Your client unexpectedly stops by, carrying three storage boxes and five thumb drives. He says that he just ran across some customer files that he thought may be useful on the project. He takes the li
2
Market research and the ethics of big data
Daniel Nunan
University of Reading
MariaLaura Di Domenico
University of Surrey
Introduction
We never, ever in the history of mankind have had access to so much information so quickly and so easily.
(Vint Cerf, ‘ father of the internet ’ , quoted in Silva 2009)
Concerns over privacy, and the collection and use of personal information, have been closely associated with the growing
influence of technology in society (Garson 1988; Zuboff 1988). As long ago as 1890, legal scholars raised concerns over the
commercial application of new photographic technologies in the newspaper industry. In their now famous paper on the
potential impacts of the future use of information technologies in commerce, Warren and Brandeis made the prescient
observation: ‘ what is whispered in the closet shall be proclaimed from the house - tops ’ ( Warren & Brandeis 1890). These
concerns have grown significantly since commercial use of the internet first became widespread in the mid - 1990s (Bush
2000). For many people, the question of how personal data are used for marketing purposes has become a defining social
feature of the internet (Nissenbaum 2004). Yet the same technology has also created significant new opportunities for market
researchers to collect and analyse information to generate more timely and relevant insights (Christiansen 2011). To date,
these two perspectives have existed side by side, albeit sometimes uneasily, with market researchers able to leverage the
internet as an important research tool within the framework of existing ethical approaches. However, the trend towards ‘ big
data ’ presents a number of challenges in terms of both the ways that personal information is collected and consumer
relationships with this information.
Because of its key role in collecting, analysing and interpreting data, many of the problems, and opportunities, of big data are
also those of market research. For market research to prosper it requires the continuing cooperation of respondents (Bednall
2010), both in terms of providing data for research studies and in giving permission for these data to be analysed. In an
environment where there are issues around increasing non - cooperation by respondents (Jarvis 2002; Curtin 2005), it is
essential for market researchers to be at the forefront of understanding emergent ethical and privacy issues. This is even more Title:
Author(syf : Daniel Nunan and MariaLaura Di Domenico
Source: International Journal of Market Research
Issue: Vol. 55, No. 4, 2013 Downloaded from warc.com
3critical where regulatory change poses a potential threat to market researchers ’ ability to collect data in the future. On the
other hand, progressions offered by big data present significant opportunities for generating new insights into consumer
behaviour. The ability to triangulate multiple data sources and perform analyses of these massive data sets in real time
enables market researchers to gather a range of insights that may not be possible using existing market research techniques.
This paper has four parts. First, we present a discussion of the key characteristics of ‘ big data ’ , highlighting emergent
technological, commercial and ethical perspectives. In the second part we consider the ways that big data may impact market
research. Third, we discuss the key role that privacy guidelines play in market research. We conclude with future directions for
market research ethics based on the changing environment brought about by big data.
Defining big data
‘ Big data ’ is a term that has quickly achieved widespread use among technologists, researchers, the media and politicians.
Perhaps due to the speed of dissemination the use of the term has been rather nebulous in nature. In order to fully explore the
role of big data in market research it is first necessary to unpack the meaning of the term. The concept of big data can be
framed by one of three perspectives. The first is a response to the technology problems associated with storing, securing and
analysing the ever - increasing volumes of data being gathered by organisations. This includes a range of technical
innovations, such as new types of database and ‘ cloud ’ storage, that enable forms of analysis that would not previously have
been cost effective. The second perspective focuses on the commercial value that can be added to organisations through
generating more effective insights from this data. This has emerged through a combination of better technology and greater
willingness by consumers to share personal information through web services. The third perspective considers the wider
societal impacts of big data, particularly the implications for individual privacy, and the effect on regulation and guidelines for
ethical commercial use of this data. We now consider each of these perspectives on big data in more detail.
Big data and technology innovation
In its original form, big data referred to technical issues relating to the large volumes of data being created (Jacobs 2009).
