Research Shows How Companies Can Gain Advantage by Prioritizing Customer Privacy
Research Shows How Companies Can Gain Advantage by Prioritizing Customer Privacy
https://www.digitalinformationworld.com/2026/02/research-shows-how-companies-can-gain.html
Publish Date: 2026-02-19 05:23:00
Source Domain: www.digitalinformationworld.com
by Sheri Irwin-Gish
Assistant Professor of Marketing Natalie Chisam’s research shows that clear, transparent data stewardship can provide companies with a competitive advantage.
Image: Freepik
For many companies, customer privacy is often seen as a regulatory burden that limits data use and personalization rather than as a business opportunity. Research by Natalie Chisam at the University of Nebraska–Lincoln reveals companies that handle customer data with transparency, care and clear communication can gain a measurable competitive advantage through what researchers call privacy stewardship.
The research, published in the Journal of Marketing, draws on large-scale studies and experiments and finds such strategies lead to stronger customer patronage and higher financial returns. Co-authors include Jordan W. Moffett of the University of Kentucky, Kelly D. Martin of Colorado State University and Robert W. Palmatier of the University of Washington. The research also will be featured in the May issue of Harvard Business Review.
“Privacy doesn’t have to be a constraint. It can be a catalyst,” said Chisam, assistant professor of marketing. “When companies treat privacy as more than a compliance checkbox, framing it as a meaningful commitment to data protection and customer care, they can unlock measurable business results.”
The findings suggest prioritizing privacy can benefit both customers and companies’ financial performance.
“Trust is a scarce resource,” she said. “Brands that signal they care about privacy can differentiate themselves in a crowded marketplace.”
The research reveals a clear pattern: Customers reward brands that manage data privacy responsibly. Yet many companies struggle to implement privacy stewardship effectively.
“Organizations either underinvest or pursue initiatives that fail to resonate with customers,” she said. “The key is to match privacy efforts to what customers expect and the level of risk they perceive.”
Chisam…
