Have you ever wanted to buy something um, personal for your partner for Valentine’s Day, their birthday or your anniversary?

Depending on what the item is, it’s pretty likely that if it’s of a sensitive nature that requires brown paper wrapping, you’d do anything to keep it discreet.

A  Mellon University study has found that many retailers focus far too much on discounting – and don’t realise the importance online consumers place on privacy when making online purchases.

Published in the Information Systems Research Journal, the study aimed to challenge the idea that consumers don’t care so much about privacy.

Initially, the researchers used Privacy Finder, a search engine that designates a privacy meter rating for results. They then proceeded to survey the central issues regarding online privacy of its participants, all of whom were at least 18 years old.

In the experiment, the participants were divided into three groups—one group saw the privacy rating of the online sellers, another saw the privacy rating but were told that the rating simply showed the “handicap accessibility” of the website (this was called the irrelevant indicator condition by the researchers), and the third group did not see the privacy ratings at all.

All participants were given $45, and were told to buy two products: a vibrating sex toy and Duracell AA batteries. The average cost of each products was $15, with variations in prices depending on the discounts and the privacy policy of the online seller.

When the participants in their respective groups made their battery purchases, the privacy group made the most purchases—47.5% bought items in high privacy sites. Only 5.6% of participants in the group with no indication of privacy rating purchased items.  In buying sex toys, as many as 33.3% of the high privacy rating group made purchases, while none of the group with a no-privacy rating bought a sex toy.

To drive home the point that online consumers are willing to pay extra for online privacy, the study also showed that participants were willing to pay an extra 59 cents when buying batteries, in exchange of privacy protection.

This study is a wake-up call for retailer and buyers alike. By spending a little more, you might get the privacy you crave in sensitive gift situations.

How about you? Would you be more willing to buy a product protected by the seller’s privacy policy? Or would you rather settle for huge discounts?

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