New Intelligent Agent Tackles Internet Privacy Issues; Andersen Consulting experiment examines how electronic merchants can better target customers in cyberspace

Business Wire, August 27, 1996

CHICAGO--(BUSINESS WIRE)--August 27, 1996--Andersen Consulting today launched an experimental intelligent agent that may help companies better understand and target their customers on the World Wide Web. The experiment, called LifestyleFinder, is the first intelligent agent of its kind to infer consumer interests and buying preferences without invading the privacy of Internet users.

"As online companies scramble to better understand their cyberclients, they have had to rely on traditional consumer survey techniques to gather information about who is visiting their Web sites. The purpose of LifestyleFinder is to test a new methodology for collecting information about consumers while respecting their privacy," said Glover T. Ferguson, Partner and Director of Andersen Consulting's Center for Strategic Technology Research (CSTaR(r)). "It is essential for online businesses to find a way to reach their target customers on the Web, as opposed to using traditional mass marketing techniques."

LifestyleFinder explores how target marketing may be applied in the virtual world without the need for explicit demographic information about the user. Through a series of questions, the experiment gathers information about a user's lifestyle, then uses that information to suggest Web sites featuring products, places and services that may match the user's preferences. This unique approach respects a user's privacy because it does not require specific information such as gender, income or zip code. Yet, vital consumer information derived from the LifestyleFinder Web application may provide online businesses with cross-marketing capabilities.

"We expect LifestyleFinder will benefit both businesses and consumers," said Steve Johnson, Worldwide Managing Partner of Andersen Consulting's Consumer Products industry practice. "Retailers, consumer products manufacturers and many other companies may be able to use intelligent agents like LifestyleFinder to more accurately target their customers with specific marketing messages. The value to consumers is that they will receive messages related to those kinds of products and services in which they have actually expressed an interest."

To better understand the future of the virtual marketplace, Andersen Consulting is conducting a series of research projects. Last year, Andersen Consulting released BargainFinder, an intelligent agent that allows users to compare prices among eight compact disc sources offered on the Internet. To date, 11,200 users have responded to the BargainFinder Survey. Of those who responded, 91 percent reacted favorably to the concept of consumer intelligent agents.

"BargainFinder, LifestyleFinder and other research projects we are performing are designed to stimulate dialogue around the impact of intelligent agents on electronic commerce," said Ferguson. "It's important that we continue to explore the potential opportunities and threats of emerging technologies to best advise our clients as they develop their marketplace strategies."

How LifestyleFinder works

LifestyleFinder is located at Andersen Consulting's home page at http://www.ac.com; upon arriving at the home page, users will locate LifestyleFinder under the "What's New" icon. The experiment asks Internet users several questions, such as what type of housing they live in, what they drink, where they go and what type of television shows they like to watch. LifestyleFinder responds by recommending a list of Web sites that may match their interests. It also surveys them for their opinions of LifestyleFinder, whether they like the Web sites recommended, and whether or not they think LifestyleFinder invaded their privacy.

LifestyleFinder was developed by Andersen Consulting's CSTaR(r). The experiment uses PRIZM(r) lifestyle segmentation system created by Claritas Inc., Arlington, Va. PRIZM uses variables from the publicly available Bureau of Census reports, as well as consumer behavior and purchase data.

Andersen Consulting is a $4.22 billion global management and technology consulting organization whose mission is to help its clients change to be more successful. The organization works with clients from a wide range of industries to link their people, processes and technologies to their strategies. Andersen Consulting has more than 41,000 persons in 47 countries.

CONTACT: James J. Calabrese

Andersen Consulting 312-507-2058

james.j.calabrese@ac.com

or

Ellen D. Mather

Andersen Consulting 312-507-2342

ellen.d.mather@ac.com