While the rate at which data has been generated by information technology has always been increasing, recent growth
produces some startling statistics. Take the following two examples:
1. ninety percent of all the data in the world has been produced in the past two years (IBM 2011)
2. the sum of all information ever produced by humans by 1999, estimated at 16 exabytes (16 trillion megabytes) in 1999,
will be the same as generated every nine weeks by the world ’ s largest telescope, the Square Kilometre Array, when it
opens later this decade (Redfern 2011).
At the same time as data volumes have increased, the cost of storing this information has reduced drastically. For example, in
2011, $600 would buy a disk drive with the capacity to store all the world ’ s recorded music (Kelly 2011). In providing these
statistics we seek to highlight that the big data problem is not the volume of data itself, but the issues arising with analysing
and storing this data in a way that can easily be accessed. The costs of storing large volumes of data mean that, until recently,
it has been common practice to discard information not strictly required for legal, regulatory or immediate business use. For
example, hospitals and health care providers discard more than 90% of the data they generate, including nearly all real - time
video data generated from operations (Gantz . 2007).
In addition, two other factors, velocity and variety, are significant in big data (IBM 2011). Velocity refers to the challenges in Downloaded from warc.com
4accessing stored data quickly enough for them to be useful. For most real - world uses, data need to be accessible in
something close to real time. Offering fast access to massive amounts of data at a reasonable cost is a key limitation of
existing technologies, both in terms of commonly used relational database software and the use of cheaper ‘ offline ’ tape
storage devices. Variety refers to the type of information being stored. Previously, data stored tended to be highly structured in
nature. By contrast, the types of data that tend to dominate modern data stores are unstructured, such as streams of data
gathered from social media sites, audio, video, organisational memoranda, internal documents, email, organisational web
pages, and comments from customers (Kuechler 2007).
From a technology perspective, the solution to the big data problem has occurred through the intersection of several
innovations. These include flash - based disk drives that allow much faster access to high volumes of information, and a new
generation of non - relational database technologies that make it practical to store and access massive amounts of unstructured
data. Fittingly, much of this new database technology has emerged from inside companies that run social networks, including
Google, Facebook, LinkedIn and Twitter.
Big data and commercial value
While technology has served as the enabler of big data services, the broader interest in big data has been driven by thoughts
of the potential commercial value that it may bring. This is derived from the ability to generate value from data in ways that
were not previously possible. For example, financial services are using high - performance computing to identify complex
patterns of fraud within unstructured data that were not previously apparent ( The Economist 2012). This has enabled the cost -
effective provision of financial services in areas that would previously have been regarded as too risky to be sustainable.
Another example is the use of personal location data, gained from a combination of smartphones, cell - tower tracking and GPS
navigation data within vehicles. Such information is already being used to calculate fuel - efficient smart routing, report
diagnostic information back to manufacturers or tracking applications to locate family members (Manyika . 2011). In
practical terms this gives organisations the ability to generate insights in minutes that might once have taken days or weeks –
for example, by using diagnostic information to predict quality issues or develop new understandings of consumer behaviour
(Taylor 2012).
The need to derive commercial value, and insight, from data is not new. Indeed, providing information to help support
management insights can be considered a foundation of the market research sector. However, the key difference with big data
strategies is not simply the provision of high - quality and more timely data into the decision - making process, but the
enablement of continuous autonomous decision making via the use of automation (Yulinsky 2012). For example, the use of
remote monitors for health conditions such as heart disease or diabetes, or ‘ chip - on - pill ’ technologies, could enable the
automation of health decisions (Manyika . 2011).
Big data and privacy
As the collection of unstructured data becomes more economically viable, and shifts in consumer usage of technology make a
much wider range of data available, there is an incentive for organisations to collect as much data as possible. Yet, just
because consumers are willing to provide data this does not mean that its use is free from privacy implications (Boyd 2010).
Four examples of these privacy challenges follow.
