Contemporary Issues in Digital Marketing

Contemporary Issues in Digital
Marketing
This book presents a comprehensive overview of the key topics, best practices, future
opportunities and challenges in the Digital Marketing discourse. With contributions from
world-renowned experts, the book covers:
• Big Data, Artifcial Intelligence and Analytics in Digital Marketing

• Emerging technologies and how they can enhance User Experience
• How ‘digital’ is changing servicescapes
• Issues surrounding ethics and privacy
• Current and future issues surrounding Social Media
• Key considerations for the future of Digital Marketing
• Case studies and examples from real-life organisations
Unique in its rigorous, research-driven and accessible approach to the subject of Digital
Marketing, this text is valuable supplementary reading for advanced undergraduate and
postgraduate students studying Digital and Social Media Marketing, Customer Experience
Management, Digital Analytics and Digital Transformation.
Outi Niininen teaches Digital Marketing at the University of Jyväskylä School of

Business and Economics. Her research explores the use of digital technology across
the Expanded Marketing Mix to understand how people interact with surrounding
environment. Outi’s research has been published in, for example, Industrial Marketing
Management, Journal of Business Research, Tourism Management, Tourism Analysis, Journal
of Travel and Tourism Marketing and Journal of Services Marketing and she is the Co-editor
in Chief for Evolving Pedagogy. Outi won the Education Publishing Awards Australia
(EPAA) in the category: Tertiary (Adaptations): Teaching and Learning Resource for her
Marketing Principles book in 2015.
Contemporary Issues in
Digital Marketing
Edited by Outi Niininen

First published 2022
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
605 Third Avenue, New York, NY 10158
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2022 selection and editorial matter, Outi Niininen individual chapters, the
contributors
The right of Outi Niininen to be identifed as the author of the editorial material,
and of the authors for their individual chapters, has been asserted in accordance
with sections 77 and 78 of the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or utilised
in any form or by any electronic, mechanical, or other means, now known or
hereafter invented, including photocopying and recording, or in any information
storage or retrieval system, without permission in writing from the publishers.
Trademark notice: Product or corporate names may be trademarks or registered
trademarks, and are used only for identifcation and explanation without intent to
infringe.
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
A catalog record for this book has been requested
ISBN: 978-0-367-55533-7 (hbk)
ISBN: 978-0-367-55535-1 (pbk)
ISBN: 978-1-003-09390-9 (ebk)
DOI: 10.4324/9781003093909
Typeset in Bembo
by Apex CoVantage, LLC
Contents
List of contributors vii
1 Introduction 1
OUTI NIININEN
SECTION 1
Data analytics and measurement 7
2 Understanding Big Data and its application in the digital

marketing landscape 9
STE P H E N S I N GARAJU AND O UTI NI I NI NE N
3 Data-driven marketing processes: boundaries and how to

overcome them 22
H E I D I LÄN S I P URO AND HE I K K I K ARJALUOTO
4 The planning and implementation process of Programmatic

Advertising campaigns in emerging markets 32
TH AN H TI E T AND HE I K K I K ARJALUOTO
SECTION 2
Digital transformation and innovations in marketing 47
5 The antecedents and outcomes of online consumer brand

experience 49
JO E L KO N TTI NE N, HE I K K I K ARJALUOTO AND A IJA Z A . SH A IKH
6 User experience of an e-commerce website: a case study 61

SAI M A R I TO NUMMI AND O UTI NI I NI NE N
7 AI-based voice assistants for digital marketing: preparing for

voice marketing and commerce 72
ALE X M ARI A ND RE NÉ ALGE SHE I ME R
vi Contents
SECTION 3
Customer experience and servicescapes 83
8 The role of social capital in digitalised retail servicescape 85

J U SSI N Y RHI NE N, MI K A SK I PPARI AND TE RHI-A N N A WIL SKA
9 From places to platforms: examining the transformation of

servicescapes 95
J U LI E H O RÁKOVÁ AND O UTI UUSI TALO
10 Social media and consumer power: opportunities and challenges

for digital marketing activities 105
AGO S T I N O VO LLE RO AND CHI ARA VALE NT IN I
SECTION 4
Ethics and privacy in digital marketing 117
11 The importance of online retailers’ ethics for traditional,

online and multichannel customers 119
M I K A S K I P PARI , SAMI K AJALO AND ARTO L IN DBL OM
12 Data obstacles and privacy concerns in artifcial intelligence

initiatives 130
B I LAL A SLAM, HE I K K I K ARJALUOTO AND E EV I VA R M AV UO
13 GDPR guidelines for academic research in marketing 139

S AC H I KO S CHE UI NG AND O UTI NI I NI NE N
14 ‘Interesting but scary’: customers’ perceived value of MyData 152

H E I D I H A API O AND O UTI UUSI TALO
SECTION 5
The future for digital marketing communications and conclusions 163
15 Future look: communicating with customers using digital channels 165

O U TI N I I N INE N, STE PHE N SI NGARAJU, HE IKKI KA R JA L U OTO,
C H I A RA VA LE NTI NI AND MARK US MUHO NEN
16 Conclusions 176
O U TI N I I N INE N
Index 182
Contributors
René Algesheimer (https://orcid.org/0000-0002-3293-7928) is the Chair of Market-

ing and Market Research at the University of Zurich and Director of the University
Research Priority Program on Social Networks. His research interests lie in studying
consumer behaviour and online marketing phenomena. René has published several
articles on marketing-related issues in the discipline’s leading international journals,
including PNAS, Marketing Science, Network Science, Journal of Marketing Research, Jour-
nal of Marketing, Journal of Service Research and Harvard Business Review. He won several
international awards for his research, such as the Outstanding Reviewer Award 2012
of the Journal of Marketing.
Bilal Aslam (https://orcid.org/0000-0002-1307-854X) is a PhD student in Jyväskylä
School of Business and Economics, Finland. His research interests include digital mar-
keting/advertising, display advertising, mobile advertising, chatbots, programmatic
buying and artifcial intelligence. Bilal had extensive industry experience in a variety
of marketing roles in various companies. Previously, he was a Brand Manager in a
fashion retail company. Bilal holds an MBA degree in marketing and a Master’s degree
in International Marketing from Linnaeus Business School, Sweden.
Heidi Haapio (https://orcid.org/0000-0001-5993-9504) works as a customer analyst in
Finnish Forest Centre. She received her MSc (Marketing) degree from the University
of Jyväskylä School of Business and Economics in 2019. Her Master’s thesis addressed
the consumers’ perceptions of their own shopping data, MyData.
Julie Horáková (https://orcid.org/0000-0003-1904-8349) is a doctoral researcher at
the Department of Marketing, the University of Jyväskylä School of Business and
Economics. She obtained her Master’s degree in marketing and business at the VSB –
Technical University of Ostrava. She received an award for her Master’s thesis in the
Student Grant Competition hosted by the Ministry of Education, Youth and Sports of
the Czech Republic. Her doctoral research focuses on the digitalisation of retail and
service environment and how the transition from traditional physical places into the
intangible digital environment afects consumers, their social bonds and behavioural
loyalty.
Sami Kajalo (https://orcid.org/0000-0002-3076-2976) is a senior lecturer in the
Department of Marketing at the Aalto University School of Business, Finland. His
current research interests are in retailing, business ethics and arts management. His
research has been published in journals such as International Journal of Retail and Dis-
tribution Management, Property Management and Journal of Arts Management, Law and
Society.
viii Contributors
Heikki Karjaluoto (https://orcid.org/0000-0002-5696-7355) is a professor of market-
ing at the University of Jyväskylä School of Business and Economics, Finland. His
research interests include digital marketing, customer relationship management, mar-
keting communications, mobile communications and retail banking. He has published
over 100 journal articles in journals such as the Business Strategy and the Environment,
Computers in Human Behaviour, European Journal of Marketing, Industrial Marketing Man-
agement, International Journal of Information Management, Internet Research, Journal of Busi-
ness & Industrial Management, Journal of Service Management and Telematics and Informatics.
Joel Konttinen (https://orcid.org/0000-0001-9497-8883) is Digital Marketing and
Corporate Communications Master’s degree graduate from the University of Jyväskylä,
Finland. His thesis dealt with online brand experience. He currently works as social
media account manager in Suomen Digimarkkinointi.
Arto Lindblom (https://orcid.org/0000-0003-1141-2505) is a professor of retailing
in the Department of Marketing at Aalto University School of Business in Finland.
His current research interests are related to retail entrepreneurship, retail marketing
and supplier–retailer relationships. His research has been published in journals such as
Journal of Small Business and Enterprise Development, the International Review of Retail,
Distribution and Consumer Research and Industrial Marketing Management.
Heidi Länsipuro (https://orcid.org/0000-0002-1018-2456) graduated with a Digital
Marketing and Corporate Communication Master’s degree at the University of Jyväs-
kylä School of Business and Economics. Heidi is currently working as a Customer
Analyst for Pirkanmaan Osuuskauppa, where she analyses customer data that is utilized
in connection with business and marketing decision-making and investment decisions.
She has previously worked as a Community Manager in a tech startup and as a Market-
ing Designer in a digital agency.
Alex Mari (https://orcid.org/0000-0003-4803-5096) is a Research Associate and
PhD Candidate at the Chair for Marketing and Market Research at the University
of Zurich. He is a visiting PhD student at the Säid Business School, University of
Oxford. Alex studies the adoption of AI-based voice assistants for marketing initiatives
and their efect on shopping behaviour. He advises entrepreneurs and teaches digital
and AI marketing in business schools. Previously, Alex worked as a director of digital
marketing (Sonova), brand manager (P&G) and tech startup CEO.
Markus Muhonen (https://orcid.org/0000-0002-4482-3979) is Social Media Man-
ager at Suomen Digimarkkinointi Oy, a leading digital marketing specialist company
in Finland with an international client base. In his previous position, Markus was a
Digital Marketing Consultant for Keski-Suomen Hormisaneeraus Oy (Oxford, UK).
Before focussing on digital marketing Markus worked in marketing management posi-
tions specialising in marketing strategy and international sales in the United Kingdom.
Markus has a track record of proftable sales growth in both traditional sales as well as
in the digital environment where he has mastered the sales-driven SEO, content mar-
keting and social media strategies.
Jussi Nyrhinen (https://orcid.org/0000-0003-0512-4902) is a postdoctoral researcher
in sociology at the Department of Social Sciences and Philosophy in University of
Jyväskylä, Finland. He also works for the Faculty of Information Technology in the
University of Jyväskylä. Jussi has been involved in studies investigating digitalisation in
Contributors ix
the retail business, and the consequent disruptions in consumer behaviour, retail spaces
and local retail frms’ strategies and policies. His current research focuses on the impact
of social, cultural and cognitive factors on the consumer behaviour of young adults in
digital environments. His work has been published in journals and proceedings such as
International Review of Retail Distribution and Consumer Research and Proceedings
of the Academy of Marketing Science Annual Conference.
Saima Ritonummi (https://orcid.org/0000-0001-6708-7639) completed her Digi-
tal Marketing and Corporate Communication Master’s degree at the University of
Jyväskylä School of Business and Economics. Her Master’s thesis studied the usability
aspect of an e-commerce website, and how good UX can facilitate an efortless online
customer journey. She is working with brand communications and is currently inter-
ested in consumer decision-making and web usability. Saima has previously worked as
a Communications Consultant for Republic of Communications Agency in Helsinki,
Finland.
Sachiko Scheuing (https://orcid.org/0000-0003-0976-2151) is the European Privacy
Ofcer for Acxiom, an IPG company and a global leader in marketing services. She
is currently serving her third term as the Co-Chairwoman of the Federation of Euro-
pean Direct and Marketing Association (FEDMA), based in Brussels. With more than
20 years’ experience in the feld of marketing intelligence, and as a former Chief
Analyst, Sachiko combines theoretical and practical experience of the Ad-tec industry
to manage Acxiom’s European government afairs and compliance. She also provides
national and European level advice to clients and colleagues on data protection and
privacy matters and also contributes articles to both trade magazines and academic
journals. Besides FEDMA, Sachiko is active in many European and global privacy and
marketing associations as well as think-tanks.
Stephen Singaraju (https://orcid.org/0000-0002-5386-3905) is a lecturer in Entrepre-
neurship and Marketing at La Trobe University, Australia, with a PhD degree from
Monash University, Australia. Prior to his academic career, Stephen worked for Mit-
subishi Material Corporation (MMC) in an industrial sales and marketing role. In
Chuo Senko, an international Japanese media and advertising agency headquartered
in Tokyo, he embarked on a wider brand building career in industries ranging from
Fast Moving Consumer Goods (FMCGs) to Automobile and Consumer Electronics.
Mika Skippari (https://orcid.org/0000-0001-6362-3203) is currently working as a
University Researcher in Marketing at the Jyväskylä University School of Business and
Economics. His current research interests are related to retail market entry strategies,
digital disruption and political marketing. His work has been published in journals
such as Industrial Marketing Management, International Review of Retail Distribution and
Consumer Research and Business & Society.
Thanh Tiet (https://orcid.org/0000-0002-9020-1054) completed her Digital Marketing
and Corporate Communication Master’s degree at the University of Jyväskylä School
of Business and Economics. Thanh is working as a digital marketing manager at Be
Group JSC, a Vietnamese ride-hailing startup. She is responsible for digital media activ-
ities related to brand building and acquiring new users for the business. Prior to joining
Be Group, she worked at top two global media agency groups, GroupM and Publicis,
for more than fve years. All in all, Thanh enjoys both practising digital marketing and
x Contributors
doing research on the subject, especially topics related to mobile app marketing and
e-Commerce.
Outi Uusitalo (https://orcid.org/0000-0002-9676-7569) is a professor of marketing at
the University of Jyväskylä School of Business and Economics. Her research delves
into consumer behaviour, sustainable marketing and consumption, services market-
ing and management, places and spaces of consumption and digitalisation in retailing.
Outi’s research has been published in, for example, Journal of Marketing Management,
Journal of Consumer Culture, Journal of Consumer Behaviour, European Journal of Market-
ing, Journal of Business Ethics, Journal of Retailing and Consumer Services and International
Journal of Retail and Distribution Management.
Chiara Valentini (https://orcid.org/0000-0003-0752-9639) is a professor of corporate
communication, at Jyväskylä University School of Business and Economics ( JSBE),
Finland. Her research interest focuses on strategic public relations, stakeholder rela-
tionship management, government communication and crisis communication in the
digital environment. Her work has appeared in several international peer-reviewed
journals, edited volumes, handbooks and international encyclopedia. She is the editor
of the Handbook of Public Relations (de Gruyter Mouton, 2020) and is currently
researching the impact of AI and new technologies for stakeholder relations.
Eevi Varmavuo (https://orcid.org/0000-0003-4192-6152) graduated with a Digital
Marketing and Corporate Communication Master’s degree at the University of Jyväs-
kylä, School of Business and Economics. Eevi is currently working as a Content &
Digital Marketing Specialist at Luhta Sportswear Company, where she is responsible
for digital marketing of the company’s multi brand webstore and brands across the
brand portfolio.
Agostino Vollero (https://orcid.org/0000-0003-0282-1761) is assistant professor at
the Department of Political and Communication Sciences, Università degli Studi di
Salerno (Italy), where he teaches Digital Marketing and E-commerce. His primary
research interest focuses on diferent types of greenwashing in CSR communication.
Other main research interests involve the impact of online consumer empowerment
on brand and reputation management. He has published two books and articles in
leading international journals, including Journal of Business Research, Electronic Commerce
Research and International Journal of Advertising.
Terhi-Anna Wilska (https://orcid.org/0000-0001-7516-7356) is a professor of sociol-
ogy at the Department of Social Sciences and Philosophy, University of Jyväskylä,
Finland. Her research expertise areas are consumption and consumer society, ICT and
digitalisation, age, well-being and sustainability. She has led several large research proj-
ects on consumption and fnancial behaviour, lifestyles, age and digitalisation and pub-
lished widely on these topics. She has co-edited books such as Routledge Handbook
on Consumption and Digital Technologies and Generational Identity (Routledge).
1 Introduction
Outi Niininen
Why is it important to study digital marketing?

Rapidly developing Digital Marketing (DM) technologies and practices are fuelling digi-
tal metamorphisms and revolutionising both consumer and industrial marketing: con-
sumers no longer view branded brick-and-mortar stores as separate entity from an online
branded presence. Key challenges for the industry include Artifcial Intelligence (AI), the
Internet of Things (IoT), Big Data, Voice Commerce, which are all taking place under
the recent General Data Protection Regulation (GDPR)/privacy microscope (Dwivedi
et al., 2020; Herhausen et al., 2020).
Herhausen et al. (2020) identifed two marketing capabilities gaps that we aim to
address in this book. The majority of this book focuses on the knowledge gap: the DM as
an industry. The technology that is fuelling DM and ever-changing customer preferences
for digital platforms, services and applications create an environment requiring continu-
ously renewing research. This book also addresses the practice gap through applied research
that is set in a specifc company context. For an academic research publication, we are
also in the unique position of having a practising Digital Marketer/Social Media (SM)
Manager on our Author team. The chapters in this book are each based on an academic
research project featuring a current or emerging issue in DM and Communication. Each
chapter is a ‘stand-alone’ presentation of a well-framed research problem from theoretical
conceptualisation to conclusions and recommendations for future research. Overall, this
book presents a solid balance of theory and empirical work.
This book comprises fve sections: Data analytics and measurement (three chap-
ters), Digital transformation and innovations in marketing (three chapters),
Customer experience and servicescapes (three chapters), Ethics and privacy in
digital marketing (four chapters), and the fnal section, which combines our vision for
the Future for digital marketing communications as well as overall Conclusions.
Section 1 begins with a thorough outline of one of the major changes currently driving
DM development: Big Data (Chapter 2) highlights that Big Data is a complex issue for
Marketers to conceptualise. This chapter ofers value by examining the Big Data applica-
tion challenges and opportunities across the Marketing decision-making/analysis struc-
ture of the Marketing Mix. By utilising the full 8Ps of the Expanded Marketing Mix of
Product, Place, Promotion, Price, Process, Physical Evidence, Partnerships, and People,
the full potential of Big Data applications is revealed across multiple levels of Marketing
decision-making. There are many examples utilised in this chapter. For example, for New
Product Development (NPD), the Big Data applications have enabled organisations like
DOI: 10.4324/9781003093909-1
2 Outi Niininen
Lenovo to refne their product features, and the dynamic pricing modelling example from
a US-based major league baseball team’s ticket pricing allows several daily checks for the
ticket price that fans are willing to pay for each game. The location-based (Place) applica-
tions of Big Data have never been more important than today when precious COVID-19
vaccinations need to be securely transported to end-users with ultimate climate control.
Big Data has also impacted Promotion with Programmatic Media Buying. For Physical
evidence, the Big Data applications’ most evident examples are Google Optimised Land-
ing Pages and the Amazon Go store, with its ‘Just Walk Out’ technology. Through Big
Data analysis, Walmart has improved its supply chain collaboration to optimise in-store
stock in preparation for adverse weather efects. Big Data is also tracking how People, the
human assets of an organisation, are managed.
The key challenge of Big Data is the volume of data (both structured and unstructured)
available for decision-making. Hence, there is a need to develop advanced AI applications
to help interpret the generated data into actionable insights.
Chapter 3 investigates the implementation of data-driven decision-making pro-
cesses within an organisation as an essential success factor in today’s competitive envi-
ronment. Ten industry experts were interviewed to identify the potential barriers to
implementing data-driven decision-making processes across an organisation. Three
key barriers for data-driven marketing in Finnish organisations were identifed: cul-
tural barriers, structural barriers, and top management barriers. While these three
barriers hindering the implementation of data-driven marketing practice were found
to be interlinked and overlapping, based on a review of past research in this feld, this
fnding was anticipated.
Chapter 4 highlights the future potential of Programmatic (online) Advertising,
which relies on massive datasets, optimisation algorithms and intermediaries to deliver
relevant advertisements to target audiences at scale. Programmatic Advertising can be
divided into two distinct functions: Programmatic Buying that aspires to automate
the process of buying and selling ads in real time and Programmatic Creative aims to
optimise and generate personalised content in real time. With the development of
Programmatic Advertising technology, a shift from Programmatic Buying to Program-
matic Creative is to be anticipated. While research into Programmatic Advertising
has been championed by computer scientists, this chapter places the topic under the
marketing communication feld via in-depth interviews with marketing executives
working in this feld in Vietnam.
The next two chapters begin Section 2 and focus on the design and technical features
that organisations should utilise to ensure a positive online experience for their custom-
ers. Customers of today expect companies and brands to have a digital presence; thus,
company-owned websites have long been viewed as a cornerstone of DM. Chapter 5
highlights the strategic role a company website plays when communicating with custom-
ers or during the actual sales process. This elevated role is a direct continuum of today’s
consumers actively searching for information about organisations and products online.
Branded websites also contribute to customers’ overall evaluation of the company behind
the brand (Consumer Brand Experience), and positive online experiences can contribute
to online expenditures. The fndings are based on an analysis of 202 respondents.
Chapter 6 is based on a case study, thus recognising the signifcance of User Experi-
ence (UX) for the commercial success of websites. UX is about the user’s perceptions of
and responses to their interaction with a system, such as a website. UX focuses on the
Human–Computer Interaction (HCI), and a positive UX is essential for a satisfactory
Introduction 3
online customer journey on e-commerce websites. UX, in essence, focuses on humans
interacting with technology, including their perception of the aesthetic and even the
hedonic design features, afordances, functionality and responsiveness of the interaction.
This case study focuses on a consumer electronics brand with a newly redesigned website.
A Cognitive Walkthrough is followed by a User Experience Questionnaire (UEQ) to
identify design features that need improvement for the customer journey.
Chapter 7 highlights the importance of AI applications in the merging of the Voice
Commerce context. Voice Assistants (VA), such as Amazon Alexa and Google Home,
are winning a place in our homes, yet little is known about the potential ways they can
change established consumer journeys (and touchpoints). Are VAs an opportunity for
Marketers to elaborate on their Augmented Product ofering? To what extent can VAs
infuence the current balance of competition, especially for low perceived risk, repeatedly
purchased items? This chapter reports on a substantial qualitative research project with
almost 100 participants.
Section 3 starts with two chapters exploring the role that digital transaction places
hold in customers’ minds. Chapter 8 views servicescapes as a multilevel construct,
with physical, digital and social realms. This chapter analyses the servicescape concept
through the social capital prism to demonstrate that social capital plays an integral
part in the customer service experience by satisfying a social need. The social aspect
of service encounters has also been exasperated by the COVID-19 pandemic due to
restrictions in individuals’ free movement. Through digital channels (omnichannel
retailing), customers now have a wider spectrum of touchpoints available, includ-
ing customer-to-customer communication and technology-facilitated co-creation of
value, for their interactions.
Chapter 9 investigates the blending of physical and digital servicescapes as well as the
relationships consumers develop with brands or stores. This is done via a quantitative
survey of Finnish consumers in which the respondents focus their replies on one of four
well-known branded retailers. This chapter aims to establish whether the introduction
of ‘digital’ has blurred the boundaries between actors in the marketplace and how the
blending of physical and digital servicescapes afects consumers and the relationships they
develop with brands and stores.
Chapter 10 focuses on SM and how it can empower consumers. From the marketing
perspective, the emergence of SM has created signifcant changes: today’s consumers can
infuence organisations and brands, create content that is followed by peers globally and
infuence how other consumers view brands or organisations (please see also Chapter 15).
SM is also highly integrated into smartphones and can be accessed, commented on or
forwarded by consumers on the go. Chapter 10 also discusses how the volume of these
SM-empowered communications can create or destroy value for organisations.
Section 4 includes four chapters on privacy practices across diferent sections of the
DM landscape. Chapter 11 explores how consumers respond to a retailer’s ethics across
diferent distribution channels, such as brick-and-mortar stores, online shopping and
multichannel shopping; this novel research design compares consumer responses to an
identical survey across diferent channels with almost 700 respondents. Today’s retailers
are feeling pressured to ofer a multichannel retail environment to gain overall improve-
ments in customer service but are consumers who use brick-and-mortar, online and
multichannel shopping channels a homogenous group?
Chapter 12 merges the privacy drive of the GDPR to the data-rich environment of
AI. The use of AI is growing exponentially, and many organisations are benefting from
4 Outi Niininen
being able to deal with phenomenally large datasets during a time when IoT-enabled
devices can generate volumes of relevant data for decision-making (see Chapter 2).
Improvements in Cognitive Computing have made data processing more efcient and
expedient: data can be more efectively converted into value for organisations as well as
end-consumers. Yet, how do AI managers who enable data operations view the poten-
tially restrictive GDPR conditions? This chapter reports on interviews with AI experts
and managers from fve diferent countries to gain an understanding of these potentially
opposing trends (AI-enabled analysis of Big Data vs. the GDPR environment) impact
on DM practices.
Chapter 13 explains how the GDPR impacts research in the marketing feld. The
introduction of the European Union’s (EU) GDPR resulted in an avalanche of nega-
tive publicity, which focused on the potential fnes that organisations might incur if they
fail to protect the privacy of individuals. Research in marketing would not be excluded
from these. How big is the leap from existing Institutional Review Board (IRB) require-
ments to GDPR-style secure data handling? Much of the GDPR guidance for academic
research comes from medical research, which explains the need to highlight the situations
in academic marketing research and how marketing academics running research proj-
ects can ensure that their data management aligns with current regulations: with refer-
ence to specifc EU documentation, a seven-step process for GDPR-compliant academic
research is explained.
Chapter 14 is based on a large-scale survey of a pilot project wherein a major retail
chain developed an application based on a loyalty programme that allowed consumers
access to their purchase history. The chapter’s title accurately describes the variety of
responses the pilot study participants had to this information. This is an interesting study
because customer purchase history data are most commonly used by organisations to
understand the behaviour and preferences of their customers. MyData are essentially Big
Data that are made available to the end consumer – the person whose shopping behaviour
is tracked by the loyalty programme. By sharing their data with customers, the retailer is
hoping to increase trust and transparency as well as generate new opportunities for value
co-generation.
The ffth section of this book explores the future for digital marketing communication and
concludes this book. Chapter 15 touches on the key digital developments that we see
causing change in the DM and Communication landscape in the near future: AI and
automation (including Chat Bots); the role individuals as infuencers will play in brand
communications, possibly even to the extent of providing free digital labour; data surveil-
lance, deepfakes and how Blockchain technology could ofer a solution to many potential
issues identifed in marketing and business practices.
Each of these chapters resulted from a long-term study, from post-doc research to
exceptionally well-crafted Master’s thesis research. These research processes started before
the emergence of the global COVID-19 pandemic (i.e. it is not possible to make changes
to the data that were already collected). As the Editor, I would like to thank the Authors
for their eforts to include COVID-19 implications in their chapters where possible. All
chapters in this book have been through a double-blind review process to ensure high
quality and relevance to the DM feld. Special thanks go to all our colleagues, both
domestic and overseas, who gave their expertise and time to the double-blind review
process that we utilised in this book.
Introduction 5
References
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indmarman.2020.07.022
Section 1
Data analytics and

measurement
2 Understanding Big Data and
its application in the digital
marketing landscape
Stephen Singaraju and Outi Niininen
Introduction
The sheer volume of data on consumer behaviour and processes available to organisations
is unprecedented. Computers and smart devices such as smartphones, smart cars, smart
locks, smart refrigerators, smartwatches, smart speakers and other similar devices enabled
by the Internet-of-Things (IoT) are emitting unstructured and structured data that enable
organisations to generate consumer behavioural insights. These data can help in market-
ing strategy formulation while unlocking new market opportunities that were previously
underexplored or unexploited (Erevelles, Fukawa, and Swayne, 2016).
Several leading global organisations have invested in using Big Data analytics to gain a
competitive edge in the marketplace. For instance, online retail giant Amazon maintains
data on its customers’ names, addresses, payments and search histories in its data bank
and uses its algorithms to improve customer relations for a seamless real-time customer
experience across all online touchpoints (Liu et al., 2020). American Express also uses Big
Data to analyse and predict consumer behaviour. With access to Big Data, the predictive
models enabled by Machine Learning (ML) capabilities allow for the superior applica-
tion of both structured and unstructured data to better understand customer behaviour.
Through sophisticated ML predictive models, organisations are able to apply Big Data
in developing more personalised value propositions and warding of potential customer
churn (Manglani, 2017). In the Business-to-Business (B2B) market, Rolls-Royce is using
the data from IoT sensors on aircraft jet engines to provide a higher value proposition
for their business customers by introducing the concept of Power by the Hour (PBH)
or Engine-as-a-Service, meaning that value is derived via ‘access to resources’ rather
than ‘ownership of resources’ (Shcherbakova, 2020). For a fat hourly rate per engine,
Rolls Royce would handle installations, check-ups, maintenance and decommissioning.
Preventative maintenance scheduling for these engines is automated based on the data
received from the many sensors embedded in the engines. This pioneering approach to
engine maintenance management forms the basis of the company’s market leading Cor-
porateCare® service. By adopting the PBH model, airlines transfer the engine mainte-
nance responsibility to a vendor, which ensures that engine efciency and safety remain
at an optimal level. Airlines can then focus on their core competencies, which include
customer service, route optimisation, pricing and marketing.
As Big Data becomes the new normal, organisations explore ways in which Big Data
can be captured and used in marketing analytics to unleash new organisational capabili-
ties and value propositions for customers. In this chapter, we explore the application of
DOI: 10.4324/9781003093909-3
10 Stephen Singaraju and Outi Niininen
Big Data through the lens of the Marketing Mix. We extend the work by Fan, Lau, and
Zhao (2015) via the expansion of their 5Ps framework (Product, Place, Promotion, Price
and Process) with Physical evidence, Partnerships and People for contemporary market-
ing practice in both the B2B and the Business-to-Consumer (B2C) markets. We begin
by addressing the following questions that help explain Big Data and its application to
marketing practice:
• What does the term ‘Big Data’ mean, and how will the insights provided via Big
Data analytics difer from what managers might generate from traditional
analytics?
• What new insights does this new genre of marketing analytics provide for market-
ing decision-making?
These questions about Big Data are examined in the following sections of this chapter.
What is Big Data?

Big Data is the embodiment of several disciplines, such as quantitative studies, data science
and business intelligence (Comm and Mathaisel, 2018). Big Data essentially consists of
extremely large datasets. These datasets are made up of structured and unstructured data1
that can be processed and analysed to reveal patterns and trends (Hazen et al., 2014). Big
Data typically refers to incredible amounts of data, much of which is unstructured data,
and new ways of using data (Gandomi and Haider, 2015). There is a torrent of digital
data, and this is changing the nature of doing business in a very fundamental manner. Big
Data is often associated with large volumes of structured (e.g. transactional or historical
data) and unstructured (e.g. behavioural) data that are generated by digital processes, SM
exchanges, business transactions or machine-based activity and can be used by organisa-
tions to generate new insights for business gains (Erevelles, Fukawa, and Swayne, 2016).
Big Data includes the systems and processes governing data generation, collation,
management, control and usage. Big Data is often characterised by high-volume, high-
velocity and high-variety data (Laney, 2001). The volume (the amount of collected and
generated data) is indicative of the magnitude of data; the velocity (the speed at which
data are generated and processed) refers to the speed of data-processing rate and is realised
via the digital processes with which Big Data is generated and the variety (number of
data types) refers to new formats and types of data (Gnizy, 2020). Big Data presents itself
in varied formats, from structured and numeric to unstructured text documents, video,
audio and email data.
Big Data is transmitted at a break-neck speed and must, therefore, be analysed and
processed at a fast pace to realise the benefts of real-time data analytics. Organisations
are now adopting applications such as Hadoop, a software solution created by the Apache
Software Foundation ( Jabbar, Akhtar, and Dani, 2019). Hadoop is utilised as a Big Data
batch processing2 tool to derive insight from large datasets such as historical weblogs, past
transactional data and sales data to develop customer profles for traditional marketing
activities (Hashem et al., 2015). While Big Data batch processing tools such as Hadoop
are designed to cope with Big Datasets, which have been collected over a period of time,
real-time processing3 of Big Data is concerned with the capacity of information systems
to accept continuously streams of datasets for instantaneous decision-making where data-
processing speed and efciency are of the essence (Casado and Younas, 2014; Kitchens
Understanding Big Data and its application 11
et al., 2018). Apache Storm, an open source Big Data software solution also developed by
the Apache foundation, is one example of an applications available to marketers in their
quest to operationalise the use of Big Data for real-time marketing decision-making ( Jab-
bar, Akhtar, and Dani, 2019).
Big Data involves three analytical categories: descriptive (what happened), predictive
(what is probably going to happen) and prescriptive (what should be done) (Tonidandel,
King, and Cortina, 2018; Gnizy, 2020). These are increasingly seen as a set of critical skills
needed to augment organisational capabilities and business strategy (Hayashi, 2014). For
example, organisations such as Walmart have applied predictive analytics to process data
via Big Data systems in anticipating the impact of business trends on their product line
pricing and organisational revenues (Gnizy, 2020).
The high-volume datasets emanating from Big Data can fuel large-scale organisational
data systems, enabling contemporary marketing decision-making that challenges conven-
tional marketing practice. Big Data analytics brings new mindsets to marketing practice and
encourages proactive behaviour towards customers and markets (Baesens et al., 2016; Toni-
dandel, King, and Cortina, 2018). While traditional marketing organisations have been
accustomed to using traditional non-Big Data methods in marketing decision-making, Big
Data’s unique characteristics and the sophisticated interrogative analytics that it lends itself
to enable marketers to go beyond traditional business intelligence (Gnizy, 2020). Hence,
as Gnizy (2020) argues, Big Data analytics enable risk management and discover hidden
facets and associations. Big Data also broadens the conceptions of market and strategy to
encompass various aspects of improved knowledge or ideas pertaining to markets (com-
petitors, customers and value creation) that non-Big Data systems (typically represented
by structured or historical data stored in corporate databases such as customer information
like contact details and transaction history) cannot detect, acquire, manage and process for
the beneft of dynamic organisational marketing decision-making (Gnizy, 2020; Engels-
eth and Wang, 2018; Erevelles, Fukawa, and Swayne, 2016; Ghasemaghaei, 2018; Yang
et al., 2019). Unstructured data captured from consumer usage of SM platforms, Internet
search, smart devices and locations can be stored alongside structured data such as transac-
tions and sales information (Hashem et al., 2015). As Big Data typically constitutes 95% of
unstructured data, it is pivotal that marketers exploit the insights that can be gleaned from
Big Data analytics, particularly that ofered by the unstructured component of Big Data,
in their quest for competitive advantage (Gandomi and Haider, 2015).
Big Data and its fusion with marketing practice

In marketing, the primary motivation in adopting Big Data is its potential usefulness
for marketing decision-making purposes. In this section, we expand on the framework
adapted from Fan, Lau, and Zhao (2015) to explicate the ways marketing practice is
evolving in its application of Big Data in the contemporary management of the Market-
ing Mix.4 We adopt the Marketing Mix framework as a lens for the discussion of Big
Data applications in marketing decision-making for the reason that it is a well-known
framework that encapsulates the principal components of tactical and strategic marketing
decisions and is a framework that is well understood by marketing academics and practi-
tioners alike. In this chapter, we advance the contributions made by Fan, Lau, and Zhao
(2015) through complimenting their 5Ps framework (Product, Place, Promotion, Price and
Process) with Physical Evidence, Partnerships and People, leading to the full 8Ps to align with
contemporary marketing practice.
Similar to Fan, Lau, and Zhao (2015), we begin the discussion in this section by
identifying the types of data sources for marketers to use in obtaining Big Data to aid in
marketing decision-making. We then explicate some of the methods that are currently
being employed by marketers in the analysis of Big Data and, fnally, provide an overview
of application examples to give the reader an idea of the evolution caused by the adoption
of Big Data in the practice of marketing management.
The Marketing Mix concept has endured through time due to its ability to identify
the multitude of decision types marketing managers can use to better serve their cli-
entele. As is typical for the Marketing Mix, Big Data examples can fall under multiple
8P categories, for example, sensors in vehicle engines can be used to manage prod-
uct design (Product), distribution challenges (Place) and after-sales service (Process).
Furthermore, we include User-Generated Content (UGC) and electronic Word-of-
Mouth (eWOM) under the Promotion category because they ofer a signifcant con-
tribution to Big Data. Although eWOM and UGC are, strictly speaking, not directly
under the control of an organisation, many companies aim to harness this valuable data
for their purposes, for example, through social Customer Relationship Management
(social CRM) as a Process with which to guide the People assets of the organisation.
The discussion then concludes with explanations of Big Data applications for each of
the 8P Marketing Mix categories.
Product
In the product decision-making realm of the Marketing Mix, Big Data is beginning to
infuence marketing decisions in areas as diverse as new product design and development,
reputation or brand management, product lifecycle management and quality manage-
ment. For example, in the consumer electronics industry, Big Data has been applied by
major organisations, including Xiaomi and Lenovo, to accelerate the pace of NPD pro-
grams in responding to today’s dynamic and evolving marketplace (Tan and Zhan, 2017).
Big Data has allowed for product features and functions to be added to a product that
customers are willing to pay for while eliminating otherwise undesirable product features
(Sun and Huo, 2019; Urbinati et al., 2019).
In the semiconductor industry, Intel monitors product quality attributes through Big
Data interfaces, which enables the organisation to signifcantly reduce the validation time
for testing before bringing the product to market. Intel fuses intelligence derived from
Big Data with AI to signifcantly increase new product quality and reduce NPD time. In
test execution, Big Data analytics coupled with AI allows Intel to locate faults more ef-
ciently while eliminating redundant tests in their NPD programs. This approach reduces
the number of tests performed by 70%, enabling complex semiconductor products to
reach the market more quickly without compromising product quality (The Innovation
and Enterprise, 2020 – see Further reading).
Using Big Data, brand marketing campaigns are able to more accurately analyse brand
strength through a brand’s reputation in the marketplace. Making the linear approach
to collecting data redundant, the new approach to brand marketing is utilising circular
data analysis via a variety of data touch points. Marketers are able to monitor the ‘Likes’
or ‘Re-tweets’ of potential customers, which allows the data analytics system to identify
crucial metrics that set aside specifc parameter results and aid in the marketer’s under-
standing of the customer’s preference for the brand.
Price
A greater understanding of the buying behaviour of our customers can help organisations
fnd the optimal price that a customer is willing to pay at any given time, place or circum-
stance. Manual practices for setting prices are time-consuming and make it impossible for
marketers to visualise dynamic pricing patterns for their products and thus optimise pricing
and unlock value. Pricing decisions based on factors such as product costs, product margins,
competitor prices and quantity discounts are simplistic and inadequate in the current real-
ity of emerging marketing practices. At its core, a pricing decision is essentially a Big Data
issue (Feng, Li and Zhang 2019; Gerlick and Liozu, 2020; Steinberg, 2020).
Hence, marketers are increasingly bringing themselves to adopt dynamic pricing
approaches, a market-driven demand-based approach to pricing that engages a fexible
pricing practice in which the actual price for a product is based on a complex analysis of
current market conditions. Demand, seasonality and competitor actions are among the
factors that moderate the actual price level of a product at any given time ( Jiang and Li,
2020; Augustin and Liaw, 2020). In the United States, the practice of dynamic pricing
among major league baseball teams demonstrates the robustness and the efectiveness of
Big Data-driven dynamic pricing models that improve revenue management. Prices are
set at multiple times of day, incorporating many Big Data variables, including weather,
ongoing work around the ballpark that may be a cause of inconvenience for patrons,
teams on the rise in the league, the potential for a record-setting event (hits, homeruns
or plays), trending conversations about a game on SM, and what tickets are selling for in
secondary marketplaces, such as StubHub and TicketMaster, the largest fan-to-fan ticket
marketplaces (see Erevelles, Fukawa, and Swayne, 2016). Hence, Big Data allows organ-
isations to manage their pricing to capture the willingness of fans to pay more for a special
game while mitigating the tendency for parallel-market opportunistic organisations or
individuals to exploit pricing discrimination practices that may otherwise exist and thus
distort an organisation’s pricing strategies.
Place
The ‘place’ or ‘distribution’ aspect of the Marketing Mix typically involves logistical con-
siderations such as warehouse management, inventory management, packaging and order
tracking. The ubiquitous use of Location-Based Services (LBSs) enabled by mobile tech-
nology provides marketers with location- and time-specifc user information for its target
markets. The location-based information of target customers is seen as having fundamen-
tal ramifcations for the four leading logistics considerations, that is, inbound transport,
outbound transport, inventory management and warehousing activities (Onstein et al.,
2020; Ashayeri and Rongen, 1997; Christopher, 2011). Innovations associated with the
application of location-based information systems to enable the matching of supply and
demand in marketplaces have been shown to signifcantly reduce the costs associated
with the aforementioned logistical consideration that is fundamental for the movement
of goods from production and warehousing facilities to the target market for consump-
tion (Christopher, 2011). A demand-driven supply chain’s ability to respond rapidly to
demand variability based on the movement of its target market, which is aligned with
supply, is even more pronounced in services-based industries (Onstein et al., 2020).
Balancing the supply and demand sides of a service industry is a critical success factor
because this industry provides products that are more intangible, perishable, inseparable
and variable than physical goods. In this sense, the application of real-time location-based
Big Data will result in lower working capital requirements and drive stronger sales and
proft. For example, functions such as barcode reading, videos, pictures and messages are
inherent capabilities of most smartphones today and optimise supply chain operations
at very little cost. Location data captured by mobile phones makes it easy to track ship-
ments with precision using devices’ location capabilities linked to the central corporate
system over the Internet. Drivers can map shorter or less congested routes to make timely
delivery and this, in turn, signifcantly optimises feet utilisation (asset utilisation) in the
courier services such as UPS and Federal Express.
The recent outbreak of the COVID-19 global health pandemic has brought to promi-
nence the role of Big Data in tracing the movement of people to help contain the speared
of infections amongst the population in a country, state, city or smaller geographic
boundaries. Big Data has been pivotal in revealing the patterns and provide insights into
the spread and control of this virus based on the movement of members of the society.
Several modalities of digital data including patient location, proximity, patient-reported
travel, co-morbidity, patient physiology and current symptoms made possible by the loca-
tion capabilities inherent to smartphones can be digitised and used for generating action-
able insights at both community and demography levels (Haleem et al., 2020), resulting
in the more efcient allocation of critical resources for better utilisation of public health
services.
The use of location-based Big Data is not merely limited to the movement of humans
but is also increasingly pertinent to the monitoring of the movement of ‘things’ in the
age of the IoT. Modern vehicles are already equipped with a multitude of sensors and
on-board computers that alert drivers to the imminent need for servicing. Hence, after-
sales maintenance and the spare parts market for motor vehicles are probably the area
where sensor based, product-in-use data can already produce the greatest strategic gains
for organisations. Considering the fact that the same brand of vehicles can utilise difer-
ing design principles, it is no wonder that the vehicle after-sales maintenance and spare
part manufacturers are struggling with the ‘bullwhip’5 efect. For example, variance in the
demand for spare parts by vehicle end-users due to, for example, unanticipated changes
in the conditions where the vehicles are used (e.g. long-term drought and dust caus-
ing problems with the engine) creates signifcant fuctuations in demand for spare parts
manufacturers and vehicle servicing operators. These bullwhip efects could be reduced
if on-board computers signalled a vehicle after-sales support network of these changed
(long-term) location specifc weather conditions and the impact they are having on spe-
cifc engine parts. Moreover, a quick reaction (i.e. preventative maintenance) to engine
sensor warnings could also result in localised repairs to stop the damage altogether, which
is an example of superior customer service (Andersson and Jonsson, 2018; Giannakis and
Louis, 2016).
However, the challenge that persists for location-based Big Data analytics is its cur-
rency in accurately predicting customers’ locations. Both spatial and temporal data should
be taken into consideration (temporal moving pattern mining for LBS) (Fan, Lau, and
Zhao, 2015). A large volume of spatial and temporal data will need to be processed within
a very short time period, practically in a matter of seconds, before customers move to
new locations. Given the context-specifc importance of location-based Big Data, this
information will only be rendered valuable if the currency of the data can be guaranteed
to enable context-relevant marketing decision-making. Thus, the ‘velocity’ issue regard-
ing Big Data remains one of the most challenging aspects of location-based Big Data.
Promotion
As marketing information systems interface and integrate with consumer technologies
such as SM Platforms, it is fair to argue that Promotion is the Marketing Mix element
most impacted by the advent of Big Data and its application to marketing practice. The
advent of Programmatic Marketing for targeted, real-time online display advertising can
only be explained by the harnessing of Big Data in an information infrastructure which
supports real-time processing frameworks that enable media buying on the ‘fy’ based on
user web sessions and preferences ( Jabbar, Akhtar, and Dani, 2019). Such integration
provides solutions based on the analysis of information about consumers’ preferences,
opinions and needs. In other words, the scope of Big Data acquisition for marketing
communications application permeates a wide range of marketing communication mix
decision-making.
Big Data has become so fundamental to basic marketing communication decisions that
it is beginning to infuence programmatic media buying, granular audience segmenta-
tion and targeting and the execution of real-time trigger marketing campaigns (Chen
et al., 2019; Ford, 2019; Jabbar, Akhtar, and Dani, 2019). For example, marketers have
increased consumers’ awareness of their brands via the application of Big Data in recom-
mender systems in the e-commerce context. Product marketing via online platforms such
as Amazon and Ebay has targeted audiences using Online Consumer Reviews, where the
sentiment mining of Big Data is applied for the efcient placement of digital advertise-
ments in the e-commerce marketplace (Salehan and Kim, 2016; Chong et al., 2017).
Unfortunately, not all online reviews are accurate or truthful because some reviews are
deliberately designed to either increase the popularity of a brand or discredit a competi-
tor’s brand – these fake reviews can distort a brand’s reputation (Reyes-Menendez, Saura,
and Martinez-Navalon, 2019). Sentiment analysis, a subfeld of Natural Language Pro-
cessing (NLP), can help automate the detection of fake reviews. By analysing the posi-
tive–neutral–negative meanings of the text and identifying content similarities between
reviews, this review spam can be removed. Many e-commerce systems also link reviews
to past purchases to identify fake reviews. Online sales and promotional platforms are
dynamically managing their fake review detection systems in addressing the data distor-
tions contributed by review spam (Chong et al., 2017; Nair, Shetty, and Shetty, 2017).
Television ads can now be targeted at the household level via Programmatic Advertis-
ing as TV stations migrate their broadcast technologies from analogue to Internet-based
technologies (Lee and Cho, 2020). This has resulted in real-time, automatic bidding
for advertising opportunities online, accounting for two-thirds of the total digital video
spend in the United States in 2019 (Malthouse, Maslowska, and Franks, 2018). However,
due to the limitations of the current technologies used in Big Data analysis, the challenges
posed by the very nature of Big Data (i.e. volume, variety, velocity and veracity) call
for a dynamic and more scalable, multi-tiered, automated system for Big Data-enabled
decision-making systems (Kumar, Shankar, and Alijohani, 2019).
Process
The most signifcant impact of Big Data is the automation of marketing processes. Real-
time Big Data analytics involves the processing of a continuous stream of data inputs from
a variety of sources for instantaneous marketing decision-making with low information
latency (Kitchens et al., 2018). The drive to automate marketing processes will mean that
typical marketing activities, including but not limited to website buying, ad-slot buying,
online publishing, customer profling, targeting, search engine optimisation and content
generation, will experience signifcant disruption ( Jabbar, Akhtar, and Dani, 2019). The
confuence of real-time processing within programmatic marketing calls for marketers to
re-examine their existing marketing processes and invest in cloud-based infrastructure for
scalable, real-time marketing analytics and automated decision-making (Hazen et al., 2014).
Recently, Programmatic Marketing for online display advertising has become an exam-
ple of a marketing communication process that has been increasingly automated via the
acquisition and use of real-time Big Data. Although in its infancy, Programmatic Market-
ing is likely to accelerate and refne the automation, algorithmic decision-making and
developments in advertising technologies, leaving behind traditional media approaches
that in comparison, are unproftable and less efcient ( Jabbar, Akhtar, and Dani, 2019;
McGuigan, 2019). In customer service processes, the introduction of Chatbots and
virtual assistants powered by NLP and AI can answer routine customer enquiries and
release human employees for more complex tasks (Kietzmann, Paschen, and Treen, 2018;
Reshmi and Balakrishnan, 2018; Urbinati et al., 2019).
In an industrial setting, embedding sensors into manufacturing plants can help alert
managers of possible manufacturing problems and service requirements. Furthermore,
embedding sensors into machinery sold to monitor product performance can be ofered
as an additional service to the end-user to prevent expensive breakages and production
downtime. Such predictive maintenance can form a cornerstone of loyal clientele dur-
ing the crucial period after the end of warranty periods (Andersson and Jonsson, 2018;
Urbinati et al., 2019).
Physical evidence
In website design, the Physical evidence (everything the customers see when interacting
with a business online including the virtual elements of the product or service and the
layout or interior design of the virtual shops) incorporates the entire brand’s visual rep-
resentation online as well as the use of, for example, colours, images and fonts to refect
the brand values. Google Analytics can help web masters improve their website’s Physical
evidence by identifying bounce and conversion rates and overall engagement with the
website content. Data from A/B testing (Google Optimize) can be used to refne the
brand style in advertisements and Landing Pages (Kietzmann, Paschen, and Treen, 2018).
The introduction of the Amazon Go store in Seattle in 2018 provides an illustrative
insight into the potential for Big Data in disrupting the retail industry. Amazon Go is a
new prototype of a futuristic retail store based on the ‘Just Walk Out’ technology. With
only a smartphone app linked to a credit card, a customer could enter the store, select
merchandise from the aisles and just walk out – no lines, no waiting and no cashier. The
entire customer shopping experience is facilitated by the stream of real-time Big Data
enabled by technologies such as computer vision, data science, ML and sensor-based
information technologies (Ives, Cossick, and Adams, 2019).
Partnerships
Partnerships, in a marketing context, typically explore the synergies that can be achieved
by supply chain partners; for example, the efective and efcient use of Big Data can
minimise the bullwhip efect in supply chains (Hofmann, 2017). A success story of a
frm that has harnessed the power of Big Data analytics into their supply chain partner-
ship arrangements is Walmart (Sanders, 2016). Using batch processing Big Data analytics,
Walmart has learned a great deal about customer preferences. For example, they learned
that before a hurricane, consumers stock up on food items that do not require cooking or
refrigeration. By collaborating with their supplier partners, Walmart is able to stock such
items at their stores in advance of a hurricane. Such Big Data analytics enables Walmart
to win pricing and distribution concessions from its suppliers, and this, in turn, gives the
retailer and its partners a signifcant advantage over competing supply chain networks
(Sanders, 2016; Anshari et al., 2019).
People
Big Data analytics enables large-scale dataset integration, supporting people management
decisions for the efective deployment of human talent in marketing operations. Talent
analytics is now emerging as a methodology that allows for the identifcation of patterns
in workforce activity data, allowing more efcient workforce management (Marler and
Boudreau, 2017). The benefts derived from talent analytics in terms of value creation are
clear, in particular (1) identifying a causal relationship between training expenditure and
proftability and (2) justifying the need for an organisation to set up training in specifc
areas of human talent development that can improve organisational proftability (Nocker
and Sena, 2019).
However, the human talent for data-driven marketing operations is dynamic, and new
marketing careers, such as data scientists and data analysts, are likely to become common.
Given the dynamism of Big Data and its emerging importance in marketing practice,
Data Scientists will play an integral role in helping perform the greater statistical, query-
ing, scripting, scraping, cleaning, warehousing and training activities needed in the data-
heavy functions of marketing.
Conclusions and the future convergence of Big Data and AI

