Using Big Data for Personalized Marketing: Ethics and Effectiveness
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Abstract
This academic article aims to synthesize the use of big data for personalized marketing by reviewing research and case studies from Netflix, Amazon, and Spotify. It demonstrates that big data can significantly enhance conversion rates and revenue, as well as foster consumer loyalty. However, the use of vast amounts of data for business purposes raises challenging ethical issues, including privacy violations, insufficient transparency, the phenomena of filter bubbles and echo chambers, and the risks of discrimination arising from algorithms. To address these issues, best practices have been developed, such as the principles of data minimization and purpose limitation, the use of privacy-enhancing technologies (PETs), and the development of an ethical data governance framework. Furthermore, building trust through transparency, user control, and fostering an organizational culture that upholds ethics are also crucial factors.
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