The first arises from different sets of data that would not previously have been considered as having privacy implications
concerns being combined in ways that threaten privacy. One example, albeit experimental, was discovered by researchers Downloaded from warc.com
5who used publicly available information and photographs from Facebook and, through application of facial recognition
software, matched this information to identify previously anonymous individuals on a major dating site (Acquisti 2011). In
another example, anonymous ‘ de - identified ’ health information distributed between US health providers was found to be
traceable back to individuals when modern analytical tools were applied (Ohm 2009). This creates an unintended use
paradox. How can consumers trust an organisation with information when the organisation does not yet know how the
information might be used in the future?
The second challenge comes from security – specifically the issue around hacking or other forms of unauthorised access.
Despite increasing awareness of the need to maintain physical security, computer systems are only as strong as their weakest
point, and for databases the weakest point is usually human. For all the advanced technical security used to protect the US
diplomatic network, the Wikileaks scandal was caused by a low - level employee copying data on to a fake ‘ Lady Gaga ’ CD
(Leigh 2010). For big data stores to be useful there needs to be a certain amount of regular access, often by a range of
employees in different locations. While treating data like gold bullion and storing them in a vault may guarantee security, this is
not a practical solution for most use cases; but what of security breaches? When a credit card is stolen it is relatively
straightforward, if time consuming, to cancel the card and be issued a new one. Yet a comprehensive set of information about
one ’ s online activities, friends or any other type of big data set is more difficult to replace. In a sense, these are not simply
items of data but a comprehensive picture of a person ’ s identity over time.
The third privacy challenge is that data are increasingly being collected autonomously, independent of human activity.
Previously, there was a natural limit on the volume of data collected related to the number of humans on the planet, and the
number of variables we are interested in on each individual is considerably fewer than the number of people on the planet
(Jacobs 2009). The emergence of network - enabled sensors on everything from electricity and water supplies through to
airplanes and cars changes this dimension. Combining these sensors with nanotechnology it becomes possible to embed
large numbers in new buildings to provide early warnings of dangers relating to the structural integrity of the building (Saafi
2010). The volume of data, and the speed with which the data must be analysed, means that there is the requirement for data
to be collected and autonomously analysed without an individual providing specific consent. This raises ethical concerns
relating to the extent to which organisations can control the collection and analysis of data when there is limited human
involvement.
The final privacy challenge relates to the contextual significance of the data. Currently the ability of organisations to collect
and store data runs far ahead of their ability to make use of it (Jacobs 2009). As a function of storing any, and all, unstructured
data regardless of potential use cases this means that combinations of data for which there are currently no capabilities to
analyse could become subject to privacy breaches in the future.
Big data: issues for market research
Having presented an analysis of what big data is, we now suggest five areas in which big data may have an impact. Each of
these represents an opportunity as a source of new insight for market researchers, but also has the potential to create
significant challenges in terms of privacy and the use of personal data.
The social graph
Much of the growth in data is driven by the voluntary sharing of information between members of social networks. Rather than
focus on individual responses, big data allows a picture to be built of group - level interactions and the nature of the bonds that Downloaded from warc.com
6bring these people together
– a concept that has been labelled the
‘ social graph
’ ( Berners - Lee 2007). The relationship is
symbiotic: in order to create value in their social graph, users need to contribute information about their lives, but in doing so
they also increase the digital exhaust of information that is available about them. Yet, the boundaries of this social graph are
imprecise. The challenge of continuously identifying and labelling
‘ friends
’ , particularly those where there are weak social ties,
creates the potential for social uncertainty. Furthermore, the labels for these virtual world connections, such as
‘ followers
’ or
‘ friends
’ , may not be analogous to their physical - world meanings. It is this source of ambiguity that presents ethical challenges.
Understanding how an individual
’ s online social graph relates to real - world meaning is thus likely to be essential in effectively
leveraging it.