This chapter expands on the work of Fan, Lau, and Zhao (2015) by outlining major Big
Data developments across the full suite of the eight Marketing Mix variables, where Big
Data is already enabling improvements across all fundamental marketing decisions. As is
typical for the Marketing Mix, some of the examples cited could serve as an example of
multiple Marketing Mix variables; for example, the IoT trackers embedded in a corporate
vehicle feet could be classifed as a Product feature or a Process feature. This chapter also
tackled the difcult balance between considering ‘People’ as such and also as the object
of Big Data collection and analysis.
In the future, a deeper relationship between Big Data and AI is to be expected. How
else could marketeers make sense of the volume of Big Data? Some of our examples
would not be possible without this. AI can support managers in automated decision-
making at the operational and tactical levels, especially in stable business environments
(Duan, Edwards, and Dwivedi, 2019). Overall, AI-empowered systems are becoming
increasingly important for strategic management (Goul, Sidorova, and Satz, 2020), and
the volume of AI-enabled decisions will increase because the datasets used for decision-
making are growing exponentially and are often unstructured. This is where the cognitive
features of the automatic processing of data, specifcally ferreting sentiment insights from
data with NLP and ML, are invaluable (D’Arco et al., 2019). However, humans for now
are still better at ‘thinking outside the box’, dealing with unstructured strategic decisions
and learning from challenges. Future research is aiming to replicate this through the
development of Deep Learning (a subset of ML) (Duan, Edwards, and Dwivedi, 2019).
One of the greatest challenges to future AI-empowered automation is the human mind.
Already, the GDPR6 legislation bans the automated processing of person-identifable data
to the detriment of that individual, for example, for mortgage refusal (Article 22 of the
GDPR). Moreover, the closer to our daily routines Big Data and AI come, for example,
IoT, IoP or wearable technology, the greater the demand for ethical design principles will
be (Kumar et al., 2020). In other words, AI governance is gaining momentum; Google
applies responsible AI technology developments with ‘explainability, fairness appraisal,
safety considerations, human–AI collaboration and liability frameworks’ (Goul, Sidorova,
and Saltz, 2020, p. 5255). Hence, an essential development aim for AI should be the ability
to provide human-like justifcations based on data for decision-making (Kumar et al., 2020).
Key lessons for future research

• Big Data comes from varying sources, from IoT-embedded sensors to SM content
• Core marketing decision can be improved with the AI-assisted analysis of Big Data
• Big Data with AI enhances competitive strategy formulation
• Future AI development must incorporate ethical design principles
Further reading
GDPR. (2018). General Data Protection Regulation. Available at: https://gdpr-info.eu/ (accessed 5 Octo-
ber 2020).
The Innovation and Enterprise. (2020). Available at: https://channels.theinnovationenterprise.com/
articles/how-big-data-is-improving-quality-control-and-testing (accessed 22 July 2020).
Laney D. 2001. 3D Data Management: Controlling Data Volume, Velocity, and Variety. Stamford, CT: META
Group. Available at: http://blogs.gartner.com/doug-laney/fles/2012/01/ad949-3D-Data-Management-
Controlling-Data-Volume-Velocity-and-Variety.pdf (accessed 7 April 2020).
Manglani, C. (2017, April 2). American Express: Using Data Analytics to Redefne Traditional Banking. Avail-
able at: https://digital.hbs.edu/platform-digit/submission/american-express-using-data-analytics-to-
redefne-traditional-banking/ (accessed 2 July 2020).
Notes
1 Unstructured data is either machine generated or human generated. For example, data emitted from
IOT devices, social media applications, website metrics and search engines are classifed as unstruc-
tured data.
2 Batch processing involves the processing of large volumes of data which has been collected over a
signifcant period of time. It is a popular method for processing Big Data typically used in applications
where data naturally ft in a specifc time window (Casado and Younas, 2014).
3 Real-time processing is defned as an approach that requires a continuous stream of inputs for the
processing and outputs of data (Casado and Younas, 2014).
4 The term ‘marketing mix’ is a foundation model for businesses, historically centered around product,
price, place and promotion and had been extended to include people, physical evidence, partner-
ships and processes to cater for services marketing. The marketing mix has been defned as the ‘set of
marketing tools that the frm uses to pursue its marketing objectives in the target market’.
5 The bullwhip efect refers to distorted information from one end of a supply chain afecting another,
leading to tremendous inefciencies in the form of excessive inventory investment, poor customer
service, lost revenues, misguided capacity plans, inefective transportation and missed production
schedules (Lee, Padmanabhan, and Whang, 1997).
6 The General Data Protection Regulation (GDPR) is a regulation in EU law on data protection and
privacy in the European Union (EU) and the European Economic Area (EEA). It also addresses
the transfer of personal data outside the EU and EEA. The GDPR’s primary aim is to give control
to individuals over their personal data and to simplify the regulatory environment for international
business by unifying the regulation within the EU. GDPR. (2018). General Data Protection Regulation.
Available at: https://gdpr-info.eu/ (accessed 5 October 2020).
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3 Data-driven marketing processes
Boundaries and how to overcome them
Heidi Länsipuro and Heikki Karjaluoto
Introduction
The enormous sets of data that are currently accessible for organisational use can both over-
whelm and ofer new opportunities to today’s marketing professionals. Ever-developing
web and technological advancements present marketers with better approaches to mea-
suring, optimising and automating marketing processes; as a result, marketers are increas-
ingly placing analytics and data analysis at the centre of organisations’ marketing functions
(Day and Moorman, 2016). Despite various advancements in data interfaces and services,
drawing conclusions that could prompt feasible action are not yet used comprehensively
to infuence decision-making. Additionally, marketers are facing an expanding demand
from top management to quantify the marketing professionals’ performance ( Järvinen,
2016). The level to which organisations collect data is high; however, strategic and practi-
cal data usage remains incredibly low (Chafey and Patron, 2012).
Previous studies have focused on numerous themes that either overlap or surround
data-driven marketing and marketing analytics practices (Chafey and Patron, 2012;
Hauser, 2007; Järvinen and Karjaluoto, 2015; Jobs, Aukers, and Gilfoil, 2015; Liu, Singh,
and Srinivasan, 2016; Martens et al., 2016; Netzer et al., 2012; Verhoef, Kooge, and Walk,
2016; Viktor, Pena, and Paquet, 2012; Wedel and Kannan, 2016; Wilson, 2010). Studies
have highlighted both the fundamental shortage of marketing data professionals and the
lack of knowledge regarding how much companies are currently using data-driven deci-
sions in marketing (Erevelles, Fukawa, and Swayne, 2016). These studies describe a need
for knowledge of efective marketing analytics capabilities (Day and Moorman, 2016).
Day and Moorman (2016) state the need for gaining practical knowledge by studying
the factors that infuence marketing measurement adoption and the process needed for
the successful implementation of marketing analytics. Thus, both practice and scholarly
research call for further investigation into barriers to the systematic usage of data-driven
marketing, which is what this study aims to explore.
Against this backdrop, this study aims to advance the knowledge of barriers that hinder
the implementation of data-driven marketing practices in organisations via a qualitative
approach. The data and methodology that are used in this research include 10 marketing
professionals’ interviews as well as a thorough literature review to describe the study’s theo-
retical framework and positioning. To gather insight into the research problem, the barri-
ers mentioned by the interviewees were categorised through a qualitative analysis that was
based on a framework from a previous literature review (e.g. Day and Moorman, 2016).
This section presents the background for this study, followed by the theoretical frame-
work for categorisation of the barriers. The data selection, methodology and justifcation
DOI: 10.4324/9781003093909-4
Data-driven marketing processes 23
for using a qualitative approach are detailed in the following section. This is followed by
the results of the study. Finally, the fndings and limitations of this study are discussed.
Additionally, recommendations for future research are presented.
Theoretical framework and literature review

Most marketing professionals agree that ‘data-driven marketing is crucial to success
within a hypercompetitive global economy’ according to Forbes Insights’ online survey
(see Further reading). Still, many organisations have yet to implement such processes in
their marketing strategy. One of the main aims of this research is to determine the reasons
for this lack of adaptation of data-driven marketing.
Marketing can be approached from varying perspectives, for example, as a strategic
function or as an organisational-wide culture (Day and Moorman, 2016). Since this
chapter dives into the concept of marketing capabilities, intertwining and overlapping
themes that afect such capabilities need to be considered.
A literature review by Day and Moorman (2016), ranging from the 1990s to 2015,
concluded the four elements of marketing organisations: (1) capabilities, meaning the
collection of organisational information and skills that execute marketing activities and
organisational changes, in response to its marketplace environment; (2) culture, meaning
a set of beliefs and actions inside the organisation; (3) confguration, meaning the mea-
surement systems, metrics used and the organisational structure and (4) the human capi-
tal, meaning leaders and employees that build, incorporate and assess the organisational
performance and strategy (Day and Moorman, 2016, pp. 6–11).
However, per Chafey and Patron (2012), challenges with people, structures and pro-
cesses have surpassed challenges that are linked to data integration and technology when
discussing data usage in marketing. Other researchers endorse this thinking (Branda, Lala,
and Gopalakrishna 2018; Davenport and Harris, 2007; Germann, Lilien, and Rangas-
wamy, 2013; Gonzalez and Melo, 2017; Wedel and Kannan, 2016).
To understand such barriers in people, processes and structures, this research explores
the overlying factor: organisational culture. Wedel and Kannan (2016) emphasise that the
main obstacles to the utilisation of marketing data and analytical methods for organisa-
tions lie, frstly, to what extent organisational culture and structure enable data-driven
decision-making and secondly in whether the organisation invests in the education and
training of analytics professionals. An analytics supportive organisational culture is con-
centrated on gaining knowledge, continuous information sharing and cultivating a setting
where people are urged to try diferent things with new arrangements by experimenting
to help foster data-driven marketing development (Gonzalez and Melo, 2017; Mezias
et al., 2001). As stated previously, organisations’ top management must become involved
and foster such creative, experimental and open viewpoints (Mezias et al., 2001).
Organisational culture is inextricably linked to leadership (Groysberg et al., 2018; see
Figure 3.1). Therefore, various studies that discuss cultural barriers cite top management
as a possible issue for marketing analytics integration. Davenport and Harris (2007) argue
that top management’s support is necessary for the implementation of data utilisation in
decision-making. Other studies discuss the importance of supportive top management for
successful marketing analytics integration into organisational functions (Branda, Lala, and
Gopalakrishna, 2018; Kiron et al., 2011). Additionally, it is often the founders and infu-
ential managers that shift organisational cultures and instil thoughts and values in employ-
ees’ minds that last for a considerable timeframe (Groysberg et al., 2018). Implementing
24 Heidi Länsipuro and Heikki Karjaluoto
Fluidity of organisation Impacting thoughts and

values
•
Organisational Organisational Top management
structure culture • involved
• information • adaptability strategically
barriers to change • supportive
Culture affects Setting cultures

information sharing in motion
Figure 3.1 The framework of ‘Barriers of data-driven marketing’ based on past research.
Source: Based on Day and Moorman (2016, pp. 6–35).
data-driven marketing predominantly requires some form of change (Levin and Gottlieb,
2009), and previous research has come to the unanimous conclusion that resistance to
organisational change is signifcantly high (Rosenberg and Mosca, 2011). Mezias et al.
(2001) argue that communities’ past thinking is integrated into not only rules, routines
and programmes but even human capital. Consequently, the mentioned cultural barriers
of data-driven marketing are highly linked to management. Thus, this research investi-
gates top management as one of the main barriers to successful data-driven processes (see
Figure 3.1).
Organisational change, learning and adaptivity require a fuid organisational structure
(Banerjee and Srivastava, 2017). Thus, another important barrier regarding culture is the
structure of an organisation. Chafey and Patron (2012) list company culture, conficts of
interest between departments and a siloed organisation as barriers to the integration of
web analytics. Per Banerjee and Srivastava (2017), culture is fundamental in forming the
structure of an organisation. Furthermore, organisational structure and culture are unpre-
dictably related to how advancement and innovation are managed or executed in any
association (Banerjee and Srivastava, 2017). Thus, organisational culture, organisational
structure, top management characteristics and the factors within them that may present
barriers to data-driven marketing deployment are visualised in Figure 3.1. Expert inter-
views are used to analyse the barriers to data-driven marketing deployment.
Methodologies
The study’s data collection method was interviews, which is best suited for situations
where the study is concentrating on the discovery of, for example, experiences, interpre-
tations, attitudes and values that cannot be portrayed in a more systematic way (Carson,
Gilmore, and Perry, 2001; Hirsjärvi, Remes, and Sajavaara, 2009). Semi-structured with
mainly ‘how’ and ‘what’ questions were utilised to allow for more in-depth data (Koski-
nen, Alasuutari and Peltonen 2005).
Multiple steps were taken to ensure the strategic yet subjective selection of interview
participants. This study utilised theoretical sampling, which is defned as the purposive
Table 3.1 Interview information
Interviewee Duration Date Situation of interview Industry
Company A 31:22 18.11.2019 Face-to-face Projects

Company B 27:10 19.11.2019 Face-to-face Grocery trade
Company C 19:46 22.11.2019 Via phone Supply chain
Company D 35:08 11.12.2019 Face-to-face Marketing
Company E 32:01 18.12.2019 Face-to-face Chemicals
Company F 44:21 20.12.2019 Face-to-face Logistics
Company G 25:30 23.12.2019 Via Skype Manufacturing
Company H 20:51 27.12.2019 Face-to-face Technology
Company I 17:42 13.01.2020 Via phone Furniture
Company J 35:18 17.01.2020 Face-to-face Marketing
selection of interviewees based on their relevance and the potential they ofer for estab-
lishing new concepts by considering their characteristics and dimensions (Corbin and
Strauss, 2008). During this research process, ten interviews were conducted. To ensure
both a valid theoretical sampling basis and broad representation, specifc criteria were
established for the interviewees, including being a representative of a company that oper-
ates in the Finnish region and holding a position that enables them to execute marketing
actions based on possible data analysis and insights. The fnal criteria sought to ensure
that the interviewed experts would represent a wide variety of company sizes, company
lifecycles and industries, adding diversity and depth to the data (see Table 3.1). All of the
interviews were conducted in Finland.
The current research utilised interpretive techniques, such as thematisation, coding and
in-depth analysis, to provide a solid theoretical basis despite its subjectivity. Nonetheless,
this qualitative research attempts to provide a basis for data-driven marketing processes
research through a more in-depth look into the topic instead of presenting generalis-
able results. Such conclusions might be unattainable for executing quantitative methods
(Petrescu and Lauer, 2017). Carson, Gilmore, and Perry (2001) argue that a qualitative
research method is applicable in circumstances where the research aims to develop a more
in-depth understanding of a subject that has not previously been comprehensively studied.
Hence, the philosophical approach of this research justifes the subjectivity of its means.
Results: data-driven marketing boundaries

Through the interview data, barriers to data-driven marketing in Finnish organisations
were identifed and categorised per a framework by Humphrey (1988). Despite the wide
ranges in organisational size and various lifecycle stages, many similarities in perceived
and experienced barriers emerged from the interviews. Based on previous research, the
discovered barriers were categorised into three groups: cultural barriers, structural barri-
ers and top management barriers. Almost all interviewees considered the barriers highly
linked and even partly overlapping. Thus, some issues that are described in the diferent
sections might have similarities. Nevertheless, distinguishing each problem was useful
for this research because unique solutions were found for each category. Furthermore,
these categorisations and their linked nature are supported by previous research (Banerjee
and Srivastava, 2017; Branda, Lala, and Gopalakrishna, 2018; Chafey and Patron, 2012;
Deshpandé and Webster, 1989; Germann, Lilien, and Rangaswamy, 2013; Kiron et al.,
2011; Mezias et al., 2001).
Cultural barriers
Banerjee and Srivastava (2017) describe organisational culture as the shared values that
establish a common ground and direction for the entire organisation. Schein (1992)
defnes organisational culture as a set of common hierarchical convictions and quali-
ties that infuence the organisation. Refecting on these perspectives, the interviewees
described multiple reasons for barriers relating to organisational culture. Seventy percent
of the interviewees discussed the importance of a shared mindset as an enabler of data-
driven decision-making in marketing. The interviewees explained that without com-
monly shared ideas and ambitions, moving forward with a few people or teams would
likely involve setbacks and hindrances caused by clashing ideologies.
Challenges linked to change management, whether related to people, structure or
processes, were common amongst the interviewees. This aligns with previous research
(Branda, Lala, Gopalakrishna, 2018; Chafey and Patron, 2012; Davenport and Harris,
2007; Germann, Lilien, and Rangaswamy, 2013; Gonzalez and Melo, 2017; Wedel and
Kannan, 2016) that states that such obstacles have surpassed the complications faced by,
for example, data implementation. Moreover, more than half the interviewees mentioned
the demand for a common language as well as connected virtual environments that enable
data sharing without boundaries, both of which are closely linked to organisational cul-
ture. Similarly, some interviewees raised concerns regarding silos, where, despite a com-
mon language, the disruption in data distribution caused diferent decision-makers to
have diferent views on the same case or process. Even in cases where the data available
were not being utilised productively, issues were found that traced back to an organ-
isational culture where data-driven decision-making was not made a shared goal and
priority.
As Germann, Lilien, and Rangaswamy (2013) argue, marketing analytics insights are
sufciently shared through a positive analytics culture, and the interviewees disclosed
similar ideas. Some interviewees even mentioned actively working towards a data-driven
culture across the organisation by sharing data proactively outside the marketing depart-
ment. A strongly analytical and data-driven culture is focused on picking up information
and consistent data sharing (Mezias et al., 2001). Furthermore, almost half the interview-
ees wanted to develop a setting where individuals would be encouraged to attempt vari-
ous things with lean ideology from an experimentation perspective to ensure the option
to cultivate showcasing information-driven improvement, which was also described by
Mezias et Al. (2001).
Nevertheless, opposition towards analytics usage in the data-driven marketing devel-
opment process is an apparent barrier that is caused by conficts between diverse organ-
isational cultural ideologies. Whether it is resistance to adaption to changes, conficting
ideologies within the organisation or the lack of common ground and paths, all the inter-
viewees cite organisational culture as one of the main barriers to advancing data-driven
marketing processes, which verifed the division displayed in Figure 3.1. Continuously
encouraging individuals in the organisation to learn, advance and work across silos was
seen to have a positive impact on data-driven process development by enabling shifts in
the organisational culture. Most of the interviewees gave examples of situations where
education and organisation-wide involvement had a constructive outcome for marketing
analytics utilisation. Wedel and Kannan (2016) highlight commonly accepted beliefs in
the organisation as a central driver for data-driven marketing. Moreover, organisations
that do not invest in the education of analytics experts face more difculties in evolving
their capabilities than those who do invest in it (Wedel and Kannan, 2016). Thus, barri-
ers can and have been overcome in past cases through education and by examining silos
from a cultural perspective.
Structural barriers
To gain consistency, enable learning and achieve acceptance towards change, the organ-
isational structure needs to be fuid (Banerjee and Srivastava, 2017). Over half the inter-
viewees named difculties with data sharing as a recurring issue in the organisation. Part
of these problems were related to the organisational culture to a greater extent, but a few
of the interviewees cited the cause as a structural barrier. Moreover, half the interviewees
emphasised the importance of common goals to prevent structure-related barriers.
Half the interviewed experts saw some cultural reluctance to changing the mindset of
the personnel as a result of organisational silos. In addition, silos within the organisation
were seen to infuence the generation of diferent levels of expertise between functions.
This is consistent with past research that lists organisational silos as barriers to develop-
ment (Chafey and Patron, 2012). Furthermore, organisational structure issues were seen
to be more severe in larger organisations.
In total, eighty percent of the interviewees considered data linkage and the integra-
tion of datasets into a common database an issue created by an infexible organisational
structure. One-sided data were seen to afect reliability because the answers would not
exhaustively describe the entire picture and provide certainty. A few interviewees saw
steep hierarchies and uninvolved top management as barriers to data-driven marketing.
They claimed that if senior management is structurally ‘too high up’, their involvement in
these vital development processes will become difcult, as steep hierarchies often hinder
the fow of information.
Managerial barriers
The top management-related barriers that were discovered in this research were manifold.
The organisational management approach naturally infuences all aspects of the business,
including the culture of the organisation and its structure (Banerjee and Srivastava, 2017;
Groysberg et al., 2018). Furthermore, due to management’s strong infuence, their actions
shape the culture and operating methods of the organisation in a lasting way (Groysberg
et al., 2018). Most of the interviewees were convinced that top management support is
crucial for the successful implementation of data-driven processes. Davenport and Harris
(2007) cite collateral ideas, arguing that a data-driven strategy requires top management
support. Other studies also share this view (Branda, Lala, and Gopalakrishna, 2018; Kiron
et al., 2011). Furthermore, Kumar et al. (2016) state that data, technologies and analytics
experts need managerial staf members to recognise the benefts of data-driven market-
ing to enhance data-driven processes and help them thrive across the organisation. The
perspective of top management was of considerable importance to more than two-thirds
of the interviewees. Moreover, a few of the interviewees highlighted the importance of
coherent guidelines and objectives. The interviews revealed problems in communicating
the objectives and possible contradictions between management and marketing goals.
The interviewees felt that the involvement of top management in the strategic devel-
opment, shaping and monitoring of marketing is an important part of the success of
data-driven processes. For example, 70% argued that if management is not involved with
marketing or its related data, then marketing has neither the power nor the complete
insight to drive change sustainably and proftably. Thus, a lack of data-driven thinking in
the organisation’s top management might cause a barrier to implementing data-driven
processes.
Further perceived barriers to data-driven marketing

The challenges and obstacles that were identifed during the interviews were also found
outside the three-part categorisation of organisational culture, structural barriers and top
management-related barriers (see Figure 3.1). Altogether, fve individual interviewees
noted three barriers to data orientation. Firstly, technological difculties were cited relat-
ing to data reporting integration (Interviewee C) and technological restrictions (Inter-
viewees A and I). However, as stated previously, such technological barriers have been
surpassed by challenges with people, structures and processes when discussing data-driven
decision-making in marketing (Branda, Lala, and Gopalakrishna, 2018; Chafey and
Patron, 2012; Davenport and Harris, 2007; Germann, Lilien, and Rangaswamy, 2013;
Gonzalez and Melo, 2017; Wedel and Kannan, 2016). Additionally, two interviewees
mentioned a lack of knowledge in data utilisation (Interviewees B and E). These instances
fall into the original categorisation presented by Day and Moorman (2016), which dis-
tinguishes capabilities as an element itself. Thus, further research should be conducted
before the categorisation presented by this study can be fully verifed.
Discussion
The study fndings provide both practical and theoretical contributions. The fndings
imply that, despite individual motivations towards a more data-driven marketing process,
at least a partial organisational culture shift is needed to generate advancements in data-
driven marketing and decision-making in the long term (see Figure 3.1). Thus, multiple
functions within an organisation must recognise the benefts of marketing analytics and
strive towards analytical thinking methods to achieve progress. If this is not the case,
developing data-driven marketing will not last because the urgency that is seen as more
important in the daily life of an organisation quickly displaces marketing resources else-
where. Additionally, organisational silos and individual employees often return to routine
habits because alternatives seem too risky. If benefts of data-driven marketing and deci-
sion-making can be concretely recognised within the organisation, resources spent on
developing marketing analytics are no longer seen as a negative input–output ratio. A rea-
sonable beginning stage is to audit how applying marketing analytics adds to a business’s
competitive advantage, followed by contrasting this with the current capacities and worth
created. According to the fndings of this study, positive outcomes from these processes
enable further investments in data-driven marketing, which enable a cycle of repetency.
In accordance with the fndings of this study, whilst data-driven marketing processes
require organisational change, the process requires consistency and repetency in the short
term to evolve beyond the initial challenges of data-driven marketing. Data-based mar-
keting does not mean measuring everything, especially in the early stages. It is difcult
to move from minimal or nonexistent data utilisation to the collection of data for each
singular marketing process without causing data fatigue. Creating a shared foundation
and expectation for data utilisation throughout the organisation is the initial step towards
sustainable data-driven marketing processes.
The interview data suggests that building an advanced marketing strategy in the digital
sphere that expands the commitment to data for organisations requires cautious thought
regarding the goals of the marketing department. Objectives in the organisation need to
be exhaustingly conceptualised, defned in collaboration with managers and should pref-
erably include other functions besides marketing. Furthermore, these objectives must be
clearly communicated to the entire organisation to clarify the role of marketing amongst
other functions. This will help the development of a common culture and language
in terms of data-driven marketing, which will help eliminate silos in the organisation.
The organisational top management involvement in the data-driven marketing process is
crucial and allows the marketing department to sufciently report on the results of data-
driven marketing processes. Thus, the benefts and the goals of the data-driven marketing
process must be commonly understood and valued. Furthermore, the free fow of data
that is enabled by a positive combination of sharing organisational culture and a structure
that enables such is needed.
The fndings of this study support fndings from previous research, which cite organ-
isational culture as the main driver of data-driven marketing change in organisations.
However, organisations are complex entities where multiple actions and functions afect
one another. Thus, even though organisational culture emerged as the most important
and powerful barrier to data-driven marketing, considering the roles of organisational
structure and top management are central when identifying barriers for data-driven mar-
keting processes.
Limitations of the study and future research directions

Study credibility must be recognised when conducting and evaluating research. This can
be especially ambiguous in the case of interview research due to its subjective nature.
However, this qualitative research aimed to describe the real-life phenomenon of data-
driven marketing processes and its concepts as accurately as possible. The depth and
intimacy of the interview process enabled a conversational setting and thus a thorough
analysis of the results. Qualitative interviews ofer rich data, which helps in understanding
complex and contemporary phenomena. Additionally, since the study is limited to inter-
viewees from Finland, it cannot be applied linearly to a diferent environment. However,
the study ofers insight into development of data-driven marketing in Finland.
The described barriers to data-driven marketing are based on specifc categorisation
(see Figure 3.1). Thus, if this framework was either expanded or replaced, additional or
even contradicting barriers might be discovered. However, this research tried to actively
reduce the impact of such changes on results by ensuring high-quality documentation
and conducting an exhaustive literature review.
A more hands-on approach towards this subject might prompt a more straightfor-
ward approach to the transition from research to practice. Thus, future research aimed
to provide more concrete examples of how to become a data-driven marketing profes-
sional might infuence and accelerate data-driven process adaptation. In the future, all
marketers will likely have to adapt data and insights into their work. Cukier and Mayer-
Schoenberger (2013) highlight that the human components of intuition, risk-taking,
mishaps and probable blunder will increasingly afect data-driven marketing in the future.
Thus, further studies on the importance (or lack thereof ) of the human factor could be
a potential research area. Conceptualising the role and infuence of the human factor in
data-driven decision-making is an essential research topic given that sophisticated and
automated modelling is continually evolving.

• Most of the noted barriers to data-driven marketing were related to organisational
structure, organisational culture and top management involvement.
• The discovered barriers are highly linked and even overlapping, but they require
varying solutions to advance data-driven marketing.
• Future research should aim to provide more concrete examples of how to become
a data-driven marketing professional to facilitate practical implementation.
Disclaimer
The research presented in this chapter was collected for my thesis, Heidi Länsipuro, the
University of Jyväskylä Master’s thesis Capability Maturity Model for Data-driven Marketing
(2020). The copyright for this JYU thesis belongs to me as the Author. Research pre-
sented here has not been otherwise previously published.
Further reading
Forbes. (2015). Data-Driven and Customer-Centric. Available at: www.forbes.com/forbesinsights/data-
driven_and_customer-centric/index.html (accessed 10 January 2020).
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4 The planning and implementation
process of Programmatic
Advertising campaigns in
emerging markets
Thanh Tiet and Heikki Karjaluoto
Introduction
Boston Consulting Group (2018 – see Further reading) projects that Programmatic
Buying ad spend will account for 63% of global display advertising spend by 2020,
leaving a 37% ad spend share for direct buying (i.e. when advertisers and/or agencies
manually choose individual ad placements and book them directly with publishers).
The rapid advancement of Programmatic Advertising has gained the attention of both
the advertising industry and the academic community and spurred many research
papers on the topic. Several popular research areas under this topic include Real-Time
Bidding (RTB) optimisation algorithms, RTB advertising revenue maximisation for
publishers and the impact of Programmatic Advertising on consumer data privacy.
The articles related to RTB date to 2014 or earlier, while the other topics were not
researched until 2017.
Despite the rich literature on Programmatic Advertising, there is a disciplinary gap
between the advertising industry and academic research due to the technical nature of
the subject (Li, 2017; Yang et al., 2017). The feld has been led by technology companies
and computer scientists rather than advertising academia (Yang et al., 2017). This explains
why most related articles were published in computer science journals or software engi-
neering proceedings, which caused a ‘research gap in the social science of the subject’
(Li, 2017, p. 4). Qin and Jiang (2019) complement this view by arguing that existing
studies overemphasise the technologies of Programmatic Advertising itself and lack dis-
cussion on how these technologies afect and transform traditional advertising processes
and practices.
The potential of emerging markets

Statistics show that emerging markets (e.g. China, India, Indonesia, and Brazil) make
signifcant contributions to the global advertising landscape in terms of ad spend volume
and growth rate. According to Zenith’s advertising forecast, seven of the top ten con-
tributors to global ad spend growth from 2017 to 2020 were emerging markets (Zenith,
2018 – see Further reading). Additionally, digital ad spends in emerging markets, espe-
cially Southeast Asia, are in double-digit growth (Digiday, 2017 – see Further reading).
However, there are limited studies about online advertising and its dynamics in these
markets. Hence, this chapter focuses on studying the Programmatic Advertising process
in Vietnam, which is one of these emerging markets.
DOI: 10.4324/9781003093909-5
Programmatic Advertising in Vietnam 33
Objective of this chapter
Based on the identifed research gap regarding Programmatic Advertising and increased
interest in digital advertising practices in emerging markets, namely Vietnam, this chapter
will explore how Programmatic Advertising is planned and implemented in this market.
The main Research Question this chapter seeks to answer is to what extent Programmatic
Advertising is leveraged in online advertising campaigns in Vietnam? In addition, we
look at the advantages/disadvantages of leveraging Programmatic Advertising. Our sub-
research question is how Programmatic Advertising campaigns are planned and imple-
mented. Programmatic Advertising involves automation and the integration of diferent
technologies, which may require a diferent advertising process to ensure efectiveness.
This study makes two main contributions to the research and the practice of online
advertising. In terms of theoretical contributions, it flls the disciplinary gap because
it studies the Programmatic Advertising phenomenon from the perspective of market-
ing communications. The study also presents the fndings from the perspective of an
emerging market (Vietnam), which is currently missing in academic research. In terms
of managerial contributions, the study discovers two distinctive planning and implemen-
tation processes of Programmatic Advertising campaigns, depending on the campaign’s
objectives. It also pinpoints both good and bad practices in Programmatic Advertising
processes. These fndings will help advertisers efectively and efciently manage their
programmatic ad campaigns.
Theoretical background
Defning Programmatic Advertising

Programmatic Advertising comprises two components: Programmatic Buying and Pro-
grammatic Creative (Chen et al., 2019; Sven and Owens, 2016, pp. 123–130). Program-
matic Buying refers to a range of technologies that automate the real-time buying and
selling of ads. Programmatic Creative includes a range of technologies for optimising
and generating ad content in real time so that ads are relevant (i.e. personalised) to users.
While the two components have diferent functions, both rely on massive amounts of data
(e.g. consumer data and ad inventory data), optimisation algorithms and intermediaries
so that relevant ads can be delivered to the optimal target audience at scale (Li, 2017).
Programmatic Buying uses data and technologies to automate and optimise the real-
time buying and selling of ads. Nevertheless, it is not a fully automatic process because
human intervention is still required to guide the system, and research indicates that data
and technologies are equally important to the success of Programmatic Buying (Chen
et al., 2019; Choi et al., 2019; IAB, 2020 – see Further reading; Li, 2017; Qin and Jiang,
2019). Without data, there is no input for technologies to process and optimise. Similarly,
without the relevant technologies, the automatic ad procuring process is not feasible, and
advertisers cannot leverage the potential of data because human beings are not capable of
analysing such a signifcant amount of data in real time.
If Programmatic Buying aims to fnd the right audience and, fnally, person, then Pro-
grammatic Creative aims to show that audience or person individual personalised ads.
According to Kumar and Gupta (2016), consumers increasingly expect to see personalised
ads that are relevant to them and address their needs. The most important benefts of
34 Thanh Tiet and Heikki Karjaluoto
personalised ads are ‘accelerating a consumer’s decision-making process and increasing
the likelihood of response and purchase’ (Kumar and Gupta, 2016, p. 303). Chen et al.
(2019) defne Programmatic Creative as a set of technologies and data that aim to generate
personalised and contextualised ads automatically in real time and at scale. Similar to pro-
grammatic buying, Programmatic Creative is not a fully automatic process; thus, human
intervention is required to ensure the appropriateness of system-generated ads (Li, 2019).
Intermediary platforms in the programmatic ecosystem

Programmatic Buying includes four main intermediary platforms: the Demand-Side
Platform (DSP), the Data Management Platform (DMP), the Supply-Side Platform (SSP)
and Ad Exchange.
The DSP assists advertisers or their agencies who buy ad inventories with managing
Programmatic Buying campaigns. Examples of DSPs include MediaMath, AOL, Google
Display and Video 360. The DMP is an important intermediary because it is layered
atop the DSP to provide data for the system (Chen, 2020, pp. 299–308). The DMP
collects and integrates data from diferent sources, analyses it to build comprehensive
audience profles and feeds it to DSPs. Examples of DMPs include Lotame and Nielsen.
The SSP serves suppliers of advertising inventories. Examples of SSPs include PubMatic,
AppNexus, OpenX and Google’s AdX. The SSP helps publishers manage ad inventories,
optimise the prices of an ad impression and receive revenue (Chen, 2020, pp. 299–308;
Choi et al., 2019). Ad exchange is a centralised platform where DSPs (buyer) and SSPs
(sellers) buy and sell ad inventories in real time. Examples of ad exchanges include Google
DV360 and AppN.
Programmatic Creative includes three main intermediary platforms: Programmatic
Advertisement Creation (PAC), Dynamic Creative Optimisation (DCO) and the Con-
tent Management Platform (CMP) (Chen et al., 2019).
Both the PAC and DCO belong to the Programmatic Creation Platform (PCP), which
generates mass personalised and contextualised ads in real time. PAC creates multiple ad
versions, and DCO is responsible for testing diferent creative versions with diferent
audiences in diferent contexts to see which version works with whom and in which
context. DCO then feeds back the real-time performance of these ad versions to the
PAC for adjustment of the ad content accordingly. To a certain extent, DCO is similar
to traditional A/B testing, but better in that it executes the testing process automatically,
and it can test diferent ad versions at the same time and at scale (Chen et al., 2019). The
CMP is a stock photography database that can automatically recognise individual objects
in a photo, decompose all the components and assign them tags. When the CMP is con-
nected to the PCP, the PCP will rely on these tags to extract suitable components and
create personalised ads automatically.
The online advertising planning and implementation process

Overall, the online advertising process comprises a series of eight steps: (1) setting cam-
paign objectives and efectiveness metrics, (2) campaign insights discovery, (3) strategic
advertising planning, (4) message strategy, (5) ad creation, (6) media planning, (7) media
buying and (8) campaign optimisation and evaluation (Chafey and Ellis-Chadwick, 2016,
pp. 418–475; De Pelsmacker, Geuens, and Van den Bergh, 2017, pp. 125–199; Qin and
Jiang, 2019). These steps comprise a linear online advertising process.
Empirical study
Methodology
This study uses case study research and abductive reasoning to answer the research ques-
tions (RQs). A case study is also suitable for answering ‘how’ and ‘why’ questions, especially
when investigating contemporary phenomena that cannot be replicated in a lab environ-
ment (Yin, 2009, p. 18). Johnston, Leach, and Liu (1999) also argue for the strength of the
case study approach to gather an in-depth understanding of the phenomenon of interest.
Case context: overview of the Vietnam market’s Internet landscape

