Why Privacy Is More Than Data Security: Lessons from Psychologists Studying the Impact of Privacy

While I run a market research agency by day, one of the other hats I wear is President of the Society for Media Psychology and technology. At this year’s American Psychological Association convention in Denver, the Society for Media Psychology and Technology hosted a symposium that felt tailor-made for anyone in market research or brand strategy. We examined the psychology of privacy – not from the perspective of encryption protocols or compliance checklists, but from the deeply human drivers that determine whether people trust us enough to share their stories.

Despite decades-old calls for more psychological research into privacy, our field (both market research and academia) has largely left it understudied. That’s a missed opportunity for marketers, insights professionals, and brand builders, because privacy isn’t just about protecting data – it’s about protecting the relationship between your audience and your brand.

The Dimensions of Control

Dr. Kelly D. Martin, a marketing professor at the Colorado State University College of Business, presented findings that challenge the notion of privacy as a single construct. In studies conducted in Germany, she and her colleagues found that people distinguish between controlling the collection, submission, access, and use of personal information.

One example hit especially close to home for anyone designing customer experiences: when participants were asked to provide their body measurements for a custom clothing company, they trusted the process far more when they could measure themselves and enter the numbers manually. When the exact same data was captured via an AI-enabled camera, distrust spiked – even though the end result was identical.

Why? I hypothesize that the method changes the relationship. The camera feels like it’s taking more than just numbers – perhaps stripping away power over one’s identity or leaving room for hidden inferences. As market researchers, we know the details of how we collect information matter, but this illustrates just how much those details can impact the trustworthiness of the brand.

Privacy as Story Ownership

Dr. David C. Evans, a director of market research at Microsoft, expanded the conversation, arguing that privacy is less about data in isolation and more about our ability to control our own life story. Across research in the U.S., Germany, and Singapore, he found that when people think about privacy, they link it to ownership, space, decisions, relationships, and identity.

From a narrative psychology perspective, this makes perfect sense: the best stories include data and details that belong wholly to the storyteller. If that data is leaked or reframed without consent, the storyteller loses the ability to control how the story is told – even if the facts remain technically accurate. That loss of framing is a loss of agency.

For brands, this means that when we mishandle customer data, we’re not just breaking a rule – we’re disrupting someone’s ability to be the author of their own story.

Trust as the Ethical Core of Brand Relationships

In market research, customers let us into some of the most intimate corners of their lives. They reveal not just behaviors, but values, fears, and aspirations – all vulnerabilities. Trust, in both human and brand relationships, is built on the belief that the other party will protect those vulnerabilities.

If we want to deepen relationships between brands and their audiences, we need to think of privacy not only as a legal obligation but as a narrative and ethical commitment. Protecting data means protecting the integrity of the customer’s identity and story.

For insights professionals, that means:

• Designing data collection experiences that respect perceived control (think Dr. Martin’s manual vs. camera example).
• Recognizing the narrative stakes (per Dr. Evans, data is part of the customer’s self-story).
• Embedding privacy ethics into brand promises, so that customers feel confident their vulnerabilities will be protected and their stories will be told on their terms.

As AI reshapes how data is gathered and applied, the organizations that will stand out are those that see privacy not as a checkbox, but as a cornerstone of brand trust. The most successful brands will be those that approach data collection and use with the same care they would handling a personal diary – with respect, discretion, and an understanding that the information inside is inseparable from the person who shared it. In the narrative economy, protecting privacy is protecting the story – and protecting the story is protecting the relationship.

Key Takeaways for Market Researchers & Brand Leaders

1. Method Matters – The way data is collected can change trust levels as much as the type of data collected.
2. Privacy Protects Narrative – Mishandling data disrupts a customer’s ability to frame their own story, damaging brand relationships.
3. Trust = Protecting Vulnerabilities – Treat personal data like personal stories; your brand’s integrity depends on how you handle them.