How Data Privacy and Protection Can Affect Brand Value?
A bad cybersecurity system has made Indonesia frequently under cyber attacks. Apart from Covid 19, 2020 was also a bad year for protecting privacy data for the public. Several series of data leakage cases occurred both in government and private institutions. These cases include data leakage of 230 thousand Covid 19 patients on May 20, 2020.
“The data on Covid 19 patients are sold on the Dark web and Hacker Forum starting from citizenship status, starting date of illness, date of examination, telephone number, until home address, “said Program Director at ZTE Corps Radito Maulana Putra. He was a speaker at the Business Clinic organized by Swiss German University.
As many as 2.3 million Komisi Pemilihan Umum (KPU) data were also leaked and sold on the dark web and hacker forums on May 21, 2020. Not only government institutions, but data leaks also occurred at e-commerce such as Bhinneka.com, Bukalapak, and Tokopedia.
In today’s digital era, data has become a very important asset to protect. With the rise of the data economy, companies find enormous value in collecting, sharing, and using data. Second, privacy is the right of an individual to be free from uninvited surveillance. To safely exist in one’s space and freely express one’s opinions behind closed doors is critical to living in a democratic society.
Companies or institutions actually have a bigger role in protecting private data. Protection of private data can even affect company brand value.
To find out this impact, Radito, who is an alumnus of the SGU Master of Business Administration, has conducted research using a sampling method which was conducted on 91 Indonesian citizens who have significant experiences with a firm knowledge in the Telecom Industry. The survey was conducted as General Manager (43.5%), Vice President (20%), and Manager (34.5%) who Intend to continue to use telecom mobile services within the next 1 year.
Based on this research, it was concluded that companies that pay attention to privacy data services will strengthen service quality so that it has a direct impact on customer trust. “Companies like Google, Amazon, and Facebook build their companies with data banks. It is very important to build trust and accountability for customers,” he said.
In the study, it was also stated that data privacy and protection security has a significant and positive impact on tariffs. Middle and upper-class customers were also willing to pay more to have better data security.
On the other hand, data protection procedures also need to be designed so that they do not make it difficult for consumers. “If consumers struggle because the procedures are too complicated, it will harm company performance,” he said.
Based on the research results, Raditi concluded that data privacy protection has a major effect on brand value. He also provides tips for companies to improve consumer trust through data protection :
It has a major effect on purchasing behavior. In most cases, users had more confidence in a site because it had a policy. The impact a policy has is of course more powerful when it is read. Policies are important, not just because of what they say, but because they are there.
- Credit card icons
Even if it does not in fact imply any promise of fraud prevention or privacy protection, consumers find these icons reassuring.
- Show a contact phone number
Preference for phone information over mailing or email information. Consumers feel reassured to see a phone number to contact the company if any problems occur during the transaction.
- Development of policy simplifications and standardized indicators
Implement standardized, simple visual indicators for the risks users are exposed to. It is interesting to note the strong effect policies have even though users rarely read them. Just having a link to a policy makes a difference. This indicates that in many cases it is the presence of a policy that has a positive effect on users, not it’s content. Users are looking for “trustworthiness”, not based only on fact but rather on appearance and first impression.
Interested in knowing more about Brand Value? You can learn it by studying the Business and Management Study Program at SGU for a bachelor’s degree. You can also continue your postgraduate program in the Master of Business Administration Study Program at SGU.
SWISS GERMAN UNIVERSITY (SGU) is an international university in Indonesia, was established in 2000 as a joint effort between Indonesia, Germany, Switzerland, and Austria. We are the pioneer in offering international curricula in Indonesia.
Qualified students can graduate with a Double Degree from Indonesia and Germany, which SGU provides in cooperation with partner universities; surely a valuable tool for your future careers. Ever since its establishment, SGU has been dedicated to delivering quality education in line with international standards and aims to develop skilled professionals who meet the demands of the industry. To achieve its objectives, SGU offers quality-oriented learning through 12 Bachelor’s Degree Programs and 4 Master’s Degree Programs ranging from Engineering, Information Technology, and Business to Life Sciences and Social Sciences. Furthermore, with small class sizes, and with English as the medium of instruction, you can look forward to pursuing your tertiary education and degree with full confidence.***