For instance, when shopping for smartphones, nearly one in two people (48%) report thatdata security is one of the top three factors in their purchasing decision, a consideration thatproved important for more people than the style, design, warranty, and size of the product.Data security and privacy considerations are also impacting other purchasing decisions. Onein two people buying a personal computer and 42% of those shopping for tablet computerssay that data security is among their top three considerations
for the former, outweighingthe physical dimensions, style, and design of the device and for the latter, factoring in almostequally.
“The message of this study is clear,” said Pete Pedersen,
hairman of Edelman’s
ractice. “Business leaders must begin to think about
managing data securityand privacy as a core competency
one that has real potential to affect a company’s bottom
The fallout for businesses is not limited to those in the technology sector.
study also indicates that people around the world are hesitant to do business with
company they perceive is incapable of protecting their data. Nearly half (46%) of thosesurveyed report leaving or avoiding companies that have suffered a security breach. In thewake of a data breach, individuals are even willing to abandon the companies they trustmost. Globally, Americans are the most reluctant consumers to part ways with businesses towhich they are loyal, yet one in two say they are likely to change brands after a data breach.The potential for customers to jump ship increases for companies that lack brand loyalty,with 70% saying they would switch providers after such an event.Data security and privacy concerns are also impacting
trust in business. Shoppingand banking are the most popular online activities, and while data security in these industriesis important to many consumers, far fewer say they actually trust banks and online retailersto protect their personal information. So, while 92% of people globally consider data securityand privacy important in the financial industry, just 69% trust financial institutions toadequately protect their personal information: a 23 point gap. Online retailers fared evenworse. While 84% indicate the security of their personal information is important to them