Vietnam’s Internet penetration in January 2020 was 70% (the world average is 59%), and it
is growing fast annually (WeAreSocial, 2020 – see Further reading). There was an increase
of 10% in absolute Vietnamese Internet users compared to the same period in the previous
year, making Vietnam one of the top ten markets with absolute growth in Internet users.
Vietnamese Internet users spend an average of 6.5 hours per day on the Internet, which is
on par with the worldwide average (WeAreSocial, 2020). Two-thirds of their total time spent
is equally accounted for by social media activities and watching videos (WeAreSocial, 2020).
Google search, YouTube and Facebook are the three most visited websites in Vietnam
(WeAreSocial, 2020). Facebook and YouTube are also the top two social media platforms,
with penetration of 90% and 89%, respectively (WeAreSocial, 2020), making these plat-
forms ideal for advertisers in this market. Therefore, both Google and Facebook position
Vietnam as the most important market in Southeast Asia (The Information, 2019; Market
Realist, 2019 – see Further reading).
Vietnam is also a mobile-centric market: 97% of Vietnamese Internet users access the
Internet via a mobile device, and half of their daily Internet time is spent on a mobile
device (WeAreSocial, 2020). Indeed, 70% of their YouTube watch time is from mobile
phones (MMA, 2018 – see Further reading), and 79% of Internet users only access Face-
book via a mobile device (WeAreSocial, 2020). Mobile-centric trends have fostered the
growth of mobile advertising. While mobile advertising has many advantages, such as
granular data and location-based targeting, it also faces several limitations, such as limited
rich advertising formats, a high possibility of ad blockage and technological compatibility
issues with diferent mobile operating systems (MMA, 2018).
According to WeAreSocial (2020), in terms of digital advertising spend, Vietnam’s
2019 estimated expenditure was $306 million, which had increased by 9% compared to
2018. That digital spend was allocated for search ads, display ads (i.e. banners, videos and
social ads) and classifed ads at 38.5%, 44.2% and 17.3%, respectively. Display ads not only
accounted for the highest digital spend but were also the only ad format with two-digit
expenditure growth last year (WeAreSocial, 2020). The ad spend patterns of the Viet-
namese market are also consistent with global ad spend.
Data collection
Interviews as a data collection method

Yin (2009, pp. 106–109) endorses interviews as the most important and essential source
of data for a case study. Furthermore, interviews allow a researcher to interact with
the study subjects directly and ask open-ended questions to gain an understanding of
a specifc topic, especially when the topic is complex or sensitive (Hair et al., 2016,
pp. 200–208). Bloomberg and Volpe (2008, pp. 73–74) add that the interview is prefer-
able to other methods when a researcher needs to obtain a person’s experience or view-
points. Semi-structured interviews were particularly suited to this study, which aimed to
understand the digital specialists’ perspective on Programmatic Advertising as well as their
experience in utilising it in online advertising campaigns.
Recruiting study participants

The study participants were recruited using purposive sampling for their knowledge or
relevant understanding of the topic of interest. In other words, participants should be
recruited according to ‘predefned criteria relevant to a particular research objective’
(Guest, Bunce, and Johnson, 2006, p. 61). The respondents needed to satisfy the fol-
lowing criteria: (1) possess at least two to three years of experience in digital advertising
for an adequate understanding of the online advertising process and (2) experience in
planning and implementing programmatic ad campaigns within the past year. Because
the digital advertising landscape keeps evolving, these criteria were used to ensure that
participants’ answers refected the current market situation. This study aimed to complete
6–12 interviews to achieve theoretical saturation of ‘the point at which no new informa-
tion or themes are observed in the data’ (Guest, Bunce, and Johnson, 2006, p. 59).
Conducting semi-structured interviews

The semi-structured interviews were conducted in the Vietnamese language in February
and March 2020. The interview durations varied from 45 to 90 minutes. All interviews
were conducted via Skype, audio recorded and transcribed. The interviewees were either
from a client’s in-house digital media team or from an agency’s digital team. Seven of the
eight people contacted participated in these interviews. The major themes emerged after
fve interviews, and no new signifcant themes appeared during the remaining interviews.
Data analysis
The study used thematic analysis due to its advantage of fexibility compared to other
methods as well as its alignment with the abductive reasoning approach of the study.
Braun and Clarke (2006) explain that thematic analysis includes six phases: (1) familia-
risation with data; (2) generating initial codes; (3) searching for themes; (4) reviewing
themes to ensure that they are meaningful, signifcant and not overlapping; (5) defn-
ing and naming themes and (6) producing a report. This study’s data analysis process
followed all six phases of thematic analysis. Initial codes were identifed during the
transcription process, while the others were generated after all transcriptions were com-
pleted. The coding process also involved the data reduction step to focus on the relevant
data and make analysis feasible (Hair et al., 2016, p. 303). Based on the codes, the main
themes were identifed, reviewed and defned. The coding process was also guided by
the relevant literature. The codes were mapped and grouped into diferent themes to
help answer the RQs. Finally, each theme was identifed, and it was determined whether
there were adequate supporting empirical data and whether the theme presented a criti-
cal contribution to the RQs.
Results and discussion
RQ1: How is Programmatic Advertising being used in online advertising campaigns in
emerging markets?
Overall, programmatic ads are used in both long-term brand-building campaigns and
short-term direct-response campaigns, even though the data suggest that Programmatic
Advertising is being used more in long-term brand-building campaigns than it is in short-
term direct-response campaigns. Diferent campaign objectives have distinctive efective-
ness metrics. The efectiveness metrics of long-term brand-building campaigns are reach
and frequency, while those of short-term direct-response campaigns are conversions. Dif-
ferent short-term direct-response campaigns would defne conversions, such as website
visits, form registrations or purchases, diferently.
Programmatic Advertising ofers several exclusive advantages, such as sophisticated and
granular audience segmentation. This advantage stems from combining underlying pro-
grammatic technologies with holistic audience online profles. Sophisticated audience
segmentation implies that advertisers can segment the desired target audience into dif-
ferent subgroups and serve the relevant ad to each group. However, granular audience
segmentation suggests that advertisers can layer various audience attributes to narrow
the audience group and achieve precision targeting. Examples of audience attributes are
demographics, location, interest, online behaviour, etc. The spectrum goes from broad
demographic traits to specifc online behaviours. Another advantage is lookalike audi-
ence targeting. When this option is employed in an online campaign, the DSP will auto-
matically fnd a new audience with online profles similar to those of the brand’s existing
target audience. This targeting technique not only extends the campaign’s reach but also
increases conversions for short-term direct-response campaigns. The fnal advantage is
that Programmatic Buying can consolidate the performance of diferent channels and
devices as well as report the Key Performance Indicators (KPIs) at the campaign level.
This consolidation not only improves advertising efciency (i.e. reduces the ad impres-
sion duplication across channels and devices) but also lets advertisers evaluate the cam-
paign holistically (i.e. advertisers can evaluate advertising efectiveness at the campaign
level instead of at the channel level).
Despite the obvious advantages, there are three challenges with Programmatic Adver-
tising. The frst is incurring additional fees, such as platform and data fees. Advertis-
ers will be charged a platform fee when they implement programmatic ads via DSPs.
Similarly, advertisers will be charged a data fee when they leverage the audience data in
their targeting. The more the data layers involved, the higher the data fees. There were
controversial opinions among the respondents regarding whether the incurred fees are
reasonable (at least 10%–15% of the media budget). The next issue is that many advertis-
ers do not understand the audience buying concept of Programmatic Advertising. Hence,
they expect to see their own ads during the campaign period, and when they do not,
they tend to conclude that Programmatic Advertising is inefective. The third issue is
related to ad inventories. The banner ad inventories that are available for Programmatic
Buying are subject to limited sizes and formats (i.e. most programmatic banner ads are
of Internactive Advertising Bureau (IAB) standard sizes); therefore, if a brand wants to
convey its message through a rich format banner (e.g. an expandable non-IAB standard),
there is a high chance that the brand can only deliver that message via direct buy. The
next obstacle is that many local publishers who own premium ad inventories (i.e. ad
placements with high reach and high viewability) are reluctant to sell these ad impressions
through programmatic channels. Instead, they prefer to sell through traditional direct
contracts. If advertisers insist on buying these ad placements via programmatic buying,
they can negotiate deals (e.g. programmatic guaranteed deals, preferred deals or private
market deals), which are more expensive and time-consuming to implement. Neverthe-
less, the respondents shared that these deals are limited, and many premium ad placements
are still inaccessible through programmatic buying. Lastly, ad inventories on YouTube and
Facebook – the top two advertising platforms in Vietnam – are sold exclusively on two
DSPs: Google DV360 and Facebook Ad Manager. This fragmentation deters the beneft
of Programmatic Advertising consolidating ad performance across channels.
RQ2: What are the planning and implementation processes for Programmatic Advertising
campaigns?
In general, the new planning and implementation process for Programmatic Advertis-
ing also includes eight steps: (1) setting campaign objectives and efectiveness metrics,
(2) campaign insights discovery, (3) strategic advertising planning, (4) message strategy,
(5) ad creation, (6) media planning, (7) media buying and (8) campaign optimisation and
evaluation. However, there are three important points of discussion to consider.
1. The Programmatic Advertising process is non-linear. This is especially true

for short-term direct-response campaigns. More than one step can happen simul-
taneously, thanks to the underlying programmatic technologies. The DSP can create
ads with a personalised message and match the size of the ad placement simultane-
ously in real time, allowing ad creation and media buying steps to happen concur-
rently. The campaign evaluation step is then iterated periodically during the campaign
period rather than post-campaign, which forms a constant loop from steps 2 to 6
throughout the campaign. At the tactical level, the DSPs evaluate the efectiveness
of each ad version and ad placement based on the target audience’s feedback on
the ad. The systems then make necessary changes to improve the campaign’s per-
formance. At the planning level, digital specialists monitor the campaign’s perfor-
mance. If new learning or insights emerge from the evaluation process, the digital
specialists will make necessary changes to the creative message, audience segmentation
and budget allocation among audience subgroups, ad groups and media channels.
From this perspective, the advertising process of short-term direct-response cam-
paigns appears to be more fexible and adaptive than that of long-term brand-building
campaigns because the planning and implementation steps interlace throughout the
campaign. However, the planning and implementation stages of long-term brand-
building campaigns are separate. It can be inferred from the interviews that the
planning phase of brand-building campaigns happens before the campaigns begin
and remains unchanged during the campaign period. The implementation phase
of long-term brand-building campaigns is otherwise similar to that of short-term
direct-response campaigns. Figures 4.1 and 4.2 outline the new advertising process
for both campaign types.
2. The Programmatic Advertising process is data driven. All optimisation
decisions that are made by the DSP are data driven. For example, Google DV360
and Facebook Ad Manager rely on either their built-in audience data or third-party
data sources (e.g. DMPs and data provided by e-Commerce platforms) to decide
PRE- DURING POST-

CAMPAIGN CAMPAIGN CAMPAIGN
(1) Setting
(2) (3)
campaign
Discovering Strategic
objective &
campaign advertising
Effectiveness
insights planning
metrics
(4) Message
strategy (6)
Ad
creation
(8)
Campaign
(5) Media
evaluation
planning (7)
Media
buying
! Consecutively Simultaneously
Figure 4.1 Programmatic Advertising process of long-term brand building campaign.

Source: Thanh Tiet (2020).
PRE- DURING POST-

CAMPAIGN CAMPAIGN CAMPAIGN
(1) Setting campaign

(2) Discovering
objective &
campaign insights
Effectiveness metrics
(3) Strategic
advertising
planning
(4) Message
strategy (6)
Ad creation (8)
Campaign
(5) evaluation
Media planning (7) Media
buying
Consecutively Simultaneously
Figure 4.2 Programmatic Advertising process of short-term direct response campaign.

Source: Thanh Tiet (2020).
whether to show an ad to a specifc audience, which ad message to utilise, etc.
The systems rely on the audience’s responses to the ad to evaluate whether that
optimisation decision was efective. The DSPs also ofer reporting dashboards (e.g.
predictive metrics and historical data) so that digital specialists can quickly access
the campaign’s performance and make necessary interventions in the systems’ opti-
misation processes. The data-driven approach reduces a signifcant amount of
guesswork in the advertising process. Additionally, the post-campaign data goes
beyond traditional digital metrics, such as impressions or clicks. Rather, the systems
can track and report more comprehensive data, such as attribution reports and the
campaign’s audience data, which are valuable for deeper analysis of the campaign’s
performance.
3. Programmatic Advertising has introduced automation into the advertising
process. Automation happens mostly during the optimisation steps (i.e. creative
optimisation, bid optimisation and ad placement optimisation). Hence, the digital
specialists’ role during the implementation steps is to supervise the systems. Yet,
the respondents shared that their intervention was still required; the systems were
not yet perfect. Nevertheless, the role of digital specialists during an advertising
campaign’s planning phase remains signifcant and irreplaceable. Lastly, while Pro-
grammatic Advertising ofers automation for several tasks, it also creates new tasks
for the digital specialist. For instance, the specialists need to create more creative
elements to feed the DSP systems so that the systems have more ad combination
options for optimisation. Furthermore, because the programmatic ad buying eco-
system involves more parties than the traditional direct buy, the specialists need to
spend time communicating with diferent parties and addressing the technical issues
that emerge from initiating programmatic campaigns.
Discussion
Theoretical implications
The study fndings support the model of Programmatic Advertising by Chen et al. (2019),
which states that Programmatic Advertising has two components: Programmatic Buying
and Programmatic Creative. While the former is fully developed, the latter is still under
development. The development stage of the two components was refected through the
experience of the study participants. All participants had experience in implementing
Programmatic Buying campaigns, but only a few had experience with Programmatic
Creative. Furthermore, the discussion on Programmatic Buying was more thorough and
in-depth than that on Programmatic Creative. For instance, Programmatic Buying was
employed extensively in both long-term brand-building and short-term direct-response
campaigns. The advanced deployment of Programmatic Buying was also manifested
through sophisticated customer segmentation and utilisation of lookalike audience target-
ing to extend the campaign’s reach and conversions while addressing the issues of brand
safety and viewability.
By contrast, Programmatic Creative in the local market is still under development
for two reasons: compared to Programmatic Buying, there are fewer campaigns imple-
menting Programmatic Creative, and in terms of the platform infrastructure, Chen et al.
(2019) state that creative programmatic platforms include PCP and CMP. While PCP
was mentioned and discussed by the study participants, CMP was not mentioned at all.
This implies that CMP was not used in the market at the time of this study and likely was
not available; all respondents implementing Programmatic Creative in their online cam-
paigns had to manually design and upload the creative templates and components into
the system. While the lack of CMP can indicate that the local market has not reached the
technology’s state-of-the-art stage, it seems that the model of Programmatic Advertising
by Chen et al. (2019) needs modifcation to strengthen its explanatory power.
Managerial implications
The study identifes two diferent planning and implementation processes for Program-
matic Advertising, depending on the campaign objectives. For campaigns aiming at
long-term brand building, the advertising process is more straightforward because the
planning and implementation phases are separate. That is, the campaign’s overall strate-
gies, including customer segments, targeting strategy, creative strategy and media mix,
remain unchanged throughout the campaign. All decisions that are made during the
implementation stage follow predefned strategies. By contrast, the processes for short-
term direct-response campaigns are more adaptive in the sense that the planning and
implementation phases are integrated. Furthermore, the study fndings suggest that the
strategies, especially customer groups, targeting and even the creative message, are subject
to change during the campaign’s implementation phase.
Regarding changes in the target groups, the study fndings imply that advertisers want
to prioritise ad spend on those who are more likely to make a conversion (e.g. make a
purchase and register a form) soon to achieve the campaign’s KPIs. Acknowledging the
two processes helps advertisers manage the campaigns more efectively in terms of allo-
cating reasonable time and resources at diferent stages of the processes. For instance, the
process for long-term brand-building campaigns can require more time and efort dur-
ing the planning phase than in the implementation phase. Moreover, short-term direct-
response campaigns require continuous time and efort during both phases.
The diferences between the two processes can be explained by the nature of the
two campaign types. Short-term direct-response campaigns are performance driven
and demand immediate results, while long-term brand-building campaigns aim for
long-term impacts, such as changing consumers’ perception or behaviour towards the
brand. Therefore, even though Programmatic Advertising technologies have changed
the advertising process, they are likely not the sole contributor. Advertisers also play
a signifcant role in shaping the processes. For instance, the programmatic mechanism
works the same in both processes; the audience and campaign performance data are also
collected and available in real time in both processes. However, digital specialists must
decide how to leverage the mechanism to meet the campaign’s objective. In that sense,
Programmatic Advertising can enhance the advertising campaign’s performance and
the efciency of its advertising spend. Yet, the enhancement level essentially depends
on the in-depth understanding and expertise of the digital specialists. In other words,
adopting Programmatic Advertising (i.e. shifting the budget from traditional direct buy
to Programmatic Buying and leveraging dynamic ads) because it has a promising advan-
tage (i.e. it delivers the right message to the right person at the right time) without a
thorough understanding of the technologies and careful preparation could result in a
great expectation gap.
The study fndings indicate two main reasons for this expectation gap. First is the
justifcation of additional fees (e.g. platform fee, data fee and tech fee) when executing
Programmatic Advertising. These fees are costly and vary depending on the depth of
the targeting layers, diferent DMPs and the sophistication of the technologies involved
when integrating diferent intermediates in the programmatic ecosystem; advertisers
and agencies must be aware of these fees while planning their campaigns. Additionally,
as the data fees keep increasing with added targeting layers, the digital specialists need
to justify the optimal point between the cost and the benefts for each layer. Further-
more, while the issue of non-transparency fees was not mentioned in the interviews, it
was discussed in the research literature. Hence, advertisers and agencies should be aware
of this issue. Secondly, programmatic technologies are complicated. The most common
issue from the case study was incompatibility between platforms, which interrupted
the delivery of ad impressions. Moreover, complicated technologies also require more
time and technical expertise than simpler approaches when setting up programmatic
campaigns. Thus, digital specialists must not only be skilful at operating the DSPs but
must also have a systematic understanding of diferent platforms in the programmatic
ecosystem and their working mechanisms so that they can execute their campaigns
efectively and efciently.
The study fndings also point to a gap between practice and theory, which could
potentially lead to inefective implementation of Programmatic Advertising campaigns.
Neumann, Tucker, and Whitfeld (2019) and Sylvester and Spaeth (2019) highlight a
potential problem in both the accuracy and the coverage of audience data: third-party
audience data could lack accuracy and coverage due to self-reporting faults, data collec-
tion technique faults, etc. Additionally, the biased ad delivery and optimisation algorithms
discussed by several researchers (i.e. Ali et al., 2019; Gordon et al., 2019; Lambrecht and
Tucker, 2019; Lewis, Rao, and Reiley, 2015) are of concern. In one instance, the algo-
rithms automatically prioritise showing information to one customer segment over oth-
ers because of inherent algorithm biases. Those biased algorithms can cause misleading
campaign results and evaluations. Moreover, the algorithms can display ads to buyers who
would make a conversion regardless of whether they see the ads or not, which wastes
the impressions because they do not earn additional advertiser conversions. However,
the digital specialists in the market seem to be unaware of these issues, which is alarming
because audience data and system algorithms are fundamental aspects of precision target-
ing of programmatic buying.
Hence, it is suggested that advertisers and agencies should frst acknowledge these
issues and take gradual actions to address them. Regarding the accuracy of audience data,
advertisers and agencies should begin investigating the audience data collection and veri-
fcation processes of data vendors. These insights will help them determine whether to
pay data fees for new layers of audience data in their campaigns. Furthermore, systematic
assessment of these third-party audience data sources should be conducted if possible.
Regarding the biased algorithms, it seems that operating the algorithms is out of digital
specialists’ control, making it difcult for them to intervene in the systems and mitigate
such biases. Despite that, digital specialists should still be mindful of the biased algorithms
issue when interpreting the campaign’s data, evaluating the campaign’s performance and
taking strategic actions based on those data. The respondents noted that the audience
data results post-campaign could be used to redefne a brand’s target audience, which
underlines this suggestion.
Finally, the study fndings suggest that even though Programmatic Advertising ofers
automation in the implementation steps (e.g. automatically chooses the right ad place-
ment to serve ads and automatically generates personalised ads on a large scale), the
workload does not necessarily decrease. Digital specialists still need to supervise the
system to intervene promptly, especially given that technologies are still developing
and technical issues can occur during the campaign period. Nevertheless, too much
human intervention is not encouraged. The literature and the case study fndings imply
that the algorithms of programmatic technology can operate and improve based on the
feedback loop. Hence, the role of digital specialists should skew towards supervising
and guiding the system instead of doing its job. Furthermore, there is an increase in
workload concerns with generating the increased creative templates and components
that are required in dynamic creative so that the systems have resources to create difer-
ent combinations of ad templates and creative components. This is important because
the core of Programmatic Creative is to create personalised ads at scale, implying that
the system needs a signifcant amount of creative element input to customise ads that
are relevant to diferent audiences in diferent contexts. In other words, the lack of
creative component input hinders the strength of dynamic creative. In conclusion, the
automation ofered by programmatic technology should be viewed as an extension of
digital specialists that helps them plan and implement online campaigns rather than
replace them.

• Programmatic Advertising research is still in its infancy; there are limited research papers
on Programmatic Creatives, especially regarding the intermediaries and platforms of
Programmatic Creatives and their working mechanisms. Further research on this com-
ponent of Programmatic Advertising will aid in a holistic understanding of the topic.
• This research was conducted from the buy-side perspective as represented by digital
specialists from advertisers and agencies; therefore, future research from the sell-side
perspective (i.e. publishers) and intermediaries would give a more holistic under-
standing of the phenomenon.
• Due to its technically sophisticated nature, future Programmatic Advertising research
should involve collaborations between marketing researchers and computer scientists
for more meaningful results.
Disclaimer
The research presented in this chapter was collected for my thesis, Thanh Tiet, University
of Jyväskylä Master’s thesis The planning and implementation process of programmatic advertising
campaigns in emerging markets (2020). The copyright for this JYU thesis belongs to me as
the Author. Research presented here has not been otherwise previously published.
Further reading
Boston Consulting Group. (2018). A Guaranteed Opportunity in Programmatic Advertising. Available at:
www.bcg.com/publications/2018/guaranteed-opportunity-programmatic-advertising.aspx (accessed
21 April 2020).
Digiday. (2017). Digital AD Concerns Have an Unlikely Winner: Emerging Markets. Available at: https://
digiday.com/?p=251945 (accessed 21 April 2020).
Gordon, B. R., Jerath, K., Katona, Z., Narayanan, S., Shin, J., and Wilbur, K. C. (2019). ‘Inefciencies
in digital advertising markets’. Working Paper. Available at: https://arxiv.org/abs/1912.09012 (accessed
4 February 2020).
IAB. (2020). Glossary of Terminology. Available at: www.iab.com/insights/glossary-of-terminology/
(accessed 15 March 2020).
The Information. (2019, Dec 10). Facebook and Google Balance Booming Business with Censorship Pressure
in Vietnam. Available at: https://www.theinformation.com/articles/facebook-and-google-balance-
booming-business-with-censorship-pressure-in-vietnam (accessed 15 Apr 2020).
Lewis, R., Rao, J. M., and Reiley, D. H. (2015). ‘Measuring the efects of advertising: The digital fron-
tier’. In A. Goldfarb, S. M. Greenstein, and C. E. Tucker (Eds.), Bureau of Economic Research: Economic
Analysis of the Digital Economy (pp. 191–218). Available at: www.nber.org/chapters/c12991
Li, H. (2017). Pre-conference Session: Toward A New Discipline of Computational Advertising. Lubbock:
American Academy of Advertising. Available at: https://search.proquest.com/docview/1937669922
?accountid=11774 (accessed 26 January 2020).
Market Realist. (2019, Jan 11). Why the Vietnamese Market is Important for Facebook. Available at: https://
marketrealist.com/2019/01/why-the-vietnamese-market-is-important-for-facebook (accessed 15
Apr 2020).
MMA. (2018). Mobile Ecosystem & Sizing Report – Vietnam 2017/8. Available at: http://vietnam.
mmaglobal.com/wp-content/uploads/2018/11/mma_mobile_marketing_ecosystem_report_
2017_-_vietnam_0.pdf (accessed 16 April 2018).
WeAreSocial. (2020). Digital 2020: Vietnam. Available at: https://datareportal.com/reports/digital-
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Zenith. (2018). Brands Must Reassess Customer Acquisition as They Shift to Mobile. Available at: www.
zenithmedia.com/mobile-share-of-advertising-market-to-exceed-30-in-2020-1/ (accessed 17 April
2021).
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Section 2
Digital transformation and

innovations in marketing
5 The antecedents and outcomes
of online consumer brand
experience
Joel Konttinen, Heikki Karjaluoto and Aijaz A. Shaikh
Introduction
Digital consumers are no longer dependent on brands for information to support their
consumption and decision-making processes; they now proactively seek information
using cyber channels to evaluate the suitability of services or products for their personal
needs (Rowley, 2004). This phenomenon has shifted the profound nature of modern
customers from passive to proactive. With brands recognising this shift, company websites
have become a crucial channel for companies’ marketing communication through which
they can support and strengthen consumer experience.
Previous research related to consumer experiences has mainly focused on the utilitar-
ian aspects of products and services, while experiences that are evoked and provided by
brands have received relatively scant attention (Brakus, Schmitt, and Zarantonello, 2009).
Brand experience is still lacking academic attention, and due to its ‘practical relevance’
(Khan and Rahman, 2015, p. 10), there have been calls for further research on the topic.
Importantly, previous studies on Consumer Brand Experience have mostly considered
ofine settings, justifying the need to study this topic in an online context (Hamzah, Syed
Alwi, and Othman, 2014).
Against this backdrop, this chapter aims to examine (a) how a website’s appearance and
technical quality dimensions evoke online Consumer Brand Experiences and (b) investi-
gate how online Consumer Brand Experience develops consumer brand trust as well as
motivates usage behaviour and eWOM. Next, we discuss Consumer Brand Experience
and website quality. This is followed by the research model, hypothesis development and
research methodology. Finally, the empirical fndings are presented, and we conclude the
chapter by discussing the implications, limitations and further research ideas.
Conceptual background
Brand experience is a multidimensional concept and is defned as ‘sensations, feelings, cog-
nitions, and behavioral responses evoked by brand-related stimuli that are part of a brand’s
design and identity, packaging, communications, and environments’ (Brakus, Schmitt,
and Zarantonello, 2009, p. 52). Brakus, Schmitt, and Zarantonello’s (2009) examined
Consumer Brand Experience in ofine context; however, because the source of experi-
ences does not signifcantly afect their nature, the model can be adopted for measuring
the phenomenon in an online context (Clef, Walter, and Jing, 2018, p. 11). Consumer
Brand Experience in an online context, in turn, is defned as ‘a holistic response to the
stimuli within a website environment’ (Morgan-Thomas and Veloutsou, 2013, p. 22).
DOI: 10.4324/9781003093909-7
50 Joel Konttinen et al.
Brand-related stimuli are recognised as the foundation of consumer responses,
which are defned as brand experience (Brakus, Schmitt, and Zarantonello, 2009).
These stimuli consist of visual and cognitive aspects of the brand’s identity that can be
observed and perceived by consumers when searching/shopping for and consuming
a brand. In the online context, brands provide these brand-related stimuli via several
interactive touchpoints and a wide range of channels, such as websites, SM and blogs
(Clef, Walter, and Jing, 2018).
Brakus, Schmitt, and Zarantonello (2009) constructed a four-factor model for the
brand experience dimension scale, including the sensory, afective, intellectual and
behavioural dimensions. These dimensions were validated within the product and ser-
vice brand context (Nysveen, Pedersen, and Skard, 2013). Sensory brand experience
relates to visual or other sensory experiences evoked by the brand and brand related
stimuli. The afective dimension refers to the emotional experiences evoked by the
brand. The behavioural dimension is linked to intentions, actions and bodily experi-
ences. Lastly, the intellectual dimension is related to the cognitive experiences that a
brand evokes and stimulates.
Positive online experiences are positively related to the consumption behaviour of
online users, such as the intention to use the web again and the time consumers are will-
ing to spend online (Novak, Hofman, and Yung, 2000). Consumer brand experiences
in the website context refer to ‘a consumer’s positive navigations and perceptions with a
specifc website’ (Ha and Perks, 2005, p. 440), which afect brand trust and higher con-
sumption of the website.
Aladwani and Palvia (2002) developed an instrument for measuring the concept of
web quality that includes three dimensions: technical adequacy, web content (specifc
content and content quality) and web appearance. Technical adequacy refers to techni-
cal aspects, such as security, ease of navigation and search facilities, of the website (Al-
Qeisi et al., 2014). According to Aladwani (2006), the technical quality of a website
has a major impact on user behaviour. Web content quality refers to how the website is
perceived in terms of its usefulness, clarity and accuracy (Al-Qeisi et al., 2014). Specifc
content quality refers to specifc company-related information (i.e. contact information
and the company’s general information) and information concerning its oferings in
more detail, such as product or service information (Al-Qeisi et al., 2014). Web appear-
ance includes the visual design of the website and how the visual elements and their
usage in website design correlate with a customer’s emotional and behavioural responses
(Chang et al., 2014). Appearance quality is one of the most infuential web quality ele-
ments because it has a major impact on customer-related outcomes, such as satisfaction,
perceived service quality (Wang, Hernandez, and Minor, 2010), intentions and purchas-
ing behaviour (Chang et al., 2014), activation of search (Wang, Hong, and Lou, 2010)
and attitudes towards the website (Aladwani, 2006).
Research model and hypotheses

The proposed conceptual model (Figure 5.1) suggests that two central antecedents to
Consumer Brand Experience exist: Website Technical Quality (TQ) and Website Appear-
ance Quality (AQ). Moreover, the research model suggests that TQ and AQ are positively
related to Consumer Brand Experience and its’s outcomes, brand trust, eWOM inten-
tions and behavioural intentions. The following subsections explain these linkages and
propose hypotheses for testing these direct efects.
Online consumer brand experience 51
Brand Trust
Website
Technical H4
Quality
H1 Brand H5 E-WOM
Experience Intentons
H2 H6
Website
Appearance
Quality
H3
Behavioural
Intentons
Figure 5.1 Structural model.
Antecedents of Consumer Brand Experience

The technical quality dimension refers to technical features of a website (such as ease of
navigation and security). This dimension can be tied to the cognitive experiential state in
the online context because it includes similar utilitarian aspects that afect cognitive infor-
mation processing (Hamzah, Syed Alwi, and Othman, 2014). Chang (2014) suggested
that the evoked experiences correlate to the user’s perception of the product’s ease of use
and usefulness. Therefore, the following hypothesis is proposed:
H1: Website technical quality is positively related to consumer brand experience.
Brand-related websites include brand-related cues as aesthetic features of the web-

site’s design and often integrate several recognised brand-related stimuli, such as colour
schemes, shapes, typefaces, designs and logos. The appearance quality dimension by
Aladwani (2006) can be justifed as part of the research model because it includes almost
identical variables and characteristics as those of Brakus, Schmitt and Zarantonello’s study
(2009). They state that ‘These brand-related stimuli appear as part of a brand’s design
and identity (e.g. name, logo and signage), packaging, and marketing communications
(e.g. advertisements, brochures and Web sites)’ (Brakus, Schmitt, and Zarantonello, 2009,
p. 53). The criteria for brand-related stimuli are attractiveness, organisation, proper use of
fonts, proper use of colours and proper use of multimedia (Aladwani, 2006).
A brand-related cue can evoke experiential states that are not constrained to only one
dimension of the brand experience framework (Brakus, Schmitt, and Zarantonello, 2009)
and can stimulate multiple experience dimensions. Wang, Hernandez and Minor (2010)
suggested that a website’s aesthetic qualities can also afect the consumer’s informational pro-
cessing route and produce positive emotional, experiential states. Whereas the appearance
quality dimension can be argued to evoke consumer brand experiences with brand-related
stimuli and clues, it is recognised as an important part of the Marketing Communications
Mix (Khan and Fatma, 2017). Brand websites can evoke brand experiential states (Morgan-
Thomas and Veloutsou, 2013). Thus, we propose the following hypothesis:
H2: Website appearance quality is positively related to consumer brand experience.
According to Wang, Hong and Lou (2010), web aesthetics and their evoked afective and
positive experiential states can enhance purchase intentions (p. 126). Wang, Hernandez
and Minor (2010) argue that web aesthetics afect a user’s perception of the web service’s
quality and satisfaction and consequently enhance brand-related behavioural outcomes.
Lorenzo-Romero, Constantinides, and Alarcón-del-Amo (2013) argue that, in the online
context, impulsive shopping results from experiential processing and emotions that web
aesthetics and design elements create. Thus, the following hypothesis is proposed:
H3: Website appearance quality is positively related to behavioural intentions.
Outcomes of Consumer Brand Experience

The outcomes of Consumer Brand Experience have been widely studied, with the most
recognised including brand-related concepts, such as brand trust, brand credibility, brand
attitude, satisfaction (Ha and Perks, 2005; Khan and Fatma, 2018) and behavioural inten-
tions (Khan and Rahman, 2015; Morgan-Thomas and Veloutsou, 2013; Zarantonello
and Schmitt, 2010). Here, the studied outcomes of Consumer Brand Experience include
brand trust, eWOM intentions and behavioural intentions.
Brand trust, a behavioural outcome related to brand experience (Khan and Fatma,
2017; Khan and Rahman, 2015; Ha and Perks, 2005), has a particularly strong relation-
ship with evoked sensory brand experiences (Huang, 2017). Ha and Perks (2005) defned
brand trust as ‘a feeling of security held by the consumer in his/her interaction with the
brand, such that it is based on the perceptions that the brand is reliable and responsible for
the interests and welfare of the consumer’ (p. 443).
Brand trust is a vital link between the consumer and a brand’s success because consum-
ers tend to purchase from companies with which they have formed a trusting relation-
ship; this is vital in the online environment (Ha, 2004). From a company perspective,
brand trust is a crucial element in building a competitive advantage, and according to Ha
and Perks (2005), positive experiences that generate brand trust have a major infuence
on online purchasing behaviour. By generating brand trust, the Consumer Brand Experi-
ence can be suggested as an antecedent for building brand trust between a company and
a consumer. Thus, the following hypothesis is proposed:
H4: Consumer Brand Experience has a positive infuence on brand trust.
In the context of this study, we examine Word-of-Mouth (WOM) in the online context
(eWOM). Chen et al. (2014, p. 582) defne WOM as ‘informal communication relating
to the characteristics of a business or product occurring between consumers’. Consum-
ers’ brand experiences are easily refected in their messages about those brands in various
digital channels (i.e. SM and product reviews and recommendations) (Serra-Cantallops,
Ramon-Cardona, and Salvi, 2018). Customers’ online experiences are highly related to
their behaviour and intentions, and eWOM and WOM are identifed outcomes of online
customer experience (Bilgihan, Kandampully, and Zhang, 2016). WOM as a behavioural
construct is afected by the emotions and motives of the customer, thus emphasising the
importance of customer satisfaction; satisfed customers are likely to produce favourable
WOM related to brand oferings (Chen et al., 2014). Positive Consumer Brand Experi-
ences can produce eWOM and eWOM intentions (i.e. in the form of referrals) (Serra-
Cantallops, Ramon-Cardona, and Salvi, 2018). On this basis, we propose the following:
H5: Consumer Brand Experience positively infuences eWOM intentions.
Behavioural intentions, such as repurchase intention, willingness to pay (Risitano et al.,

2017) and eWOM intentions (Serra-Cantallops, Ramon-Cardona, and Salvi, 2018), are
typical outcomes of Consumer Brand Experience (Moreira et al., 2017; Serra-Cantallops,
Ramon-Cardona, and Salvi, 2018). In addition, brand-related outcomes, such as brand
satisfaction and loyalty (Khan, Rahman and Fatma, 2016; Serra-Cantallops, Ramon-
Cardona, and Salvi, 2018), are often identifed. Rahman and Mannan (2018) studied
brand experiences’ relationship to online purchase intentions and found that consumer
brand experiences positively infuence purchase intentions in the online context. Against
this backdrop, the following hypothesis is proposed:
H6: Consumer Brand Experience positively infuences behavioural intentions.
Methodology
This study used a quantitative research design, including an online survey, as the data col-
lection tool. The study participants were randomly selected using a university newsletter
where the study was advertised. Participants were asked to visit IKEA’s website briefy
before completing the questionnaire. IKEA is a furniture and home appliance producer
from Sweden with a well-established and recognisable brand. Notably, this study was not
conducted in cooperation with the brand; rather, the brand was chosen for data collection
due to its brand recognition and familiarity. The survey was distributed to respondents via
SM channels and email newsletters. In addition to SM and email, the questionnaire was
distributed by a research company specialising in collecting research data online.
We used existing multi-item scales to measure the study constructs (see Table 5.1).
Table 5.1 Measurement items
Item Adapted from
TECHNICAL QUALITY Aladwani (2006); Hasan

TQ1: Website looks secure for transactions. and Abuelrub (2011)
TQ2: Website is easy to use, understand and operate.
TQ3: Website has proper search functions.
TQ4: Website loads fast.
TQ5: Website URL is clear and easy to remember.
APPEARANCE QUALITY Aladwani (2006); Hasan
AQ1: Website looks attractive. and Abuelrub (2011)
AQ2: Website looks organised.
AQ3: Website uses fonts and text properly.
AQ4: Website uses colours properly.
AQ5: Website uses images properly.
(Continued)
Table 5.1 Continued
Item Adapted from
BRAND EXPERIENCE Brakus (2009)

SBE1: This brand makes a strong impression on my visual sense or
other senses.
SBE2: I fnd this brand interesting in a sensory way.
SBE3: This brand does not appeal to my senses.
ABE1: This brand induces feelings and sentiments.
ABE2: I do not have strong emotions for this brand.
ABE3: This brand is an emotional brand.
IBE1: I engage in a lot of thinking when I encounter this brand.
IBE2: This brand stimulates my curiosity and problem-solving.
IBE3: This brand does not make me think.
BBE1: I engage in physical actions and behaviour when I use this
brand.
BBE2: This brand results in bodily experiences.
BBE3: This brand is not action oriented.
E-WOM INTENTIONS Hur, Ahn, and Kim
EWOM1: I often tell others about this brand in my online networks. (2011)
EWOM2: I am proud to say to others that I am this company’s
customer.
EWOM3: I strongly recommend people buy products online from
this company.
EWOM4: I have spoken favourably of this company to others.
BEHAVIOURAL INTENTIONS Jiang, Yang and Jun
BI1: I will continue to shop online at this retailer. (2013)
BI2: I encourage others to shop online at this retailer.
BI3: I will use this retailer website more often for online purchases.
BRAND TRUST Koschate-Fischer and
BT1: I am confdent in brand’s ability to perform well. Gärtner (2015)
BT2: I trust brand.
BT3: I rely on brand.
BT4: Brand is safe.
BT5: I expect brand to deliver on its promise.
Results
In total, 202 usable responses were received. The demographic profle of the participants
is shown in Table 5.2.
The respondents had signifcant online shopping experience; close to half (41%)
reported having 6–10 years of experience, and around one-third (33%) reported having
more than 10 years of experience.
Factor analysis
We frst analyzed the data with exploratory factor analysis. The results indicated that
the data were suitable for confrmatory factor analysis, which was run using partial least
squares analysis.
Measurement model
The model included a multidimensional construct (Consumer Brand Experience); there-
fore, it presented the Consumer Brand Experience construct as a second-order factor
Table 5.2 Demographic profle of the respondents
Gender N %
Female (1) 136 67.3

Male (2) 66 32.7
Total 202 100%
Age
15–25 41 20.3
26–35 119 58.9
36–45 28 13.9
46–55 13 6.4
56–65 1 0.5
Total 202 100%
Profession
Student 65 32.2
Employee/Professional 111 55.0
Unemployed 14 6.9
Entrepreneur 10 5.0
Retired 2 1.0
Total 202 100%
Table 5.3 Discriminant validity
AVE (1) (2) (3) (4) (5) (6) (7) (8) (9)
Appearance Quality (1) 0.649 0.805

Technical Quality (2) 0.546 0.728 0.739
Afective BE* (3) 0.664 0.295 0.256 0.815
Sensory BE* (4) 0.791 0.552 0.468 0.547 0.889
Behavioural BE* (5) 0.803 0.132 0.139 0.367 0.315 0.821
Intellectual BE* 6) 0.660 0.284 0.285 0.584 0.529 0.486 0.813
eWOM Intentions (7) 0.674 0.321 0.231 0.461 0.496 0.395 0.505 0.821
Behavioural Intentions (8) 0.803 0.363 0.294 0.358 0.496 0.269 0.362 0.690 0.896
Brand Trust (9) 0.687 0.422 0.466 0.428 0.545 0.342 0.403 0.536 0.473 0.829
BE = Brand Experience.
*
(Duarte and Amaro, 2018) to study the individual efects of the dimensions on the main
construct. As suggested by Duarte and Amaro (2018), using the same measurement met-
rics with frst- and second-order constructs is valid, and the produced results include path
coefcients, predictive relevance and explained variance (p. 295).
The measurement model was acceptable because the factor loadings, alphas and con-
vergent and discriminant validity were well within the range of the suggested cut-of
values (Hair et al., 2017) (see Table 5.3).
Structural model assessment

We tested the hypotheses (Table 5.4) by running the structural model with 1,000 sub-
samples, with a signifcance level of 0.05.
The strongest path coefcient was found between sensory brand experience → Con-
sumer Brand Experience (β = 0.819, p < 0.01). All the path coefcients between Con-
sumer Brand Experience and its dimensions were signifcant, with the lowest (β of 0.588,
p < 0.01) between the behavioural dimension and consumer brand experience.
Table 5.4 Hypotheses testing
Hypothesis β f² t-value Hypothesis support

H1: Technical Quality → 0.153 ns 0.014 1.628 No
Brand Experience
H2: Appearance Quality → 0.368*** 0.084 3.923 Yes
Brand Experience
H3: Appearance Quality → 0.046 ns 0.003 0.671 No
Behavioural Intentions
H4: Brand Experience → 0.626*** 0.629 12.773 Yes
Brand Trust
eWOM Intentions
Behavioural Intentions
R²
Brand Trust 0.512
Behavioural Intentions 0.533
eWOM Intentions 0.388
***
: p < 0.01, ** p < 0.05, ns = not signifcant.
No support was found for the efects of technical quality on Consumer Brand Experi-
ence (β = 0.152, ns), thus rejecting H1. The efect of appearance quality on Consumer
Brand Experience was supported (β = 0.368, p < 0.01), confrming H2. However, appear-
ance quality had no efect on behavioural intentions (β = 0.046, ns); thus, we reject H3. We
found strong support for H4–6, confrming that Consumer Brand Experience is strongly
related to brand trust (H4), eWOM intentions (H5) and behavioural intentions (H6).
As Consumer Brand Experience was a second-order construct, the efects of the four
dimensions of Consumer Brand Experience were also measured. The sensory brand
experience dimension showed that Consumer Brand Experience was high, with an R2
value of 0.670 (67%). The lowest value among the dimensions was found in behavioural
brand experience, with an R2 value of 0.345 (35%). The intellectual and afective brand
experience dimensions explained 62% (R2 = 0.617) and 55% (R2 = 0.549) of the vari-
ance of consumer brand experience, respectively. The results of the structural model are
shown in Figure 5.2.
Discussion
This chapter aimed to investigate the role of Consumer Brand Experience and its pro-
posed outcomes within the online context and gain insights into the aesthetics and tech-
nical attributes of websites, including their relationship with evoking consumer brand
experience.
This study presents three main implications:
1 This study contributes to the existing Consumer Brand Experience literature by

examining web quality dimensions and Consumer Brand Experience with their
related outcomes and by investigating which attributes evoke the most experien-
tial processing related to consumer brand experience. Website aesthetics was the
Brand Trust
Website
Technical 0.626***
Quality
0.153 ns Brand 0.683** E-WOM

Experience Intentons
0.368** 0.701***
Website
Appearance
Quality
0.042 ns
Behavioural
Intentons
Figure 5.2 Structural model.
most infuential factor regarding the outcomes of the research model presented
here, which contrasts with previous studies, where website technical qualities and
usability-related attributes outperformed aesthetic properties as a strong predictor
of favourable outcomes (Wang, Hong and Lou 2010). Notably, aesthetics attributes
have been strong predictors in attitudes related to websites in the past (Aladwani,
2006), but these studies mostly investigated the relationship between a website’s
attributes and certain outcomes, such as behavioural intentions. The results of the
current study suggest that website aesthetics evoke brand-related experiential states,
leading to favourable outcomes, whereas technical attributes have no signifcant
efect on the outcomes.
2 The results of this study indicate that the studied technical qualities of websites do
not translate to experiential and behavioural responses, whereas website appearance
stimulates the experiential dimensions that lead to behavioural outcomes. The results
indicate that the appearance qualities of a website evoke the most processing, which
has a signifcant positive efect on brand trust, behavioural intentions and eWOM
intentions.
3 This study proposes that the most favourable and reliable option for measuring
Consumer Brand Experience is measuring it as a second-order construct.
The implications of this study for managers include emphasising the role of consumer
brand experiences as a wider concept and its predictive capabilities on consumer behaviour
in online settings. Our fndings suggest that managers should consider website aesthetics
attributes not for their direct efect on outcomes but as an enhancer of consumer brand
experience. The efect of sensory brand experience should be considered an important
aspect of web design for brands due to its strong and signifcant relationship with behav-
ioural and eWOM intentions and brand trust. In the online context, the sensory brand
experience can be considered a major infuencer of favourable outcomes. By enhancing
the information processing routes stimulated by pleasurable consumer brand experiences
and building technically solid websites with direct efects on behavioural intentions, com-
panies may utilise the favourable relationships and their outcomes of these constructs. By
evoking several of the Consumer Brand Experience dimensions, companies can enhance
the probability of behavioural intentions and brand trust. Lastly, the efect of Consumer
Brand Experience on eWOM intentions can be emphasised.
Limitations and future research directions

The main limitations of this work relate to the sample, which was obtained through con-
venience sampling and examined only two web quality dimensions and the brand used
(IKEA) in the study. Thus, the results are not widely generalisable. Given that the con-
ceptualisation of Consumer Brand Experience is still highly scattered, this study calls for
further studies to identify and establish a unifed conceptualisation of Consumer Brand
Experience in online context studies. Further studies are suggested to incorporate other
aspects of web quality dimensions, general content and specifc content, with the research
model to pursue a more holistic understanding of the efects of web quality in evoking
consumer brand experiences.

