By Dennis Powell, e-Management
Is Big Data is another way of saying predatory online marketing? You decide.
Big data as the name suggests is all about large volumes of information. More and more schools, government agencies, retailers, and other organizations are analyzing big data to learn more about people. Big data players include Amazon, Facebook, and Google, to name a few. Naturally, consumer profiling by these and other companies has led many to be a little concerned about issues around privacy and has left other consumers frustrated because of what they see as predatory online marketing. Think about those ads that follow consumers everywhere online following an innocent search on Google or Bing. Yeah, that’s big data analytics at work. But is Big Data bad or good? We’ll let you decide…
The Potentially Bad Stuff…
- Exclusion Based on Highly Sensitive Data: In a 2016 U.S. Federal Trade Commission (FTC) report (Big Data: A Tool for Inclusion or Exclusion?), the federal agency examines big data and fairness. The report raises concerns that companies may be making decisions by “incorporating errors and biases” into big data analytics. Such decisions, according to the report, could result in “potential discriminatory harms.” One example given is how analytics from social media “likes” could reveal sensitive information about consumers’ political affiliation, faith, and recreational habits (e.g. smoking, drinking, etc.). Sensitive information taken out of context could lead to excluding consumers from employment opportunities, services, and products.
- Bad Guys Trying to Dupe Seniors (and Others) into Making Poor Decisions: Big data can be used by individuals and companies looking to scam consumers as well. The same FTC report gives examples of companies obtaining lists from people who respond to sweepstakes or ailing seniors. Apparently, these consumers may be the most susceptible to being victims of fraud.
- Low-Income Consumers Getting Bad Deals: A Huffington Post article from Nathan Newman explains how big data can harm low-income shoppers. The article points to “free services” that come with the high-price of giving away personal information so that companies that use big data can “exploit” consumers. Examples of this is when finance companies single out low-income consumers by using targeted ads made possible by big data and then markets high-interest rate services such as payday and subprime loans to the audience. Big data obtained from free services and mobile apps can also lead to “price discrimination” where some consumers pay more for the exact same service. Well, that’s definitely not good.
The Potentially Good Stuff…
- Better Products: Many companies are investing more and more marketing dollars to track what people say and do online—collecting information about what consumers like, dislike, and need. Data collected help companies launch new versions of cool stuff. People who get excited about the latest Samsung or Apple update can probably thank big data analytics for those innovations and new features like a smartphone that keeps working even after you drop it in water. What took them so long to get that one to market? *smiles*
- Better Service: People do business with people they like. Big data helps companies, schools, and other organizations to tailor a better and arguably more personal experience. Writer Larry Alton points to the fact that organizations that leverage big data get their information from surveys, social media, and other online reactions to offer the best service based on your particular pet-peeves and preferences.
- Better Deals & Decisions: Many consumers also benefit from websites and apps that use big data to pull together useful information. Think comparison shopping. For instance, couples who are planning to marry get a better idea of costs from a that estimates expenses of weddings. Many motorists cringe when there are signs of auto mechanical issues. Well, there are places to get accurate information on how much drivers should be paying for auto repairs. There’s Nextag® that gives shoppers the power to get the best deal on millions, that’s right millions of products. These convenient tools are all powered by big data analytics.
Your Thoughts…
Like any promising technology, big data analytics can be used to enhance customer experience or exploit vulnerable people. We’d love to hear from you: (1) What are your thoughts on big data? (2) How much information are you willing to give up to improve your customer experience or bring new products to market? (3) Where does your privacy fit into the big data conversation?
Tags: , analytics, Android, , apps, big data, Bing, Dennis Powell, , FTC, , HTC, iPhone, Motorola, Ola Sage, Samsung
This is a good reminder to always be vigilant. Everything that looks or appears good is not always a good thing for consumers or just for fun. So much of what we do, and assume or desire to be private is NOT. That being said, just like with everything we deal with in life, do your homework, know the pitfalls as well as the upside to anything whether its social media or purchasing products. It is unfortunate that companies use certain tools to exclude individuals from employment. I will though say if the information is accessible, I can’t blame them for using whatever possible means to employ the person they feel is the most qualified or unqualified due to possible affiliations not suitable for the type of work. The sad reality is on the surface this is a good idea, but like with most things in our country, you have a percentage of people who will use any such devices in a corrupt and perverted manner. Thanks for shedding light on such an important issue.
This is a great read and very informative. Gives a lot of insight into how companies collect data.
This is an awesome article Dennis. I am always concerned with data and the use of it when it comes to how easily our data is shared via social media websites and more importantly how our preferences are managed/monitored through our purchases and/or credit card transactions. Data can tell us a lot about individuals behaviors and habits while also predicting trends. It is incumbent on the individual to KNOW what they are signing on board for when we create accounts and use sites that we know collect use data as we can curb/curtail the amount of information that is readily available through our web presence. Always keep in mind your web activity as well as what type of data and/or images we are putting into the web ethers. Don’t always check the box when asked if data can be collected. Create NEW user names and passwords when logging into NEW sites instead of using Facebook or google+ credentials. We can’t stop the web and/or business from tracking our activities but we certainly don’t have to share EVERYTHING that we do. Using cash to purchase things that you may not want people to know that you are purchasing is also an option. Welcome to the digital WORLD! Thanks for sharing this article!
