Genetic Testing
(J) Physical Exams, Medical Records
(4) Monitoring Personal Characteristics or Traits
(K) Drug and Alcohol Testing
(L) Lie Detector Testing
(M) Psychological Profiling or Testing
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Closed Circuit Television Cameras (CCTV)  
It is estimated that Londoners are monitored by
500,000 CCTV cameras (by businesses and public
institutions), meaning 1 camera for every 14
peoplehttp//www.urbaneye.net/results/ue_wp6.pdf
from this websitehttp//www.urbaneye.net/result
s/results.htm
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What is Radio Frequency Identification (RFID)?
Radio Frequency Identification (RFID) is a type
of automatic identification system. The purpose
of an RFID system is to enable data to be
transmitted by a portable device, called a tag,
which is read by an RFID reader and processed
according to the needs of a particular
application. The data transmitted by the tag may
provide identification or location information,
or specifics about the product tagged, such as
price, color, date of purchase, etc. The use of
RFID in tracking and access applications first
appeared during the 1980s. RFID quickly gained
attention because of its ability to track moving
objects. As the technology is refined, more
pervasiveand invasiveuses for RFID tags are in
the works. In a typical RFID system, individual
objects are equipped with a small, inexpensive
tag which contains a transponder with a digital
memory chip that is given a unique electronic
product code. The interrogator, an antenna
packaged with a transceiver and decoder, emits a
signal activating the RFID tag so it can read and
write data to it. When an RFID tag passes through
the electromagnetic zone, it detects the reader's
activation signal. The reader decodes the data
encoded in the tag's integrated circuit (silicon
chip) and the data is passed to the host computer
for processing Electronic Privacy Information
Center, available at http//www.epic.org/privacy/r
fid/
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What is Data Mining?
  An information extraction activity whose goal
is to discover hidden facts contained in
databases. Using a combination of machine
learning, statistical analysis, modeling
techniques and database technology, data mining
finds patterns and subtle relationships in data
and infers rules that allow the prediction of
future results. Typical applications include
market segmentation, customer profiling, fraud
detection, evaluation of retail promotions, and
credit risk analysis.
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What is Knowledge Discovery?
Knowledge discovery is the process of extracting
information from data. Data mining uses
sophisticated statistical analysis and modeling
techniques to uncover predictive patterns and
relationships hidden in organizational databases
patterns that ordinary methods might
miss.   Source http//www.twocrows.com/index.htm
 
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What is Biometrics?
  Biometric technology involves the automatic
identification or verification of an individual
based on physiological or behavioral
characteristics. Such authentication is
accomplished by using computer technology in
non-invasive way to match patterns of live
individuals in real time against enrolled records
that use face, iris, hand, fingerprints,
signature, and voice measurement in applications
such as border control, information security,
physical access control, financial privacy
safeguards, time and attendance management, law
enforcement, and other civil and government
use.   From the International Biometrics
industry Association.
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Consumer Participation Hierarchy and Consumer
Profiling
Advertisers divide consumer participation into a
six level hierarchy The highest tier, tier six
of the hierarchy, is comprised of the
''cosmopolitans''. They tend to be mature adults
in between the ages of 30-44 and are very
proactive in making consumption decisions.
Cosmopolitans tend to have higher levels of
education but not necessarily higher levels of
income. Tier five of the hierarchy is made up
of the ''opinion leaders''. These consumers tend
to be college graduates, professionals, and
managers, and have the highest income  Tier four
of the hierarchy is made up of the ''active
consumer''. They are comprised of skilled crafts
people. They are generally erratic
consumers. Tier three of the hierarchy is made
up of the ''dependent consumer''. This is the
stereotypical and average consumer. They tend to
have lower levels of education and income and are
generally poorly informed about consumer choices.
 Tier two of the hierarchy is the
''hi-dependent'' consumers. This group makes very
poor consumer decisions, and has a very low
desire for consumer information. They rely on
others to make their consumer decisions for them.
This group is lower in education and lower in
income. Finally, tier one of the hierarchy are
the ''non-decision makers''. This group tends to
make decisions based on default options or they
leave consumption decisions to someone else.
Tiers two and three make up 60 of all
consumers, with tier one making up another 28.
This leaves only 12 of consumers who are well
informed, desire multiple forms of consumer
information, and do well in perceiving consumer
needs and problems. With the above information
one can begin to create a general profile of
their ideal customer.   Darrin Coe -
advertising Posted 11/08/04
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Hofstede Index
Source C\Documents and Settings\shamo\Desktop\UN
ESCO\Workshop Series\Third WShop\Hofstede
Index.htm

