By LISA SALAS, OVATION RESEARCH
In the dynamic landscape of New Zealand’s consumer market, market research stands as a critical tool for deciphering the wants and behaviours of consumers. This insightful practice not only helps businesses tailor their offerings to meet consumer needs but also fosters innovation and drives economic growth. However, amidst the recognition of its benefits lies a notable challenge: consumer concerns regarding data security and scepticism towards the use of artificial intelligence (AI) in market research.
Market research serves as a compass for businesses, guiding them towards informed decision-making by uncovering valuable insights into consumer preferences and behaviours. Yet, despite its undeniable importance, a significant portion of New Zealand consumers harbour apprehensions about the security of their personal data held by market research agencies.
Trust in market research hinges on transparency, integrity, and accountability. There is a growing expectation for research agencies to be up-front about their data collection practices, methodologies, and the purposes for which data is being utilised. Any perceived deviation from these principles risks eroding trust and credibility.
The recent Trust Survey reveals a striking divide: while approximately one-third of consumers acknowledge the benefits of market research, nearly half express worries about the safeguarding of their personal data. This disparity underscores the pressing need for market research agencies to prioritise data security and transparency to allay consumer concerns and maintain trust.
Moreover, the landscape is further complicated by widespread scepticism towards the use of AI in market research. Despite the potential for AI to enhance the efficiency and accuracy of data analysis, many consumers remain wary of companies that advocate its advantages. This scepticism is rooted in concerns about data privacy, algorithmic biases, and the potential for AI to infringe upon individual autonomy.
Understanding the reasons behind this scepticism and applying clear processes is vital for market research practitioners.
Robust data protection measures must be implemented to safeguard individuals’ privacy rights throughout the research lifecycle. This includes obtaining explicit consent for data collection, anonymising sensitive information, and adhering to established privacy regulations such as the Privacy Act 2020. Access controls and data encryption are vital to protect data from unauthorised access and limit access to sensitive information to authorised personnel.
A commitment to ethical AI practices, such as ensuring that algorithms are developed and deployed with careful consideration given to issues of fairness, bias, and discrimination. Mechanisms for auditing and assessing the ethical implications of AI systems should be implemented to mitigate potential harms.
As a collective industry, it’s key that we promote and support consumer awareness regarding the importance of their data, the potential risks linked to sharing it, and their entitlement to manage their personal information. When the public is well-informed, they are better prepared to handle the challenges of the digital era.
To gain trust in market research, it’s crucial to make sure that privacy, data protection, and AI use match what consumers expect and what’s ethically right. This helps lessen doubt and encourage trust, leading to better cooperation. To do this well, we need to deal with concerns about data security and doubts about AI. By focusing on being open, acting ethically, and involving consumers, we can create a trustworthy environment that helps both businesses and consumers. Through continuous communication and proactive measures, we can maintain the integrity of market research in New Zealand amid the complexities of the digital age.
LISA SALAS, OVATION RESEARCH
