Recent studies have find out that nine out of ten people in the Netherlands are somewhat active on social media platforms. This means that all these people have registered themselves on these social media sites. Nowadays, we are almost obligated to fill in personal information on sites in order to obtain certain context. Whether it is on social media sites or in web shops to order products, we need to register and fill in user details. Just think about it. You want to buy a pair of jeans online: you have to at least fill in your name and address. You want to log in on FB: you have to fill in your name and your email-address. And we almost always fill it in, just like that. Most people don’t even give it a second thought; they feel it is completely normal to give their personal data.
People have to make a trade-off between positive network externalities and negative network externalities. Positive network externality is the phenomenon that the value of the network to each user increases. Negative network externality is the concept of increasing privacy concerns that people experience when registering on a site.
In the article ‘What drives website registration (2016)’, the authors gave several advantages of user registration. The first advantage of users is that they are able to get access to a restricted area. A second advantage is that they can receive personalized advertisements. There are also disadvantages. A negative effect of registering is the fact that it is making it easier for others to invade people’s privacy through trolling, stalking and cyber bullying. Besides that, it also makes it easier to become a victim of identity theft. An advantage of user registration for websites is that it is a way to gather all kinds of information to be more efficient and to target customers. It is also a tool to develop closer relationship with users. The disadvantage for websites is that they can get in serious problems when personal data is stolen from the server.
The above-mentioned advantages are the reason why a lot of people enter their data on sites. However, we don’t know what these sites are going to do with our data. For example: Facebook started using data from their messaging app in order for their advertisers to better targets Facebook users. Facebook users were not aware of this. There is always a chance for loss of privacy when private information on a site is being stolen or misused. Websites try to convince customers that the data they enter will be safe with trying to build trust. They do this with showing popularity information, such as the number of registered users on a site, and/ or with Word of Mouth information that shows credibility.
There are obviously advantages and disadvantages of registering on websites. The most important lesson here is that sites have to protect their customer data as good as possible. Do you perceive providing personal information on a site to be risky? Do you ever think about what might happen when your personal data would be stolen?
Sources:
Li, T., and Pavlou, P. 2016. What Drives Users’ Website Registration? The Network Externalities versus Information Privacy Dilemma
Oosterveer, D (2016), Social media in Nederland 2016: Whatsapp overstijft Facebook, http://www.marketingfacts.nl/berichten/social-media-in-nederland-2016-whatsapp-overstijgt-facebook
Robertsen, A (2016), Protecting our privacy privacy online, http://www.thenational.ae/opinion/editorial/protecting-our-privacy-online