• Given that the conceptualisation of Consumer Brand Experience is still highly
scattered, this study calls for further studies to identify and establish a unifed con-
ceptualisation of Consumer Brand Experience in online context studies.
• Further studies are suggested to incorporate the remaining aspects of web quality,
general content and specifc content dimensions with the research model.
• Further studies could also investigate other brand-related concepts, such as brand
familiarity and brand reputation as predictors of perceived qualities of the
website.
Disclaimer
The research presented in this chapter was collected for my University of Jyväskylä Mas-
ter’s thesis examining the antecedents and consequences of web brand experience (2019).
The copyright for this JYU thesis belongs to Joel Konttinen as the Author. Research
presented here has not been otherwise previously published.
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6 User experience of an
e-commerce website
A case study
Saima Ritonummi and Outi Niininen
Introduction
User Experience (UX) consists of the user’s perceptions and responses when interacting
with a system, such as a website. UX research addresses Human–Computer Interaction
(HCI) as a whole, including the user’s feelings and thoughts about their experiences,
whereas the preceding task-related ‘usability paradigm’ addressed the user’s ability to use an
interface, including the efciency and efectiveness aspects of the interaction (Hassenzahl
and Tractinsky, 2006). A positive UX is an essential component of a satisfactory online
customer journey on e-commerce websites. Both UX development and customer jour-
ney planning aim to support users in working as efortlessly and efciently as possible by
helping them perform tasks to accomplish their goals. The essence of designing for UX
and customer journeys is identifying successful and unsuccessful features and touchpoints
that guide users towards their desired actions. Addressing both pragmatic and hedonic user
needs with intentional UX design on e-commerce websites is necessary to help users opti-
mise the interaction (Garrett, 2011). Identifying the duality of user needs stems from the
holistic view of HCI and examining the emotional outcomes and the pragmatic usability
aspects of the interaction (Falk, Hammerschmidt, and Schepers, 2009).
This chapter presents relevant academic research on UX and online customer journeys
on e-commerce websites. The objective is to outline why thoughtful UX development
and customer journey planning is an important, continuous process for e-commerce
websites. The study contributes to UX research with a combination of qualitative and
quantitative UX research methods, addressing both pragmatic and hedonic aspects of UX
and the dual user needs.
What is UX?
Ofcially established in the 1990s, the concept of UX is largely based on Norman and
Draper’s work in the 1980s, which advanced the HCI research feld signifcantly. UX is
associated with many meanings and aspects of technology use, such as aesthetics, afor-
dances, functionality, responsiveness and the hedonic aspects of interaction (Hassenzahl
and Tractinsky, 2006), which include, for example, emotion, fun and fow experiences
(Law, 2011). UX research is specifcally interested in the user’s physical and internal states
because UX includes ‘all the user’s emotions, beliefs, preferences, perception, physical
and psychological responses, behaviours and accomplishments that occur before, during
and after use’ (ISO, 2019, p. 3). Essentially, UX research examines how perception, action
and cognition are related to one another and what role emotional user needs plays in UX
DOI: 10.4324/9781003093909-8
62 Saima Ritonummi and Outi Niininen
(Law, 2011). Per Roto, Joutsela, and Nuutinen (2016), focusing on emotions is important
because poor UX and usability problems often cause negative afective reactions (such as
frustration), and UX can be improved by reducing those problems.
Many researchers agree that UX consists of three factors: a user interacting with a system
in a specifc context. A system is defned by the characteristics of the system, including its
functionalities and performance. A user is the person who is interacting with the product,
and the context of use is where the interaction occurs (Hassenzahl and Tractinsky, 2006;
Roto et al., 2011). User-Centered Design (UCD) (also referred to as Human-Centered
Design) examines particular people doing particular tasks in a particular context (Ritter,
Baxter, and Churchill, 2014), which addresses the three facets of UX (user, system and
context). UCD aims to help users work faster, make fewer mistakes and accomplish their
goals with minimal efort (Garrett, 2011). Usable systems are more likely to be success-
ful, both technically and commercially. Adopting the UCD approach improves UX and
accessibility, including reduced stress and discomfort related to the interaction, which can
provide a competitive advantage for the business (ISO, 2019).
Usability, UX and the duality of user needs

Usability is a signifcant aspect of UX because it measures a user’s ability to use an inter-
face in a specifc context. Usability is the result of perceived efciency, efectiveness and sat-
isfaction. While UX addresses the interaction as a whole (including the user’s thoughts and
feelings about the interaction), usability addresses the extent to which the system can be
used to achieve goals efectively, efciently and satisfactorily (ISO, 2019). Hassenzahl and
Tractinsky (2006) refer to the UX paradigm as going beyond instrumental, examining non-
instrumental quality aspects of the interaction, such as need for surprise, meaningfulness,
social setting and voluntariness of use – in addition to the cognitive and taks-oriented
aspects. Usability goals are more objective and measure ease-of-use, whereas UX goals are
more subjective and address the hedonic aspects of interaction, such as engagement and
stimulation. The pragmatic and hedonic qualities of interaction are related to the diferent
kinds of needs and goals that users have, and addressing both is important for facilitating
positive UX (De Villiers and Van Biljon, 2012; Schmutz et al., 2010).
Because usability and UX are interrelated but distinct concepts, they are measured with
slightly diferent methods. Their research methods do overlap in general, but usability
tests are more focused on task-related performance, while UX studies address the afective
qualities of the interaction. UX measures usually measure the outcome of the interaction
(e.g. level of fun), while usability measures can help identify the source of a problem
(what users struggle with) and ofer possible solutions (Law, 2011). In other words, usabil-
ity studies measure the pragmatic quality of the interaction (what is happening), and UX
studies measure the hedonic quality of the interaction (a user’s subjective evaluation about
what is happening) (De Villiers and Van Biljon, 2012).
Pragmatic and hedonic user needs can also be seen in the strategies on which users rely
when navigating e-commerce websites. Per Harley (2018), the two most common strate-
gies are searching and browsing. When users are searching, they are looking for a specifc
product or specifc information. When users are browsing, they are experientially brows-
ing to discover what products are available and if the available products suit their needs.
Hence, it could be said that searching is related to pragmatic goals, whereas browsing is
related to hedonic goals. Because users have diferent kinds of needs and they arrive at
websites via diferent routes, UX must be positive on all relevant pages of a website. If
User experience of an e-commerce website 63
a user has a clear understanding of what the website is about, what they can fnd there
and how to operate within it, conversion is much more likely (Harley, 2018). Likewise,
Schmutz et al. (2010) argue that because user needs are two-fold and users toggle between
searching and browsing strategies, it is important to support both goal-oriented and
exploratory behaviour by clearly showing what tasks can be accomplished on the website.
The level of experience that a user has with a particular interface (in this case, a web-
site) afects their needs and evaluation of the interaction. Per Falk, Hammerschmidt, and
Schepers (2009), the less experienced a user is with the interface, the more important it
is to present well-organised product information and content, such as guided tours. The
more experienced a user is, the more hedonic needs and expectations they have, which
could be addressed in various ways, such as by ofering customisable content. Ariely (2000)
states that a user’s control over the information fow in the e-commerce context has been
shown to have a positive efect on their decision-making. Hence, e-commerce websites
should strive to meet pragmatic quality attributes for inexperienced users and hedonic
quality attributes for experienced users (Falk, Hammerschmidt, and Schepers, 2009).
Context of the study: UX and online customer journeys

Customer journey is the sequence of contacts and experiences at various touchpoints
between the consumer and the brand (Micheaux and Bosio, 2019). It is also sometimes
termed either customer decision journey or customer purchase journey (Lemon and Verhoef,
2016). Customer journey mapping is a continuous, long-term tracking of customer
interactions at diferent touchpoints. The focus of this study is UX on an e-commerce
website, and the scope of the customer journey is the journey that happens at this single
touchpoint (i.e. the website).
Similar to UX, the customer journey is also afected by the customer’s previous experi-
ences and their current experience, which will impact their future experiences (Lemon
and Verhoef, 2016). Roto et al. (2011) state that the UX timespan comprises anticipated
UX, which afects momentary UX, and ultimately cumulative UX. For e-commerce
websites, journey analysis is important because it helps identify the choices and options
that the customer encounters along the journey and, most importantly, the triggering
moments that nudge them into a decision to either continue or discontinue the jour-
ney (Lemon and Verhoef, 2016). One way to approach journey analysis is by creating
buyer personas and jobs-to-be-done for the personas. These jobs-to-be-done describe the
circumstances in which the customer operates and what kind of tasks they have. Because
the goal is to gather information about the customer’s experience, jobs-to-be-done is also
used in UX development and usability testing. However, the UX personas difer from
buyer personas used in customer journey analysis. A buyer persona represents a typical
customer and their demographic, behavioural and motivational features, forming a base
for customer journey design (Micheaux and Bosio, 2019), whereas UX personas defne
the requirements for the design, such as what functionalities and what kind of content
should be included (Garrett, 2011).
Customer journey analysis can help improve UX. By providing a smooth experience,
an e-commerce website can help users fnd what they are looking for and support them
in decision-making. Good design and UX are facilitators of positive customer experi-
ences on e-commerce websites (Lemon and Verhoef, 2016). For example, the conversion
rate is a widely used metric in measuring the efectiveness of both UX (Garrett, 2011)
and e-commerce websites’ performance.
Research method
This study used a combination of qualitative and quantitative methods. A cognitive walk-
through was used for usability testing, and a UX questionnaire was used for UX mea-
surement. Although a cognitive walkthrough can give insights on UX, a separate UX
questionnaire supplemented the task performance-oriented walkthrough to capture sub-
jective evaluations of the participants’ UX.
Cognitive walkthrough is a usability testing method for examining user interfaces.
It is a theory-based evaluation method that has been adapted from many walkthrough
techniques, such as Learning by Exploration and the Theory of Action. The idea is to
create a realistic task scenario for the user and observe the ease with which they perform
the given tasks with minimal or no instructions by using system cues. An important part
of cognitive walkthrough evaluation is analysing the possible goal problems and action
problems users might have encountered during the walkthrough. Goal problem refers to
user trying to do a wrong thing, whereas action problem refers to user having problems doing
the right thing (Polson et al., 1992).
Adding UX evaluation to a usability test is a common practice because usability test-
ing is often more focused on task performance and detecting usability issues than on
the subjective experience of the user (Quiñones, Rusu, and Rusu, 2018). This study com-
bined a cognitive walkthrough with a User Experience Questionnaire (UEQ). The UEQ
by Schrepp, Hinderks, and Thomaschewski (2017) supplemented qualitative data from
the walkthroughs and gave insights regarding the participants’ subjective experiences.
The UEQ measured UX on the pragmatic quality dimension (goal-directed behaviour),
the hedonic quality dimension (non-goal-directed behaviour) and the attractiveness of
the subject. UEQ includes 26 items, which are categorised into six scales: attractiveness,
perspicuity, efciency, dependability, stimulation and novelty. Attractiveness is a pure valence
dimension and refers to the overall impression. Of the pragmatic quality scales, perspicuity
refers to the ease with which the user can understand the website, efciency is how fast and
efortlessly a user can accomplish a task and dependability is the predictability of the inter-
action and the user’s feeling of control. Regarding the hedonic quality scales, stimulation
refers to motivation and excitement during use, while novelty is related to the creativity
and innovativeness of the website (Schrepp, Hinderks, and Thomaschewski, 2017).
Data collection
The case company is a consumer electronics brand. Their website was redesigned in 2019
to improve its performance, including especially UX, conversion rate and sales revenue.
The company also considers its website as an important platform for introducing its brand
and products to new and existing customers. This study examined UX on the redesigned
website via both a cognitive walkthrough and a UX questionnaire.
The procedure was established with three pilot respondents. Six respondents (n=6)
participated in the study, as in UX and usability testing practice it is often suggested that
about 85%–90% of usability problems can be discovered with six users (Goh et al., 2013).
To match the case company’s target audience, all participants were aged 26–35 and had
over 10 years’ experience of online shopping. For the purpose of this study (i.e. to simu-
late a normal online shopping situation), respondents were observed interacting with the
website on their own computer at their home.
In this study, the cognitive walkthrough consists of six main tasks: go to the brand’s web-
site, evaluate the product’s attributes, add the product to the shopping cart, proceed to the checkout,
Add the
Go to Evaluate
product to Proceed Sign up for Complete
the the
the to the the an exit
brand product's
shopping checkout newsletter interview
website attributes
cart
Figure 6.1 Cognitive walkthrough task fow.
sign up for the newsletter and complete an exit interview. The task fow is presented in Figure
6.1. Each main task includes sub-tasks, such as ‘enter homepage’, ‘navigate to product
pages’ and ‘examine product ofering’.
The participants performed tasks on their computers and the walkthroughs were recorded
as screen recordings with audio. Before starting the walkthrough, the participants were
briefed about the procedure and informed that the usability of the website is what is being
evaluated, not their IT skills. To capture frst-time users’ impressions, it was ensured that
participants had not visited the website before. After the walkthrough, participants com-
pleted an exit interview, which included UEQ and demographic background questions.
Findings
The cognitive walkthrough fndings are introduced to provide background information
for UEQ results and insights on the participants’ evaluation of their UX.
Cognitive walkthrough fndings

The cognitive walkthrough task analysis was conducted using the ‘Four Questions for
Cognitive Walkthrough’ (Interaction Design Foundation, 2018 – see Further reading),
which are based on the original four questions for cognitive walkthrough (Wharton,
Rieman, and Lewis, 1994). The questions examine whether the user tries to achieve
the correct outcome, notices the actions that will help them achieve that outcome and
understands whether they are progressing towards it.
The most common usability problem identifed in this study was fnding specifc
product information. Five out of six participants had problems locating compatibility
information, which indicates the compatibility of the chosen product with their own
device (smartphone). More specifcally, four participants had an action problem trying
to locate the information; one found it but concluded that the information was not spe-
cifc enough for a purchase decision. For all other tasks, the completion rate was 100%,
and participants had no problems completing them. Other identifed minor problems
included low contrast in buttons and links, small fonts and inconspicuous secondary
navigation. Although these minor problems did not prevent the participants from accom-
plishing their goals (i.e. fnishing the shopping process), they did afect the intuitiveness
and ease of the experience. Conversely, the product comparison feature, overall clearness
of the website and simple checkout process were praised by the participants.
User Experience Questionnaire fndings

The UEQ was used to evaluate the pragmatic and hedonic qualities of the website.
However, the sample size for the quantitative UEQ evaluation is only indicative because
Table 6.1 Website performance of the UEQ
Dimension Scale Mean Variance
Pragmatic quality Dependability 0.875 0.67

Efciency 0.792 1.21
Perspicuity 0.750 1.05
Hedonic quality Stimulation 0.375 2.64
Novelty −0.458 0.77
Pure valence Attractiveness 0.444 3.66
the smaller the sample, the harder it is to draw indisputable conclusions about the data
(Schrepp, Hinderks, and Thomaschewski, 2017).
In the UEQ, values over 0.8 represent a positive evaluation, values between −0.8
and 0.8 represent a neutral evaluation and values less than −0.8 represent a negative
evaluation. The scale ranges between +3 (extremely good) and −3 (extremely bad), but
because participants tend to avoid extreme answers on questionnaires, values in the UEQ
normally range between +2 and −2 (Schrepp, 2019). On average, the pragmatic quality
of the website was evaluated as positive by the participants, while both hedonic quality
and attractiveness were considered neutral. The website scored the highest in pragmatic
quality (0.81) and the lowest in hedonic quality (0.06–0.04), while attractiveness scored
in the middle (0.44). On the pragmatic quality scales, the website scored highest in
dependability, followed by efciency and perspicuity. On the hedonic quality scales, the
website scored better in stimulation than in novelty. The performance on each UEQ scale
is presented in Table 6.1.
Based on their experience with the website, the participants evaluated the dependability
of the website as its best quality (i.e. they felt in control of the interaction). Dependability
also had the least variance in answers. Novelty – the website’s innovativeness and ability
to catch the user’s interest – scored towards the lower end of neutral and had the highest
variance in answers among the participants.
On the individual item level, the website scored highest in easy to learn (1.7), followed
by efcient (1.5) and predictable (1.3). All three items measure pragmatic quality. Notably,
on e-commerce websites, predictability can be a positive quality; websites can beneft
from following conventions, such as commonly known navigation structures and ico-
nography (Schrepp, 2019). The website scored lowest in inventive (−1.0), leading edge,
(−0.5), innovative (−0.2) and creative (−0.2). Hence, the website was evaluated higher on
the conventional, usual, conservative and dull items, which describe the design’s novelty. The
results per item are presented in Figure 6.2.
The UEQ fndings suggest that the pragmatic quality of the website is good: it is
easy to learn, efcient and predictable. However, hedonic quality (i.e. innovativeness and
catching the user’s interest) and attractiveness could be improved.
Implications
The fndings of this study support UX research and identify both pragmatic and hedonic
user needs. The participants accomplished most of the tasks in the cognitive walkthrough
with ease and the website scored well in pragmatic quality. The customer journey on the
UEQ Results
Attractiveness Annoying/Enjoyable
Bad/Good
Unlikable/Pleasing
Unpleasant/Pleasant
Attractive/Unattractive
Friendly/Unfriendly
Pragmatic Quality Not understandable/Understandable
Difficult to learn/Easy to learn
Unpredictable/Predictable
Slow/Fast
Complicated/Easy
Obstructive/Supportive
Not secure/Secure
Does not meet expectations/Meets expectations
Inefficient/Efficient
Impractical/Practical
Cluttered/Organized
Hedonic Quality Dull/Creative
Inferior/Valuable
Boring/Exciting
Not interesting/Interesting
Conventional/Inventive
Usual/Leading edge
Demotivating/Motivating
Confusing/Clear
-1.5 -1 -0.5 0 0.5 1 1.5 2
Figure 6.2 UEQ results.
website also seemed to please the participants. However, per the UEQ fndings, hedonic
quality could be improved.
User-friendly website design

Determining which changes could improve UX cannot be accomplished directly with quan-
titative UX measurement, but this measurement does provide insight regarding general
areas of improvement (Schrepp, Hinderks, and Thomaschewski, 2017). The cognitive
walkthrough task analysis helped identify usability problems that can be easily addressed
when the website is redesigned. Although the participants evaluated the customer journey
and shopping process on the website as clear and easy, one usability problem was iden-
tifed that might afect a customer’s purchase intention in a normal setting: problems
locating product information during the shopping process (i.e. ensuring that they choose
a product that is compatible with their smartphone). Not fnding the relevant product
information could have immediate consequences (e.g. shopping cart abandonment) and/
or establish more long-lasting beliefs about the retailer and their integrity (Hasan, 2016).
Low contrast in buttons and links, small fonts and inconspicuous secondary navigation
were identifed as minor usability problems that were afecting more subjective UX,
whereas trouble locating specifc product information also afected the website’s usability
to an extent.
Two-fold user needs (pragmatic and hedonic) call for website design that supports
both pragmatic and hedonic needs. Supporting both goal-oriented behaviour (searching)
and exploratory behaviour (browsing) is extremely important for e-commerce websites
because users have diferent needs, goals and strategies for accomplishing their objectives
(De Villiers and Van Biljon, 2012; Schmutz et al., 2010). The UEQ fndings indicate that
the pragmatic quality of the website is good. However, this might have resulted from
the participants focusing on tasks they needed to accomplish and they were paying more
attention to the pragmatic aspects of the interaction (Quiñones, Rusu, and Rusu, 2018).
To gain insights on UX, the participants were also encouraged to explore the website and
browse the product selection before evaluating their experience on the UEQ. Hence, the
fndings indicate either that, to improve UX, the website should support hedonic needs
more or the participants happened to be more focused on accomplishing tasks and found
it challenging to evaluate the experience itself.
Visual attractiveness also afects a user’s evaluation of a website. It is a powerful tool
for improving UX on e-commerce websites and increasing the fulflment of hedonic
needs (Djamasbi, Siegel, and Tullis, 2010). The studied website scored neutral on both
attractiveness and hedonic quality. In the UEQ scale structure, attractiveness is a pure
valence dimension (i.e. the user’s like or dislike towards the subject). Participant feedback
included comments about the website’s clear appearance but also about its slightly con-
servative look and muted colour scheme. This could indicate that if the studied website
scored better in attractiveness, it could score better in the hedonic quality of UX as well.
Satisfying online customer journeys

Good website design and good UX facilitate positive customer experiences (Lemon and
Verhoef, 2016), which is why investing in UX design is an important consideration for
e-commerce websites. A signifcant part of the customer journey on an e-commerce
website is the path to products, (i.e. the happy path). The path should be thoughtfully
designed and should indicate the hierarchy of content as well as how to navigate it (InVi-
sion, 2020 – see Further reading). The idea is to help the user locate sought products or
what best suits their current needs. The fndings of this study indicate that navigating the
website (from the homepage to the online shop, between category pages and product
pages and fnally to the checkout) was easy for the participants, and they felt in control
of the interaction. The simple, smooth checkout process was especially appreciated. To
improve the customer journey on the website, the company could consider increasing
the colour and contrast in the design and content (e.g. to the background and fore-
ground colours, calls to action and text elements). This could also increase the website’s
accessibility.
Consistent UX design and development are essential throughout the design and rede-
sign processes of a website. An informed UX design process includes understanding the
user’s needs and desires (Garrett, 2011), and it requires much more than usability test-
ing alone. This study examined how well this particular e-commerce website facilitates
positive UX and smooth online customer journeys. The fndings will help the company
continue UX development and customer journey mapping on its website with insights
from the usability test and the UEQ.
Conclusions
This study examined UX as well as the pragmatic and hedonic user needs that drive
users on their customer journey on an e-commerce website. Studying UX and customer
journeys determined a common goal: UX research is conducted to identify success-
ful and unsuccessful features from the user perspective, and customer journey mapping
is conducted to identify successful and unsuccessful touchpoints. Essentially, both UX
design and customer journey mapping are about helping users accomplish their goals
more efciently, efectively and satisfactorily. Good usability is a predictor of positive
UX, and positive UX is a predictor of adoption. Positive UX can also predict a trusting
customer–company relationship, which is more likely to result in purchase intention.
Understanding that UX and the online customer journey are intertwined helps identify
possible problems and pain points that users may encounter in the e-commerce context
to help solve any problems that could prevent them from accomplishing their goals.
Future research could broaden the scope of UX from a single user interface to multi-
ple-touchpoint customer experiences (Roto, Joutsela, and Nuutinen, 2016). Addition-
ally, addressing both pragmatic and hedonic user needs is important for serving a wider
range of users. For example, experienced and inexperienced users have diferent needs
for browsing an e-commerce website: less experienced users need more well-organ-
ised content and product information, whereas experienced users have more emo-
tional and experiential needs for the interaction (Falk, Hammerschmidt, and Schepers,
2009). This is why addressing usability and UX as well as the customer journey on an
e-commerce website are extremely important. UX is always a result of the user, the
system and the context of the interaction (ISO, 2019). However, ‘a design is not usable
or unusable per se’. On a pragmatic level, the most important interaction outcomes
from the user perspective are that the interface becomes familiar quickly, it is easy to
learn and it helps them accomplish their goals. Providing pragmatic, useful content for
informed decision-making is important, but providing desirable content that flls hedonic,
emotional user needs is equally important (Interaction Design Foundation, 2019 – see
Further reading).

• Thoughtful UX development and customer journey planning for an e-commerce
website is a continuous process, and regular user research can reveal surprising
fndings on pain points, successful features and solutions.
• Combining qualitative and quantitative methods in UX studies is an efective way
to address the dual user needs and the pragmatic and hedonic aspects of UX.
• UX research should broaden its scope from single-user interfaces to addressing
multiple-touchpoint customer experiences because UX and online customer
journeys do not exist in a vacuum; they include all customer–company interaction
before, during and after use.
Disclaimer
The research presented in this chapter was collected for my thesis; Saima Ritonummi,
the University of Jyväskylä Master’s thesis User experience on an ecommerce website: a case
study (2020). The copyright for this JYU thesis belongs to me as the Author. Research
presented here has not been otherwise previously published.
Further reading
Harley, A. (2018). ‘UX guidelines for ecommerce homepages, category pages, and product listing pages’.
Nielsen Norman Group. Available at: www.nngroup.com/articles/ecommerce-homepages-listing-
pages/ (accessed 26 July 2020).
Interaction Design Foundation. (2018). How to Conduct a Cognitive Walkthrough [Online]. Available at:
www.interaction-design.org/literature/article/how-to-conduct-a-cognitive-walkthrough (accessed
16 August 2020).
Interaction Design Foundation. (2019). Usability: A Part of User Experience [Online]. Available at: www.
interaction-design.org/literature/article/usability-a-part-of-the-user-experience (accessed 16 August
2020).
InVision (2020). Website Navigation Design: What You Need to Know (Plus 5 Best Practices) [Online]. Avail-
able at: www.invisionapp.com/inside-design/website-navigation-design/ (accessed 26 August 2020).
ISO 9241–210:2019. (2019). ‘Ergonomics of human–system interaction part 210: Human-centred
design for interactive systems’. International Organization for Standardization. Available at: www.iso.org/
obp/ui/#iso:std:iso:9241:-210:ed-2:v1:en (accessed 14 August 2020).
Roto, V., Law, E., Vermeeren, A., and Hoonhout, J. (2011). ‘User experience white paper: Bringing
clarity to the concept of user experience’. In Dagstuhl Seminar on Demarcating User Experience, September
15–18, 2010. Available at: https://drops.dagstuhl.de/opus/volltexte/2011/2949/ (accessed 16 August
2020).
Schrepp, M. (2019). User Experience Questionnaire Handbook: All You Need to Know to Apply the UEQ
Successfully in Your Projects. Available at: www.ueq-online.org/ (accessed 6 August 2020).
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7 AI-based voice assistants for
digital marketing
Preparing for voice marketing
and commerce
Alex Mari and René Algesheimer
Introduction
Shopping behaviour is undergoing a revolution that is primarily enabled by digital
consumer technologies, which are being increasingly powered by Artifcial Intelli-
gence (AI). Among these technologies, in-home Voice Assistants (VAs), such as Ama-
zon Alexa and Google Home, have witnessed unprecedented growth (Kaplan and
Haenlein, 2019). The physical placement of these devices at the core of consumers’
domestic life allows for repeated, ongoing interactions that fulfl functional and social
needs (Ammari et al., 2019; McLean and Osei-Frimpong, 2019). Defned as ‘voice-
based interfaces that can actively guide consumer decisions on the basis of artifcial
intelligence’ (Dellaert et al., 2020, p. 2), VAs can naturally converse with users, con-
textually elaborate requests and dynamically expand their knowledge while learning
from mistakes (Mari, 2019a).
The physical distancing and stay-at-home policies that have been introduced due to
COVID-19 are also requiring people to adopt and intensify their use of new shop-
ping behaviours. Greater availability of products, higher shopping convenience and bet-
ter value for the money are the key drivers of the adoption of new shopping methods
(40% of US consumers), diferent brands (36%) and novel retailers and websites (33%)
(McKinsey, 2020a – see Further reading). The penetration of digital services for grocery
shopping in Europe has increased to 51% – a growth factor of 1.8 (McKinsey, 2020b – see
Further reading). In the United States, e-commerce penetration has grown more dur-
ing the pandemic than in the past ten years. Said diferently, e-commerce has accelerated
the shift away from physical stores to digital shopping by roughly fve years (IBM Retail
Index, 2020 – see Further reading).
These rapid societal and technological changes are remodelling consumer journeys in
myriad of ways. The prolifc environment for AI-based devices is expected to develop at
exponential rates while altering consumer decision-making and posing new challenges
for digital marketers (Davenport et al., 2020).
This chapter discusses the adoption of VAs for marketing and commerce purposes,
followed by exploring the unanticipated consequences of VAs on human behaviour in
the context of voice shopping. We then highlight how these changes may afect Digital
Marketing (DM) and e-commerce practices before closing with opportunities for future
research.
DOI: 10.4324/9781003093909-9
AI-based voice assistants 73
The parallel rise of voice marketing and Voice Commerce
With the distinction between humans and machines becoming increasingly blurred, AI-
based VAs are expected to substantially alter the decision-making process throughout
the entire consumer journey, from product search to repurchase (e.g. Dawar and Bendle,
2018 – see Further reading; Mandelli, 2018). Two parallel forces are shaping the adop-
tion of VAs: (a) faster market penetration due to more than 200 million in-home smart
speakers being used globally within a few years and (b) the exponential growth of app
marketplaces (e.g. 100,000+ voice ‘skills’ available on the Alexa Skills Store and 10,000+
‘actions’ available on Google Home), which ofer infnite interaction possibilities.
A combined push from consumers and companies for their respective objectives is
also shaping the depth and breadth of VA usage. While the number of consumers seek-
ing more sophisticated brand experiences through third-party apps or native capabilities
is rapidly growing, even simple commands, such as playing music, providing weather
information and setting alarms, are creating more immersive voice experiences from the
marketing and sales perspectives.
DM is about delivering the appropriate communication to specifc targets at the opti-
mal time via the most productive channels. With the introduction of voice touchpoints,
marketers can employ voice marketing activities to strengthen their relationship with stra-
tegic audiences. For example, managers can utilise a mix of push and pull communication
mechanisms, which are often powered by AI, to ofer better convenience, relevance and
unique brand experiences (Mari, 2019b). Marketers can leverage voice channels using a
combination of owned, earned and paid media actions in coordination with other digital
and social media (SM) touchpoints to drive efciencies and build intimate one-to-one
relationships with consumers at scale.
Voice marketing
From a voice marketing perspective, VAs represent a novel form of interaction with con-
sumers. As the adoption of VAs grows, it is strategic for brands to develop a strong voice
presence that fulfls the needs of sophisticated consumers as well as those with disabilities.
According to Abobe, about 20% of marketing organisations are using voice-activated ser-
vices to improve UX and engagement, and 90% of those remaining are planning to intro-
duce voice apps by 2021 (see Further reading). Companies have mainly launched voice
marketing initiatives in the area of branded actions or skills. These voice applications are
built around four main service objectives: utility (e.g. hailing an Uber), entertainment
(e.g. coaching a player on Call of Duty), informational (e.g. obtaining stain removal tips
from Tide) and educational (e.g. learning about Mars from NASA).
Some companies quickly capitalised on the voice trend and established a superior voice
presence. For example, Diageo (a British alcohol beverage company) has consistently
invested in voice marketing by launching several voice-based applications for its brands.
Among its portfolio, Johnnie Walker was the frst brand to build an Alexa skill to enrich
the tasting experience. Beginning in 2016, Johnnie Walker consumers could listen to
insights, suggestions and stories to create a unique whiskey-tasting experience. This skill
provided an extra service that enhances the properties of a physical product and leads
74 Alex Mari and René Algesheimer
to deeper emotional connections with the brand. Given the promising results, Diageo
extended the format to the Scotch brand Talisker. The skill replicates a guided tasting that
the brand ofers in its distillery. The ‘Talisker Tasting Experience’ provides a step-by-step
audio guide to help consumers enjoy and appreciate the award-winning whiskey. Because
tasting experiences usually take place in a living room and during intimate conversations,
the VA user can impress friends while interacting with the brand in a social context.
Voice Commerce
The concept of e-commerce has evolved to include not only the acts of buying and sell-
ing products via the Internet but also making products easier to discover and purchase. As
a consequence, the disciplines of DM and e-commerce have become increasingly inter-
connected. Additionally, in the context of VAs, the terms ‘Voice Commerce’ and ‘Voice
Shopping’ refer not only to the transactional act of placing an order directly or through
marketplaces but also to the technical capabilities and communication activities that allow
users to search for a product, listen to reviews, add items to a list, purchase goods or ser-
vices, track an order, access customer service, etc.
From a Voice Commerce perspective, VAs have the potential to alter all the stages
of the consumer journey substantially. Managers have come to realise that VAs already
possess the technical capabilities to lead interactions with consumers, from activating
passive users to automating product purchases. Adobe (see Further reading) suggests that
almost half of all VA owners initiate product searches (47%), create shopping lists (43%)
and make price comparisons (32%). However, AI-aware managers predict that product
reordering (automation) will soon be the most used VA commercial feature (74%), fol-
lowed by order tracking (71%), product search (68%) and product purchase (66%) (Mari,
Mandelli, and Algesheimer, 2020).
Commercially, VAs ofer three main revenue stream opportunities.
1 Marketers can deliver premium services as part of their voice experiences, such as
interactive stories or exclusive features. Through In-Skill Purchasing (ISP), users
can seamlessly shop for products using payment options that are associated with
their account (e.g. Amazon Pay). For instance, Sony Pictures Television, which
produces many TV shows, including Jeopardy! and Who Wants to Be a Millionaire?,
has built a voice app portfolio that reaches millions of users every day. Jeopardy!
was the frst Alexa skill to ofer ISP. For a payment of $1.99 per month, users can
play more than one daily session and take part in previous episodes that they have
missed.
2 Managers can develop Voice Commerce skills or actions to sell directly to consumers
on their channel. For instance, Domino’s Pizza developed one of the early custom
skills for Amazon Alexa that directly involves a commercial transaction. With more
than 60% of orders now placed digitally, Domino’s predicts that a 100% digital
business is possible. To achieve such an ambitious goal, Domino’s created a voice
strategy to tackle every available voice channel, from smart speakers to smartwatches.
By saying ‘Alexa, ask Domino’s to feed me!’, users can build a new pizza order and
repurchase the most recent one or track each stage of the delivery process.
3 Marketers can convey and redirect prospects towards the standard shopping capa-
bilities that are ofered by the VA’s manufacturers. Native shopping channels, such
as Amazon Alexa and Google Shopping, are characterised by the ease of making
low-involvement purchases. Currently, 85% of voice purchases are for items below
$100 according to a report by Voicebot AI (see Further reading). As such, the
penetration of voice shopping features varies widely among product categories.
The majority of purchases (21%) are digital products, such as music or movies,
which do not require tactile evaluation (eMarketer, 2019 – see Further reading).
However, an increasing number of people are shopping for physical products, such
as household items (8%) and electronic parts (7%). Grocery shopping is particularly
expected to grow via strategic partnerships with retail chains. In the United States,
Alexa’s users can order many diferent items, such as household products and fresh
produce, from a local Whole Foods and receive delivery within two hours. Google
has partnered with Walmart on voice-enabled grocery shopping in the United
States and with Carrefour in France.
The consequences of voice shopping on consumer

decision-making
To consumers, VAs promise fast, repeatable and low-cost decision-making combined with
an increased level of personalisation. Voice agents can be conceptualised as ‘partners in
decision dialogue’ (Dellaert et al., 2020, p. 2) that generate personalised suggestions to
match products to consumers’ expressed preferences or implicit behaviours (Häubl and
Trifts, 2000). Little is known about how consumer decisions are made in dynamic dia-
logues with an AI-based VA. However, researchers in many diferent felds, from Infor-
mation Systems to Ethics, posit that interacting with VAs will alter the decision-making
process (e.g. Candrian, Scherer and Algesheimer 2020; Dellaert et al., 2020). Compared to
traditional e-commerce, consumer decision-making processes in verbal dialogues present
a unique customer experience. In particular, consumers may be subject to idiosyncratic
decision biases that are introduced by the unique relationships that they can build with
assistants with human-like characteristics or based on how options are presented to them.
In the context of voice shopping, businesses like Amazon and Alibaba organise the
general context in which people make decisions. During a product search, the interaction
fow with a VA changes based on whether the user wants to (a) purchase in a product cat-
egory for the frst time or (b) repurchase a product in the same category. For choice (a),
the interaction fow begins with an active decision by the user to search for either a brand
name (an exact match, e.g. Pantene) or a generic product category (a broad match, e.g.
shampoo). Product-brokering VAs, such as Alexa, sequentially present a default option
‘top search result’ one at a time. The VA recommends new products only if the consumer
answers ‘No’ to the assistant’s question ‘Do you want to order this?’, and the purchas-
ing process ends when a user either agrees to purchase the item or halts the process. For
choice (b), when a user has already made a purchase using a VA, information that is stored
in the system is retrieved to recommend a swift repurchase (an automated match).
Dellaert et al. (2020) provided an initial exploration of how consumer decision-making
may change in the presence of AI-based VAs. In particular, these authors advanced that,
compared to traditional online purchase environments, VAs will reduce the scope of
options considered (set size) and amplify a brand lock-in efect (path dependence).
The tendency to process fewer recommendations while voice shopping might be
explained by the presentation of a single item at a time. Sequentially searching for alter-
natives using voice commands demands higher working memory capacity than that of
screen-based shopping (Muniz and Morwitz, 2019 – see Further reading). Consequently,
the VA may reduce the consumer visibility of product alternatives, which creates a ‘flter
bubble’ (Colleoni, Rozza, and Arvidsson, 2014). For consumers, this means ‘trading sov-
ereignty over their preferences for guidance in selecting the best option’ (Dellaert et al.,
2020, p. 2). Providing visibility of one option requires consumers to decide whether to
maintain control over the choice set or delegate the decision to the VA. Such a scenario
produces immediate efects for consumers because it excludes potentially more favoured
options (Nedungadi, 1990). However, it can prevent users from making poor decisions
by selecting average or irrelevant options (Diehl et al., 2003), but only if the VA operates
in the consumer’s interest. In this context, product-ranking algorithms on VAs assume an
even more critical role than they do in web or mobile applications.
When shopping with a broad match (i.e. when consumers do not have strong brand
preferences), the way a choice is presented to the decision-maker (or ‘choice framing’
[Araujo, 2018]) can signifcantly afect the shopping decision. The authors conducted
an individual session experiment in which, after reading a report that manipulates their
trust towards VAs (high vs. low), the subjects (n = 180) were asked to purchase a utilitar-
ian product (batteries) using a generic search term (broad match) on Alexa (Mari and
Algesheimer, 2021). The fndings show that trust towards Alexa has a positive direct
efect on the consumer’s satisfaction with the shopping decision. Therefore, VAs that
are capable of building trust with consumers in terms of competence, benevolence and
integrity (Mayer, Davis, and Schoorman, 1995) drive higher decision satisfaction. This
efect is signifcant regardless of the average brand awareness and price of the presented
options. Furthermore, the direct efect of condition on purchase satisfaction is mediated
by the number of options that the VA presents (consideration set size). As the authors
hypothesised, higher trust results in a lower number of options, which turns into higher
satisfaction with the decision. In addition, trust was found to afect the likelihood that
consumers would choose a default option recommended by Alexa. Overall, 60% of the
respondents had purchased the frst recommended brand, and 83% (n = 149) relied on
the frst three options provided by Alexa before fnalising the purchase, which confrms
consumer bias towards default choices.
Although choice-framing of a VA similar to a pre-checked box on Internet forms does
not force the user to make a decision, it may produce several unanticipated efects. A
simplifed representation of the marketplace reduces the consumer visibility of alternative
products and features. While a lower number of alternatives may lead to less regret over
foregone options, it may reduce exploration while increasing brand polarisation.
Several researchers postulate that shopping-related VAs might contribute to the loss of
autonomy during the decision process, which would have implications for assessment and
decision-making (e.g. André et al., 2018). After a user purchases a product using a VA,
the recommendations in the same category will start from the purchased brand, whether
the user had previously expressed a brand preference (exact match) or not (broad match).
This initial step towards ‘autonomous shopping’ has the potential to signifcantly reduce
(or even eliminate) the need for human decision-making, thereby ‘challenging deep-
rooted human–machine relationships’ (De Bellis and Johar, 2020, p. 75). Behavioural
consistency of prior consumption (or path dependence) activates an inertia mindset by
prompting a psychological disposition to minimise thinking (Henderson et al., 2020).
That process produces a substantial risk for the flter bubble or echo chamber efect (Col-
leoni, Rozza, and Arvidsson, 2014). The mentioned biases and heuristics in consumer
decision-making are likely to afect marketing practices and pose both challenges and
opportunities for managers.
Defning a communication mix strategy for voice
The introduction of VAs has created new possibilities for digital marketers. However, the
simultaneous growth of several voice ecosystems and the explosion of services from VA
manufacturers and suppliers instils uncertainty. As such, organisations try to fnd a stra-
tegic approach to voice implementation that minimises commercial risks and maximises
frst-mover advantages.
Consultants and advisors in the feld of new technologies are calling for a voice-frst
paradigm shift. Nevertheless, voice marketing and Voice Commerce strategies are more
likely to be initially treated by companies as a stand-alone implementation. As Kris Zan-
uldin, Head of Product at Amazon Pay, says to Pymnts.com, there is a need to silo voice
technologies and consider ‘What is my voice strategy?’ because ‘Without really focusing
on that question, companies will struggle’ (see Further reading). There is a consensus
among managers that voice will gradually move from a stand-alone strategy to a key
aspect of the overall business strategy with strong integration into DM and e-commerce
plans (e.g. Sterne, 2017). Therefore, it is strategically important to understand what voice
can and cannot do for marketing and sales.
Successful defnitions of DM and e-commerce plans require a mix of communication
activities that are classifable in terms of owned/paid/earned media and content. Market-
ers and e-commerce leaders can initiate similar initiatives, such as launching a branded
skill, although with substantially diferent objectives – branding versus sales (Figure 7.1).
While voice marketing focuses on growing a brand with increased awareness and
engagement, Voice Commerce closely supports consumer exploration and decisions
about products or services. When organisationally separated, marketing and e-commerce
especially beneft from the synergistic implementation of a plan. This combination of
push and pull communication activities needs to be shaped around the unique bidirec-
tional characteristics of AI-powered VAs. At the same time, interaction management
(bottom) often happens across media and functional areas requiring the simultaneous
management of campaigns, relationships and service. Whether an extension of the cur-
rent marketing and sales channels or as a stand-alone execution, these communication
activities represent an opportunity for companies to increase consumer intimacy. For
instance, Starbucks has created a comprehensive voice-based service across voice plat-
forms in which voice marketing and commerce activities are integrated. Long lines dur-
ing peak times represent a key driver of consumer dissatisfaction with a direct negative
efect on sales. This factor, when combined with the insight that 73% of users order the
same Starbucks product every visit, led to the creation of an Alexa skill (RAIN, 2020 –
see Further reading). Voice shoppers who reorder their favourite drinks and skip the
queue have a monthly cart size that is 16% higher than those of non-voice users (RAIN,
2020). In China, Alibaba’s Tmall Genie users can have their Starbucks order delivered to
their location while paying with their Starbucks account and receiving loyalty rewards.
However, beyond transactional convenience, the Starbucks voice application enables
users to listen to the brand’s well-known music playlists, which recreates the cofee shop
experience in consumers’ homes.
Figure 7.1 shows a sample of communication instruments in diferent functional areas
of DM and e-commerce. These tools can be considered tactical or strategic depending
on their implementation, and they could become more widespread and technically ready
than others. With the exception of voice skills/actions development, which is incredibly
advanced (as shown in the mentioned cases), other marketing and e-commerce drivers
COMMUNICATION MIX STRATEGY

VOICE MARKETING & VOICE COMMERCE
DIGITAL MARKETING ECOMMERCE
VOICE VOICE
TRADITIONAL TRADITIONAL
MARKETING COMMERCE
CHANNELS CHANNELS
Brand-focused Sales-focused
OWNED MEDIA OWNED MEDIA
Custom shopping
Branded
skill and native
skill & action
VA's shopping skill
PAID MEDIA PAID MEDIA
Audio ads
Audio search ads
for skill and
for products
content promotion
EARNED MEDIA EARNED MEDIA
User-generated
Editorial and user-
content and social
generated content
cues
CONTENT CONTENT
Branded content Product content

and voice search and voice search
optimisation optimisation
INTERACTION MANAGEMENT
CAMPAIGN RELATIONSHIP SERVICE
Personalised voice Customer support

Brand messages
notifications and (FAQ, guided dialog,
and offerings
reminders order tracking)
Figure 7.1 Communication mix strategy for voice marketing and Voice Commerce.
Source: own elaboration.
are still in their infancy. The algorithm that ranks the information on VAs represents
a ‘black box’ (Voosen, 2017, p. 22) for managers who are unable to assess risks and an
opportunity in the area of discoverability. Consequently, Voice Search Optimisation is
underdeveloped, with only 3.8% of businesses ofering information in voice searches,
according to Uberall (see Further reading). Regarding paid media, audio advertising is
limited to a few options. Among these, Spotify suggests buying tickets for the closest con-
cert venue of the user’s favourite artist. Amazon launched its audio ads platform, which
allows advertisers to promote products on Amazon Music.
In summary, several common activities in traditional marketing and e-commerce, such
as in the areas of campaigning or CRM, have not yet found a respective voice format.
As Kris Zanuldin from Amazon states on Pymnts.com (see Further reading), ‘Alexa is
obviously based on technology, but customers do not view her as technology. She has a
personality; she is a friend [ . . . ] How do you integrate a friend into your commerce
experiences? Think about it from that perspective as opposed to thinking about voice as
a new piece of technology’. Within this continuous platform development, managers are
called to decide whether to proactively implement solutions (act) or wait for a richer pool
of best practices (react).
Strategy implications for managers and discussion

Swift changes in consumer behaviour and disruptive innovations in the voice technology
ecosystem require managers to define if, how and when to implement solutions urgently.
Although to different degrees, all companies will re-adapt their DM and e-commerce
practices in response to the biases and heuristics introduced by VAs. Per our research
involving international AI experts (n = 30) and AI-aware managers (n = 62), at least
three discriminant factors influence managers’ strategy definition. A company’s level of
dependency on AI-based VAs is driven by the likelihood that, in its product category, (a)
an initial purchase is conducted using auditory cues only (i.e. mono-processing purchase
[vs. multi]), (b) a repurchase is automated without requiring an additional consumer deci-
sion (e.g. shipping every month) and (c) a consumer searches by category (broad match)
or brand (exact match).
Figure 7.2 shows that when companies sell products that consumers are likely to pur-
chase using voice-only channels and repurchase automatically (top right area), their adop-
tion of voice-based initiatives becomes ‘mission-critical’. Consumer goods firms that
produce low involvement and utilitarian products, such as toothbrush replacements, are
required to act fast to grow or protect their sales (Voice Commerce). By contrast, compa-
nies that distribute high involvement and hedonic products, such as apparel, might look
at the challenges and opportunities that are posed by VAs as ‘optional’. As such, they may
have a lower sense of urgency or employ almost solely brand-oriented activities (Voice
Marketing).
In the upper area of the quadrant, we can distinguish between products with uncertain
lifetimes (facing ‘radical’ change), such as batteries and light bulbs, and regular replace-
ments (‘mission-critical’ change), such as razor blades and toothbrush heads. In the lower
area of the quadrant, we can characterise products that, even within the same industry, are
w
Lo
Top-of-mind brand Top-of-mind brand

(c) Broad Search
gh
Brand agnostic Brand agnostic

Hi
(ii) Lock-in opportunity
Radical Mission critical (i) Lock-out risk

High
(e.g. Batteries) (e.g. Toothbrush replacements)
(a) Mono-Processing
Purchase
Optional Incremental
Low
(e.g. Apparel) (e.g. Underwear)
Low High
(b) Purchase Automation
Figure 7.2 Voice technology disruptive potential across product categories.

