Question

1. From the viewpoint of the customer, what are the advantages and disadvantages to the opt-in versus the opt-out approaches to collecting personal information? From the viewpoint of the organization desiring to collect such information? need to be 270 word

Answer 1

Opt-In refers to the marketing technique in which an entity can send the information to the consumers only after taking permission or on receiving request from the consumer. The consumer has to affirmatively give the company his or her consent to send information about their new products or sales or offers or anything related and or to share the consumer’s details with other business entities. Normally, the consumer checks in or clicks on the website pop up boxes or voluntarily sends a request via an email to the entity for opting in.

From the viewpoint of the customer,

Advantage of opt in is that the consumer gets information based on his or her preference while the disadvantage is that the consumer is unable to know about more offers, products which may be better or may work in benefit of the consumer.

Where as, From the viewpoint of the organization,

advantage is that the entity is saved from making an extra effort for searching for consumer base. There is a fixed and permanent base that shall be loyal to the company for that particular product.The entity can put its efforts in gaining a new consumer base or market. Disadvantage is that the consumer preference has been already set, it becomes difficult to tell about their newer line of business and products.

Opt-Out marketing can be defined as the approach in which the company presumes that the consumer is always interested in knowing about the company's sales or new products or offers or anything related with it. So, the entity will send such information on its own unless the consumer says not to send it. This is known as the consumer has “opt out” of receiving the entity's information.

From the viewpoint of the customer,

advantage of opt out is that the consumer is able to get information without making any extra effort. The consumer can make an informed decision and is able to avail the best alternatives out of the information. Disadvantage can be that this approach that it may confuse the consumers who are either not fully aware of this kind of practice, or who do not wish to participate.

From the viewpoint of the organization,

advantages are-

• it is easier to capture consumer information.
• the classification of consumers can be easy as the interest of consumers can be assessed with the help of responses that they give. Further offers can be made on the basis of this.

Disadvantage is that the entity makes efforts on a continuous basis and the result may or may not be that fruitful. There is a higher level of uncertainty, risk and efforts involved.

Normally, business entities prefer opt-out approach and consumers prefer opt in approach.