Ownership of data
With big data the nature of the organisations that collect the largest stores of personal information is changing. In general, it is
not central governments or traditional large corporations that are storing information, but rather a breed of smaller high -
technology firms such as Facebook, Twitter, LinkedIn, Google and others. On the one hand, this provides researchers access
to sources of data that may not previously have been available. While there is little incentive for governments to monetise their
data commercially, the business models of the majority of consumer - facing web services are built around, to put it simply,
driving commercial value from customer data. For example, Twitter will now make a feed of several years
’ historical content
available to anyone wishing to use it for research or analysis purposes. This raises the question of the long - term ownership of
personal data that consumers make available online. Even those companies that do not currently sell access to their data
stores could themselves be potentially sold in the future, and policies for the use of data changed.
Big data has memory
The capability for big data technology to enable the storage, and recall, of large volumes of information gives a temporal
dimension to the storage of personal information. Information recorded today, even if not public now, can be recalled instantly
in decades
’ time. For example, the emerging focus of Facebook on a
‘ timeline
’ has created challenges that activities people
partake in while at college may reflect badly on them when they enter the world of work. While analysing data and building
effective models of consumer behaviour has always been a part of market research, big data provides the promise of more
accurate and far - reaching models. Thus big data enables the ability to rewind and fast - forward people
’ s lives, but in doing so
may remove the ability for individuals to forget and be forgotten.
Passive data collection
Much information collection is now automatic and passive. Existing approaches to market research are typically reliant on
some form of active opt - in. Big data makes use of passive technologies, such as location - based information from mobile
phones, data from autonomous sensors, or facial recognition technology in retail stores. This creates the potential for powerful
new variables to be included in consumer research. At the same time the individual may no longer have specific knowledge
and awareness that data are currently being collected about them. Even if permission has been given initially, these services
are not asking for permission every time such contextual data are gathered.
Respecting privacy in a public world
While privacy concerns have been raised over the use and creation of big data, these have been outpaced by individuals
’ use
of social networks. The value inherent in the social graph provides some form of counterbalance to the potential privacy Downloaded from warc.com
7issues. Put another way, for all the privacy implications, people derive great benefit from services such as mobile applications
and social networks
– many of which are available at no charge. Beyond this, for many social groups, contributing to big data
stores becomes a socially necessary form of communication in a world where avoiding social networking sites serves the
potential to exclude people from their communities. This creates a paradox in that, while individuals can opt out of having their
personal data collected, to do so may result in increasing their exclusion from the digitally connected world in which they
reside.
Personal data and privacy in market research
For many sectors the ability to collect data and turn it into insight has a key role in developing more innovative and successful
products and services. However, for market research, the importance of access is instrumental to the ability to deliver the
product. The history of marketing activity provides us with many examples of situations where regulators have responded
reactively to public perceptions of over - zealous, or unethical, marketing activity. From the promotion of ineffective
‘ patent
’
medicines in the 19th century through to tobacco and alcohol in the 20th century, in sectors that generate negative
externalities regulatory pressure is never far behind. Given the criticality of online data collection to market research, and the
potential for personal data to become a similarly hot topic of the 21st century, for the successful realisation of the potential of
big data in market research it is also necessary to be proactive in responding to potential privacy issues, even if these have
yet to reach the public imagination. A central plank in this is the development and maintenance of an effective self - regulation
strategy.
Market research has a strong tradition of proactive development of ethical standards, with the first ESOMAR code of
Marketing & Research Practice being published in 1948 (ESOMAR 2008) and the MRS publishing its first self - regulatory code
in 1954 (MRS 2006). These guidelines have become widely adopted by local market research associations and professionals
around the world, and have frequently been updated to take account of the changing social and technological environments in
which market research operates.