Source: own elaboration.
likely to be repurchased in the same form and shape (facing ‘incremental’ change), such as
underwear, and those like apparel, for which, repurchase of the same product is unlikely
to happen (‘optional’ change).
Detrimental consequences for companies can be mitigated when users express strong
brand preferences (i.e. search using an exact match) and the company ofers a ‘top-
of-mind’ brand. In this scenario, consumers automating the purchase of their preferred
brand ofer ‘lock-in opportunities’ for the company. By contrast, when consumers are
‘brand agnostic’ (i.e. search using a broad match) and set the VA to automatically repur-
chase the product, a company may experience ‘lock-out risks’. As such, consumer search
behaviour on VAs may afect sales results.
Building on extant literature, original studies and cases, we analysed the unexpected
consequences of using in-home VAs on consumer decision-making. Furthermore, we
discussed how these changes in consumer behaviour, together with voice technol-
ogy advancements, are likely to impact DM practices. Future research on voice mar-
keting and Voice Commerce should more closely explore the interconnected efects
of machine behaviour (VA), consumer behaviour and brand behaviour per an inno-
vation ecosystem perspective to fully capture the complexity and dynamics of this
phenomenon.

• AI-based VAs, which are developing at an exponential rate, are altering shopping
behaviour and posing new challenges and opportunities for marketers.
• VAs introduce biases and heuristics in consumer decision-making that are likely to
afect DM and e-commerce practices.
• Managers are urged to decide whether to proactively implement solutions (act) or
wait for a richer pool of best practices (react).
• Marketers need to integrate voice-based marketing and sales initiatives into their
current communication mix strategy.
• The company’s level of dependence on VAs is subject to a consumer’s likelihood
of making a purchase using voice-only channels, automating purchases and search-
ing using a broad match.
Further reading
Adobe. (2019). ‘State of Voice Technology for Brands’: Industry Report Presentation. Available at: www.slide-
share.net/slideshow/embed_code/key/v76vHDbO0WLnWw
Dawar, N., and Bendle, N. (2018). ‘Marketing in the age of Alexa’. Harvard Business Review, 96(3), pp. 80–86.
Available at: https://hbr.org/2018/05/marketing-in-the-age-of-alexa (accessed 12 August 2020).
eMarketer. (2019). Which Select Activities Have US Smart Speaker Owners Done on Their Smart Speakers. Available
at: https://www.emarketer.com/chart/229112/which-select-activities-have-us-smart-speaker-owners-
done-on-their-smart-speakers-of-respondents-by-demographic-june-2019 (accessed 3 April 2019).
IBM Retail Index. (2020). COVID-19 Pandemic Accelerated Shift to E-Commerce By 5 Years, New Report
Says. Available at: https://techcrunch.com/2020/08/24/covid-19-pandemic-accelerated-shift-to-e-
commerce-by-5-years-new-report-says/ (accessed 24 August 2020).
McKinsey. (2020a). The Great Consumer Shift: Ten Charts that Show How US Shopping Behavior is Changing.
Available at: https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-
great-consumer-shift-ten-charts-that-show-how-us-shopping-behavior-is-changing (accessed 4 August
2020).
McKinsey. (2020b). Europe’s Digital Migration During COVID-19: Getting Past the Broad Trends and Averages.
Research summary available at: www.mckinsey.com/business-functions/mckinsey-digital/our-
insights/europes-digital-migration-during-covid-19-getting-past-the-broad-trends-and-averages.
(accessed 24 August 2020).
Muniz, K., and Morwitz, V. (2019). ‘Not-so Easy Listening: Roots and Repercussions of Auditory
Choice Difculty in Voice Commerce’. Available at SSRN. https://doi.org/10.2139/ssrn.3462714
Pymnts.com. (2020). Finding Voice Commerce’s ‘Hero’ Use Case. Video Interview available at: www.
pymnts.com/amazon-payments/2020/fnding-voice-commerce-hero-use-case/
RAIN. (2020). Starbucks: Leveraging Voice to Combat the Line. Available at: https://rain.agency/starbucks
(accessed 22 September 2020).
Uberall. (2020). Voice Search Readiness Report 2019. Industry research available at: https://m.uberall.com/
uberall-report-voice-search-readiness-uk-2019
Voicebot AI. (2020). Voice Shopping Consumer Adoption Report 2018. Industry research available at:
https://voicebot.ai/voice-shopping-report-2018/
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Section 3
Customer experience
and servicescapes
8 The role of social capital in
digitalised retail servicescape
Jussi Nyrhinen, Mika Skippari and Terhi-Anna Wilska
Introduction
Regardless of the rapid digitalisation of the retail trade and the fast growth of online
commerce (e-commerce), the majority (i.e. 88%) of all global retail of goods and services
was still bought from physical stores (i.e. ‘ofine’ or ‘brick-and-mortar’ stores) in places
such as high streets or malls before the COVID-19 pandemic (Statista, 2019 – see Fur-
ther reading). Pandemic’s preventing measures, such as quarantines, social distancing and
moving restrictions, have forced consumers to increasingly adopt digital channels and that
has further accelerated the digitalisation of retail trade. However, according to the blog
post by World Economic Forum, the consumers are already returning to physical stores
in China, where the COVID-19 outbreak has started to ease (see e.g. Zhou and Goh,
2020 – see Further reading). A similar development can be expected in the other parts of
the world when quarantines and other restrictions are removed because consumers still
have many reasons to visit physical stores. Among these reasons are social needs, such as
real-life human contacts with other customers and store personnel (Maruyama and Wu,
2014). These needs are linked to the demand for authenticity and human interaction in
a digitalised consumer society, which means that consumers also seek experiences rather
than solely focus on economic norms and pragmatic motives while shopping (see Novak,
Hofman, and Duhachek, 2003). Thus, retail stores are places for humans to interact and
gather (Pan and Zinkhan, 2006) as well as to examine products and to feel the shop’s
atmosphere (Piotrowicz and Cuthbertson, 2014).
The need for experiences provides retail stores an opportunity to be more than just a
channel of distribution (see Treadgold and Reynolds, 2016). These experiences are cre-
ated across digital and physical environments because consumers are increasingly shop-
ping across multiple channels at diferent stages of the purchase process, and diferent
channels serve diferent purposes (Dholakia et al., 2010). For instance, a consumer may
use a digital channel (i.e. online/mobile store) for information searching, a physical store
for viewing and examining the product, and return to a digital channel to make the
purchase (Kumar and Venkatesan, 2005). Hence, digitalisation of the retail trade has not
only created new types of retail businesses but also altered how ‘traditional’ retail services
are consumed and experienced; customers now interact with retail shops through a wide
spectrum of touchpoints over plethora of channels and media types (Lemon and Verhoef,
2016). Nevertheless, the role of social interaction has not lost its importance in digitalised
retail environment: only, its role as a determinant for customer experience has changed.
Therefore, there is a need for better understanding the standpoint of human factor in
DOI: 10.4324/9781003093909-11
86 J. Nyrhinen, M. Skippari and T.-A. Wilska
digital retailing and how customer experience is formed in a retail space comprising
multiple channels.
In this chapter, we aim to extend the understanding of the role of the social and
experiential factors in explaining customer experience in digitalised retail environment.
Firstly, we discuss how digitalisation has dispersed customer experience into ‘omnichan-
nel customer experience’ where customers utilise both digital and physical channels, in a
convergent manner and often simultaneously while interacting with brands. This process
of customer’s interaction with a brand, as well as customer’s responses and impressions
of it, is known as customer experience (Gentile, Spiller, and Noci, 2007). Secondly, we
draw on the concept of servicescape, which comprises both tangible and intangible fea-
tures which make up the service experience (Bitner, 1992, Tombs and McColl-Kennedy,
2003). Prior research on servicescape has mainly focused on digital and physical settings,
while research on how these two settings related to the social element of retail is still
rather scarce (Bolton et al., 2018). Finally, recognising that the servicescape consists of
physical, digital and social realms (Bolton et al., 2018), we explore the role of social capital
in determining the customer experience in digitalised retail servicescape. The theory of
social capital is applied here because it captures the interactions, social relationships and
social networks in terms of economic value (Bourdieu, 1980; Lin, 1999; Putnam, 2000;
Coleman, 1988). We contribute to the theory of customer experience by ofering an
integrated view of social capital and servicescapes that explains how interpersonal rela-
tionships and social networks are formed in retail stores that comprise digital and physical
channels.
Omnichannel customer experience

Customer experience, by defnition, is a customer’s overall internal and subjective
responses to a series of interactions with an organisation (Gentile, Spiller, and Noci,
2007) or a process, where customers construct experiences by merging services with their
own lives’ processes (see e.g. McColl-Kennedy et al., 2015). When consumers experience
services in a digital–physical environment, consumers often switch across both online
and ofine channels as well as a desktop and mobile devices within a single transac-
tion process, and therefore, consumers expect seamless interplay of the retailer’s multiple
channels (Piotrowicz and Cuthbertson, 2014; Verhoef, Kannan, and Inman, 2015). Thus,
the interest of retailers and scholars has turned from measuring individual channel perfor-
mance – multichannel retailing – towards the integration of ofine and online channels,
which is referred to as ‘omnichannel retailing’ (Herhausen et al., 2015). In omnichannel
retailing, retailers combine multiple online (digital) and ofine (physical) channels in a
convergent manner to provide a unifed customer experience during the purchase process
(see e.g. Herhausen et al., 2015; Verhoef, Kannan, and Inman, 2015). In the omnichan-
nel retail context, customer experience is constructed through interactions across myriad
digital and physical touchpoints (Lemon and Verhoef, 2016; Verhoef et al., 2009).
Prior studies have shown that a satisfying omnichannel experience may lead to increas-
ing purchases and stronger customer loyalty due to increased interaction with customers
(Verhoef, Kannan, and Inman, 2015). This integration may augment the retail ofering
and enable customers to achieve their shopping goals more efciently and efortlessly
(e.g. Kumar and Venkatesan, 2005; Verhoef, Kannan, and Inman, 2015). Yet, empirical
evidence on the success of omnichannel retail is rather scarce because many frms have
been unable to provide a seamless omnichannel experience (Herhausen et al., 2015). The
Social capital in digitalised retail 87
challenge here is to map out customers’ unique experience through digital and physical
channels (cf. e.g. Lemon and Verhoef, 2016). Therefore, we focus on experience creation
as an interactive process that takes place in the physical and digital spaces of the retailer. In
service literature, these spaces and social interactions within the theme are defned as the
servicescape (see e.g. Ballantyne and Nilsson, 2017; Bitner, 1992).
Digital–physical servicescape
The dispersion of consumer behaviour between online and ofine store environments
has led scholars to re-examine the concept of servicescape (Bitner, 1992, Tombs and
McColl-Kennedy, 2003). The servicescape is initially defned as a setting for the cus-
tomer experience, a build environment that afects both consumers and employees in
service encounters (Bitner, 1992), such as store space. Later defnitions have acknowl-
edged human interactions between customers and service personnel as an integral part
of the servicescape (e.g. Johnstone, 2012; Rosenbaum and Massiah, 2011, pp. 474–480).
Regardless of the intangible nature of the digital servicescape, many sensory attributes
of the physical servicescape are metaphorically maintained when conceptualising digital
retail environments and virtual interactions (Ballantyne and Nilsson, 2017). For example,
a website’s design will afect the atmosphere of an e-store similar to how the interior
shapes the atmosphere of a physical store. Moreover, the customer experience in the
digitalised servicescape has become more social by nature because SM platforms have
increased customer-to-customer interactions (Lemon and Verhoef, 2016). Hence, cus-
tomers may share their experiences as well as become infuenced by peer customers dur-
ing a service encounter (Lemon and Verhoef, 2016; Libai et al., 2010). Besides the online
peer-culture, mobile technology has also brought peer culture into the physical channel.
Customers can now communicate about their service experiences with their social net-
works via portable devices in real time, in a physical store (Piotrowicz and Cuthbertson,
2014). Hereby, customer servicescape can be regarded as three-dimensional, consisting of
digital, physical and social realms (Bolton et al., 2018).
However, our understanding of the customer experience in the digital–physical ser-
vicescape is rather limited. Notably, the prior literature has focused on only one or two
realms (Bolton et al., 2018) at a time. Models that conceptualize customer experience
were initially developed separately for either the ofine context (e.g. Shilpa and Rajnish,
2013), the online context (e.g. Rose et al., 2012) or to measure and compare the efects of
individual channels separately (e.g. Wang, Jiang, and Chen, 2004). Understanding inter-
connections between digital, physical and social realms may help in creating sophisticated
service systems that beneft consumers, organisations and society (Bolton et al., 2018).
Therefore, better knowledge of how the three realms of the servicescape could converge
is needed to create a superior customer experience.
Customers’ participation afects the essence of the service encounter because ser-
vice experiences are co-created through interactions among customers and/or between
customers and a retailer. Moreover, social interaction is among one of the motives for
customers to visit retail stores (e.g. Skippari, Nyrhinen, and Karjaluoto, 2017). In addi-
tion, interpersonal relationships and social networks that are supported by digital and/or
physical servicescapes may provide retailers with a competitive advantage because they
are more difcult to replicate than product- or market-related factors. Although this
social nature of the servicescape is widely recognised (e.g. McColl-Kennedy et al., 2015;
Rosenbaum and Massiah, 2011), the research on how customers and service personnel
create trust and reciprocal relationships through the physical, digital and social realms of
the servicescape is scarce. To understand how these social factors can be capitalised, the
concept of social capital is utilised to examine the servicescape.
Social capital in servicescape constitutes customer experience

This chapter examines interpersonal relationships, social networks and customers’
involvement in relation to the customer experience. In literature, these kinds of phe-
nomena are included in the concept of social capital (see Bourdieu, 1980; Lin, 1999;
Putnam, 2000; Coleman, 1988). Social capital is defned as an investment in social rela-
tions with expected returns (see Lin, 1999) or further connections among individuals,
including social networks and the norms of reciprocity and trustworthiness that arise
from them (see Putnam, 2000). In the retailing context, social capital is examined as
reciprocal actions between customers and retailers that represent both interpersonal and
institutional levels of reciprocity (i.e. networks and relationships among customers as well
as between customers and a retailer and its personnel) (Miller, 2001; Skippari, Nyrhinen,
and Karjaluoto, 2017).
Studying customer experience in relation to social capital is crucial because it is impor-
tant to understand how a customer’s experience in the retail environment constitutes
social ties between the customer and service personnel. These social ties may engender
interpersonal relationships that could become a source of customer loyalty towards the
retailer. Therefore, managing the specifc servicescape factors that afect social capital can
help retailers with multiple channels stand out from their competitors through developing
stronger relationship with their customers.
The social dimensions of the retail environment have been studied from the perspective
of customer satisfaction, buyer behaviour and purchase intentions, but not in relation to
either retail patronage or the customer’s social experience ( Johnstone, 2012). Yet, how a
customer identifes with the servicescape can be mutually consequential; customers may
patronise a store if they perceive unity with either their peers, with other customers in
general, or with the retail store itself, including its personnel ( Johnstone, 2012; Sirgy,
Grewal, and Mangleburg, 2000). Therefore, retail stores can also be seen as a platform for
non-commercial relationships, such as those with family members, friends and acquaintances
( Johnstone, 2012; Pan and Zinkhan, 2006). Moreover, for some consumers, the need
for human connection is a central facet in retail shopping, hereby supporting the research
that suggests that people become attached to places for the social connection (see John-
stone, 2012; Low and Altman, 1992). For instance, consumers visit retail stores because
such environments enhance human contact and provide a sense of belonging ( Johnstone,
2012; Shields, 1992). Moreover, the main foci of previous studies have been on product-
relevant (i.e. product quality and price), market-relevant (i.e. convenience and service
quality) and personal factors (i.e. demographics and attitude towards a store) (see Pan and
Zinkhan, 2006) that explain retail patronage.
Regardless of the social motives for visiting retail stores in a physical setting, service
is usually experienced in a socially detached manner or in ‘social bubbles’ where direct
interaction is limited to their own entourage. Nevertheless, socially detached con-
sumers in the physical servicescape may create a feeling of togetherness (see Rihova
et al., 2013). This means that a generally friendly and social atmosphere may exist,
even though consumers do not directly interact with others outside their own entou-
rage in a service encounter. However, SM (e.g. social networking services, messaging
applications and review platforms) have altered these dynamics because customers now
directly discuss and review their experiences with their peers online who are often
total strangers.
Customers may also infuence each other through SM during the service encounter,
and mobile technology has augmented this peer culture in the physical setting as well
(Leefang et al., 2014; Lemon and Verhoef, 2016). In addition to the challenge of manag-
ing peer infuence that is outside retailers’ control, SM has brought an unforeseen sense
of community within the customer base of some retail brands. For instance, endorsers of
a certain brand may form an ongoing neo-tribe (cf. Mafesoli, 1996), which may gather
in physical settings but importantly will congregate in an online platform (Rihova et al.,
2013). This community membership, which transcends the service’s physical experience,
can lay the foundation for social capital in various forms, such as reciprocity, social trust
and well-being (Cova, 1997; Rihova et al., 2013).
Due to the central role of human interaction in the service experience, the identity of a
retail space is not limited to its physical characteristics; rather, it is also related to the social
construction of place through the experiences of individuals and groups (see Bolton et al.,
2018; Rosenbaum and Massiah, 2011). This means that the physical and functional clues
of the servicescape can facilitate the meanings of the place, which are initially formed
and interpreted by people in the servicescape. Therefore, a place can be regarded as a
social construction; the servicescape is shaped by the interactions between people within
it and the retailer neither owns nor has complete control over its servicescape ( Johnstone,
2012). The customers’ reasons for becoming attached to a retail location, and repeat-
edly visiting it, may extend beyond the physical servicescape and product-related factors
( Johnstone, 2012). In sum, these views support the notion that consumers may keep
patronising shops that facilitate their social experiences with other customers or with the
service personnel. Notably, a diminutive amount of prior research has examined how a
place itself can constitute the creation and nurturing of consumers’ non-commercial rela-
tionships with the retail environment or how customers’ social relationships may mould
the servicescape ( Johnstone, 2012).
Prior literature (e.g. Rihova et al., 2013) has shown that customers co-create their
experiences in a service setting in social interactions with service personnel and other
customers. Therefore, the value of service is reliant on how well a retailer is able to
involve customers in the service experience (Prahalad and Ramaswamy, 2004). In that
sense, the customer themselves can be a resource for the retailer as well as for other
customers who seek human contacts from retail stores (cf. Coleman, 1988). This is due
to the contextual and individual nature of the experience, which is afected by the cus-
tomer’s own processes (Prahalad and Ramaswamy, 2004).
In the retailing context, while customers have a central role in co-creating their own
experiences, retailers reciprocally ofer value propositions by providing suitable products
and services and a retail setting with the aim of igniting the value co-creation processes
through interactions and collaborations with customers (Mohd-Ramly and Omar, 2017).
Prior studies have shown how value in the service experience is formed within insu-
lating, bonding, communing and belonging practices, which illuminate the appeal of
shared consumption experiences, particularly in physical contexts (Rihova et al., 2013).
However, there is a research gap regarding how social interaction in the physical context
is positioned in relation to the interaction through SM platforms. For instance, service-
oriented retailers can beneft from the importance of bringing customers together in a
physical setting alongside the online community (Rihova et al., 2013).
Social capital as an outcome of the customer experience
Besides constituting in experience formation, social capital can be seen as the outcome of
customer experience. Coleman (1988) examines social capital through its outcomes: trust
(insurance provided by close ties), community (social relations per se), reciprocal relationships
(normative structures enable mutual reliance) and access to resources (the network of social
exchange). Prior studies on customer relationships in online commerce have focused on
how to fulfl customer expectations in online service encounters (see Bart et al., 2005).
Even though the principles for forming customer trust in the servicescape still apply in
digitalised commerce, their form difers from that of ofine commerce (Papadopoulou et
al., 2001). For example, in the online context, the mechanical factors of the servicescape
are related to a website’s design, while the functional factors consist of the user interface
and payment arrangements (Harris and Goode, 2010). Prior studies have acknowledged
the importance of both mechanical and functional servicescape cues as antecedents for
trust formation (e.g. Mathwick, Malhotra, and Rigdon, 2001). These cues create a frst
impression of the service (Berry, Wall, and Carbone, 2006) and thus they also create a
setting for social interaction in the servicescape. For instance, the servicescape’s cues con-
stitute a retail brand image that indicates what kinds of shoppers visit a certain store (Sirgy,
Grewal, and Mangleburg, 2000).
In addition, the absence of face-to-face contact with store personnel and other cus-
tomers cannot be easily replaced in the digital retail environment (Papadopoulou et al.,
2001). Therefore, previous studies have suggested that an online servicescape should
facilitate online presence of other customers and service personnel with virtual advisors
(e.g. customer service chat) and community features (e.g. embedded customer reviews
and the company’s SM profle). Some studies argue that a sense of social presence may
also be provided by non-human entities, such as service robots (e.g. virtual assistants like
Apple’s Siri or Amazon’s Alexa) (van Doorn et al., 2017). In high-involvement or high-
risk purchases, the advisory mechanism may notably decrease a consumer’s concerns and
increase his/her perceived trust towards the retailer (Bart et al., 2005; Urban, Sultan, and
Qualls, 2000). Online brand communities may also enhance information exchange and
knowledge sharing as well as provide a supportive environment for customers, which will
increase consumer trust towards the retailer (Bart et al., 2005).
Due to a lack of familiarity or physical presence and the perceived uncertainty of
online commerce, challenges in building customer trust are inherent to online commerce
(see Papadopoulou et al., 2001). Therefore, omnichannel retailers may have an advantage
over pure online retailers (Brynjolfsson, Hu, and Rahman, 2013). This trust may be
directed towards an entire retail brand because a positive impression of an omnichannel
retailer that is based upon experiences with the prior channel of a retailer has been shown
to refect on consumers’ evaluations of alternative channels of the same retailer (Kwon
and Lennon, 2009).
Trust is also a mechanism for building a reciprocal relationship between the customer
and the retailer. For example, in DM, customers’ willingness to share information is a
prerequisite for marketers to create desired personalised experiences (Schoenbachler and
Gordon, 2002). Therefore, digital marketers seek to strengthen their information sources
by forming trust through customer relationship-building practices (Schoenbachler and
Gordon, 2002). In other words, a customer’s consent to provide personal data for the ef-
ciency of the retailer may aford them more personalised experiences in return. Loyal cus-
tomers may feel afection and normative commitment towards a retailer (see Miller, 2001)
and consequently practice patronage behaviours and/or become endorsers of the retailer
in return. Retail patronage behaviour involves trading of between economic costs and
relationship benefts (see Baltas, Argouslidis, and Skarmeas, 2010) (i.e. consumers visit the
retailer before its competitors or shop more frequently if they consider the relationship
mutually benefcial). On a deeper level of customer loyalty, customers take pleasure in
sharing their knowledge with peers and family (i.e. customers become vocal advocates
for the product or service and constantly spread WOM with a positive valence) (see Grif-
fn, 2002). Although prior literature acknowledges the ways how digitalisation has set
challenges for forming trust and long-lasting customer loyalty, the evidence of how the
elements of a blended servicescape afect these social capital outcomes is notably scarce.
Conclusion and implications

There is still scarce empirical evidence on how elements from the digital, physical and
social realms of the servicescape can be combined to facilitate the customer experi-
ence (Bolton et al., 2018). The COVID-19 pandemic has also emphasised the impor-
tance of understanding the interplay between online and ofine stores as well as social
and experiential aspects of retail shopping. Firstly, social distancing restrictions and
quarantines have rapidly increased the adoption of digital channels but also re-evoked
desire to buy locally sourced products and supporting community stores (Vujanic and
Burns (2020) – see Further reading). Above all, those retailers that have been able to
respond to the changing needs and behaviours of their customers using online and
ofine channels have been more resilient to the crisis. For instance, according to the
blog posts by Retailing Info Systems and Adobe Analytics (see Further reading), buy-
online-pickup-in-store orders surged 208% in spring 2020 compared to 2019 because
they ensure a safe transaction and provide customers instant gratifcation (Abramovich,
2020; Seraphin, 2020). Also, omnichannel retailers have been able to enhance their
customer experience by using a storefront as a mini fulflment centre for safe staf and
customer interaction (Seraphin, 2020).
As depicted in this chapter, most studies have either focused on examining customer
experience formation on a single channel basis or emphasised the consistency of service
elements. More research is thus needed on the connectivity across the digital, physi-
cal and social realms of the servicescape: how customers may participate in experience
creation to attain their goals, and how interaction in the servicescape can be linked to
the outcomes which indicate sustainable customer relationships. This chapter suggests
applying the theory of social capital to conceptualise how human relationships and social
networks can act as a resource in experience formation. The chapter also links the ele-
ments of the servicescape to the outcomes of social capital, such as trust and mutual
reciprocity between a customer and a retailer, which are prerequisites for lasting customer
relationships.

• To further explain how the elements from the digital, social and physical realms of
the servicescape facilitate social capital in retail, there is a call for empirical studies
on how social interaction in the physical context is positioned in relation to inter-
action through SM platforms.
• In more detail, how servicescape elements such as atmospherics (scents, visuals, etc.)
nurture non-commercial relationships among customers in omnichannel retailing?
• There is a call for more empirical research on how the customer experience in a
blended servicescape is associated with human contact, forming trust and develop-
ing a reciprocal relationship between the customer and the shop.
Disclaimer
The research presented in this chapter was collected for my University of Jyväskylä Doc-
toral Dissertation Social Capital in the Digitised Servicescape (2020). The copyright for this
JYU thesis belongs to me, Jussi Nyrhinen, as the Author. Research presented here has not
been otherwise previously published.
Further reading
Abramovich, G. (2020). ‘Adobe digital economy index: Tracking the state of ecommerce during
COVID-19 and beyond’. Adobe Analytics blog, November 31, 2020. Available at: https://blog.adobe.
com/en/2020/03/31/adobe-digital-economy-index-tracking-the-state-of-ecommerce-during-
covid-19-and-beyond.html#gs.nkcinn (accessed 6 December 2020).
Seraphin, S. (2020). ‘Top 3 omnichannel strategies retailers are using during COVID-19’. Retail Info
Systems blog September 25, 2020. Available at: https://risnews.com/top-3-omnichannel-strategies-
retailers-are-using-during-covid-19 (accessed 6 December 2020).
Statista. (2019, August 30). E-commerce Share of Total Global Retail Sales from 2015 to 2023. Available at: www.
statista.com/statistics/534123/e-commerce-share-of-retail-sales-worldwide/ (accessed 3 September 2019).
Vujanic, A., and Burns, T. (2020, August 13). ‘COVID-19 Likely to Usher in “Decade of the Home,”
According to Accenture Survey Research’. Accenture Newsroom blog 13.8.2020. Available at:
https://newsroom.accenture.com/news/covid-19-likely-to-usher-in-decade-of-the-home-according-
to-accenture-survey-research.htm (accessed 23 August 2021).
Zhou, W., and Goh, B. (2020). ‘Chinese citizens are returning to shops as the COVID-19 outbreak
eases’. The World Economic Forum COVID Action Platform blog. Available at: www.weforum.org/
agenda/2020/03/chinas-coronavirus-outbreak-shops (accessed 6 December 2020).
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9 From places to platforms
Examining the transformation
of servicescapes
Julie Horáková and Outi Uusitalo
Introduction
Despite being one of the basic elements of the Marketing Mix and an important variable
in creating consumers’ shopping experiences, the importance and meanings of place as
a multidimensional entity are often overlooked. While the potential and worth of places
are acknowledged, emphasis on independence from both time and physical place that is
brought by the digital era has shifted the status of place towards a background variable
that merely complements the main product or service provided. Increasing attention
towards the digitalisation of shopping has shifted researchers’ focus towards the functions
and usability of interfaces, and the role of place as a multidimensional entity is often over-
looked. However, research shows that places can hold important meanings for consum-
ers, and they strongly contribute to the creation of customer value (Brocato, Baker, and
Voorhees, 2015; Johnson et al., 2015; Rosenbaum et al., 2020). Therefore, the notion of
retail place as a focal marketing issue is not likely to become irrelevant, even though digi-
tal technology increasingly mediates shopping and changes the shopping environment.
The DM literature has paved the way for the versatility of research of digitalisation
in the context of marketplaces (Dwivedi et al., 2020; Kannan and Li, 2017; Lamberton
and Stephen, 2016). While the research of online retailing is proliferating, many studies
have focused on the functionality of exchanges (Hagberg, Sundstrom, and Egels-Zandén,
2016). Few studies have tackled the notion of the transforming shopping environment
and the special features of online shopping locations as places. One reason may be that,
although online shopping and digital services have seen constant growth in recent years,
the disappearance of brick-and-mortar stores in the foreseeable future seemed unimagi-
nable. However, the COVID-19 pandemic that hit commerce worldwide has shown that
what seems unthinkable can become reality in a matter of days. Strict restrictions and
quarantine orders forced also the consumers preferring to shop in physical stores to switch
from ofine shopping to the online environment as retail shops and service premises were
closed. Given the importance and multidimensionality of place, there is a need for more
thorough research into online shopping places and their role in creating customer experi-
ence and value.
This chapter focuses on the changing nature of commercial places from physical shop-
ping locations to digital platforms. We provide a conceptual framework for understanding
the signifcance and meaning of digital places to consumers and apply empirical survey
data to illustrate the critical aspects on which marketers should focus when designing
online places that matter to create value for consumers’ everyday lives.
DOI: 10.4324/9781003093909-12
96 Julie Horáková and Outi Uusitalo
Conceptualisation of place in marketing
Although place is considered a foundation of marketing, the conceptualisation and deep
analysis of commercial places in marketing literature are incoherent. What the Marketing
Mix synthesises under the name ‘place’, which could evoke the notion of a static physi-
cal location, is a complex distribution channel that represents the fow of goods from the
producer to the fnal consumer to deliver customer value (Kotler et al., 2013). Research
felds, such as geography and environmental psychology, have allocated extensive atten-
tion to the conceptualisation of place. In one of the most infuential works on the topic,
Relph (1976) conceptualises place as a multidimensional concept consisting of three main
components: location, activities and meanings. He also emphasises the importance of
place both functionally and existentially. Tuan (1977) makes a distinction between place
and space. According to him, place embodies established values and represents concrete-
ness, stability and belonging. Thus, place may be regarded as safe and stable, whereas
space represents openness, change and abstractness and allows freedom and movement.
Space includes a social character; it produces social relations and social relations produce
space. However, this does not necessarily mean that physical places are always stationary
(Cresswell, 2004). For instance, sales booths and pop-up stores are examples of places the
location of which is constantly changing. As for online platforms as places, they tend to
conform to the defnition of space.
To distinguish between the important places in consumers’ lives such as home (frst
place) and work (second place), some authors (Oldenburg, 2001; Rosenbaum and Small-
wood, 2013) address commercial places as ‘third places’. They highlight the social nature
of a location and argue that these places act as informal settings of social life, and they
encourage formation of social relationships and networks between diferent actors in the
marketplace. Consumers often seek a social support in commercial places to escape isola-
tion and loneliness that they may experience in frst or second places (Rosenbaum and
Smallwood, 2013). Moreover, certain commercial places can provide restorative (Korpela
et al., 2001) and therapeutic benefts (Rosenbaum et al., 2020) and have, therefore, a
major impact on consumers’ well-being beyond the place.
Meanings of place
Meanings of place are created by the interaction of three components: environment, self
and others (Gustafson, 2001). Consumers actively create and shape these meanings based
on their personalities, social environments and lifestyle (Thompson and Arsel, 2004). Per
Gustafson (2001), places can also hold meanings that are not dependent on the self or oth-
ers but are rather constituted by a symbolic or historical context of the place. Researchers
focusing on commercial places (Brocato, Baker, and Voorhees, 2015; Kyle, Mowen, and
Tarrant, 2004) suggest that meanings are co-created and assigned to places when consum-
ers are engaging in various activities and social relationships within a place. Meanings are
then subjective and based on personal experiences and feelings with that place.
Relph (1976) indicates that activities that diferent actors engage in at a certain place
are a vital component of that place. Places have long been viewed as the main facility of
economic exchange (Bagozzi, 1975) that acts as a repository of potential resources for
diferent market players (Rosenbaum et al., 2020). However, in the contemporary mar-
ketplace, buyers and sellers are no longer isolated actors that engage in a simple buyer
and seller transaction. Digitalisation constantly changes the marketplace in multiple ways
From places to platforms 97
(Hagberg, Sundstrom, and Egels-Zandén, 2016). The roles are blending; boundaries are
blurring and the exchange of money, goods, services and information are resulting from
complex relationships between various actors in the marketplace. Consumers actively
participate in value creation as they engage socially and emotionally with place settings as
well as employees and other consumers (Debenedetti, Oppewal, and Arsel, 2013).
Servicescapes and atmospherics

In her seminal work on the physical surroundings of services, Bitner (1992) conceptual-
ises the sites of consumption as servicescapes. She examines how diferent environmental
dimensions, such as space, functions, signs and symbols, or various ambient conditions,
such as temperature or noise, infuence consumers’ internal responses and, therefore, the
behaviour that they exhibit. Various elements of the physical place not only infuence
the behaviour of individual consumers but also afect social interactions and socioeco-
nomic exchanges in servicescapes (Aubert-Gamet and Cova, 1999). Importantly, distinct
attributes of the physical environment are experienced by consumers through sensory
perceptions (Bitner, 1992). These distinct elements, when combined, forge an overall
atmosphere that can attract consumers’ attention, arouse afection and trigger or infuence
consumer behaviour (Turley and Milliman, 2000).
The changing nature of places

Commercial places have undergone profound changes in the past two decades due to
digitalisation, which is transforming what consumers perceive as a place as well as how
they relate to commercial places. Detaching from brick-and-mortar stores and physical
shopping locations in favour of virtual spaces that appear on our screens but do not exist
in the tangible world will imply increasing consumer power due to decreasing informa-
tion asymmetry, increasing transparency and new possibilities for quick, many-to-many
social interaction. This dematerialisation has become a signifcant characteristic of con-
temporary society; people dissociate from physical possessions, and tangible materiality is
replaced by virtual consumption and intangibility (Arcuri and Veludo-de-Oliveira, 2018).
Previously, solid relationships with material possession and physical places are becoming
unstable, and consumers adhere to values, such as fexibility, adaptability, fuidity, light-
ness, detachment and speed (Bardhi and Eckhardt, 2017). Online retail stores represent
the idea of space that is characterised as intangible and open (Tuan, 1977). Various service
platforms ofering access-based services and sharing are becoming increasingly popular
because they allow consumers to orient themselves towards these values.
The lack of a clear conceptualisation of digital places in the existing literature is strik-
ing. Most recent studies on consumers’ meanings that focus on commercial places (see e.g.
Brocato, Baker, and Voorhees, 2015; Johnson et al., 2015; Rosenbaum et al., 2020) still
focus on the physical environments in ofine places. Few studies (see e.g. Ballantyne and
Nilsson, 2017; Di Masso et al., 2019) have addressed the increasing intangibility of online
places and digital platforms. In this chapter, we defne online places as virtual shopping
locations that possess the characteristics of the space concept (Tuan, 1977). Thus, their
physical and social atmospheric elements consisting of exterior, interior, layout, displays
and human variables are transformed into abstract, changing digital symbols. However, in
line with traditional places, online places act as a repository of available resources (Rosen-
baum et al., 2020) which facilitate socioeconomic exchange (Aubert-Gamet and Cova,
1999; Bagozzi, 1975) and provide social value. A major distinction between physical and
online places lies in the dematerialisation and absence of the physical elements that pro-
vide stimuli to all senses. Because of the power of these stimuli, servicescapes can afect
customers’ beliefs about the place (Bitner, 1992) and trigger various in-store activities as
well as purchase decisions (Turley and Milliman, 2000). However, in the online environ-
ment, the atmosphere and physical evidence are replaced by virtual cues and symbols
that are characterised by certain features, such as movement, change and abstractness.
Consumers who shop online from home will have a diferent experience from those who
shop in physical stores and malls and use public or private transport to reach the shopping
place.
The ongoing digitalisation transforms the shopping places in multiple ways. Many
retailers maintain simultaneously both traditional physical shopping places and online
store platforms, resulting in multiple shopping channels of the same retailer available
for consumers. Increasingly, the channels exist in consumers’ personal mobile devices.
Multichannel retailing implies the existence of separate channels, whereas omnichannel
concept refers to providing consumers the opportunity to seamlessly move between the
channels and thus perform an integrated shopping process while utilising various diferent
channels of a retailer (Hagberg, Sundstrom, and Egels-Zandén, 2016).
This changing experience of place is next analysed by applying the place attachment
concept that captures the relationship between a consumer and a place.
Attachment to online places

