Data Privacy Concerns and their Impact on Consumer Trust in Digital Marketing

Data Privacy Concerns and their Impact on Consumer Trust in Digital Marketing

DR.T.Chandrasekhar Yadav
Associate Professor, KL Business School, Koneru Lakshmaiah Education Foundation, Green Fields, Vaddeswaram Campus, Guntur District, A.P.   ORCID NO: 0009-0001-4694-9954

Kasturi Kala (2200560277)
III BBA, KL Business School, KLEF

Raja Ishwarya Roy Kolachina (2200560199)
III BBA, KL Business School, KLEF

Mourya Chandra Kanneganti (2200560203)

 III BBA, KL Business School, KLEF

Shanmukha Sai Pasupuleti (2200560279)

III BBA, KL Business School, KLEF

Abstract
The rise of digital marketing has transformed consumer-brand interactions through personalized strategies and targeted ads driven by extensive consumer data. However, increased data collection has sparked privacy concerns, affecting consumer trust. This study examines how data privacy concerns impact consumer trust, engagement, and willingness to share information in digital marketing. Key privacy issues include over-collection, lack of transparency, unauthorized sharing, and data breaches. Using a mixed-methods approach, with quantitative surveys of 600 participants and qualitative interviews with 30 individuals, the study measures privacy concerns, trust, and engagement levels. Findings reveal a strong negative correlation between privacy concerns and trust, with transparency in data practices and regulatory compliance (GDPR, CCPA) identified as critical trust factors. Brands that prioritize transparency, data control, and compliance foster greater consumer trust, addressing the privacy-personalization paradox and aligning with consumer expectations for ethical data use. This study offers insights into privacy-trust dynamics and provides recommendations for privacy-centered marketing strategies.

Keywords:Data Privacy ,Consumer Trust, User Consent ,Data Transparency, Data Collection Practices, Third-Party Data Sharing ,Data Breaches, Privacy Regulations (e.g., GDPR, CCPA).