Data Privacy and Consumer Trust in Social Media Marketing

Abstract

In today’s digital landscape, social media marketing is pivotal in consumer engagement and brand outreach. However, the increasing concern over data privacy has raised significant ethical and regulatory issues. Companies leverage vast amounts of consumer data to personalize advertisements, but unauthorized data collection, lack of transparency, and frequent data breaches have eroded consumer trust (Smith et al., 2021; Jones & Patel, 2020). This research investigates the relationship between data privacy practices and consumer trust, analyzing key factors such as regulatory compliance, ethical data handling, and transparency in social media marketing. The study utilizes a survey of 100 respondents to evaluate consumer perceptions of data collection, privacy policies, and security practices. Findings indicate that a majority of consumers are skeptical about data security and demand stricter regulations, greater transparency, and control over their personal information (Brown & Green, 2018; Lee, 2019). Data breaches significantly impact brand loyalty, and businesses that fail to adopt robust privacy measures risk losing consumer confidence (Garcia & Lee, 2021). Ethical data handling, clear privacy policies, and compliance with regulations like GDPR and CCPA can help restore trust and sustain long-term consumer relationships (Davis et al., 2019; Wilson et al., 2022). This study underscores the necessity for businesses to balance personalized marketing with privacy protection. By implementing secure and transparent data policies, companies can foster consumer trust, enhance brand reputation, and ensure sustainable engagement in the digital marketplace.