Sense of place is a focal element in the concept of place, but commercial places are often
regarded as lacking in a sense of place due to their inauthenticity (Relph, 1976). For
example, shopping malls are constructed by managers to facilitate business, and they
are manipulated to serve an artifcial public purpose. Some authors even address them
as non-places (Aubert-Gamet and Cova, 1999; Lewicka, 2011). Relph (1976) calls this
‘placelessness’ and connects it to mass culture and mass communication, which are weak-
ening the identity of places. Despite doubt whether commercial places ever trigger con-
sumers’ emotional responses or ofer possibilities for consumers to establish any kind of
relationship with such places (see Lewicka, 2011), several studies indicate that commercial
places also have the potential to elicit emotional responses. Accordingly, consumers can
establish a strong attachment to commercial places (Brocato, Baker, and Voorhees, 2015)
and even act as advocates/ambassadors of these locations (Debenedetti, Oppewal, and
Arsel, 2013). However, with their lack of physical evidence and sensory stimuli, we must
consider whether virtual places can ofer the same experience and relational value as
physical places to consumers or if online places and digital platforms are more like non-
places. It is still unknown whether virtual places arouse consumers’ emotions, infuence
their behaviour or even trigger strong feelings, such as love or attachment.
The changing environment is challenging how we understand places in the world
around us. Consumers can no longer rely on physical evidence and material clues.
Instead, they need to fnd a way to navigate the world of virtual reality with its sym-
bolism and overlapping perspectives (Ballantyne and Nilsson, 2017). Place attachment
has been widely researched in the felds of geography (Altman and Low, 1992), envi-
ronmental psychology (Hidalgo and Hernandez, 2001) and tourism (Kyle, Graefe, and
Manning, 2005). Several studies have explored this theory in commercial settings as well
(Brocato, Baker, and Voorhees, 2015; Debenedetti et al., 2013; Johnson et al., 2015). Di
Masso et al. (2019) examine place attachment in increasingly mobile environments, where
places become dynamic and fuid instead of fxed and stable. However, to date, no study
has examined place attachment in the digital environment.
We draw on an existing conceptualisation of place attachment as a multidimensional
bond between consumers and a particular place (Brocato, Baker, and Voorhees, 2015;
Johnson et al., 2015). The bond is characterised by a positive attitude and a tendency to
remain close to the place (Hidalgo and Hernandez, 2001), and it is based on the symbolic
meanings that are associated with the place (Altman and Low, 1992). The bond consists
of a personal dimension (i.e. place identity), a functional dimension (i.e. place dependence)
and a social dimension that encompasses the various social bonds that consumers establish
in the place (Brocato, Baker, and Voorhees, 2015).
Place identity
Place identity represents the personal dimension of the attachment bond. It is an exten-
sion of one’s self-identity and encompasses feelings, emotions and experiences as well as
more abstract beliefs and symbolic connections that an individual has with a particular
place (Proshansky, Fabian, and Kaminof, 1983; Williams et al., 1992). For consumers to
identify with a place and establish a strong relationship, such as attachment, their self-
identity has to align with the place’s identity. Establishing this strong bond makes it part
of the individual’s concept of self and a way of self-identifcation (Brocato et al., 2015).
Place identity comprises cognitions of the sensory stimuli that we perceive at the place
and their accumulation in the form of memories and experiences with the place over
time (Proshansky, Fabian, and Kaminof, 1983). It is clear that physical evidence and dif-
ferent attributes of a place have a signifcant impact on the formation of place identity in
consumers’ minds. In the digital environment, sensory stimuli are limited because con-
sumers are perceiving the atmospherics of the place through a digital medium instead of
having a rich real-life experience. Nevertheless, new types of online places for shopping
and consumption combining both material and imaginary elements have been launched
(Hagberg, Sundstrom, and Egels-Zandén, 2016).
Place dependence
Place dependence is an integral part of attachment. It refers to how a place fulfls its
function compared to other available places (Williams et al., 1992), and it is considered
a functional dimension of the attachment bond (Brocato et al., 2015). In physical set-
tings, consumers are constrained by spatial and time boundaries and limited options. It
is not physically possible to visit ten diferent stores that are located in diferent parts of
a town within a short period. However, the digital environment allows consumers to
overcome these boundaries; a few clicks enable the browsing of diferent stores world-
wide. Place dependence is essentially a functional element, and it has usually been the
major focus of designing online stores as well as multichannel and omnichannel retail
concepts.
Social bonds
Places act as facilitators of social relationships between diferent marketplace actors ( John-
son et al., 2015). These relationships can evolve between consumers and employees as
well as among other consumers (Brocato et al., 2015). The social aspects of a place play
a major role in establishing a strong relationship with the place. Moreover, they have
positive benefts for consumers’ well-being (Rosenbaum et al., 2020). Digitalisation trans-
forms the social bonds through incorporating digital technologies in the interactions
between retailers and customers as well as that among customers (Hagberg, Sundstrom,
and Egels-Zandén, 2016). Face-to-face social interaction is replaced by parasocial rela-
tionships (Giles, 2002; Horton and Wohl, 1956). Interaction between diferent actors is
mediated by a digital platform, where users are interacting with either the digital repre-
sentation of other humans or AI in the form of a chatbot, which is often represented by
an anthropomorphised avatar.
Empirical illustration
To illustrate the theoretical discussion and insights, we present fndings from an empirical
study among four Finnish retail stores. These retailers operate in the design and home
décor market; therefore, their stores have atmospheres that will likely arouse consumers’
emotions and feelings, which in the long term can develop into a strong relational bond,
such as place attachment. Moreover, all four retailers provide a multichannel setting as
they operate in both ofine and online environments.
Method and data

The data for the study were obtained from a panel of Finnish respondents using an online
survey. The respondents were allowed to choose one of the four retailers involved in
the study and decide to answer regarding either the retailer’s ofine or online store. The
questionnaire included measures of place dependence, place identity and place bonds
measured with 17 items. All items were measured on a seven-point Likert scale, ranging
from 1 (I strongly disagree) to 7 (I strongly agree). The data collection resulted in 1,169
valid responses (873 regarding the ofine environment and 296 regarding the online envi-
ronment). In the sample, 45.6% of the respondents were male and 54.4% were female.
More than half the respondents (58%) were between 25 and 54 years old. The number
of responses for each store refected the store size; the largest store with the biggest con-
sumer base accounted for 51.8% of our responses and another rather big and popular store
in Finland 27%. By contrast, two small designer stores accounted for 12.4% and 8.8% of
our responses.
Findings
We performed an independent sample t-test with store type (ofine/online) as the inde-
pendent variable. The dependent variable was place attachment, which was calculated
as a mean of the three distinct dimensions: place identity, place dependence and social bonds.
The results in Table 9.1 show no statistically signifcant diferences in the strength of
place attachment bond between the ofine and online shopping environments. The
results imply that consumers can establish an attachment to a place in brick and mor-
tar stores and to a digital space in the online environment. This fnding represents an
important advancement in the understanding of the transformation of shopping places.
Despite drastic changes in the retail environment, retail places can maintain the ability to
arouse emotional responses and bonds between commercial places and consumers. The
Table 9.1 Mean comparison for diferent shopping environments
Factor Retail environment Mean St. Dev. t -value p -value
Place Attachment Ofine 3.684 1.040 .131 .896

Online 3.674 1.066
Place Identity Ofine 4.034 1.500 .551 .581
Online 3.979 1.473
Place Dependence Ofine 4.021 1.483 2.095 .036*
Online 3.811 1.527
Social Bonds Ofine 3.271 1.490 −1.379 .168
Online 3.410 1.538
p < .05.
*
accumulation of such responses and experiences over time results in creating a strong
emotional bond with the place, regardless of its dematerialised character.
To gain deeper understanding of how the place attachment bond is formed in online
environment, we have examined the diferences in the distinct dimensions separately.
We again performed an independent sample t-test, with independent variable being the
type of the store (ofine/online) and distinct place attachment dimensions as dependent
variables. Place identity and place dependence were each measured with a scale of three items
adapted from Johnson et al. (2015); social bonds were measured with a fve-item scale
adapted from Hsieh, Chiu, and Chiang (2005). The dependent variables were obtained
by calculating a mean for each dimension. As shown in Table 9.1, the only place attach-
ment dimension that seems to signifcantly difer in ofine and online environments is
place dependence. Place dependence is signifcantly lower in the online environment than in
the ofine environment. As discussed earlier, in the physical environment, consumers
face spatial and timely constraints that limit how many stores they can visit, while digital
platforms and online stores overcome these boundaries. They signifcantly increase in the
number of options that consumers have and enable browsing in multiple stores with only
a few mouse clicks.
Unlike the functional dimension of place attachment, the personal and social dimen-
sions do not seem to difer in these two environments. Despite the increased intangibility
and the limited number of physical attributes of online stores, consumers can perceive and
identify with the identity of a place in the online environment. This fnding has important
implications for retailers who are operating in online channels. In the traditional physical
retail environment, place attachment has shown a positive impact on consumers’ loyalty
( Johnson et al., 2015), the absence of switching intentions and the spreading of positive
WOM (Brocato, Baker, and Voorhees, 2015). It is, therefore, crucial to conceptualise the
atmospherics and important attributes of online stores and examine how consumers form
their relationship with online place. This allows retailers to construct their online stores
to increase consumers’ place attachment and loyalty.
Interestingly, consumers seem to perceive the importance of social aspects and inter-
actions that online stores and digital platforms ofer equally with physical places. Digi-
talisation transforms the interface between retailers and consumers and also afects the
communication channels and brings new channels such as SM. In the online environ-
ment, a form of parasocial relationships replaces face-to-face relationships between con-
sumers and employees as well as between other consumers. Moreover, novel forms of
social relations arise with the emergence of AI technology as consumers interact with an
AI-driven chatbot instead of a human being.
Conclusion
In this chapter, we reviewed the theoretical grounds of commercial places and consumers’
attachment to these places. By refecting on the transformation of the retail servicescape
from the physicality of brick and mortar stores towards dematerialised intangible digital
platforms and online spaces, we have provided an account of the transition from physical
places to digital platforms. We connected our theoretical insights with an empirical study
that focused on consumers’ attachment to ofine as well as online places. Our results sug-
gest that consumers establish strong emotional bonds, such as attachment, not only with
physical places but also with online places that can only be accessed virtually and do not
possess the physical attributes of traditional store atmospherics.
This conceptual paper provides a valid ground for future research on online places and
digital platforms. We suggest that future research continues seeking deeper understanding
of consumers’ relationships to commercial places. The three dimensions of place attach-
ment, that is, place dependence, place identity and social bonds, seem to characterise how
consumers form bond with places. Place attachment is one important factor in ensur-
ing customer loyalty and positive word of mouth communication. Future studies should
more thoroughly investigate the forms of social relations that are associated with digital
platforms and online places, how consumers establish these novel forms of relationship
and how they afect consumers’ emotions and their attachment to retail stores.

• The pace of technological advancement is rapidly changing the retail landscape. It
is, therefore, crucial that researchers refect on the transformation happening in the
commercial places and the various bonds that connect consumers and
marketplaces.
• The shopping environment has undergone signifcant changes in recent years, yet
surprisingly few studies have examined the transformation of servicescapes from
physical stores to intangible virtual spaces. Future research should examine the
consequences of digitalisation on consumers’ social and emotional attachment to
servicescapes and further impact on shopping behaviours.
• Digital platforms and online stores provide new opportunities for consumers to
engage socially with diferent marketplace actors. Multichannel shoppers use tra-
ditional retail to establish relationships with employees as well as other consumers
while interacting with both human actors and non-human actors driven by AI in
the digital space.
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10 Social media and
consumer power
Opportunities and challenges
for digital marketing activities
Agostino Vollero and Chiara Valentini
Introduction
Social Media (SM) have progressively transformed interactions between twenty-frst cen-
tury consumers and companies and among consumers. Several technology-driven fac-
tors, such as the proliferation of digital platforms and online consumer-generated content
combined with increased media audience fragmentation (Papacharissi, 2002; Valentini,
Romenti and Kruckeberg, 2016), have challenged assumptions, practices and strategies
in traditional marketing management models. These are generally company-centric and
often consider consumers as marketing targets.
The rapid difusion of diferent SM worldwide (e.g. in January 2020, 3.8 billion people
were active SM users [We Are Social/Hootsuite, 2020 – see Further reading]) has created
additional opportunities for organisations to reach larger and more diversifed groups. It
has also pushed marketing and communication managers to reconsider their activities
regarding SM’s main characteristics, including possible innovative uses and the diverse
interests developed by consumers.
However, SM marketing research is still fragmented (Felix, Rauschnabel, and Hinsch,
2017), and the philosophical underpinnings in most marketing literature consider SM
one of several tools for marketing communication. Thus, the research focuses primarily
on specifc push-content tactics. This has led some practitioners to either overestimate
SM infuence, which is often considered a panacea to acquire and engage (new) consum-
ers or consider an organisation’s SM presence to be a promotional façade with little or
no marketing return.
However, noting the complexities of certain user participation patterns on SM, some
authors (e.g. Schultz and Peltier, 2013; Yadav and Pavlou, 2014) have proposed recon-
ceptualising the understanding and function of SM from a marketing perspective. The
literature acknowledges that consumers have increased their infuence towards organisa-
tions and brands by generating highly sharable content (e.g. comments and reviews)
with a global reach that impacts the opinions and behaviours of thousands of consumers.
This generation of consumers is thus becoming empowered (Denegri-Knott, Zwick, and
Schroeder, 2006) and continuously growing.
The infuence of those empowered consumers could potentially afect brand evalua-
tion by other consumers who tend to trust those perceived as peers more than compa-
nies. These empowered consumers can modify the perceived nature and structure of a
brand via their SM activities (Anker et al., 2015; Van Noort and Willemsen, 2012). For
marketers, engaging and retaining information-savvy consumers have become more dif-
fcult (Kitchen, 2005). However, organisations can exploit their SM interactions with
DOI: 10.4324/9781003093909-13
106 Agostino Vollero and Chiara Valentini
consumers in a way that positively impacts their consumer–brand relationships. Con-
sumer participation and collaboration through SM have resulted, for example, in co-
created product development (Firefox, Lego, Danone Activia) (Ind, Iglesias, and Schultz,
2013; Muniz and Schau, 2011; Pitt et al., 2006).
In this chapter, consumer empowerment via SM (Kucuk and Krishnamurthy, 2007;
Labrecque et al., 2013; Pires, Stanton, and Rita, 2006; Pitt et al., 2002; Vollero, Schultz,
and Siano, 2019) is seen as a main driver of a paradigm shift in Digital Mrketing (DM). This
chapter aims to embrace the emergent DM perspective of SM as a symbolic interactionism
phenomenon. SM is not merely a marketing tool; rather, it is a space to symbolically re-
discuss interaction dynamics and power relations among consumers and organisations and
a way to understand user interaction behaviours in these digital environments, including
how such behaviours may impact organisational marketing and communication activities.
Drawing from literature on consumer empowerment in digital environments (Denegri-
Knott, Zwick, and Schroeder, 2006; Labrecque et al., 2013; Siano, Vollero, and Palazzo,
2011), this chapter explores the SM-driven empowerment of consumers as a pervasive
process that enables consumers to increase control of the marketplace and potentially
overturn the traditional power imbalance between organisations and consumers.
The chapter is structured as follows. The next section provides the conceptual back-
ground for understanding SM’s impact on marketing activities, followed by the needs,
motivations and communicative behaviours of consumers in SM and a discussion on
consumer power in SM. This is further deepened by the analysis of a model of value co-
creation in SM based on consumer empowerment. Opportunities and challenges in SM
marketing research are then presented, followed by concluding remarks.
Social media and its impact on digital marketing activities

SM are a group of Internet-based applications that encourage the creation and exchange
of User-Generated Content (Kaplan and Haenlein, 2010; Valentini and Kruckeberg,
2012). SM are embedded in high user-to-user interactivity (i.e. anyone can create, share
and co-create content) and also have a participative nature and social connectivity, which
allow individuals to feel connected to others (Valentini and Kruckeberg, 2012). SM are
mostly virtual spaces of ‘social interactions’ that encourage conversations among indi-
viduals and organisations.
The most used and prominent SM applications are social networking sites (e.g. TikTok,
Instagram and Facebook) and opinion platforms (e.g. TripAdvisor), where users create,
exchange and/or consume other individuals’ content. Social networks allow individuals to
defne their visibility, identity and preferences and articulate a list of their social network
connections (Boyd and Ellison, 2007; Valentini, 2018). Each social medium was developed
to have specifc media usage patterns and technical features (Go and You, 2016), such as
photo or video sharing. However, there is now progressive integration of technological
and communication features across diferent SM types. Most current SM also provide a
built-in instant messaging technology for one-to-one interactions between users. SM are
also highly integrated with mobile applications, such as smartphones and other portable/
wearable devices, which can be accessed from nearly anywhere (Valentini, 2018).
The participative nature and social connectivity of SM combined with the aforemen-
tioned technological features has created great appeal among worldwide Internet users who
consider SM an ‘online social environment’ where they (and organisations) can engage in
personal, professional and spiritual relationships (Valentini and Kruckeberg, 2012).
Social media and consumer power 107
This digital environment has proliferated both in size and interest during the last decade
and contributed to new forms of social interactions. For some sociologists, this environ-
ment has created a new global village (cf. Castells, 2000; van Dijk, 2006) of worldwide
citizens meeting virtually to discuss and share information.
Given that most social interactions on SM manifest through communications, SM
can be considered a conversational environment (Valentini et al., 2016) or, in Haberma-
sian terms, a virtual public sphere of discussion (Papacharissi, 2002). SM conversations
are ‘communicative interactions based on an exchange of contents that are interde-
pendent and adapted to the communicative situation as well as to the social medium-
specifc features’ (Valentini et al., 2016, p. 4060). Users can raise their global awareness
and actively participate in online actions for/against causes. They can also engage in
conversations regarding consumer experiences with brands, which are powerful DM
endorsements that can impact companies’ image, reputation and sales (Galea, 2007). It
is also important to consider what motivates consumers to engage in brand conversa-
tions on SM.
Social media users: needs, motivations and

communicative behaviours
Identifying user motivations and preferences for SM helps marketers and communicators
tailor their activities. Relevant research has shown that diferent users’ motivations for
using SM can exist/co-exist (Woodall and Colby, 2011 – see Further reading). Moti-
vations can include impulse satisfaction, sharing experiences, seeking entertainment or
advice (from trusted people), social connectivity via conversing with others with similar
interests, etc. Determining SM users’ motivations elucidates their consumption needs and
information-sharing patterns (i.e. whether and what content to share with friends and
relatives). Furthermore, those needs drive diferent types of digital behaviours, which can
vary along a passive–active behaviour continuum. Individuals in the SM environment
do not simply consume/use online content; they can create, share and even modify it.
Importantly, some users can be satisfed by looking at their friends’ walls (passive behav-
iour), while others only feel gratifed when their own posts (e.g. selfes) are appreciated
by their friends (active behaviour).
Research has examined other online behaviour patterns and developed more sophisti-
cated metrics for grouping SM users. For example, Kozinets (1999) proposed evaluating
users’ online behaviours based on their consumption activity and relationship intensity
with other participants in an online community. Brandtzaeg (2010) proposed the Media
User Typology, which collects data on frequency, variety of use and content preferences
for classifying SM users. Classifcation typologies demonstrate that individual behaviours
on SM are diverse and can be measured diferently by platform, individual character-
istics and the study’s focus. Media usage is highly related to the satisfaction of users’
needs (Katz, Blumler, and Gurevitch, 1974), which is an important driver of consumer
behaviours.
The combined research on SM users’ needs, motivations and communitive behaviours
shows that consumers are increasingly perceiving having control over their SM use and
content preferences, the freedom to create and present their identity (Bonanno, 2014)
and the ability to control the medium through conversations. As a result, diferent kinds
of power emerge in SM environments that afect the traditional information asymmetry
between an organisation and its consumers.
Forms of consumer power in social media
SM use by consumers has increased their power towards organisations and brands
(Labrecque et al., 2013; O’Brien, 2011; Quinton, 2013; Vollero, Schultz, and Siano,
2019), which has somewhat reverted the balance of infuence among consumers and
organisations. Traditionally, the control of market relationships and brand discourses lays
with organisations, but consumers can now express their own brand discourses and dic-
tate market relationships. While recent research shows that such power can take diferent
forms (Labrecque et al., 2013; Vollero, Schultz, and Siano, 2019), it generally manifests
as follows:
1 Information-based power enables consumers to freely and quickly access several online
information sources to enhance their consumption and buying behaviours. The
ease of access to service/product information on SM by other users reduces tradi-
tional information asymmetry and increases individual infuence on markets (Val-
entini and Kruckeberg, 2012).
2 Participation-based power enables consumers to make personal choices about their
participation in SM and create brand-related content. This power, which is derived
from content creation and dissemination (i.e. sharing), completion (e.g. comment-
ing, tagging) or modifcations (e.g. meme) (Labrecque et al., 2013), creates infu-
encers and forms a network of power.
3 Community-based power co-creates meaningful content that exerts signifcant control
over marketing activities, such as promoting new products/services, with like-minded
consumers or companies. Community-based power creates more buying power for
groups/communities and enables crowdfunding projects and sharing economy
platforms.
These forms of power have progressively increased with the use/spread of SM. Thus,
organisations can no longer merely create and distribute content for (potential) consum-
ers (O’Brien, 2011); they must move towards multi-layered interactions across diferent
SM (Quinton, 2013; Singaraju et al., 2016) with a mix of user-generated and company-
generated content.
Diverse consumer behaviours on SM afect how organisations can strategically use SM.
They must understand the directions that brand or company-related communications can
take, including multi-vocality and multiple voices, which often confict and contrast with
what appears in the SM ecosystem. Organisations must acknowledge and exploit these
richer interactions among consumers and among other members of the public (Sawhney,
Verona, and Prandelli, 2005). They must also accept that a relationship can now be initiated
and controlled by consumers without the company’s consent and be able to manage mul-
tiple brand touchpoints, which are interconnected in the SM environment and controlled
by both frms and consumers (Vollero, Schultz, and Siano, 2019). Managing this complex
scenario requires a diferent approach to DM – one that we argue should implement strate-
gic SM listening via various tools, such as big data analytics and SM engagement.
Consumer empowerment and value co-creation in social media

An empowered consumer can create and destroy value for an organisation brand. Con-
sumers sometimes assume negative attitudes towards brands in SM (e.g. brand boycot-
ting) to express dissatisfaction or a value contrast, which can negatively afect a brand’s
value (Kähr et al., 2016; Luoma-aho et al., 2018). Consumers can conversely act as brand
ambassadors and amplify a company’s communications on SM to generate brand attach-
ment and engagement (Muniz and Schau, 2011; Ind, Iglesias, and Schultz, 2013).
Organisations can deploy appropriate value co-creation strategies on SM via the co-
creation theory and the service-dominant logic perspective. Value co-creation on SM has
been associated with the engagement of empowered consumers (Carlson et al., 2017),
where interactions among SM users generate value-in-context and value-in-use from
customer-oriented and mutually satisfying interactive processes (Merz, He, and Vargo,
2009; Tierney, Karpen, and Westberg, 2016). These interactions provide additional
opportunities for value co-creation (Bechmann and Lomborg, 2013).
Despite continuous exchanges on SM, brands and customers do not always align
regarding interests and values. Diferent (even contrasting) positions are frequent on SM,
which can divert brand managers’ intent (Vollero et al., 2020).
SM interactions, conversations and narratives are constantly mediated and negotiated
between organisations and their counterparts (Vollero et al., 2019). Brands should inte-
grate and mediate physical, social and cultural resources from diverse touchpoints to
keep the value-in-use and accordingly inform an evolving communication strategy for
co-creating brand value (Grönroos and Voima, 2013; Singaraju et al., 2016). Thus, com-
panies should implement resource integration and negotiation to align the organisational
and consumer value spheres (Figure 10.1). Value co-creation strategies include one-way
engagement and collaborating with consumers to create new services (Felix, Rauschna-
bel, and Hinsch, 2017).
As shown in Figure 10.1, the premises for consumer interactions with a brand or an
organisation have shifted due to SM empowerment efects on consumers. SM are no lon-
ger simply a marketing channel for organisational control of communication and interac-
tion fow with consumers. SM have created a diferent epistemological perspective based
SOCIAL MEDIA
Resource integration and exchange
through mediations and negotiations
Organisation VALUE
Empowered
value sphere CO-CREATION customer
value sphere
Interactions, conversations, narratives
Figure 10.1 Value co-creation in a social media empowered context.

on a (social) interactionist view of consumer–company relations. Accordingly, consumer–
company relations are conceived as mutual, social exchanges of communicative interac-
tions via SM. Under this epistemological perspective, marketing and communication
managers need to possess specifc knowledge and skills to exploit consumers’ propensity
for content generation and dissemination and to learn how to strategically use SM data
generated through consumers’ use of these platforms. Negotiation and mediation skills
are likely to crucially infuence SM co-creation value processes, which are increasingly
being initiated by consumers. This would imply, for example, the ability to anticipate
trends from unstructured SM data (e.g. topic modelling on SM comments), which could
inform future SM strategies.
This epistemological perspective can also bridge the two main strands of SM mar-
keting literature (Dwivedi et al., 2020) dealing one with companies’ SM strategies and
practices for gathering data from and/or communicating with their consumers and the
other with SM consumer behaviour in organisational SM spaces. By integrating these
lines of research, marketers will more likely understand real consumer attitudes and
behaviours in this ecosystem, which will support more efective and efcient integrated
DM strategies.
Opportunities and challenges in SM marketing research

Researchers, practitioners and organisations are asked to invest substantial resources in
several areas, such as SM listening and monitoring (Schweidel and Moe, 2014), value co-
creation metrics and/or metrics for aggregated consumer action on SM (Moro, Rita, and
Vala, 2016) and SM industry-specifc models and practices (Iankova et al., 2019).
Studying SM interactions in DM allows analysis and theorisation of SM marketing
practices’ impact on diferent industries. Iankova et al. (2019) showed that business-to-
business (B-to-B) companies are likely to consider SM less useful than other communica-
tion channels; however, other studies (Agnihotri et al., 2016) have found positive relations
between diferent aspects, such as SM use, customer satisfaction and brand retention.
More research is needed to assess whether the frm’s position in the production chain
(i.e. B-to-B or business-to-consumer) can infuence SM users’ behaviours and help reach
marketing and communication goals.
Further opportunities for marketers and communication professionals include collect-
ing data from SM and gaining insights on consumer preferences, behavioural patterns,
etc. Many tools can capture and analyse (big) data from SM and, accordingly, man-
age omnichannel communications (Dwivedi et al., 2020); yet, there are still challenges
in integrating data from diferent sources. Furthermore, organisations frequently lack
knowledge and skills in emerging technologies, such as Machine Learning (ML) and
Artifcial Intelligence (AI) (Duan, Edwards, and Dwivedi, 2019), and they tend to empha-
sise optimising short-term marketing investments versus long-term relationship-building
eforts (shared value). By focusing on the former, researchers and marketing managers
are often asked to mimic – sometimes with no idea of the expected outcomes – what
the professional industry considers ‘efective’ measurements of SM reach and engagement
(e.g. number of likes, followers and comments), which ofers little towards a long-term
assessment of their relationships. Consequently, organisations are pushed to multiply their
communication eforts to attain results on interactive short-term metrics, but the (co)
creation value remains uncertain. This challenges organisations that must reappraise their
one-sided frm perspective and assess the fairness and stability of interactions throughout
the relationship with consumers.
Some methodological issues have also emerged. While engagement as a multidimen-
sional construct has been largely discussed in marketing and communication studies,
especially from a conceptual standpoint (e.g. Hollebeek, 2011; Johnston and Taylor, 2018;
Lievonen and Luoma-aho, 2015; So, King, and Sparks, 2014; Pansari and Kumar, 2017),
in current professional practices, it remains linked to measures that capture short-term
value (e.g. interaction and engagement rate) and single SM sources (even a specifc SM
campaign). These measures often do not represent ‘real’ engagement, which is intended
as a ‘psychological state of mind operating independently from interactive behaviours’
(Syrdal and Briggs, 2018, p. 4); they only evaluate SM users’ immediate responses. To
optimise SM, managers should abandon a pure transactional approach (Zahay et al., 2004)
and embrace a more consumer-centric approach, including all potential points of contact
in a ‘shared value creation’.
Another challenge is the increased fragmentation of communications and consumer
experiences in SM (Papacharissi, 2002; Valentini et al., 2016). This can increase consum-
ers’ scepticism about organisations’ authenticity, resulting in increased distance between
organisations and their empowered consumers.
These research areas require further investigation, given the paradigm shift outlined in
this chapter. Such a shift assumes repositioning SM not only as another marketing com-
munication channel but one that requires a diferent managerial approach to understand-
ing the complex dynamics of consumer and brand interactions.
Conclusions
SM, its popularity and its wide reach have changed how people interact, socialise and
consume digital content. This chapter outlined the main characteristics of and changes
brought about by SM that directly impact DM. Along with other scholars, we argue that
SM empower consumers in ways that challenge the power dynamics and information
asymmetry of traditional marketing communication. However, SM also act as ‘systems
resource integrators in the interaction between frms and customers’ (Singaraju et al.,
2016, p. 45). This has caused a shift from a functionalistic view of SM as another mar-
keting communication channel to a (social) interactionist view, where SM are the loci of
conversations and interactions among SM users, which generate both value-in-context
and value-in-use for a company.
Accordingly, marketers and communication professionals require new skills and knowl-
edge, including negotiating, listening and mediating, combined with a more integrated
use of user data and long-term strategic goals to measure SM engagement and the value
that consumers and organisations can obtain from interacting with one another. The
participative and social connectivity nature of SM ofers both opportunities and chal-
lenges for DM, which call for further research and empirical validation by the academic
community.

• Stimulating managerial change from a ‘command-and-control’ perspective of SM
to multidimensional and negotiated organisation–consumer relationships
• Developing value co-creation metrics that focus on the long term versus current
commonly used interaction metrics
• Investigating the role of industry-specifc elements on the efectiveness of SM
marketing practices
• Exploring the potential of consumers’ social connectivity for DM goals beyond
information sharing and co-creational behaviours
Further reading
We Are Social/Hootsuite. (2020). Digital Report 2020. Available at: https://wearesocial.com/global-
digital-report-2020 (accessed 10 December 2020).
Woodall, G., and Colby, C. (2011). ‘The results are in: Social media techniques vs. focus groups for
qualitative research’. MRA’s Alert (pp. 23–27). Available at: https://rockresearch.com/the-results-are-
in-social-media-techniques-vs-focus-groups-for-qualitative-research/ (accessed 10 December 2020).
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Section 4
Ethics and privacy in digital

marketing
11 The importance of online retailers’
ethics for traditional, online and
multichannel customers
Mika Skippari, Sami Kajalo and Arto Lindblom
Introduction
Issues relating to ethics and corporate social responsibility are becoming increasingly
important for determining retailer performance (Ganesh et al., 2010) and consumer
behaviour (Vitell, 2003) in both ofine and online retail settings. Retailers use various
strategies to address their ethical practices, which can help them establish and maintain
long-term relationships with their customers (Roman and Ruiz, 2005). Consumers are
increasingly aware of and concerned about retail ethical issues, such as deceptive practices
of retailers (e.g. the exaggeration of product qualities and using aggressive and manipu-
lative selling tactics) and the safety of transactions (e.g. privacy policies and warranties)
(Miyazaki and Fernandez, 2001; Roman, 2010).
Earlier research on consumer ethics in the retail context has largely focused on explor-
ing how consumers perceive retailers’ ethical behaviours or actions and how these per-
ceptions afect consumers’ behavioural intentions (see Limbu, Wolf, and Lunsford, 2012).
Most of this research has been conducted in the traditional retailing context. Due to the
recent growth of online retailing, many scholars have begun investigating consumers’
perceptions regarding online retailing (Limbu, Wolf, and Lunsford, 2011, 2012; Roman,
2007, 2010; Roman and Cuestas, 2008). It is largely acknowledged that ethical issues
in online retailing are diferent from the ethics of traditional brick-and-mortar retailing
(Limbu et al., 2012). Moreover, ethical issues have emerged as one of the most critical
challenges to online shopping; it is vital for online retailers to engage with their consum-
ers in a secure, confdential, fair and honest manner that ultimately protects consumers’
interests (Limbu et al., 2011).
Many early contributions to consumer ethics in online retailing were conceptual and
had a limited focus on consumers’ privacy and security issues (Roman, 2007). More
recently, related empirical research has been increasing (Adam, Aderet, and Sadeh, 2007;
Limbu et al., 2011, 2012; Lu, Chang, and Yu, 2013; Roman, 2007; Roman and Cuestas,
2008; Yang et al., 2009). However, this research has largely focused on investigating the
views of online shoppers; few studies have examined the ethical perceptions of consumers
using diferent marketing channels.
Contemporary consumers are increasingly using multiple channels when making pur-
chases, and it has been suggested that those who shop online behave in fundamentally
diferent ways compared to traditional retail shoppers (e.g. Rohm and Swaminathan,
2004; Srinivasan, Anderson, and Ponnavolu, 2002). As noted by Ganesh et al. (2010),
we need more empirical consumer research based on responses from shoppers who shop
in traditional and online formats. Therefore, in the increasingly important multichannel
DOI: 10.4324/9781003093909-15
120 M. Skippari, S. Kajalo and A. Lindblom
environment, it is essential to understand consumer considerations regarding retailer eth-
ics in various marketing channels.
In this chapter, we draw on previous research on retailing ethics and consumers’ chan-
nel selection to examine how consumers’ perceptions of online retailer ethics vary among
consumers using diferent purchasing channels. We utilise Roman’s (2007) framework for
analysing Consumers’ Perceptions regarding the Ethics of Online Retailers (CPEOR),
which includes the dimensions of security, privacy, non-deception and fulflment. With
this framework, our aim is two-fold. We frstly investigate the importance of ethics of
online retailers on channel selection among consumers by examining how consumer
views about online retailing ethics difer between traditional, online and multichannel
shoppers. Secondly, we examine how consumers’ patronage frequency afects their views
about the importance of online retailing ethics.
The emergence of multichannel shopping

Consumers’ channel selection, which is one of the most relevant DM issues (Leefang
et al., 2014: Liu, Lobschat, and Verhoef, 2018 – see Further reading), afects current
retailing practices and research. Internet-based channels (i.e. online and mobile channels)
and advanced technologies have especially created new and innovative opportunities for
retailers’ marketing activities and improved the fexibility of their marketing decisions
(Verhoef, Kannan, and Inman, 2015). It has been argued that the emergence of digitali-
sation mixed with the current COVID-19 pandemic is accelerating shifts in consumer
behaviour (Pantano et al., 2020), which, in turn, enhances disruption in the retailing
industry. This was recently witnessed by increasing numbers of store closures and bank-
ruptcies by traditional retailers, such as Toys ‘R’ Us, Radio Shack and Circuit City (Kahn,
Inman, and Verhoef, 2018).
Retailers operate in a digitalised environment, which allows customers to work with
a single organisation to search for information, purchase products and return products
through one or more of the following channels: bricks-and-mortar retail stores, sales-
persons, mail-order catalogues, telephone sales, online websites and mobile devices
(Dholakia, Zhao, and Dholakia, 2005; Kumar and Venkatesan, 2005; Piotrowicz and
Cuthbertson, 2014). Consumers are also increasingly shopping across multiple channels
in diferent stages of the purchase process, and separate channels serve unique purposes
(Dholakia, Zhao, and Dholakia, 2005). For instance, a consumer may use a digital chan-
nel for information searching and a physical store for viewing and examining the product
but return to a digital channel to make the purchase (Kumar and Venkatesan, 2005). The
customer journey is no longer a linear experience that can be described by a purchase
funnel model; rather, it is a 24/7, multichannel, non-linear social customer experience
(Lemon and Verhoef, 2016).
In this digitalised environment, traditional retailers’ conventional operating logic based
on tempting customers with broad assortments, low pricing and extended store hours
is being challenged. They face increasing pressure to become multichannel retailers by
extending their operations to online retailing. Such a transformation is not easy, and it
includes both opportunities and challenges for a retailer. Multichannel consumers are
potentially more valuable than consumers that rely on a single channel because they
spend more money, shop more frequently and interact with the retailer more frequently
(Kumar and Venkatesan, 2005). Other studies show that adding a new channel has a posi-
tive efect on customer loyalty and frm value by increasing customer revenue, decreasing
The importance of online retailers’ ethics 121
search costs and providing better service outcomes to consumers (Homburg, Vollmayr,
and Hahn, 2014). However, because consumers have become multichannel customers,
frms should provide a strong seamless experience across and within multiple channels to
attract and create loyal customers (Verhoef, Kannan, and Inman, 2015).
In the digitalised multichannel retail environment, a key challenge for retailers is
understanding the diferences between traditional, online and multichannel customers
and knowing how to serve all three groups proftably. As noted by several scholars, all
three types of consumers difer signifcantly; those who shop online behave in fundamen-
tally diferent ways compared to traditional retail shoppers (e.g. Rohm and Swaminathan,
2004; Srinivasan, Anderson, and Ponnavolu, 2002). The primary factors identifed by
past research as important discriminators of online and traditional retail shopping include
convenience, perceived risk and ability to search for information about products and
price (Ganesh et al., 2010). In addition, recent research has address the role of ethical
considerations among consumers using various purchasing channels (e.g. Roman, 2010;
Limbu, Wolf, and Lunsford, 2011).
Consumers’ perceptions regarding online retailers’ ethics in a

multichannel environment
Consumers’ ethical beliefs and practices and their perceptions of a retailer’s ethics have
signifcant efects on consumer behaviour, and they manifest in diferent ways in various
channels. In the traditional ofine retailing context, deceptive and manipulative practices
of retailers engender consumers’ distrust, decrease consumer satisfaction and weaken con-
sumers’ loyalty towards a retailer (Roman, 2003; Roman, 2010; Roman and Ruiz, 2005).
Compared to the ofine context, consumers in online retailing have diferent resources
and opportunities to evaluate retailers’ ethics (e.g. lack of opportunities for face-to-face
interactions between consumers and retailers in online retailing) (Roman and Cues-
tas, 2008). While brick-and-mortar stores can address their ethical behaviour through
physical factors, such as store outline or employee conduct, Internet retailers must rely
on ofering high-trust persuasive communication to build consumer trust (Grewal, Iyer,
and Levy, 2004).
Research has also shown that consumers perceive risks (e.g. fnancial risk, product
risk and convenience risk) diferently in ofine and online settings (Forsythe et al.,
2006). In general, consumers tend to perceive a higher level of risk when purchasing on
the Internet compared to traditional retail formats. However, online retailers’ ability to
ofer safety cues tends to lower consumers’ risk perceptions (van Noort, Kerkhof, and
Fennis, 2008), and this efect is stronger among online than ofine consumers (Biswas
and Biswas, 2004). In addition, by ofering reliable privacy- and security-related state-
ments on their websites, online retailers can increase consumers’ trust and purchase
intentions (Adam, Aderet, and Sadeh, 2007; Miyazaki and Fernandez, 2001; Pan and
Zinkhan, 2006).
Recent empirical research has largely focused on examining consumer perceptions
regarding online retailer ethics. This line of research has focused on measuring the per-
ception of an online retailer’s integrity and responsibility in dealing with consumers in a
secure, confdential, fair and honest manner. Many of these studies are based on a scale
to measure CPEOR (Roman, 2007), which includes the four dimensions of security,
privacy, non-deception and fulflment/reliability. Roman (2007) shows that these four
dimensions are strongly predictive of online consumers’ satisfaction and trust.
Roman’s (2007) framework has been utilised in several subsequent studies, and it has
proven to be a robust scale for investigating various antecedents and consequences of
CPEOR. Roman and Cuestas (2008) examine the efect of perceived ethics on general
expertise and WOM testimonials and show that consumers’ general Internet expertise
signifcantly improves CPEOR, which is strongly predictive of consumers’ WOM. The
results of Yang et al. (2009) show how ethics associated with retailers’ websites can be a
signifcant predictor of consumers’ trust in a website. In addition, Limbu, Wolf, and Lun-
sford (2012) show that perceived ethics of an Internet retailer’s website signifcantly afect
consumers’ trust and attitudes towards the website and eventually have positive impacts
on purchase and revisit intentions.
Scholars have also examined the relationship between perceived online ethics, satisfac-
tion and loyalty (Roman, 2010; Limbu et al., 2011), providing strong empirical support
for the mediating role of consumer satisfaction in the relationship between perceived
online retailer ethics and consumer loyalty. Roman (2010) also shows that the deception–
satisfaction link is moderated by the type of product, the consumer’s attitude towards the
Internet and consumer demographics. Accordingly, Lu, Chang, and Yu (2013) exam-
ine the link between CPEOR and e-loyalty intention and fnd that increased CPEOR
should lead to increased repurchase behaviour.
However, the existing literature on consumers’ perceptions regarding online retailers’
ethics has largely focused on investigating the views of online shoppers. Contemporary
consumers are increasingly using multiple channels when making purchases; therefore, it
is essential to understand how views on online retailing ethics difer between traditional,
online and multichannel shoppers. Although previous literature has highlighted the dif-
ferent characteristics of traditional, online and multichannel customers and their prefer-
ences, less is known about how consumer perceptions regarding online retailer ethics vary
across diferent customer groups. Since the nature of ethical issues varies between online
and ofine retailing, we expect to see variation in the way of how consumers using dif-
ferent channels perceive the importance of retailer ethics. Moreover, we assume that the
consumers’ patronage frequency afects their views about the importance of online retail-
ing ethics. This is the focus of the empirical study presented here.
Methodology
This study focuses on consumers’ attitudes towards and ethical perceptions of online
retailing. We collected data on such attitudes by surveying Finnish consumers. To gather
the necessary data, we collaborated with a department store chain that sent email requests
to their loyalty programme customers to take part in an online survey. To capture con-
sumer views across diferent channels, we sent the survey to traditional shoppers, online
shoppers and multichannel shoppers. In total, 1,000 emails were sent to customers who
had bought only from a brick-and-mortar department store (traditional shoppers), 1,000
were sent to those who had bought only from the webstore (online shoppers) and 1,000
were sent to those who had bought from both channels (multichannel shoppers). Only
customers who had made a purchase during the last three months were accepted in the
sample.
We received usable responses from 684 respondents: 216 traditional shoppers (21.60%),
224 online shoppers (22.40%) and 244 multichannel shoppers (24.40%) (Table 11.1).
Table 11.1 shows that the majority of respondents in all three groups are female.
This refects the target of our study, which was a department store chain. Among
Table 11.1 Demographic respondents’ characteristics
Traditional shoppers Online Multichannel Total

(N = 216) shoppers shoppers (N = 684)
% (N = 224) (N = 244) %
% %
Gender
Female 78.1 66.5 84.5 76.6
Male 21.9 33.5 15.5 23.4
Age
<19 0.5 0.9 0.4 0.6
19–29 7.0 9.1 16.3 11.0
30–39 13.6 19.5 29.3 21.1
40–49 28.0 27.3 28.0 27.8
50–59 29.9 25.9 19.7 25.0
60 or older 21.0 17.3 6.3 14.6
Household monthly income in euros
<1,000 6.4 8.8 5.1 6.7
1,000–1,999 12.3 20.5 15.4 16.1
2,000–2,999 25.1 16.7 22.2 21.3
3,000–3,999 13.8 23.3 18.8 18.7
4,000–5,999 28.6 20.5 26.1 25.0
6,000–7,999 7.9 6.5 7.3 7.2
8,000 or more 5.9 3.7 5.1 4.9
How many times have you ordered products from web stores during the last three
months?
0 24.9 1.4 0.4 8.4
1–3 57.7 42.3 40.5 46.5
4–6 13.1 34.5 41.7 30.4
7 or more 4.2 21.8 17.4 14.7
How frequently do you use the Internet?
Daily 86.4 94.1 90.1 90.2
Several times a week 12.7 4.1 8.7 8.4
Once a week 0.9 0.5 1.2 0.9
Once a month 0.0 1.4 0.0 0.4
online shoppers, there are more men than in the other groups. Regarding age dis-
tribution, online shoppers and multichannel shoppers tend to be younger than tra-
ditional shoppers. There is no signifcant diference in income level between the
shopper types.
As expected, the number of online purchases from any web store in the last three
months is signifcantly higher among online and multichannel shoppers. Table 11.1 also
shows that all three groups are active Internet users; even among the traditional shoppers,
86.4% use the Internet daily. These fndings suggest that the traditional shopper group
might shop online. Thus, their responses are likely to refect the reasons why people
might not become online or multichannel shoppers.
Overall, Table 11.1 supports our results regarding department store customers, and the
data provide possibilities to investigate the diferences between the three studied groups
of shoppers.
Results
We frstly investigated how channel selection is related to customers’ views regarding
online retailer ethics. We used Roman’s (2007) four-dimensional scale (security, privacy,
non-deception and fulflment/reliability) to capture the consumers’ perceptions regarding
online retailer ethics. We then used a one-way ANOVA test to examine the relationships.
Table 11.2 shows how traditional shoppers, online shoppers and multichannel shoppers
difer in their views towards the ethics of online retailing.
Table 11.2 The importance of online retailers’ ethics by retail patronage behaviour: one-way ANOVA
(n = 684)
Traditional shoppers Online Multichannel Total Sig.

n = 216 shoppers shoppers n = 684
% n = 224 n = 244 %
% %
Security
The security policy is easy to 4.72 6.00 6.10 5.94 .01*
understand.
The site displays the terms 5.95 6.33 6.37 6.22 .00**
and conditions of the online
transaction before the purchase
has taken place.
The site appears to ofer secure 6.02 6.37 6.43 6.28 .00**
payment methods.
This site has adequate security 5.84 6.14 6.32 6.11 .00**
features.
Privacy
The site clearly explains how user 5.81 6.21 6.14 6.06 .01**
information is used.
Only the personal information 5.92 6.19 6.26 6.13 .01*
necessary for the transaction to be
completed needs to be provided.
Information regarding the privacy 5.95 6.15 6.19 6.10 .14
policy is clearly presented.
Non-deception
The site exaggerates the benefts 5.79 5.97 6.03 5.93 .16
and characteristics of its oferings.
This site takes advantage of less 5.77 6.02 6.12 5.98 .03*
experienced consumers to make
them purchase.
This site attempts to persuade 5.51 5.91 5.84 5.76 .02*
you to buy things that you do not
need.
Fulflment/reliability
The price shown on the site is the 6.17 6.54 6.52 6.42 .00**
actual amount billed.
You get what you ordered from 6.12 6.55 6.52 6.40 .00**
this site.
Promises to do something by a 6.05 6.38 6.39 6.28 .01**
certain time are kept.
Note: All items were measured from 1 (not important at all) to 7 (very important). *Signifcant at p < .05 level;
**
signifcant at p < .01 level.
The results in Table 11.2 demonstrate that there are signifcant diferences among the
views that traditional, online and multichannel shoppers have on the ethical aspects of
online retailing.
1 Online shoppers and especially multichannel shoppers value the security issues of
online retailing much more highly than shoppers who only use physical stores.
2 Online and multichannel shoppers consider two of the privacy items more impor-
tant, but the third item has no statistically signifcant diference between the groups.
3 In non-deception, two items are considered more important among online and
multichannel shoppers, whereas exaggeration of the benefts and characteristics of
the online store’s oferings are equally perceived among the shopper groups.
4 Among the fulflment/reliability items, all items are statistically signifcantly more
important to online and multichannel shoppers.
Overall, the results demonstrate that, for online shoppers and multichannel shoppers, the
ethics of online retailing are more important than they are for traditional shoppers.
Next, we examined how consumers’ perceptions regarding online retailers’ ethics
are linked to their shopping behaviour. In particular, we looked at the interconnection
between consumers’ online purchasing frequency and their ethical considerations towards
the online retailer. The frequency of online shopping was measured by the number of
online purchases during the last three months.
Table 11.3 shows that the ethics of online retailers are more important for consum-
ers who have made the most purchases during the past three months. This fnding may
Table 11.3 The importance of online retailers’ ethics by number of online purchases during the last three
months: one-way ANOVA ( n = 675).
0 1–3 4–6 7 – or more Total Sig.