Intertwined with the development of these standards, the argument for ethical market research has been supported by
recognition that good ethical practice and data quality are interlinked (Tybout & Zaltman 1974). Table 1 outlines the key
section of the current ESOMAR code relating to privacy. Downloaded from warc.com
8
There is a theme in the market research literature around understanding the potential ethical and privacy challenges of new
technology, such as those around virtual ethnography (Hair & Clarke 2007) or the growth of Web 2.0 research (Cooke &
Buckley 2008). However, developments in technology highlight the challenge of maintaining appropriate ethical codes in an
environment where the ways consumers use technology are quickly changing. One example of this can be seen in the
question of how to determine informed consent in an environment where the collection of data may be both passive and
autonomous. Recent ESOMAR guidelines (ESOMAR 2011) on passive data collection have attempted to answer this question
for scenarios around video collection, such as from CCTV:
There may be instances in public places where informed consent from individuals is impossible to achieve. In those cases
public notice should be given about the data collection. (ESOMAR 2011, p. 4yf
However, given that big data often disintermediates the collection from analysis of data, the challenge is raised over what
consent is being sought, given that the purpose of data collection may not be known. Additionally, given the increase and
widespread use of autonomous data collection, such as through sensors, there are many situations where it is simply not
practical to gather informed consent
– potentially hundreds of times a day. One limited example of this can be seen in the
recent EU legislative changes around cookies, requiring some form of implied informed consent for the setting of website Downloaded from warc.com
9cookies. This is an issue covered by both the ESOMAR Code of Conduct (ESOMAR 2008) and the MRS Code (MRS 2006).
ESOMAR guidelines on
‘ Conducting market and opinion research using the internet
’ confirm the basic principles of voluntary
cooperation, disclosure of researcher identity and safeguarding of respondents
’ anonymity. More specifically, in relation to
cookies:
Respondents must always be told when cookies (or small text files that will ensure that they won
’ t be interviewed again, for
example) or other covert software is being used to collect information about them are being used and that they can turn them
off or remove them. (ESOMAR 2011, p. 13yf
Similarly, the MRS guidelines (MRS 2006) emphasise the need to be clear about the purposes behind gathering information
via cookies and gain consent for their use:
Cookies & invisible processing
– In accordance with the Privacy and Electronic Communications Regulations, cookies or
similar devices shall not be used unless the subscriber or user of the relevant terminal equipment is:
a. provided with clear and comprehensive information about the purposes of the storage of, or access to, that information; and
b. given the opportunity to refuse the storage of, or access to, that information.
The guidelines are similar, in spirit at least, to the legislative changes that they pre - date. However, there have also been
considerable confusion and challenges in implementing these changes in a way that does not limit the ability of firms to carry
out commercial activities online (ICO 2011). For example, for many sites dependent on advertising, the specific cookie that is
set is not known until the page is loaded (Arthur 2012). Related to this is the question of whether, even when individuals
provide consent to online services, they are actually aware of the type and range of data that are being collected (Traung
2010).
Future directions for market research ethics guidelines
The potential for big data to change the landscape of market research is encapsulated by Lewis (2012, p. 11yf :
Corporate market researchers believe that the leading agency in 2020 is just as likely to be Google, Facebook or a company
from outside the industry as it is to be one of the
‘ old guard
’ .
Such trends, particularly the growth in passive and remote data collection, call into question some of the implicit safeguards
present when someone has given permission for market research to be undertaken and is aware of the boundaries under
which data collection is taking place. Furthermore big data is built upon the use of unstructured data, which, by definition, are
collected without necessarily having knowledge of the purpose to which it will be put in the future. We therefore suggest three
ethical practices that would enable individuals to maintain control over their privacy, while still enabling firms to provide the
services from which consumers gain so much benefit. For each of these we also highlight some of the current challenges with
implementation.
1. The right to be forgotten. Individuals can request that data held about them on social networking sites, which might be
used for market research purposes in the future, can be deleted. This question of the long - term ownership of personal
data currently forms part of a number of European legal challenges (Falkenrath 2012), raising questions over where the
line over personal data can be drawn. For example, a case in Spain centring on individuals requesting that material about Downloaded from warc.com
10them not show up in search engines raises questions about both privacy and freedom of speech.
