Management Information System (MIS) Practice Exam

Which statement about WorldTravel would assure customers about their online privacy?

1. WorldTravel explicitly states the purpose of the information collected.

2. WorldTravel informs members that it follows industry best practices.

3. WorldTravel says their data is protected by a third party.

4. WorldTravel decides not to send spam mails to its members.

The correct answer is: WorldTravel explicitly states the purpose of the information collected.

The statement indicating that WorldTravel explicitly states the purpose of the information collected would reassure customers about their online privacy because it demonstrates transparency in data handling. When a company clearly communicates why they are collecting specific information, it enables customers to understand how their data will be used, which is a critical aspect of building trust. This practice aligns with privacy regulations and standards that advocate for clear disclosures to users regarding data collection and usage. By knowing the purpose of the information being collected, customers can make informed decisions about sharing their data with the company. It signifies that WorldTravel values customer autonomy and is committed to handling personal information responsibly. While the other statements touch on elements of privacy and security, they do not provide the same level of reassurance. Stating adherence to industry best practices or having data protected by a third party may imply security measures are in place, but these can often be vague if not accompanied by specific information about data use. Moreover, committing to not sending spam mails addresses communication preferences but does not directly relate to the overall privacy of customer data. Thus, the clarity provided by outlining the purpose of data collection is the most effective way to assure customers regarding their online privacy.