Exploring consumer willingness to share digital personal data for marketing purposes in a blockchain-based system where consumers control and are incentivized by micropayments for their data

Abstract

Most webpages today perform some sort of tracking, gathering information about internet users through “cookies”, which are used for creating personalized advertising to target consumers. As regulations are becoming stricter and radical changes such as the “death of third-party cookies” are surfacing, there is currently a need for a new system for marketers to obtain consumer data.

In this thesis we explore one such potential system, facilitated by blockchain technology, where consumers control, and are incentivized by micropayments, for their information. The research focuses on consumers’ general willingness to share digital personal data, and how their willingness to share is affected by their attitude towards, and awareness of, online behavioral advertising and being in control and incentivized by micropayments for their their data. We also explore a possible price range and an optimal price for micropayments.

The study was conducted through an online survey with 202 respondents, mainly residing in Norway. Willingness to share digital personal data was measured by a validated framework, categorizing digital personal data in 6 categories. The survey utilized a modified Van Westendorp Price Sensitivity Meter to obtain an acceptable price range for micropayments in exchange for digital personal data.

The results from the study showed that the general willingness to share digital personal data is low, and that consumers’ willingness to share depends on the category of digital personal data. The study suggests that consumers´ attitudes towards personalized advertisements can positively affect their willingness to share information. When given the ability to control their own information collection and use, this study also suggests that consumers are more willing to share all categories of digital personal data. Monetary incentives in the form of micropayments were found to further increase willingness to share in only two categories of digital personal data. This research suggests a provisionally acceptable price range for data, where consumers evaluate NOK 2.55-3.23 as the acceptable price range, and NOK 3.01 as an optimal micropayment for their digital personal data.