all bits considered data to information to knowledge

3Jun/120

Ethical limits of Business Intelligence

Intelligence of all kinds can be gleaned from the mounds of data accumulated from our daily interactions with the outside world such as business intelligence or social intelligence. It then can be used to manipulate our behavior to the benefit of the data collector/analyst.

Here is, for example,  how IKEA and Costco utilize information "to turn browsers into buyers, and making buyers to spend more". A new layout of the store floor or combination of sounds/lights/olfactory stimuli to put us in "buying mode", targeted advertising, mass customization based upon data collected from purchasing history, Facebook, LinkedIn, Google+... For example:

"In research yet to be published, a University of Alberta team has proven that what we smell and hear affects what we buy: When a sample group smelled the relaxing scent of lavender, 77% wanted a soothing iced tea, but when the same group smelled the arousing aroma of grapefruit, 70% reached for an energy drink. When the researchers played Mozart’s Sonata in D Major at a slow tempo, 71% wanted iced tea, but when the piano piece was sped up, 71% wanted an energy drink — an exact reversal."

Where does "legitimate use" stop and "Brave New World"/"1984" take over?

Where is this limit after which these "insights into consumers" behavior become invasion of privacy?