Data-driven marketing: balancing economic gains and privacy concerns

There is no need to say that the use of big data in marketing is of great benefit. However, the use of big data implies severe legal problems in the event of a privacy breach. This study explores the methods of balancing economic benefits with privacy issues and transforming them into a competitive advantage. In the first part of the study, I conducted a comprehensive literature review of journal articles dealing with data-driven marketing topics to introduce the main concepts described in the paper. The second phase of the study involved an analysis of how big data proceeding can cause privacy concerns. Several studies were examined to understand the quantitative impact of privacy concerns on company performance. The main provisions of the European Union legislation on data protection were investigated. The third and final part of the study was devoted to analyzing main factors that mitigate privacy issues and novel ways of overcoming challenges and transforming them into a competitive advantage.