No matter what there are going to be people out there trying to figure out how to take advantage. I think big data really does have a lot of advantages even as someone who would like to protect my privacy. Good information thank you for sharing.
An informative article Dennis, thank you. This collection of personal data can feel a little like big brother but as with everything there are pros and cons. It’s just being aware of what is being collated and for which purpose. Now if I am going to be sent discount vouchers or special offers based on my predicted purchases then I can live with that! However blatant exploitation of the needy or vulnerable is unacceptable and should be governed by a code of ethics. #cookies
I have come to accept that I’m being spied upon constantly, that is, whenever I use the Internet. I can live with that. I also follow the mantra that if it is too good to be true, it is too good to be true. I expect no freebies and expect that everything offered to me is to benefit someone else and ultimately not me. I therefore ignore most of the fig leaves that come my way. This is allowed me to live simply and I think I enjoy this approach. Even if I purchase an item on supposedly a sale price, I feel as if I’m being scammed. I, however, do not lose sleep over it. I think the only way to avoid all this is to live off the grid. I have not figured out a way to do that…..yet!
@Keith Yearwood, I accept big data collecting information on me. Like you, I know that nothing is free…especially those “free apps” and private media websites. Thank you for your continued support of the the e-Management blog.
@Fauzia B Karim, A code of ethics in big data is definitely something that could come out of the FTC report mentioned above… if anything, the report may help marketers and employers to think twice before eliminating potential workers and costumers. Thank you for your continued support of the the e-Management blog.
@Oona Mulkey, I tend to agree that I enjoy the benefits of big data. It may be because I am “obsessed” with all things marketing. I appreciate your sharing your thoughts. Thank you for your continued support of the the e-Management blog.
@DJ Suspence, I agree that as long as we live in the 21st century it is difficult to avoid government and commercial organizations from collecting data about our behavior. I agree that we do not have to give up information for the latest free technology. I pick and choose my “battles” in this regard. Thank you for your continued support of the the e-Management blog.
@Darryl C, I appreciate your reading this posting. Thank you for your continued support of the the e-Management blog.
Interesting article, particularly as it relates to my profession of marketing research. Big Data OR quantitative methods or measuring behavior patterns and preferences has diminished the role of custom or qualitative work that often brings more insight to the potential “bad stuff” you reference. From an individual standpoint, it will be hard to be provided with any amount of services/enhanced user experience without literally “giving up the goods” …in this case, access to almost every action you take. We used to try and delete cookies and cache. Now, is the incognito browser REALLY private? Hmmmm. Nice thought provoking piece
@Brian Hamlet, I think everyone should definitely learn more about how their favorite apps and companies are using data analytics. A good start is probably read disclaimers and privacy policies before checking “I agree.” Thank you for your continued support of the the e-Management blog.
@Michael Smith, I appreciate your sharing your marketing research perspective. I agree that it takes people (or teams of researchers) to provide better insight into what data actually means. By the way, love the rhetorical question. Thank you for your continued support of the the e-Management blog.
This is a great article. Too often we read and see the scams and abuse of marketing and advertising on individuals especially the elders. However, we often see the news report warning and advising folks on these scams, yet they turn a blind eye. My take on it, everyone is in this universe to make money, they claim money makes the world go round. You can never knock a person’s hustle. Why are we so lazy to knowledge and educating our minds? Why are we so eager and easy to listen to a word of mouth, than simple researching, reading and putting substance in our mind? It’s the new culture of where we are as a society and people, we are eager and materialistic by the new trends, wanting things of less value than true substance. We don’t take the time to review the risk, we choose to open ourselves to criminals, do you blame the criminals at that point or do people need to pay attention and take responsibility? I personally don’t give any of my information to anyone I am not able to do a background check on. If I can’t find your business on consumer report, then your business is of no use to me. I also train my mind to not be caught up with the material ways of life.
This is informative and timely! Although I completely understand the dynamics I know and deal with the pitfalls of bad side a lot. Much of what’s been said I agree with. I can only add that companies go further then most realize to win your information. Many fall prey to the fun games used in social media not realizing it’s simply an effort to coll then sell your information. Again, great piece Dennis!
@Tamara Hamil It sounds like you are saying we all need to research the risks before we buy into any new business transaction, service or app. Thank you for your continued support of the the e-Management blog.
@Melissa Quick, Exactly. A lot of social media tools are in place to collect your personal information so that it can be monetized. Some people are okay with this reality. Many others struggle with it. Thank you for your continued support of the the e-Management blog.