The downside to big data: What triggers a backlash response in consumers to marketing?

Abstract

The idea of target marketing evolved from the 1960s change in business thinking that resulted in companies focusing on the customer instead of production and efficiency. The use of big data in marketing coupled with advances in technology since that time have afforded companies new ways to communicate increasingly targeted messages to their customers. These marketing efforts have been received both positively and negatively by the customer and have uncovered a variety of issues. Messages that connect with a self-identity of the consumer or make a connection to a reference group are well received. In addition, when a company receives permission to send targeted messages the consumer responds favorably. However, when the consumer perceives a violation of privacy occurred, or the message propagates a racial stereotype, consumers tend to respond negatively. This paper reviews the major issues that trigger positive and negative responses along with factors that trigger a backlash. Recommendations for future research are provided which include how different generations respond to target marketing as well as how companies respond to consumer backlashes.