2. The right to data expiry. In addition to a general
‘ right to be forgotten
’ , unstructured data held about individuals can be
expired after a set period of time if it is of no commercial use. This creates questions over defining both commercial use
and unstructured data. However, if big data involves the commercial collection of data without regard to its potential use,
or potentially without knowledge that it is being collected in the case of autonomous sensors, then there must also be a
safeguard that data not used will be destroyed.
3. Ownership of a social graph. Much of the value of big data is to help in the social graph where information can be
collated about an individual as part of their social graph without their knowledge. For example, Person A can take a photo
of Person B, which is then tagged by Person C on a social networking site. Allowing individuals ownership of their social
graph
– information that references them and their relationships with others
– prevents wider and potentially inadvertent
misuse of personal data. Challenges exist in identifying and verifying individuals, as well as those relating to the
questions of ownership of data by third parties
– for example, when dealing with children.
We outline these suggestions as much as a means of creating discussion as of providing prescriptive solutions. We recognise
that they could be interpreted as threatening the commercial potential of many services that generate big data. Yet this is the
case only if we view big data as an exercise in the unrestrained collection and analysis of data by organisations. Above all, for
the commercial promise of big data to be delivered, it relies on trust. Without this trust in place, organisations face a pushback
from both consumers and regulators.
Conclusion
In this paper we have introduced the concept of big data and its impact on notions of privacy. We have also identified the
potential opportunities for market research, together with the challenges for privacy
– challenges that we do not believe are
fully encapsulated within existing ethics codes. Ethics and market research remain grounded in a model of the technology that
is at odds with the multi - device, socially based adoption that is likely to form the basis of future internet growth. For example,
82% of internet users over the age of 15 now use social networking sites (Comscore 2011). The combination of smartphones
and mobile internet has enabled consumers to access services nearly everywhere they go, leaving behind them a
‘ digital
exhaust
’ of personal data. Likewise, the growth in autonomous networked sensors in cars or smart - meters in the home means
that huge volumes of data are increasingly generated independent of human action.
Big data presents a convergence of both technical and strategic capabilities that provides significant potential for
organisations of all sizes to generate value from the data they store. There is the risk that market research will be
‘ left out of
the loop
’ as organisations strive for the commercial benefits brought by big data without consideration of the needs for
appropriate consideration of personal privacy. However, with appropriate engagement there are significant opportunities for
market researchers, particularly as one of the key stumbling blocks for the adoption of big data strategies is the lack of
sufficiently qualified staff with the necessary analytical and research skills (Manyika . 2011; Woods 2011). Yet big data is
more than just a technical phenomenon. As we have outlined in this paper, with big data comes the possibility of significantly
changing the relationship that individuals have with the data collected about them. A failure to appreciate this changing
relationship risks a political and regulatory environment that limits opportunities for almost any kind of online data collection
and analysis, with knock - on effects for market researchers. To realise the potential of big data, and maintain influence, we
believe it is essential for market researchers to engage with and debate these important ethical questions.
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About the authors
Daniel Nunan is Lecturer in Marketing at Henley Business School, University of Reading where he is Director of MSc
programmes in marketing. His research interests are in the area of digital marketing, research ethics and the impact of
technology on society. Daniel holds a PhD in marketing from Cranfield School of Management where he is a visiting lecturer.
He received the 2012 MRS award for Innovation in Research Methodology and was nominated for the 2012 MRS Silver
Medal.
MariaLaura Di Domenico is Reader in Organisational Behaviour and Head of the Entrepreneurship Group at the Surrey
Business School, University of Surrey. Her research is focused on qualitative research methodology, social entrepreneurship
and SMEs. She has published in leading management journals including Human Relations , Organization Studies ,
Organization , Entrepreneurship, Theory and Practice , Regional Studies as well as in books and monographs.
Address correspondence to: Daniel Nunan, Henley Business School, Whiteknights, University of Reading, Berkshire, RG6
6AH.
Email: [email protected]
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