• One of the most-often cited works on the
  relationship between culture and Internet use is
  the work of Geert Hofstede (www.geert-hofstede.com
  /hofstede_dimensions.phb), which he extended to
  some of the MENA countries. Basically, Hofstede
  developed a four-way index, which, according to
  him, taps peoples orientations in general. When
  extended to the analysis of orientations to
  privacy, the literature suggests the following
•  
• Power Distance Index (PDI) societies with high
  PDI score tolerate a greater level of inequality
  between groups possessing greater and lesser
  power. Higher scores are also associated with
  greater mistrust of more powerful groups. There
  is a positive association between interpersonal
  trust and concern for informational privacy.
• Individualism (IND) high IND score signifies
  independent life style and the right to a private
  life. Low scores for IND reflect a preference
  for collectivism, and a loyalty to a tightly knit
  group. Although the literature is not
  conclusive, collectivist societies have a greater
  tolerance for groups/organizations intruding upon
  the private life of the individual.
• Masculinity (MAS) higher scores of MAS indicate
  greater levels of inequality between males and
  females and place greater emphasis on achievement
  and material success over caring relationships
  and quality of life. Societies with a high MAS
  score place more emphasis on the economic
  benefits of using private information (either
  through selling of personal information or
  exchanging it for profit and benefits), over
  caring relationships and quality of life.
• 4. Uncertainty Avoidance Index (UAI) Societies
  with high UAI tend to reduce their uncertainty
  and insecurity by embracing clear written rules
  and regulations, and might be more likely to
  alleviate their concerns about info privacy by
  introducing higher levels of government
  regulation.

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Hofstede Index .Contd 1/
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Hofstede Index .Contd 2/
Source http//www.geert-hofstede.com/hofstede_di
mensions.php
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Heuristic Model Relating Values and Structural
Variables to Attitudes towards Privacy

• Countries
• Brazil
• Canada
• China
• France
• Hungary
• Japan
• Mexico
• Spain
• USA

Types of Privacy Bodily Information
Communication Territorial
Values PDI UAI IND
Hofstede MAS ST/LT Trust
Generalized Trust System Trust
World Security
Values Risk
Survey Justice Procedural
Substantive
Experience with and Knowledge about Technology
Attitudes to Privacy and their Context High
sensitivity Low sensitivity
Globalization
Role of Actors Workers Travelers
Consumers Citizens
Telecom Regulation Legislation
Demography Age Gender Region Etc.
Diffusion of Internet
- Cost of Internet - Cost of ICT
Level of Development GNP (Wealth) Level
of competence (RD) Sectoral
Distribution Tertiary Education
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References

• Selected References on Information Technology
• on Electronic Profiling and Privacy with Special
  Reference to the Middle East
•  
• American Civil Liberties Union (ACLU), How the
  American Government is Conscripting Business and
  the Individuals in the Construction of a
  Surveillance Society, New York, 2004.
• Electronic Privacy Information Center, Privacy
  and Consumer Profiling, at http//www.epic.org/pri
  vacy/profiling/, 2004
• Fandy, Mamoun, Information Technology, Trust and
  Social Change in the Arab World, Middle East
  Journal, Vol. 54, No. 3, 2000, pp. 378-394.
• Hill, Carole E., Karen D. Losch, Detmar W.
  Straub, and Kamal El-Sheshai, "A Qualitative
  Assessment of Arab Culture and Information
  Technology Transfer," Journal of Global
  Information Management, Vol. 6, No. 3, Summer,
  1998, pp. 29-38.
• MADAR Research, Dubai Knowledge Economy
  2003-2008, Vol. 3, 2005
• MADAR Research, UAE Information Technology
  Market Forecast to Grow to 2.22 Billion by End
  2008, Led by Service Sector, December 2003.
• OpenInitiative, Internet Filtering in the United
  Arab 2004-2005, Feb 2005
• Rand, 9 to 5 Do you Know if Your Boss Knows
  Where You are? Case Studies of Radio Frequency
  Identification Usage in the Workplace, Santa
  Monica, California, 2004.

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References Contd 1/

• McSweeney, Brendan, Hofstedes Model of National
  Cultural Differences and Their Consequences A
  Triumph of Faith A Failure of Analysis, Human
  Relations, Vol. 55, No. 1, January 2002, pp.
  89-118.
• Spigelman, Shai-Lee, Islam and Internet
  Diffusion, Kennedy School of Government, Harvard
  University, circa 2000.
• Nour, Samia Satti, ICT Opportunities and
  Challenges for Development in the Arab World,
  United Nations University, 2002.
• Yurke, Shannon, Summaries of Key Articles on
  Electronic Privacy and Cross-Cultural
  Differences, 2005, available from the author
  upon request.
• Zakaria, Norhayati, Jeffrey Stanton and Shreye
  Sarkan Barney, Designing and Implementing
  Culturally Sensitive IT Applications. The
  Interaction of Culture, Values and Privacy Issues
  in the Middle East, Information Technology and
  People, Vol. 16, No. 1, 2003.
• Zureik, Elia Conceptual Framework for the Study
  of ICT in the Arab World with Special Reference
  to Palestine, Paper presented at the Fifth
  Mediterranean Social and Political Research
  Meeting, European University Institute, Florence,
  Italy, 2428 March 2004.
• Zureik, Elia with Abbe Moshowitz, Consumer Power
  in the Digital Society, Communications of the
  ACM, (forthcoming 2005)
• Zureik, Elia with Karen Hindle, Governance,
  Security and Technology The Case of Biometrics,
  Studies in Political Economy, No. 73, 2004.
• Zureik, Elia, Some Thoughts on How to Study
  Privacy in the Middle East and North Africa
  Region A Think Piece, 2005, available from the
  author upon request.