The role of data privacy in marketing

http://crossmark.crossref.org/dialog/?doi=10.1007/s11747-016-0495-4&domain=pdf

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Web End = J. of the Acad. Mark. Sci. (2017) 45:135155 DOI 10.1007/s11747-016-0495-4

CONCEPTUAL/THEORETICAL PAPER

The role of data privacy in marketing

Kelly D. Martin1 & Patrick E. Murphy2

Received: 13 April 2016 /Accepted: 30 August 2016 /Published online: 22 September 2016 # Academy of Marketing Science 2016

Abstract This paper captures the current state of privacy scholarship in marketing and related disciplines. We examine theoretical perspectives and empirical findings about data and information privacy grouped according to privacys role in society, the psychology of privacy, and the economics of privacy. Although a coherent subset of research themes provide deep understanding, theoretical and empirical findings show this narrow focus also has constrained our view of privacy to consumer, organizational, ethical, or legal silos. In response, we take a necessary step toward expanding the privacy domain across these borders, emphasizing the compelling synergies that span multiple interests. We conclude by highlighting future research themes that embody a multidimensional approach, which blends the many interconnected concerns that feature in contemporary privacy questions in marketing. Since internal and external stakeholders are affected in multiple and potentially unforeseen ways by data privacy issues, additional work in this space remains critical and needed.

Keywords Privacy . Big data . Ethics . Review article

Effects of widespread access to consumers personal information are many, including vulnerability to fraud, privacy invasions, unwanted marketing communications, and highly

targeted, obtrusive marketing communications that disrupt the rhythm of day-to-day activities. More often, though, the benefits to consumers deriving from information use initiatives are widely touted. Sophisticated use of consumer data allows for personalized product offerings and recommendations, price discounts, free services, and more relevant marketing communications and media content. Marketers, in theory, can pass along additional benefits to consumers because they are able to operate more efficiently with better information. These trends have led to a heightened focus on consumer privacy by academic researchers, social critics, and regulators, yet the costs and benefits to marketers and consumers are substantial and warrant further investigation. As such, we draw from the vast marketing literature on privacy and consumer data use (as well as from information systems, the law, ethics, and other disciplines) to capture what we know, and what remains to...