purchases purchases purchases purchases n = 675
n = 57 n = 314 n = 204 n = 99
Security
The security policy is easy to 4.96 5.97 6.06 6.26 5.95 .00*
understand.
The site displays the terms 5.28 6.25 6.37 6.43 6.23 .00**
and conditions of the online
transaction before the purchase
has taken place.
The site appears to ofer secure 5.33 6.26 6.44 6.62 6.29 .00**
payment methods.
The site has adequate security 5.14 6.10 6.30 6.36 6.12 .00**
features.
Privacy
The site clearly explains how user 5.51 6.08 6.08 6.33 6.07 .00**
information is used.
Only the personal information 5.47 6.19 6.17 6.28 6.14 .00**
necessary for the transaction to be
completed needs to be provided.
Information regarding the privacy 5.38 6.17 6.17 6.22 6.11 .00**
policy is clearly presented.
(Continued )
Table 11.3 (Continued)
0 1–3 4–6 7 – or more Total Sig.

purchases purchases purchases purchases n = 675
n = 57 n = 314 n = 204 n = 99
Non-deception
The site exaggerates the benefts 5.38 5.92 6.02 6.14 5.94 .01*
and characteristics of its oferings.
The site takes advantage of less 5.39 5.94 6.05 6.33 5.98 .00**
experienced consumers to make
them purchase.
This site attempts to persuade 5.14 5.68 5.87 6.14 5.76 .00*
you to buy things that you do not
need.
Fulflment/reliability
The price shown on the site is 5.71 6.40 6.57 6.60 6.42 .00**
the actual amount billed.
You get what you ordered from 5.54 6.37 6.59 6.64 6.41 .00**
this site.
Promises to do something by a 5.51 6.24 6.45 6.52 6.28 .00**
certain time are kept.
Note: All items were measured from 1 (not important at all) to 7 (very important). *Signifcant at p < .05 level;
**
signifcant at p < .01 level.
suggest that those consumers who more frequently engage in online shopping are more
aware of the diferent aspects of online retailers’ ethics. There are also no diferences
between ethics scales, implying that security, privacy, non-deception and fulflment are
all equally important for frequent online shoppers.
Discussion and conclusions

Scholars have recently begun focusing on understanding the ethical issues in e-commerce
from the consumers’ perspective (Limbu et al., 2012; Lu, Chang, and Yu, 2013; Roman,
2010). It is not only the retailer’s ethical and socially responsible initiatives but also con-
sumers’ perceptions regarding ethical issues that afect consumer patronage decisions and
channel selections. Our study further extends this line of research and provides additional
understanding of the links between consumer ethics and consumer channel selection in
retailing.
We utilised the concept of CPEOR by Roman (2007) and provided empirical evidence
of the linkages between CPEOR, consumer channel selection and patronage behaviour.
By adopting the CPEOR approach, we extended prior research that assumes consumers’
ethical perceptions as a complex and multidimensional construct that consists of ethical
concerns regarding privacy, security, non-deception and fulflment.
We extended earlier research by comparing customers’ ethical perceptions in difer-
ent shopper groups, including not only online shoppers but also traditional and mul-
tichannel shoppers. Earlier studies have focused solely on examining CPEOR among
consumers who have shopped online. Our results show that online shoppers and multi-
channel shoppers more highly value the ethics of online retailing than traditional shop-
pers do. This fnding has several implications. It underlines the strategic importance of
ethical conduct for online retailers because ethical issues are more important for online
and multichannel shoppers. In addition, a higher valuation of ethical concerns might
be linked to the possibility that online and multichannel shoppers have encountered
ethical problems when shopping online. Although ethical concerns were less important
among traditional shoppers, our results demonstrated the value of examining CPEOR
among consumers who do not shop online (cf. Lu, Chang, and Yu, 2013), which
ofers e-retailers a more nuanced and multifaceted understanding of consumers’ ethical
concerns. Finally, our fndings support the contention that consumers’ past-purchase
behaviour and channel selection infuence their perception towards diferent purchasing
channels (cf. Melis et al., 2015).
Our study has certain limitations, which open avenues for further research. We
investigated the consumer perceptions of retailer ethics among traditional, online
and multichannel customers. However, a new approach to channel integration – the
omnichannel – is emerging. In this approach, retailers aim to deliver a seamless cus-
tomer experience regardless of the channel (Piotrowicz and Cuthbertson, 2014). Thus,
future research is needed to explore how consumer perceptions regarding retailer ethics
afect shopping in the omnichannel context.
Our empirical examination focused on customers of a department store chain.
Department stores and shopping malls have recently struggled with declining patronage
due to increased multichannel consumption. Moreover, a consumer’s decision to use a
certain channel may vary according to the retail context (Piotrowicz and Cuthbertson,
2014). Therefore, our results might not be generalisable to other retail sectors (e.g.
grocery retailing) in which the disruptive efects of online shopping have yet to make a
signifcant impact.
Finally, our study was administered in the Finnish context, which adds to earlier
accounts of Spanish (Roman, 2007), US (Limbu, Wolf, and Lunsford, 2011, 2012) and
Taiwanese (Lu, Chang, and Yu, 2013) online consumers’ ethical considerations. Notably,
in Finland, consumers have relatively high ethical standards (Lindblom and Lindblom,
2016 – see Further reading). It has been reported that consumers’ online behaviour and
individuals’ ethical attitudes vary across diferent cultures (Limbu, Wolf, and Lunsford,
2011). Lu, Chang, and Yu (2013) show that diferent individual cultural patterns (indi-
vidualism vs. collectivism) lead to a focus on diferent dimensions of CPEOR. There-
fore, the importance of consumers’ perceptions of retailer ethics might be diferent in a
country context in which consumers possess a lower level of ethical standards than those
of Finnish consumers.

• As the digital disruption continues to evolve in retailing, the impact of ethical issues
related to, for example, data privacy and security will most probably increase in
the future retailing. Therefore, more research will be needed to investigate how
consumers respond to these ethical challenges.
• Further research is needed in understanding of how consumer perceptions regarding
online retailer ethics afect consumer behaviour in omnichannel retailing
environment.
• Consumers’ past-purchase behaviour (in terms of what channel they have selected)
is linked to their perceptions regarding the importance of online retailer’s
ethics.
Further reading
Lindblom, A., and Lindblom, T. (2016). ‘Investigating the links between sociodemographic factors and
the acceptance of unethical behavior: A survey in Finland’. Nordic Journal of Business, 65(3/4), pp. 4–17.
Available at: http://njb.f/wp-content/uploads/2017/01/Lindblom_Lindblom.pdf.
Liu, H., Lobschat, L., and Verhoef, P. (2018). ‘Multichannel retailing: A review and research agenda’.
Foundations and Trends in Marketing, 12(1), pp. 1–79. Available at: www.nowpublishers.com/article/
Details/MKT-059.
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12 Data obstacles and privacy
concerns in artifcial
intelligence initiatives
Bilal Aslam, Heikki Karjaluoto and Eevi Varmavuo
Introduction
Artifcial Intelligence (AI) is considered a revolutionary technology in the marketing
industry. Although it has existed as a technology and a feld of study for decades, it has
only recently shown rapid growth among diferent markets. AI has disrupted a variety of
industries (Campbell et al., 2020), and the growth of AI adoption and its positive efects
on businesses are clear; estimations predict that AI will increase the global economy
by 14% (equivalent to 15.7 trillion USD) by 2030 (see Future Reading: Al Sheibani,
Cheung, and Messon, 2018). By investing in AI, frms may increase their return on
investment signifcantly, which will further accelerate AI adoption.
One factor that infuences AI is data, which are the raw materials that are required
to run AI machinery. Data serve as a new source of idea generation for product devel-
opment, customer service, shelf location, distribution, dynamic pricing, etc. (Erevelles,
Fukawa, and Swayne, 2016). Good data are the foundation of AI modelling, and the
appropriate data are needed to optimise projects (eMarketer, 2019 – see Further reading).
During the past few years, the use of data sciences, which facilitate decision-making and
the extraction of actionable insights and knowledge from large datasets in the marketing
environment, has remarkably increased. Despite these advances, strategies for improving
the management of data sciences in DM remain scarce (Saura, 2020). AI both lives and
dies by data; problematic data can introduce risks that can be economically devastating for
any company (Harrison et al., 2019)
Therefore, we must explore whether companies are preparing themselves in terms
of data collection and management to fully capitalise on AI technology. Specifcally,
businesses reportedly waste considerable time organising, cleaning and structuring the
databases of their users and customers (Kelleher and Tierney, 2018). There are problems
in data acquisition, data labelling and the improvement of existing data (Roh, Heo,
and Whang, 2019). It is important to determine whether companies have organisa-
tional chassis to successfully support AI initiatives. A strong dimension of data that is
often ignored is ethical issues related to data privacy. For example, the two tech giants
Google and Facebook were both sued for submitting consumers’ photos for biometric
scanning (Solove and Schwartz, 2014). This development might afect data-driven AI
initiatives, especially since the implementation of the General Data Protection Regula-
tion (GDPR) in Europe. Data privacy can also create problems because customers are
becoming more aware of the collection of their personal data, and it is raising concerns
(Davenport et al., 2020).
DOI: 10.4324/9781003093909-16
Data obstacles, privacy and AI 131
This chapter aims to determine whether frms have sound structures for collecting and
organising data to fully harness AI technology. We used a special data privacy angle to
monitor the industry’s current outlook regarding data privacy issues. For this purpose, we
conducted in-depth interviews with relevant AI and data industry experts in fve coun-
tries. The results showed that companies are currently lacking in structures and systems
for collecting and managing data; thus, their ability to harness AI technology is weak. It
was also evident that data privacy issues are extremely important, and measures like the
GDPR will help the industry cultivate a more ethical use of technology while not block-
ing overall industry growth. Our study will assist managers who want to capitalise on data
based on AI technology.
Literature review
The concept of AI in its contemporary sense is not new. It was frstly initiated during the
Dartmouth Summer Research Project on AI in the 1950s. However, AI appears new to
those looking to repackage Big Data (Elish and Boyd, 2017). Marketers can now gener-
ate more accurate results for a variety of marketing intelligence tasks, including customer
segmentation and profling, product reputation management, pricing strategy, competitor
analysis, promotional marketing analysis, recommender systems, location-based advertis-
ing and community dynamic analysis (Fana et al., 2015). These results have important
implications for forecasting purchases, and they can afect sales forecasting (Liu, Xiao,
and Ding, 2016). AI and Big Data are not only changing existing marketing tasks but
also supporting innovative marketing solutions. For example, Liu, Xiao, and Ding (2016)
propose an automated and scalable garment recommender system using real-time in-store
videos that can improve the experiences of garment shoppers and increase product sales.
Data are the foundation of AI-driven marketing; AI requires data to run, and most
AI-powered solutions require existing datasets to run. If a project lacks the appropriate
data, the results will be less than optimal (eMarketer, 2019 – see Further reading). AI
makes data meaningful through cognitive computing because analysis of data by humans
can be a time-consuming task; thus, the utilisation of AI techniques helps clarify data
(Gupta et al., 2018). More data are available today than ever before but companies can-
not generate efective results if their data are compromised (Alshura, Zabadi, and Abug-
hazaleh, 2018). Data ofer greater insights into marketing performance than they did in
the past, and these insights help marketers make successful decisions for optimising their
marketing actions and improving their return on investment (Wedel and Kannan, 2016).
While fnding data used to be a challenge for marketers, they now face the challenge of
transforming data into value. Data have attained a central role in marketing solutions. As
data become larger, more complex and more inexplicable, the limited mental capacities
of humans pose diffculties in deciphering and interpreting an unknown environment
(Sammut and Sartawi, 2012). Data create a competitive advantage, and marketers are
creating more personalised experiences through data (Wright et al., 2019; Ozcelik and
Varnali, 2019; Jarek and Mazurek, 2019; Aguirre et al., 2015). Companies should be using
an infrastructure that can facilitate the adoption of AI, and this particular area of research
needs further examination.
Data-based innovation and marketing can trigger consumers’ privacy concerns from
a contextual integrity perspective. Such concerns can, in turn, infuence the future of
these data-intensive felds. Firms must carefully evaluate their use of consumer data in
132 B. Aslam, H. Karjaluoto and E. Varmavuo
their innovation and marketing eforts (Bleier, Goldfarb, and Tucker, 2020; Daven-
port et al., 2020). Addressing data ethics and politics is an integral task of data stud-
ies. Big Data and their meaning are socially constructed and infuenced by evolving
social, political and technological forces (Chen and Haase, 2020). Martin, Borah, and
Palmatier (2017) state that growing eforts towards data collection and usage increase
customers’ concerns about their privacy. They might feel uncomfortable receiving per-
sonalised advertising and content when they realise how much of their data are being
collected and analysed (Aguirre et al., 2015). Per Martin and Murphy (2017), the more
worried customers are about their data privacy, the more negative their responses are
towards the brand. In addition, regulations, such as the GDPR, are considered revolu-
tionary in terms of data privacy, but they create challenges for marketers (Kietzmann,
Paschen, and Treen, 2018).
Research methodology
To reach a holistic understanding of what data issues challenge marketers, managers
and other industry executives, semi-structured interviews were used for data collection
in this research. The interviewed experts were working with AI technology and had
knowledge of and/or experience in marketing. Given the complexity of the research
problem and that the phenomenon under study may vary between the interviewees
depending on their expertise, it was important to consider that new information could
emerge during the interviews. This study used purposive sampling. A review of the
interviewees’ titles shows that they varied in their level of expertise. We conducted in
depth-interviews (see Table 12.1 for details) with 14 relevant managers, CEOs, entre-
preneurs and consultants.
We conducted telephonic interviews with the informants from Finland, the United
Kingdom, the United States, Switzerland and Peru to ensure balanced and comprehen-
sive results. Most of the interviews were conducted in Finland. The interviewees were
selected because of their knowledge/practice/experience, particularly in the AI feld and
generally for their ability to refect from marketing perspectives. The interviews, which
lasted ~45–60 minutes, were recorded and transcribed.
Our data analysis was conducted via thematic analysis (the ethnographic imagination
approach). Ethnography is a way to imagine ‘social’. In other words, ethnography is
a type of qualitative research that involves immersing yourself in a particular commu-
nity or organisation to observe their behaviour and interactions up close. Per Watson
(2011), organisational ethnography involves creating systematic generalisations about a
topic that must be theoretically informed, informing and contributing to the broader
body of knowledge that constitutes organisation and management studies. This approach
enables theoretical rather than empirical generalisations. Sociological imagination allows
individuals to rise above their everyday social context, making it possible to acquire the
distance necessary for critical refection and change (Mills, 1959).
The thematic analysis included fve steps. (1) Braun and Clark (2006) stress that the
researcher should familiarise themselves with the data. When transcribing the interviews
for this study, strict attention to detail ensured that no information of value was over-
looked. The interview recordings were frstly transcribed in writing, and fller words (e.g.
so, um and like) were left out. Both the interviews and the transcriptions were conducted
in English. (2) The second step included generating initial codes. Coding is defned as
‘the process of assigning meaningful numerical values or names that reduce data from a
Table 12.1 Interview participant details
Interviewee Country Title Type Duration
I-1 Finland Head of data Face-to-face 28 min

I-2 Finland Chief Growth Ofcer Telephone 52 min
I-3 Finland Lead Data Scientist Telephone (with I4) 46 min
I-4 Finland Business Lead AI Telephone (with I3) 46 min
I-5 Finland CEO Telephone 37 min
I-6 Finland CEO and Co-Founder Telephone 49 min
I-7 Finland Director, Analytics Telephone 36 min
I-8 Finland CEO Telephone 24 min
I-9 Finland Founder and Chairman Telephone 38 min
I-10 Bulgaria CEO and Co-Founder Telephone 51 min
I-11 Switzerland AI expert Telephone 55 min
I-12 The United Kingdom CEO Telephone 39 min
I-13 The United States Previous Digital Director/ Telephone 1 h 2 min
Adjunct Professor
I-14 Peru CEO Telephone 60 min
large amount of undiferentiated text’ (Hair et al., 2015, p. 302). Thus, coding helps the
researcher focus on valuable key characteristics of the data. During this step, the entire
dataset was read and coded with precision. (3) The third step involved searching for
themes within the data (Braun and Clarke, 2006). Similar codes were put together in
potential themes; the codes that demonstrated patterns throughout the dataset were con-
sidered themes. The themes were then colour coded to help analyse the data. Braun and
Clarke (2006) suggest (4) reviewing the themes and (5) naming them. Here, the themes
were reviewed against emerging similar themes to avoid duplicates, and they were named
to provide a clear visual map of the data.
Findings
Figure 12.1 outlines the framework for factors afecting the successful implementation of
AI and required actions.
The analysis consists of themes that emerged from the semi-structured interviews
regarding data issues. Most of the interviewees stressed that the current data collection
and management methods that are used in most organisations are insufcient.
The biggest issue with AI is the data quality and the storing of the data. And I see there are
a lot of things to be done to get AI really – Because 80% of our time, when we work with
customers and AI-related projects, it is to just start collecting the data, cleaning the data and
managing the data, and only after that can we start running the AI.
(I-3, Lead Data Scientist)
I don’t think they know what data is there. They never made sense of it. It’s not been tuned,
not been managed, I doubt. And there’s no kind of data lineage. What is the purpose and why
was it collected historically vs its purpose now? Is it labelled? Is it normalised?
(I-13, Digital Director and Adjacent Professor)
Important Data Concerns Required Actions
Storage of Data
Collection of Data Installation of Strong

Data Collection and
Management Structures
Data Collection Methods

in new vs. old companies Effective Utilisation
of AI Safeguarding consumer
Privacy and digital rights
Data Privacy
Implementation of new
frameworks (GDPR etc)
New Data Laws and
Guidelines
Figure 12.1 Result framework: factors afecting successful implementation of AI and required actions.
The fndings also showed that, in some cases, companies are collecting data, but they have
no idea how to use it.
I believe that companies have quite a lot of data, of which a big part is not used. Nobody cares,
and they do not know what they have. So, I would start with what data is there and make
conclusions about whether it is in the right format or not.
(I-5, CEO)
Building a large data warehouse was not considered the optimal approach for companies,
as explained by one of the interviewees (I-6). Instead, the interviewees found starting
with the business goals and the use case, followed by determining what data and tools
were required as well as how to label the data the correct approach.
Davenport et al. (2020) stress the importance of ensuring that these processes do not
hinder gathering relevant data insights from customers and innovating. This conclusion
can also be drawn from the interviews; the interviewees agreed that privacy requirements
and regulations guide the operations of companies. They considered the GDPR the most
signifcant change in data privacy regulations in recent years and stressed its role in mar-
keting practices today. The interviewees saw regulations as having a positive efect on the
incorporation of AI into marketing practices.
I am 100% convinced that GDPR will afect it in a good way. Data privacy is a huge issue
nowadays already, and it will be more so in the future. And now when we have GDPR in
place, it will force the companies to concentrate on these privacy issues already in the beginning.
It is not possible to if something is already up and running; it is very difcult to take into
account certain privacy things. But if we have those rules in place already in the beginning, it
will be a great thing.
(I-6, CEO and Co-Founder)
I think GDPR was the best thing that could happen in the data business . . . I would say that
these regulations help create fair and sustainable AI business. Fair is kind of the same as being
ethical but an easier concept.
(I-9, Founder and Chairman)
As seen earlier, the GDPR guides companies in the right direction regarding consumer
data privacy from the outset, and it is a major factor when it comes to incorporating AI
into marketing practices. It only has a negative impact when a lack of understanding is
involved.
Another interviewee (I-1) explained that, thanks to the GDPR, consumers are now
more aware of what data are collected about them, and they also understand their respon-
sibility regarding the data they provide, which can be considered positive. However,
customers also expect to gain value from giving out their data via better services. This
connects to the fndings regarding the expectations that consumers have from younger
companies, especially when considering marketing activities that are based on collected
data, such as personalisation. Interviewee I-1 also highlighted that compliance with the
GDPR or other regulations allows companies to create better services and increase their
overall brand image as well as the confdence of certain partners.
While the positive role of the GDPR was emphasised by the interviewees, few chal-
lenges were mentioned concerning related limitations in AI-driven marketing practises.
One challenge described by an interviewee (I-4) was data collection and management
processes.
You have to understand what data you are using and how you are using it and whether the
usage of that data is purposeful for why it was created.
(I-4, Business Lead AI)
Another interviewee (I-11) agreed that the GDPR has complicated things for marketing
practices. However, he emphasised the role of trust between the company and its custom-
ers correspondingly to the rising privacy concerns among consumers that were noted by
Davenport et al. (2020) and Martin, Borah, and Palmatier (2017). Regarding the opinion
presented earlier, Martin and Murphy (2017) also stress the role of providing customers
some control over their data to build trust with the company and increase the likelihood
of customers providing their data. Thus, building trust between a company and its cus-
tomers is critical for receiving customer data while complying with certain regulations,
such as the GDPR.
Discussion
This chapter aimed to determine whether companies are structurally prepared to adopt AI
in terms of data collection and management. This step is important to ensure the optimisa-
tion of AI benefts. We sought to determine how privacy issues and new reforms, such as
the GDPR, can afect a company’s AI initiatives and processes. Our main fndings indicated
that companies might be neglecting the expertise required for sound data collection and
management practices. This is consistent with Saura’s (2020) claim that relevant measures
for improving data management remain scarce. Henke et al. (2016– see Further reading)
emphasise the importance of having proper data ecosystems in place to deliver successful
AI campaigns (Chui, 2017 – see Further reading). In some cases, even companies that are
collecting large datasets are not utilising them in their favour. We also found that privacy
should be at the centre of data policy when implementing any data initiatives. Martin,
Borah, and Palmatier (2017) state that growing eforts in data collection and usage are
increasing customers’ privacy concerns. Firms must carefully evaluate their usage of con-
sumer data in their innovation and marketing eforts (Bleier, Goldfarb, and Tucker, 2020;
Davenport et al., 2020). New initiatives, such as the GDPR, are helping industries safeguard
consumer privacy without causing problems for AI initiatives. Figure 12.1 extracts the
fndings from this paper. Many data issues must be fxed if companies want to harness AI
technology. Currently, most companies’ data collection and management systems are inad-
equate; they are not striving to collect all possible forms of internal data. External data can
be useful but only after internal data are fully understood. While data collection methods
in older companies are more inadequate than those in newer companies, older companies
can survive without data because they have long-standing, strong relationships with their
customers, and the market recognises their products and/or services. However, to be more
competitive, they must introduce new data collection and management policies. There is
no simple answer regarding which data are the most efective in any campaign; instead, the
desired results need to be identifed before beginning a project to know which data will
help achieve efective results.
There are certain limitations to this research. For example, the data collection was
conducted via semi-structured expert interviews on a rather broad scale instead of focus-
ing on a specifc factor. Although the semi-structured interviews ofered the possibility
of fnding new aspects, this thesis ofers a general overview of the factors that make
data appropriate for practising efective AI campaigns in marketing versus a detailed
description.

• Future research should seek an exact framework for the deployment of data man-
agement and collection structures as well as a general privacy framework model.
• A clear/new framework is required to explain how to establish an AI strategy and
the how company’s data should be managed to make the strategy work
• Exploration is needed into how data collections and management practices can be
tailored in diferent organisational settings (e.g. large organisations vs. small organ-
isations; old organisations vs. new organisations).
Disclaimer
The research presented in this chapter was remodifed from the University of Jyväs-
kylä Master’s thesis ‘Factors afecting the success of AI campaigns in marketing: data perspective
(2020)’. The copyright for this JYU thesis belongs to Varmavuo, Eevi as the Author.
Research presented here has not been otherwise previously published.
Further reading
Al Sheibani, S., Cheung, Y., and Messon, C. (2018). ‘Artifcial Intelligence adoption: AI-readiness at on
Information Systems, Japan 2018. Available at: https://aisel.aisnet.org/pacis2018/
Chui, M. (2017). Artifcial Intelligence: The Next Digital Frontier? London: McKinsey and Company Global
Institute. Availabel at: https://www.mckinsey.com/business-functions/mckinsey-analytics/our-
insights/the-age-of-analytics-competing-in-a-data-driven-world (accessed 15 Oct 2020).
Emarketer. (2019). Getting Smart about Artifcial Intelligence. Available at: www.emarketer.com/content/
getting-smart-about- artifcial-intelligence
Henke, N., Bughin, J., Chui, M., Manyika, J., Saleh, T., Wiseman, B and Sethupathy, G. (2016). ‘Big
data’s potential just keeps growing. Taking full advantage means companies must incorporate analytics
into their strategic vision and use it to make better, faster decisions’. McKinney and Company. Available
at: https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/the-age-of-analytics-
competing-in-a-data-driven-world (accessed 15 Oct 2020).
Jacques Bughin and James Manyika are directors of the McKinsey Global Institute, and Michael Chui is
an MGI partner; Nicolaus Henke and Tamim Saleh are senior partners in McKinsey’s London ofce,
Bill Wiseman is a senior partner in the Taipei ofce, and Guru Sethupathy is a consultant in the
Washington, DC, ofce.
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13 GDPR guidelines for academic
research in marketing
Sachiko Scheuing and Outi Niininen
Introduction
With the introduction of the European Union (EU) General Data Protection Regula-
tion (GDPR, 2016a – see Further reading) and high penalties for failing to protect study
participants’ privacy, academic researchers must now design research that uses personal
data with great care. The processes and documentation requirements for the GDPR are
similar to what is expected by an Institutional Review Board (IRB) (Mourby et al., 2019).
While there are numerous publications on GDPR compliance for academic research in
the medical feld, little has been written about the lawful treatment of data for research in
the marketing context. This chapter attempts to fll this gap and suggests checklists that
researchers can follow for designing GDPR-compliant academic research in marketing.
The topic of sensitive data will not be discussed in detail in this chapter; rather, the
focus is on non-sensitive data. Data collection from secondary sources, including social
media (SM) or third-party registries and databases, is also not addressed in this chapter
because such data may be subject to further restrictive terms of use that are unique to
each platform. Given that this chapter aims to highlight the impact of the GDPR on
academic research, the debate on the intricacies of research styles is also omitted. Finally,
this chapter relies heavily on legal articles, with the majority coming from the law text
itself and regulators’ guidance.
This chapter begins with an overview of IRBs, followed by a brief introduction of
the GDPR and a description of the data used by academic researchers in the feld of
marketing. The chapter’s second half includes a seven-step approach to designing GDPR-
compliant research in marketing, including processes and documents that are required for
a lawful marketing research project.
Institutional Review Boards seek to ensure

ethical research practices
Academic research advances knowledge in society in general and thus often includes
challenging research projects. Traditionally, IRBs have ensured high ethical standards for
academic research. In the review process, the IRB’s members review research proposals
and all supporting documents, including instructions to study participants. Drawing on
the national or institutional ethical conduct of research guidelines, this team of experi-
enced researchers discusses the features of the proposed study. Researchers may then be
asked to provide further clarifcation of the project and/or adjust the research design.
DOI: 10.4324/9781003093909-17
140 Sachiko Scheuing and Outi Niininen
IRB approval is awarded only after the board members are satisfed with the ethical
soundness of the research design (Ienca et al., 2019).
Typically, IRB members review applications from psychological, medical, biological
or physiological research projects. If the research aims to study respondents in vulner-
able positions, IRB approval becomes essential. Furthermore, academics seeking external
funding may also need IRB approval, even if their research does not involve human
physiological data and is perceived as low risk. High-quality journals may also demand
IRB approval before publishing a study (TENK, 2019).
The responsibility for ethical research practice lies with all researchers, and typically
only high-risk projects are taken through the full IRB review process. IRB processes can
require a signifcant amount of time from even the most experienced researchers. There-
fore, various processes for fltering out low-risk research designs that pose no challenge
to the respondents’ well-being or institutional reputation are implemented. Institutional
research guidelines, for example, participant information packages and self-assessment
for data management practices, can be used to determine the risk level of each proposed
research project. As an example, La Trobe University in Australia has developed a step-
by-step online portal that allows researchers to self-certify projects with a low ethical risk
(see Further reading).
In most instances, the GDPR mainly requests procedural changes to the already well-
defned national codes for ethical research practice. Many research funding bodies and
national-level codes for the ethical conduct of research have now incorporated specifc
GDPR requirements (Meijering et al., 2020; Tikkinen-Piri, Rohunen, and Markkula,
2018).
The GDPR
In May 2018, the GDPR implemented a higher standard of data protection. The EU leg-
islature believed that a stronger data protection law would give EU citizens more control
over their personal data (see the European Commission Statement – see Further reading).
The GDPR is based on seven principles: lawfulness, fairness and transparency; purpose
limitation; data minimisation; accuracy; storage limitation; integrity and confdentiality
(security) and accountability.1
One of the important aims of the law was to harmonise the then-fragmented data pro-
tection laws of EU member states.2 However, perfect harmonisation was not achieved due
to delegated acts in the GDPR that allowed member states to supplement the law with
additional national rules. Thus, even when working with research collaborators within the
EU, some aspects of data protection requirements may difer slightly (Ienca et al., 2019;
Mourby et al., 2019).3 This chapter will focus on the uniform requirements in the GDPR
that were adopted in all EU member states and the United Kingdom (before Brexit).
Designing GDPR-compliant research

The following section aims to help academic marketing researchers design studies that are
GDPR compliant. It will also provide a general overview of the documents and processes
that are required to treat research subjects’ data lawfully. These seven steps are summarised
in Figure 13.1.
As shown in Figure 13.1, the seven steps recommended to achieve GDPR-compliant
academic research are as follows: review guidance notes already provided by your
GDPR guidelines for academic research 141
Step 1 Review documents by the Data Protection Officer of your institution
Step 2 Determine the applicability of the GDPR to the research – Anonymous vs. Personal
Data
Step 3 Decide the legal ground on which to base the data processing for the research
Step 4 Determine if the research exemption can be applied to the research
Step 5 Examine if profiling will be used as part of the research
Step 6 Determine if the research requires data sharing, use of service providers and cross-
border data transfer
Step 7 Determine if a Data Protection Impact Assessment is necessary
Figure 13.1 Seven steps towards GDPR compliant research.
institution’s Data Protection Ofcer (DPO); determine the applicability of the GDPR to
the study (anonymous vs. personal data); determine the legal grounds for processing data
and whether a research exemption can be applied; study how data are analysed and utilised
and if either results in profling of the respondents and identify whether there are instances
in which the collected data may need to be shared with external organisations, including
any cloud-based software that will be used for, for example, data collection or analysis.
Step 1: review the documents provided by the DPO of your institution

EU regulators have long considered DPOs as key players in making organisations account-
able for data protection.4 Accordingly, the GDPR, a law that is based on the accountability
principle, the role of DPO is clearly stipulated in Section 4. If the university, institution or
company of the researcher has appointed a DPO, they should be a valuable resource for the
required research documents. The DPO’s tasks include the provision of advice to the organ-
isation and its employees.5 DPOs can also help answer many of the questions throughout
the seven steps outlined in this chapter. Many academic institutions have already worked
with their DPO to establish internal requirements for technical and organisational measures
in academic research projects. These will be discussed later in this chapter under the section
titled Protecting personal data with appropriate technical and organisational measures.
Step 2: determine the applicability of the GDPR to the research:

anonymous versus personal data
Before beginning a research project, it is important to determine whether the GDPR is
applicable. The general interpretation is that if it is verifable that the dataset does con-
tain personal data, then the GDPR applies. The GDPR states the following regarding
personal data:
Personal data means any information relating to an identifed or identifable natural person
(‘data subject’); an identifable natural person is one who can be identifed, directly or indirectly,
in particular by reference to an identifer, such as a name, an identifcation number, location
data, an online identifer or to one or more factors specifc to the physical, physiological, genetic,
mental, economic, cultural or social identity of that natural person.6
Thus, any information that can lead to a natural person or can be used to identify a per-
son is considered personal data.
If data are anonymous, the GDPR does not apply to the research. Unlike personal data,
anonymous data are not defned in the GDPR, but there are clues to what requirements
need to be fulflled for data to be classifed as anonymous. Recital 267 of the GDPR
states that data are anonymous only if the researcher, in their capacity as the Controller,8
is not in the position to either identify or single out the person with whom the data are
associated. For instance, if the researcher has no means to (re)identify the research subject
because he/she lacks access to the cross-referencing table, the data may be considered
anonymous9 (Mourby et al., 2018).
Academic researchers, as medical researchers, often apply pseudonymisation tech-
niques to protect the identity of research participants by replacing direct identifers, such
as names and addresses, with unique ID numbers (Verhenneman et al., 2020). While
pseudonymisation is considered a protective measure by the GDPR, pseudonymised data
are still considered personal data; therefore, the law applies.
In the context of qualitative research, the researcher might unintentionally ofer infor-
mation that could lead to the identifcation or singling out of an otherwise anonymous
interviewee. For instance, interviewees may be known for their exceptionally artful com-
munications or even their vocabulary. Citing such respondents may result in the inter-
viewee being identifed if a quote is compared to the respondent’s previous statements
in the press or on SM (Ienca et al., 2019). The paradox here is that it is often the most
unusual, colourful quotes that bring true value to qualitative data analysis.
Aggregated datasets and organisations

When working with aggregated datasets (i.e. individual data are summarised or aver-
aged for the entire group), on a geographic level, for example, such as for cities or
street sections, data are considered anonymous (see the Future of Privacy Forum (FPF)
Visual guide to practical data de-identifcation in Further reading). However, study-
ing organisations’ data requires further examination to determine whether the data are
anonymous or personal. If employees are being studied, the GDPR will most likely
apply. As an example, consider a data sample comprised of people with the title ‘Head
of the Purchasing Department’ that does not include individual names but does identify
companies. While the individual names are not known, it is likely that only one person
holds this title per organisation, which means the data can identify a person and thus
the GDPR applies.
If organisations’ records are being studied but people and/or functions within the
organisation are not, there are two possible scenarios. When the study includes only
organisations with many employees, such as companies listed on the stock market, hos-
pitals and universities, it is highly unlikely that a record will point to a single person;
therefore, the research is likely not subject to the GDPR. However, if the study includes
micro-organisations (i.e. a specifc doctor’s practice or a web store owned by one person),
the data related to the organisation must be treated as personal data.
Step 3: determine the legal ground on which to base the research’s data processing
The GDPR requires that the processing of personal data, including for academic research
purposes, be based on one of the six lawful bases provided in Article 6(1). For research in
marketing, consent and legitimate interest can be used as legal grounds (Maldof, 2016 –
see Further reading).
Consent, which may be the most used legal basis in academic research, is a typical IRB
requirement (TENK, 2019) although it has some limitations. The challenge lies in that
consent must be specifc and freely given.10 Academic research processes do not always
follow the original study plan, and the data analysis might eventually highlight a new
direction for the study. Consequently, data use may fall outside the specifc parameter
communicated in the consent language (Ienca et al., 2019). Therefore, when consent is
used as a legal basis, the data must not be used for other purposes or other studies11 unless,
as we will discuss in the next section, GDPR exceptions can be applied.
When using legitimate interest, instead of consent, it allows data to be re-used in future
research. To use legitimate interest as the legal ground for a research project, a carefully
written assessment that weighs the researcher’s interest against that of the research subjects
(i.e. a Legitimate Interest Assessment, LIA) must be carried out.12
Regardless of whether consent or legitimate interest is used, the legal basis must be
documented and communicated to the research subjects when either legal ground is used.
Step 4: determine whether a research exemption can be applied

GDPR has provisions for certain scientifc or historical research and for statistical pur-
poses to be exempt from providing data subject rights such as the right to data access,
rectifcation, restriction, erasure and, in some cases, objection. In addition, the research
can be exempted from purpose limitation, one of the basic principles of the GDPR that
requires data to be used only for the purposes it was collected, and data retention limita-
tion. Without these restrictions, the data collected for the research can be repurposed for
future studies, even by other researchers.13
Marketing research that is aimed at improving products or fnancially beneftting an
organisation will generally not be able to make use of the scientifc research exception.
By contrast, academic research by universities and research institutions is more likely to
be considered scientifc and thus able to use this provision. Marketing research that is car-
ried out by academics for companies should, therefore, be examined with extra care to
determine whether the provision can be used. If a study’s results are summarised (e.g. in
a report or academic publication) as opposed to being in a format that can be used for a
people-based targeted marketing campaign, then the research may fall under the category
of ‘statistical research’, which also enjoys the research privilege and the GDPR does not
apply (see the Information Commissioner’s Ofce [ICO] Registry of processing activities
in Further reading).
Step 5: determine whether profling will be used as part of the research

While most research will carry out ‘profling’, as defned in Article 4(4) of the GDPR, it
is uncommon for academic research to apply profling followed by automated decision-
making, which can have legal efects on the research subjects. In the academic context,
profling could include, for example, assigning a category classifcation to records, creating
additional variables or enhancing records with additional information but without any
automated follow-up processes that could prove detrimental to the study’s participants.
Thus, in most cases, the researcher does not need to collect explicit consent, which is
detailed in Article 22 of the GDPR.
When it is determined that the exemptions of the GDPR are not applicable, additional
requirements can arise when profling is used. Such is the case when research results are
then later used to make automated marketing decisions by a company (e.g. which adver-
tisement message the research subject should receive). When applying the research data
that are collected for marketing purposes, such as targeting particular groups of individu-
als with specifc advertisements, research subjects must be provided with the opportunity
to object to the marketing use of their data.
Step 6: determine whether the research requires data sharing, the use of service
providers and cross-border data transfer
There are instances when data need to be shared externally, including international
research collaboration, the expectation to participate in Open Science, submitting an
article for review to a top journal or completing externally funded research projects
(Mourby et al., 2019). Furthermore, some types of data transfer and data sharing are not
obvious. For example, a simple career move by an academic could result in data being
transferred between institutions and even countries (Mourby et al., 2019).
When sharing data with research partners that require a Controller-to-Controller data
transfer or working in a joint-controllership arrangement, a contractual agreement out-
lining the responsibilities and obligations of the research parties is essential, that is, joint-
controller agreement (Ienca et al., 2019).
A data protection agreement that formalises the Controller-to-Processor relationship
must be put in place when research partners are working on the researcher’s behalf, under
strict instruction or when a service provider, such as a survey platform, is used. The
GDPR requires informing research subjects about the recipient or the category of the
recipient of their data.14
Similarly, if the research data need to be transferred to countries outside the EU, it is
important to ensure that the same level of data protection is granted to the data when it
is transferred to a non-EU jurisdiction as would be used in the EU. Several instruments
can be used; however, the most practical way is to sign a standard template agreement
called Standard Contractual Clauses (SCC), which are drafted by the European Commis-
sion. Currently, there are two types of SCCs: Controller-to-Controller and Controller-
to-Processor (or Processor-to-Processor). The Executive Vice President of the European
Commission Margrethe Vestager has recently signalled that a new set of SCCs could soon
be ready (Chee, 2020; Europa.eu, 2020 – see Further reading). The frst type is suitable
for data sharing with collaboration partners based outside the EU, and the latter is for
cases that are working with service providers based outside the EU. When research data
will be shared across borders, research subjects must be informed of the transfer.15
A recent ruling of the European Court of Justice (ECJ) requires additional protective
measures when transferring data to the United States. This may be particularly relevant
for quantitative marketing research because many internationally recognised online sur-
vey platforms are based in the United States (e.g. SurveyMonkey and Qualtrics). When
using a US-based platform, the level of processing risk must be evaluated on a case-by-
case basis, and a data protection agreement as well as an SCC must be implemented. One
remedy may be adding contractual language to provide extra data protection. However,
at present, neither the court ruling nor the European Data Protection Board has clearly
defned this ‘additional protection’.16,17 An alternative is to use a non-US platform, or
even better, an EU-based online survey provider that does not transfer the data outside
the EU, such as Webropol.
Step 7: determine whether a Data Protection Impact Assessment is necessary

When increased risks are expected, a thorough review of the data processing via a Data
Protection Impact Assessment (DPIA) becomes necessary. Processing is considered a
high-risk task when, for instance, a systematic and extensive evaluation that can afect the
data subject signifcantly takes place, sensitive data18 is used on large scale or the systematic
monitoring of public areas occurs.19 For example, a study that has surveillance cameras
installed on billboard advertisements at major train stations would most likely require a
DPIA.
The GDPR details what information is required in a DPIA in Article 35(7). Some
domestic regulators have also produced a DPIA template, and they are making these avail-
able through their websites.
Documentation and the processes required for a GDPR-compliant

academic research proposal
The seven steps outlined in Figure 13.1 help determine whether (a) the GDPR applies to
the research, (b) the research can make use of the GDPR exemption, (c) profling takes
place, (d) data will be shared and/or transferred to a non-EU country and (e) a DPIA
will be necessary. The following section describes the documents and processes that are
required to carry out compliant academic research in marketing.
Drafting the necessary documents

The following section guides researchers on the documentation required for GDPR-
compliant academic research (see Figure 13.2).
Use clear and plain consent language
Carry out a Legitimate Interest Assessment
Write a Privacy Statement
Create the Record of Processing Activities
Determine and document measures for protecting collected data throughout the research
process
Implement the Data Protection Impact Assessment
Plan processes to ensure research subjects’ right to data protection is guaranteed
Figure 13.2 Guidance for the documentation required for GDPR compliant academic research.
As shown in Figure 13.2, the GDPR has several requirements for supporting docu-
ments. Researchers must ensure that documents are written in a clear language that
is easy to understand, demonstrate the completion of a legitimate interest assessment,
include a privacy statement and a record of processing activities, document all measures
aimed at protecting collected data throughout the research process and, if required,
complete the DPIA as well as plan how the study participants’ rights to data protection
can be implemented.
Use clear and plain consent language

If consent is being used as a legal basis, an explanation of the research processes needs to
be written in clear and plain language. In addition, the consent language must be pre-
sented in a distinguishable form so that it cannot be missed.20 Article 7(2) of the GDPR
lists the requirements for capturing valid consent. Notably, for research subjects below age
16 years, parental consent is required.21
Complete a legitimate interest assessment

When the research’s legal ground is legitimate interest, the researcher’s interest in car-
rying out the research must be balanced against the interest, fundamental rights and
freedoms of the research participants.22 Only when the interests of the research partici-
pants do not outweigh the researcher’s interest can legitimate interest be used as the
legal ground.
The result of the balancing exercise, which is often called the legitimate interest
assessment, must be documented. The Data Protection Network and the Information
Accountability Foundation provide templates and guidance on how to carry out a legiti-
mate interest assessment (see Further reading).
Write a privacy statement

Article 13 of the GDPR details the types of information that must be provided to the
research subject. This information is typically provided as a Privacy Statement, either on
a website that is specifcally designed for the study or on the website of the researcher’s
organisation. It is also good practice to provide the information in layers. This approach
helps when there is not enough space on the landing page of the online survey. In such
cases, state (a) the purposes of the processing, (b) the identity of the researcher and (c) the
participants’ rights under the GDPR on the survey. The remaining information can be
provided through a link to the Privacy Policy that connects to the website. When col-
lecting data via interviews, the interviewee must be informed of any consequences that
might occur unexpectedly and that could greatly impact the person in addition to (a), (b)
and (c). The remainder of the information can be provided via email with a link to the
privacy statement online (see Further reading, 2016b).
Create a record of processing activities

The researcher’s university or institution must keep a record of processing activities as
defned in Article 30 of the GDPR. The researcher may be asked to provide information
on the research subject’s data and the processing envisioned for the study. Links to tem-
plates for the record of processing activities provided by the UK-Regulator, the ICO and
a OneTrust translation of the Belgian document are included in Further reading.
Determine and document measures for protecting the collected data throughout
the research process
Designing compliant research also includes implementing and documenting protective
processes and measures for the data. Many of the processes listed in this section may
already be in place within the researcher’s organisation, and the DPO may be able to help
with fulflling the data protection requirement.
Protecting personal data with appropriate technical and organisational measures

The GDPR requires organisations to implement appropriate measures to protect personal
data. As part of a university or a research institution, the researcher will have access to
technical and organisational measures and documentation that are already in place. The
DPO or the IT and security departments may also be able to assist.
The higher the risk to the rights and freedoms of the data subjects, the more robust
the protective measure the GDPR requires (risk-based approach). At a minimum, data
pseudonymisation and encryption, robust systems and software, the ability to rapidly
recover from a security incident and regularly tested security are expected, depending on
the situation.23 On the practical level, this translates to (among other things) only using
software and apps that are approved by the relevant organisation’s IT and security depart-
ments, regular installation of critical security updates, password protection of computers
and laptops, the use of a Virtual Research Workplace with robust security measures and
the pseudonymisation of data (Meijering et al., 2020; Mourby et al., 2019). The ICO
has a comprehensive checklist for this purpose available on their website (see Further
reading).
Carry out the DPIA

When the research is determined to carry the level of risk that triggers a DPIA, the
assessment must be carried out and documented. Article 35(7) of the GDPR lists the
assessment’s requirements. The Commission Nationale de l’Informatique et des Liber-
tés (CNIL), the French regulator, ofers a comprehensive template and an app in both
French and English that can guide the analysis (see Further reading). The institutional
DPO may also be able to assist.
Plan processes to ensure research subjects’ rights to data protection

If the research exception of the GDPR can be applied, the right to access, rectifcation,
restriction and (in some cases) objection to processing are waived (Frauenhofer IOSB,
2019). If the research is not exempt, the GDPR requires the implementation of certain
processes to allow research subjects to exercise their rights to access, rectifcation, data
erasure, restricted processing, data portability and the right to object. These are detailed
in Chapter 3 of the GDPR and summarised here in Figure 13.3.
Subject Access right

Research participants may request information of the data used in the research.
The law requires the processing purposes, categories of data processed, recipients or
categories of recipients of the data and where applicable the duration of storage and
the criteria in determining the duration to be disclosed. In addition, a copy of the
data must be provided to the research subject.1
Right to rectifcation
There may be occasions where research participants will request their data to be
corrected, claiming that it is incorrect. In such cases, the researcher is required to
make requested amendments without delay.2
Right to data erasure
The GDPR allows persons to request the deletion of their personal data. This right
extends to data that were made public or shared with other researchers, which means
data recipients will need to be informed of the deletion request.3
Right to restrict processing
Research subjects have the right to restrict the use of data about them, if (1) they
believe the data about them is incorrect, for the duration for the researcher to verify
the claim, (2) processing is unlawful but they do not want the data to be deleted,
(3) data is no longer required for the research but they do not want the data to be
deleted due to legal claims, or, (4) they objected the use of data for the research, for
the duration for the researcher to verify if the objection has to be honored.4
Right to data portability
This right only needs to be considered in case the legal ground for the research is
consent. There may be cases where a research subject requests the data that they have
provided to be sent in a digital format. The research participant may, under certain
circumstances, also request this fle to be transferred to another organisation.5
Right to object
This right needs to be considered in case legitimate interest is the legal ground for the
research. The research subjects may object to the use of their data, including profling.
Unless there are compelling reasons that demonstrates the importance of the research,
that outweighs the interests of the research subject.6
Figure 13.3 Rights of research participants in the context of academic marketing research.
1 GDPR article 15
2 GDPR article 16
3 GDPR article 17
4 GDPR article 18
5 GDPR article 20
6 GDPR article 21
Conclusion
The GDPR requires academic researchers in marketing to approach their data with
extreme caution in a way that is similar to the IRB review process to ensure the ethi-
cal use of data in academic studies. Academic researchers in the feld of marketing will
be able to provide stronger protection to research data by using the seven-step approach
for designing GDPR-compliant research recommended here. DPOs can provide invalu-
able help in generating the necessary documents and implementing research protection
measures.

• Research that includes personal data must consider and adhere to the rules of the
GDPR.
• Research plans can identify the specifc aspects of data protection that are applicable
by using the seven-step approach introduced in this chapter.
• Researchers should complete the required research documents and processes in a
compliant manner by using the results of the seven-step approach.
Further reading
Chee, F. Y. (2020). ‘Revamped EU data transfer tool may be ready by Christmas’. Reuters, September
30. Available at: https://de.reuters.com/article/eu-privacy/revamped-eu-data-transfer-tool-may-be-
ready-by-christmas-idUSL8N2GR5IU (accessed 7 September 2020).
Commission Nationale de l’Informatique et des Libertés (CNIL). Tool for Data Protection Impact Assess-
ment. The CNIL’s DPIA tools are available at: www.cnil.fr/en/open-source-pia-software-helps-carry-
out-data-protection-impact-assesment (accessed 28 August 2020).
Data Protection Network. (2018). ‘Template for legitimate interest assessment’. In Guidance on the Use
of Legitimate Interests under the EU General Data Protection Regulation. Available at: https://dpnetwork.
org.uk/wp-content/uploads/2018/11/DPN-Guidance-A4-Publication-17111.pdf (accessed 4 Sep-
tember 2020).
Europa.eu. (2016a). REGULATION (EU) 2016/679 OF THE EUROPEAN PARLIAMENT AND
OF THE COUNCIL General Data Protection Regulation. Available at: https://eur-lex.europa.eu/legal-
content/EN/TXT/HTML/?uri=CELEX:32016R0679&from=EN (accessed 7 September 2020).
Europa.eu. (2016b). Guidelines for Privacy Statement. See pages 19 and 20 of Guidelines on transparency
under Regulation 2016/679 by European regulators. Available at: https://ec.europa.eu/newsroom/
article29/item-detail.cfm?item_id=622227 (accessed 7 September 2020).
Europa.eu. (2020). Data Protection – Standard Contractual Clauses for Transferring Personal Data to Non-EU
Countries (Implementing Act). Available at: https://ec.europa.eu/info/law/better-regulation/have-your-
say/initiatives/12741-Commission-Implementing-Decision-on-standard-contractual-clauses-for-the-
transfer-of-personal-data-to-third-countries (accessed 7 September 2020).
European Commission. Statement by the European Commission on the GDPR. Available at: https://
ec.europa.eu/info/law/law-topic/data-protection/eu-data-protection-rules_en#background
Future for Privacy Forum (FPF). The Visual Guide to Practical Data De-identifcation’ under ‘Aggregated
Anonymous’. Available at: https://fpf.org/wp-content/uploads/2016/04/FPF_Visual-Guide-to-Prac-
tical-Data-DeID.pdf (accessed 4 September 2020).
Information Accountability Foundation. (2017). ‘Templates for legitimate interest assessment’. Legitimate
Interests and Integrated Risk and Benefts Assessment: Available at: https://b1f.827.myftpupload.com/wp-
content/uploads/2020/04/Legitimate-Interests-and-Integrated-Risk-and-Benefts-Assessment.pdf
Information Commissioner’s Ofce (ICO). Checklist for Technical and Organisational Measures. Available
at: https://ico.org.uk/for-organisations/guide-to-data-protection/guide-to-the-general-data-protection-
regulation-gdpr/security/ (accessed 7 September 2020).
Information Commissioner’s Ofce (ICO). Registry of Processing Activities. A template of the ICO can be
downloaded from: https://ico.org.uk/for-organisations/guide-to-data-protection/guide-to-the-
general-data-protection-regulation-gdpr/documentation/how-do-we-document-our-processing-
activities/ then choose ‘documentation template for controller’ (accessed 7 September 2020).
La Trobe University. Step-by-step Online Portal for Self-Certifcating Low Ethical Risk Projects of La Trobe
University, Australia. Available at: www.latrobe.edu.au/researchers/research-ofce/ethics/human-
ethics (accessed 15 September 2020).
Maldof, G. (2016). ‘How GDPR changes the rules for research’. IAPP. Available at: https://iapp.org/
news/a/how-gdpr-changes-the-rules-for-research/ (accessed 13 August 2020).
OneTrust. Registry of Processing Activities. OneTrust has created an unofcial English translation of the
record of processing activities created by the GBA. Available at: www.onetrust.com/wp-content/
uploads/2017/09/Belgian-DPA-Registry-of-Processing-Activities-Template-20170907-EN.xlsx
Notes
1 GDPR Article 5.
2 The GDPR ‘where as’ (3), (53), (150) and (152).
3 GDPR Article 89(2).
4 Article 29 Working Party Opinion 3/2010 on the principle of accountability https://ec.europa.eu/
justice/article-29/documentation/opinion-recommendation/fles/2010/wp173_en.pdf.
5 GDPR Article 39(1) a.
7 Recital 26, for instance, provides a detailed explanation, which is provided in Article 4 of the
GDPR.
8 As defned in the GDPR Article 4(7).
9 In Breyer vs. Germany (C-582–14), the ECJ rules that anonymity is relative, meaning the same
data can be personal data or anonymous data depending on the party http://curia.europa.eu/juris/
document/document.jsf?text=&docid=184668&pageIndex=0&doclang=en&mode=req&dir=&o
cc=frst&part=1&cid=1130557.
10 GDPR Article 4(11), also see GDPR Article 7(4) for examining whether consent is freely given.
11 GDPR Article 6(4) excludes data collected on consent from re-purposing.
13 GDPR Article 89, 17(3)d and 21(6).
14 GDPR Article 13(1) e.
15 GDPR Article 13(1) f.
16 The ECJ’s ruling on data transfer to the United States, aka ‘Schrems II’ https://curia.europa.eu/
jcms/upload/docs/application/pdf/2020-07/cp200091en.pdf.
17 The EDPB’s FAQ of the ECJ’s ruling on Case C-311/18-Data Protection Commissioner v
Facebook Ireland Ltd and Maximillian Schrems https://edpb.europa.eu/sites/edpb/fles/fles/
fle1/20200724_edpb_faqoncjeuc31118_en.pdf.
18 Refers to a special category of data defned in Article 9(1): Personal data revealing racial or ethnic origin,
political opinions, religious or philosophical beliefs, or trade union membership, and the processing of genetic data,
biometric data for the purpose of uniquely identifying a natural person, data concerning health or data concerning
a natural person’s sex life or sexual orientation shall be prohibited.
22 GDPR Article 6(1) f.
23 GDPR Article 32.
References
Frauenhofer IOSB, FH-Bielefeld. (2019). Leitlinien für den Datenschutz in der wissenschaftlichen Forschung
zu Aspekten der Mensch-Technik-Interaktion. Karlsruhe, Germany.
Ienca, M., Scheibner, J., Ferretti, A., Gille, F., Amann, J., Sleigh, J., Blasimme, A., and Vayena, E. (2019).
‘How the General Data Protection Regulation changes the rules for scientifc research study’. Panel
for the Future of Science and Technology, ETH Zurich Research Collection. https://doi.org/10.3929/
ethz-b-000391622
Meijering, L., Osborne, T., Hoorn, E., and Montagner, C. (2020). ‘How the GDPR can contribute to
improving geographical research’. Geoforum, pp. 291–295.
Mourby, M., Aidinlis, S., Gowans, H., Smith, H., and Kaye, J. (2019). ‘Governance of academic research
data under the GDPR – Lessons from the UK’. International Data Privacy Law, 9, p. 3. https://doi.
org/10.1093/idpl/ipz010
Mourby, M., Mackey, E., Elliot, M., Gowans, H., Wallace, S. E., Bell, J., Smith, H., Aidinlis, S., and
Kaye, J. (2018). ‘Are ‘pseudonymised’ data always personal data? Implications of the GDPR for admin-
istrative data research in the UK’. Computer Law & Security Review, 34(2), pp. 222–233. https://doi.
org/10.1016/j.clsr.2018.01.002
TENK the Finnish National Board on Research Integrity. (2019). The Ethical Principles of Research with
Human Participants and Ethical Review in the Human Sciences in Finland, 3/2019. Helsinki: Tutkimuseet-
tinen neuvottelukunta.
Tikkinen-Piri, C., Rohunen, A., and Markkula, J. (2018). ‘EU General Data Protection Regulation:
Changes and implications for personal data collecting companies’. Computer Law & Security Review,
34(1), pp. 134–153. https://doi.org/10.1016/j.clsr.2017.05.015
Verhenneman, G., Claes, K., Derèze, J. J., Herijgers, P., Mathieu, C., Rademakers, F. E., Reyda, R., and
Vanautgaerden, M. (2020). ‘How GDPR enhances transparency and fosters pseudonymisation in
academic medical research’. European Journal of Health Law, 27(1), pp. 35–57. https://doi.
org/10.1163/15718093-12251009
14 ‘Interesting but scary’
Customers’ perceived value of MyData
Heidi Haapio and Outi Uusitalo
Introduction
Most organisations regularly collect large amounts of data about their customers and use
it for diferent purposes. When consumers use their credit cards or apps or allow the use
of cookies, they accept the storage of the data in a data warehouse. The owner of the data
warehouse can mine the information and selectively use it to ft the needs of the organisa-
tion ( Janasik-Honkela and Ruckenstein, 2016).
Big Data is a new form of capital: it facilitates decision-making and operations. Data
are also a valuable resource for organisations because understanding customers’ buying
behaviours and constantly changing needs helps organisations develop the direction of
their operations and servicescapes ( Janasik-Honkela and Ruckenstein, 2016). Informa-
tion is used to predict customers’ actions and contemplate and estimate tactics and stra-
tegic business activities. Recent discussion has emphasised the quality of data, analytic
tools and the ability to analyse and use data in decision-making (Erevelles, Fukawa, and
Swayne, 2016; Gandomi and Haider, 2015).
Despite the proliferation of data collected from customers and the transformation of
customers’ actions into data – a phenomenon called datafcation (Ruckenstein and Schull,
2017) – there is still little understanding of how customers can control and use that data.
To date, two major approaches have been identifed. In the frst approach, organisa-
tions ofer access to data to their customers via diferent websites and apps. For instance,
electric companies ofer information about their customers’ electricity usage, which the
customers can use to fnd ways to reduce their own electricity consumption. The second
approach is consumers collecting data themselves, such as with sports trackers and mobile
phones. Various apps provide tools for analysing, for example, one’s everyday activity or
quality of sleep. Both forms of data are called MyData.
Datafcation has raised concerns about and awareness of the possible risks of sharing
personal data. Nevertheless, data equal value for organisations and customers. Previous
research has addressed the issues of well-being apps (e.g. Koivumäki et al., 2017), and the
value of the data to organisations (Kumar and Reinartz, 2016). Saarijärvi (2012) focuses
on grocery shoppers’ reverse use of data (customers using data that have been collected
about them) from nutrition codes to support healthy eating, which could lead to changes
in customers’ buying habits.
One risk to this approach, as perceived by customers, is uncertainty about the types and
details included in the data. Previous studies indicate that customers’ main worries include
data privacy and security (Kshetri, 2014; Kuoppamäki, Uusitalo, and Kemppainen,
DOI: 10.4324/9781003093909-18
Customers’ Perceived value of MyData 153
2018). However, other dimensions of data, such as its direction (positive vs. negative) or
its potential to awaken thoughts, feelings or social meanings, have rarely been addressed.
Data are coveted as a valuable resource in the marketplace because they can reveal
insights regarding customers’ actions and uncover previously unknown patterns (Erev-
elles, Fukawa, and Swayne, 2016). Previous studies have examined customers’ perspec-
tives on MyData, including its benefts and afordance in the feld of self-tracking and
quantifed self, measuring health and exercise information (Nafus and Sherman, 2014;
Ruckenstein and Pantzar, 2017). Studies in information technology have proposed mod-
els for how to exploit data and share it with diferent actors. However, regarding data
value, little is known about its content, the prerequisites for creating it, when it decreases
and its contradictions. This study aims to increase our understanding of how consumers
beneft from these data. We examine what MyData means to customers, how they defne
data that capture their purchases and how they feel after they have explored the data.
The value of MyData for consumers

MyData refers to data that have been personifed, personalised and returned to the owner
to use for their own needs. MyData includes understanding Big Data from the customers’
perspective, which highlights the data’s visibility and transparency and allows people to
control and use information that is collected from them. The consumer is then free to
use the data as desired. They can read, sometimes correct and ultimately decide who is
allowed to use their data (Poikola, Kuikkaniemi, and Kuittinen, 2014). Essential features
of MyData are accessibility to and control by people. All the information is personalised
and adequate from the customer perspective (Saarijärvi, 2012).
Online services provide an illuminating example of value creation in collaborations
between customers and organisations. Online customers interact with technology (i.e.
the physical resources that the company ofers) instead of directly interacting with a com-
pany’s personnel or resources (Grönroos and Voima, 2013). MyData implies that people
use data collected of them for their own purposes, and in this situation, value-in-use is
created. Value creation is interwoven with various social and physical tasks that are preva-
lent in the customer’s everyday life. Accordingly, customers create value in their context
and from their own starting point. Friends, family and work are typically part of custom-
ers’ everyday lives, and experiencing value is related to all these important aspects of life
(Heinonen and Strandvik, 2015).
Organisations enable value creation processes and provide service facilities, such as web
services and platforms, which help customers manage their daily chores (Galvano and
Dalli, 2014; Grönroos and Voima, 2013; Heinonen, Strandvik, and Voima, 2013; Saa-
rijärvi, 2012; Saarijärvi, Kannan, and Kuusela, 2013). Value is created and experienced
when the customer is using the product or service (Holbrook, 1999). Accordingly, when
an organisation succeeds in giving value to its customers, it is likely to gain a signifcant
competitive advantage (Helkkula, Kelleher, and Pihlström, 2012).
Value-in-use implies that consumption involves experiences that enable value creation.
An integral condition in value-in-use is that the product or service has a concrete use.
For the provider organisation, value-in-use processes are often invisible, and it may not be
possible to afect or intervene in them. Customer-Dominant Logic (CDL) indicates that
the customer controls service situations and thus creates value independently; customers
154 Heidi Haapio and Outi Uusitalo
decide what products or services to use (Anker et al., 2015; Heinonen and Strandvik,
2015). CDL suggests that value is multi-contextual; consequently, many diferent factors
of customers’ lives afect how their created value is experienced (Heinonen, Strandvik,
and Voima, 2013). Additionally, customers decide whether to look at their own data, and
if they do look, they decide what to do with it or (if they are indiferent to the data) to
ignore it.
Both customers and organisations are needed to ensure value creation (Echeverri and
Skålén, 2011; Eichentopf, Kleinaltenkamp and van Stiphout, 2011). The data in this
study include answers from customers who have tested S-Group’s ‘Omat ostot’ [my pur-
chases] service. The data are shared with customers in the S-mobile app, which allows
them to view their personalised information. We focused on perceived value and which
meanings it refects. Customer value emerges when the customers scroll through their
own shopping data and fnd pieces that are interesting and/or necessary for decision-
making. The company is a facilitator of value when it ofers the data back to the cus-
tomer, even though there is no interaction between the customer and the company. The
customer has a relationship with the data service (Anker et al., 2015).
Data and method

The empirical data in this study describe the meanings, benefts and risks that custom-
ers perceive in their data. We utilised survey data and answers to open-ended questions
that contained meanings, hopes, expectations, information, associations, perceptions and
attitudes. The data were collected from S-Group’s Omat ostot service. In this platform,
customers can view their purchase data, which are gathered from their membership cards.
The data are organised by product group level and displayed as the number of products
purchased and the euros spent. The data were collected in March 2017 while the service
was in its pilot stage. The Omat ostot service was ofcially released in 2019. The ques-
tionnaires were sent by email to panellists who had consented to receiving a question-
naire. While the questionnaire included both structured and open-ended questions, this
paper utilises data from the latter.
In total, 2,070 (15%) panellists answered the questionnaire. While 70% of the respon-
dents used the Omat ostot service, 20% did not use it, and 10% did not want to answer
the questionnaire. Regarding gender, 44% of the respondents were male and 56% were
female. The panellists were active customers who were interested in developing the com-
pany’s performance; thus, they did not represent the average S-Group customer.
In the open-ended questions, the respondents were asked to write their opinions and
understanding of fve topics depicted in Table 14.1.
The answers provided a rich variety of descriptions, opinions and convictions, some
of which included a lengthy discussion on the service, whereas others featured only a
Table 14.1 Topics of the open-ended questions
Describe freely what kind of thoughts you had when you saw your shopping data n = 1,703
Give free-form feedback on the features of the Omat ostot service and its usability n = 706
Give free-form feedback on how the Omat ostot service could be improved n = 404
If you want, please state any compliments you have for the developers of the service n = 283
If you want, please write feedback on this questionnaire; you can also further defne n = 93
previous answers if needed
word or a smiley face. The one-word answers and answers that included, for example,
addresses, were deleted, resulting in 1,259 answers being included in the data analysis.
The textual data were analysed using the qualitative content analysis technique as follows:
(a) the material was coded; (b) the codes were reworked iteratively several times to ensure
that all possible codes were found; (c) words, phrases and sentences that emerged from
the data were used as code units (e.g. the codes funny, big brother, unnecessary, amaze-
ment and fear were generated from the data); (d) all codes were arranged into categories;
(e) categories were examined carefully so that all the relationships between the categories
were found and potential new categories were identifed and (f ) larger themes were con-
stituted based on the categories (Eriksson and Kovalainen, 2015; Hair et al., 2016).
Findings
Analysis of the data produced six themes – entertainment, learning, refecting on buying
behaviour, easing everyday living, transparency and privacy – which refected the value
experienced by the respondents when examining their data.
The results found that 47% of the respondents mentioned things that were either posi-
tively or negatively related to entertainment, while a refection of buying behaviour was
present in 29% of the responses. Learning and privacy were both adduced in 7.4% of the
responses, and transparency was highlighted in 7.1% of the responses. Easing everyday
life was highlighted in only 2.1% of the responses, but notably, the answers in this value
refected more negative than positive associations.
Formation of value in MyData

Regarding the role of the service provider, privacy and transparency were connected to
the possibility of S-Group contributing to value creation. For example, when referring
to privacy, some respondents felt that the company was monitoring and stalking people;
thus, many did want to use MyData and the Omat ostot service. Some customers appre-
ciated how everyday life became easier when using the Omat ostot service. By contrast,
others found it too time-consuming and difcult to use.
Holbrook’s (1999) typology of customer value, which was used to analyse expressions
of value in the data, states that value is created when using a service or product, and each
customer creates value from his/her own basis and needs, resulting in some customers get-
ting more value and others getting less value. Value creation is contingent on the situation
and the relationship between diferent services. Value is essentially a subjective experience.
Three diferent dimensions of value experience emerged when using the service:
extrinsic/intrinsic, self-oriented/other-oriented and active/reactive (Gallarza et al., 2017;
Holbrook, 1999; Willems, Leroi-Werelds, and Swinnen, 2016). The extrinsic condition
is when a service is used to gain a functional or utilitarian purpose other than consump-
tion. Conversely, the intrinsic condition is when customers use the service to gain value
for themselves. When it is self-oriented, value is meant for the individual and that indi-
vidual uses it for his/her own purposes. Other-oriented value is that which stems from
a consumption situation that depends on how other people react to it or how it afects
others, such as family, friends or nature. Value is active when a customer does something,
such as drive a car, and it is reactive when value is created through, for instance, admira-
tion or reverence. A product can also create value although activity from the customer is
not required.
Group 1: beneft
Answers to the open-ended questions in our data indicated that the customers experi-
enced various positive outcomes when using the service and contemplating their data.
Thus, benefts were created. Customers actively reviewed data when seeking desirable
benefts for themselves, such as savings or healthier purchases. The benefts in the cur-
rent study were extrinsic and varied between respondents, ranging from fnancial to
nutritional, etc. The expressions of value creation were connected to easing everyday life
(positive), learning (positive) and refecting on buying behaviour (positive).
The responses indicated efciency (Gallarza et al., 2017), how life became easier when
using the service and that diferent uses for the data can be found. Planning and tracking
one’s economy are easier when there is no need to document the expenses. Therefore,
the service saves time. The utilisation of MyData involves creating apps and afordances
that are supposed to ease everyday life, such as by allowing customers to track their energy
or water consumption.
MyData allows people to learn something new from their behaviour and subsequently
conduct favourable actions (e.g. control their fnances or improve their health). Thus, by
gaining access to their consumption data, customers can move their buying habits in a
positive direction. While data are important to both companies and customers, MyData
shows that customers need to learn about and refect on their data to reap benefts from it.
When the customers noted that the service eased their everyday life, they attributed
it to the ability to track their expenses and buying behaviour. However, for some, their
days became more complicated because the data activities required extra time to sign in to
services and review the information. Importantly, the respondents who had been track-
ing their consumption in one way or another experienced easing of their everyday life.
Conversely, the respondents who had not tracked their consumption felt that the service
required too much of their time, thus the lack of efciency.
Learning often involved accumulating new facts about consumption habits (e.g. where
and how much money they spent). A common thread was that customers were unaware
of how much money they were spending. Therefore, the data were often either a positive
or a negative surprise. The presentation of their true spending caused many shocked reac-
tions, but the data helped the customers understand their consumption habits. A sample
of the responses included the following:
I was shocked by how much I buy sweets and chocolate. I hadn’t realised the amount of euros
I spent on those. I think this kind of service really opens your eyes.
(female, aged 35–44)
It was absolutely a shock that the second most money has gone to cheese after fuel. All aspects
are demonstrative of your own buying habits.
(male, aged 45–59)
However, refecting on one’s purchases via the data was described as a useful experience.
The expenditures and their content became understandable.
The experience was WOW!! Here my life is now wide open – when I go to a store, where I
shop, what I buy and how much. But all the same, I think the information I received is very
interesting and certainly thought-provoking.
One consequence of refecting on their shopping habits was the strengthened perception
of previously invisible purchasing habits. Even without obtaining any new information,
it was felt that buying behaviour can be managed, which strengthened the positivity of
the experience.
Group 2: uselessness
Several responses indicated that the users of the service failed to recognise why they
should use their data and how to beneft from the information. We labelled this value
uselessness, as it refects lack of excellence (Willems, Leroi-Werelds, and Swinnen, 2016).
In Holbrook’s (1999) typology, this type of value is self-oriented and aimed at gaining
external benefts, such as saving money. This value is considered reactive because it does
not imply any actions from the consumer.
Here, uselessness involved expressions of refecting on buying behaviour (negative),
learning (negative), entertainment (positive and negative) and easing everyday life (nega-
tive). However, at the time of the survey, the service was not yet published and the
respondents used it only to answer the survey. Therefore, the respondents may not yet
have found reasons for using the service.
Entertainment involved responses that described looking at MyData as ‘just for fun’.
When the respondents did not see a purpose for watching their data, they did not per-
ceive any aspects that would afect them, such as their buying behaviour. Exploring their
data was mostly considered fun yet pointless. For some respondents, the amount of data
ofered caused anxiety and even irritation. Some responses included the following:
Quite funny . . . maybe I should buy chocolate less frequently:).

Pretty interesting trivia.

I don’t see any purpose for this. Pure nonsense.

When reviewing one’s buying behaviour was considered negative, there was nothing to
refect on, and thus, the service was considered unnecessary. Some respondents also felt
insulted about the insinuation that they needed help with their memory and understand-
ing of past purchases.
I know what I have bought, and I don’t need any services for this.
I feel that such detailed information is unnecessary, and I don’t understand how I could use it.
I have budgeted my expenses and have kept track of my purchases for decades, so I know what
I am spending my money on.
The respondents who considered learning negative connected it to a lack of need or rea-
son. In these cases, the respondents reacted extremely negatively to the service:
Completely unnecessary and indiferent service that ofcers who regulate consumers and Data
Protection have already been forbidden [from using].
I don’t see any reasons why I would need information about my own purchases. It wouldn’t
guide me to make certain types of purchases.
Uselessness was connected to negative meanings regarding easing everyday life, which
became more complicated and difcult when using this service. This was justifed because
signing into a new system requires remembering a new username and time to look at the
data. Some complaints were as follows:
Nobody bothers or has time to see their MyData constantly?????

Quite pointless to be straight. Just a waste of time.

Group 3: privacy
The responses conveyed several worries related to privacy, such as feelings of being moni-
tored and spied on by organisations. The concern that a third party is monitoring cus-
tomers’ shopping raised the respondents’ concerns that service providers are invading
people’s private lives. Privacy was also associated with worries about information secu-
rity. Customers’ information could end up with an unintended party; thus, others could
review the data without permission. Privacy value is similar to aesthetics (Gallarza et al.,
2017). Connected to Holbrook’s (1999) model, the privacy of data is a self-related and
intrinsic value, especially when consumers feel that their privacy has been violated. It was
also reactive because the respondents did not want to give out such information.
The fear of losing their privacy stirred strong feelings of irritation, distress and fright. It
was interesting when the respondents realised that, regardless of their wishes, the organ-
isation was collecting information about its customers, and the Omat ostot service is
not the only service that collects and analyses MyData. Some respondents’ comments
included the following:
Big brother is watching. Everything seems to be known frighteningly accurately.

It is completely unnecessary, and it outrageously insults privacy if there is any more.

The information is endangering privacy if it’s available for others, such as from an error in infor-
mation technology, data theft or due to some other situation.
Privacy was considered important, and the threat of losing privacy created negative feel-
ings. There were also suspicions about opportunism. The Omat ostot service is useful
for S-Group; thus, they tried to sell data collection as acceptable in the eyes of custom-
ers. The control of privacy translated to an unwillingness to let others see the customers’
shopping data and the customers not wanting to look at the data themselves.
Group 4: transparency
In our study context, transparency is other-oriented, that is, created when customers
have an experience through others, such as seeing what family members have bought.
Transparency is active because customers must sign in to the service to see the data. It is
also intrinsic because customers do not consider benefts, such as savings, but instead seek
the feeling of transparency. In line with these characteristics, transparency as value refects
ethics (Gallarza et al., 2017).
Transparency can be either positive or negative. When transparency was considered
positive, it was seen as fair to return the data to customers. Given that the company was
collecting the data anyway, sharing the data with customers was seen as a benevolent act
of transparency. Customers want both companies and the data to be transparent. Some
customers even wanted as much data as possible to use for themselves. Transparency had
a negative value for customers when it was connected with troublesome situations, such
as when all family members could see the information that was collected. Transparency
can be uncomfortable for people who presume that no one else knows what they have
bought. Some relevant comments included the following:
Of course, S-Group uses the service for their own company, but it is great that the shopping
information is also available to consumers. As long as the consumer data is not spread out to
outsiders.
It is fair that I can look at my own shopping when the statistics are compiled anyway, such as
for marketing.
During the survey, data were collected from the Omat ostot service via S-cards but not
from collateral family member card owners. In the responses, transparency was consid-
ered from this perspective, but there were contradictory goals among the respondents.
The service was sometimes considered useful and sometimes not when the entire house-
hold’s information was given. The latter opinion was connected with controlling their
data and preventing other family members from seeing it. Some respondents even wanted
to delete the data. In these cases, transparency was a debilitating factor and included the
potential for conficts and discord, which could lead to avoiding authentication or keep-
ing the data secret if possible.
Conclusion and discussion

This chapter introduced the customers’ perspective of MyData that was collected in
grocery stores to illustrate their shopping behaviour. Until now, how data serve cus-
tomers’ interests has been poorly understood. The fndings gathered several insights
into the value of these data and raised important questions that must be answered when
customer data are collected and published for customer use. More broadly, this is a case
of how technology can be designed to serve customers and how customers experience
the value of it.
Customer value of MyData is created interactively when customers use the data. The
service provider facilitates this value creation, but customers subjectively contemplate
the data. Value created is relative, that is, diferent customers form diferent subjective
value experiences such as benefts, uselessness, privacy and transparency. These experi-
ences imply underlying value types efciency, excellence, aesthetics and ethics (Gallarza
et al., 2017). Importantly, customer value of MyData also refects preferences, as strong
feelings and opinions were expressed when contemplating the data. Consequently,
value experiences can indicate behavioural intentions. This study can help identify a
strategy for the development of data services that facilitate positive value experiences
for customers.
This study has a number of limitations. We utilised data collected in the pilot phase
of launching the Omat ostot service. Therefore, the customers who participated in the
study had only limited experience of using the data in their everyday lives. Future studies
could examine the evolving value experiences after customers have accumulated experi-
ences of MyData.

• Customers’ use of MyData allows creation of subjective experiential value.
• Value is idiosyncratic to each customer, and it can be positive (empowering) for
consumers, while it can also be negative (value destruction) and reduce customers’
well-being.
• Future research should explore the behavioural consequences of MyData services.
For example, how does the incorporation of the local ingredients or the carbon
footprint afect data value and purchasing behaviour?
• Further research could examine how service providers utilise the customer data. Is
there any added value that can be utilised in sales promotion or when designing
selections of, for example, environmentally friendly products?
• This study did not address the usability and the physical and aesthetic aspects of
the system; future studies could examine how the MyData service system design
infuences customer value.
Disclaimer
The research presented in this chapter was collected for my University of Jyväskylä Mas-
ter’s thesis ‘On reilua, että voin itsekin katsoa ostoksiani’ – Arvon muodostuminen omadatan kon-
tekstissa (2018). The copyright for this JYU thesis belongs to Heidi Haapio as the Author.
Research presented here has not been otherwise previously published.
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Section 5
The future for digital

marketing communications
and conclusions
15 Future look
Communicating with customers using
digital channels
Outi Niininen, Stephen Singaraju, Heikki Karjaluoto,
Chiara Valentini and Markus Muhonen
Introduction
When predicting the future, especially in Digital Marketing (DM), for customer–frm
communication platforms, the only given is that there will be constant change. Although
we believe that many of the old models/theories of marketing and communication will
still be valid and used to understand the future of DM, it is clear that we will also see the
rise of new models and theories for better mapping and understanding of the customer
in the digital era. For this academic research chapter on anticipating key DM trends, we
are fortunate to have the opinions of some of the world’s leading researchers as well as
practising DM and Social Media (SM) Manager to highlight trends emerging from the
literature and account management practice.
This chapter frstly explores the future of automation, Artifcial Intelligence (AI) and
chatbots and their potential impact on customer–company communication. This is fol-
lowed by a discussion of the future roles that infuencers may have as well as the emerging
negative aspects of DM Communication. This chapter concludes with a review of the
impact that blockchain technology can have on DM and business in general.
AI and automation
As discussed in previous chapters, AI and automation are current buzzwords that are used
regarding the future of DM. Although AI has existed for decades, we believe that it is
still in its infancy regarding its potential. In the future, AI will replace many increasingly
complicated tasks in the digital landscape, from telephone sales to a more profound role in
customer communications, such as personalising communications and recommendations
for customers. Automation, in turn, will signifcantly afect how marketing communica-
tions are conducted. Marketing automation, when combined with AI, will lead to more
completely automated digital communication. Everything from automated email news-
letters to automated chatbots is becoming wiser each year and will presumably replace
humans in the future.
AI is already an integral part of targeting digital advertising. Ad platforms, such as Face-
book and Google, are giving advertisers more options to use AI to fnd the most potential
customers. At the same time, those platforms are ofering fewer manual options for ad
targeting. However, AI requires data to function. The more money that is invested in ads,
the more data that are collected, which leads to better AI ad targeting. The same theory
applies to any other AI application: the more data, the better it works. In the context of
marketing, the amount of data gathered correlates with the number of people interacting
DOI: 10.4324/9781003093909-20
166 Outi Niininen et al.
with DM. Advertisers with big budgets will be able to drive more trafc to their websites;
thus, they will beneft more from AI than companies with lower budgets. This raises a
question regarding equality: does AI create an unfair advantage for bigger businesses?
Chatbots
What are chatbots? They are simply computer programmes that are expected to imitate
human conversation, typically on a website, an SM platform (such as messenger) or
a mobile app. The form of conversation to date has mostly been text, but it can also
include speech (such as Amazon’s Alexa). Chatbots are most commonly used to either
help potential or existing customers on a website or SM platform complete their task
or to ofer customer service in general. Ultimately, the main goal of the chatbot is to
drive sales.
Real-time communication via chatbots will continue to grow exponentially, and some
would even argue that it is a glorious march. Increasing numbers of businesses have
installed chatbots on their websites to assist and guide website visitors in their searches.
Chatbots also encourage customers towards a Call to Action, such as making a purchase
or downloading content. The challenge with many chatbots to date has been that, even
though they all use AI, few are helping the website visitor. We hope and believe that, in
the coming years, chatbots will become wiser and thus add value for the website visitor.
Chatbots emerged in 2014 and have become one of the fastest growing digital oppor-
tunities concerning frm–customer communication online. On the positive side, chatbots
never sleep and can guide us 24/7. The most advanced bots also work well without
any human intervention. Thus, replacing some human customer service operators with
automated chatbots can ofer organisations savings as well as 24/7 fexibility. In addition,
chatbots are excellent market researchers because they constantly collect data from their
interactions with customers. Analysis of the data collected by chatbots can reveal many
important issues, such as what slows customers in the purchasing process; at what pur-
chasing stages customers end the conversation and leave the website (e.g. the chatbot is
not working well) and issues related to customers’ levels of engagement and satisfaction.
However, scientifc research on chatbots is still in its infancy. Recent research has
revealed that consumers are frustrated with chatbots’ poor functionality (Adam, Wessel,
and Benlian, 2020; Shumanov and Johnson, 2020). In another recent study of 205 Ger-
man respondents, perceived usefulness and perceived enjoyment were the key drivers of
consumers’ acceptance and use of chatbots (Rese, Ganster, and Baier, 2020). By contrast,
consumers have concerns regarding privacy and the immaturity of the technology.
What chatbots should and should not do depends on the context. For example, a chat-
bot could be programmed to recommend relevant content after a website visitor has read
80% of an article or to propose a time for an instructional phone call after a consumer has
downloaded demo software.
Authentic content and Infuencer Marketing

In addition to AI and automation, we will defnitely see Infuencer Marketing fourishing
in the future. The shift from large-scale infuencers to micro-infuencers is something we
believe will happen because younger DM audiences follow infuencers, watch them on
YouTube and make decisions based on infuencer recommendations. In essence, there are
three key groups involved with User-Generated Content (UGC): people who consume/
Future for digital marketing communication 167
interact with the content, organisations participating with UGC and those who create
the content.
Consumers view many SM platforms as an opportunity to share their achievements
and experiences as well as to connect with other consumers; we also consume online/
SM content for entertainment or as a source of information. UGC particularly engages
consumers on YouTube and Instagram. Hence, it is also crucial to understand that DM
communication in the future will be video-driven. Understanding younger audiences is
key to determining why video is much more important than text (Carpenter Childers,
Lemon, and Hoy, 2019). Initially, the emergence of UGC was welcomed as a sign of
empowering consumers to engage in active participation that could shape future products
and services.
Social Media Infuencers (SMIs) are a specifc UGC category of people who have
amassed a following by sharing snippets from their everyday lives. SMIs may or may not
collaborate with brands for a fee. In essence, SMIs are ‘leveraging their social and cul-
tural capital on SM to shape the opinions and purchasing patterns of others’ (Wellman
et al., 2020, p. 68 as cited in Asquith and Fraser, 2020, p. 5730). The greatest challenge
for SMIs is to balance trustworthiness, authenticity and credibility when sharing snippets
of their lives (or collaborating with brands) whilst increasing their SM following with
the help of technology, such as platform analytics (audience management is an essential
criterion for attracting paid collaborations). SM platforms can further muddle the UGC
feld by prioritising posts that gain high engagement levels (i.e. simply being a nice per-
son is not enough to get your post displayed beyond personal followers) (van Driel and
Dumitrica, 2020).
By contrast, marketers view these same platforms as an intermediary between adver-
tisers and consumers and as an opportunity to harness the power of positive Word-of-
Mouth (WOM), extend the reach and build credibility (Carpenter Childers, Lemon,
and Hoy, 2019; Hollebeek and Macky, 2019; Schouten, Janssen, and Verspaget, 2020).
Brands are seeking favourable connections with current and potential clients to foster
online engagement and disseminate positive, branded communication to breach con-
sumer scepticism towards traditional advertising (Carpenter Childers, Lemon, and Hoy,
2019; Hollebeek and Macky, 2019).
Infuencer Marketing is also an opportunity for organisations to combat ‘banner blind-
ness’ and ad blocking: rather than interrupting consumers’ entertainment online, brands
now seek to become part of this same entertaining content (Asquith and Fraser, 2020).
Infuencer-created content is viewed as more direct contact with consumers with greater
organic/authentic tones. Furthermore, infuencers with established expertise within their
own network are viewed as a credible, efective source of information, for example,
for product recommendations (Lou and Yuan, 2019; Schouten, Janssen, and Verspaget,
2020). Ideally, SMIs ‘provide an authentic voice on behalf of brands that show real people
using real products in real time’ (Carpenter Childers, Lemon, and Hoy, 2019, p. 265).
SMIs are increasingly striving for a highly professional content and active use of analyt-
ics. Forbes magazine declared SMIs ‘new brands’, and Adweek called infuencers ‘the next
big thing’ in 2015 (van Driel and Dumitrica, 2020, p. 2). Some argue that highly success-
ful SMIs are self-professionalising their content for future advertising revenue, resulting
in the institutionalisation of, for example, a YouTube celebrity (Asquith and Fraser, 2020;
van Driel and Dumitrica, 2020).
Currently, Infuencer Marketing is at a crossroads: private citizens have amassed sub-
stantial online followings simply by sharing content from their own lives or through
their expertise. This content can satisfy both the entertainment and information needs
of their audiences, and it is signifcant that this interaction was originally built on non-
commercial values. Simultaneously, whilst traditional advertisers are looking for ways to
have a greater impact on their audiences, DM frms are forced to deal with ad-blocking
technology, consumers hiding behind fake profles or location distorting Virtual Private
Networks (VPNs). It is no surprise that IM is being embraced (it has grown exponentially
as a business) as organisations can gain a signifcant return on investment when matching
successful infuencers with their products (Carpenter Childers, Lemon, and Hoy, 2019;
Lou and Yuan, 2019; Schouten, Janssen, and Verspaget, 2020).
Infuencers are also at crossroads: through collaborations with brands, infuencers can
potentially achieve fnancial rewards, increase their following and even achieve greater
credibility with carefully selected commercial collaborations. However, the risk of los-
ing content authenticity and alienating their core followers is also there if ‘authenticity
becomes carefully choreographed’, strategic self-presentation (van Driel and Dumitrica,
2020, p. 4) (i.e. when intrinsically motivated posts become planned/curated content that
resembles traditional advertising).
Infuencer Marketing is a fast-developing and fast-growing feld. Although Infuencer
Marketing is regulated in most developed countries, and paid collaborations must be
clearly identifed (Asquith and Fraser, 2020; Carpenter Childers, Lemon, and Hoy, 2019),
regulatory bodies need to be able to adjust to new platforms/types of infuencer content
quickly. The ‘commercialisation’ of UGC is an interesting trend to analyse in the long
term because organisations are now striving to achieve authentic, non-paid participation
on SM platforms. As with many emerging research avenues, fndings from the efective-
ness of Infuencer Marketing can be contradictory. Critical success factors are infuencer
credibility (including source expertise, trustworthiness and perceived personal similari-
ties/attractiveness between audience and infuencer), perceived trust and brand awareness
(Lou and Yuan, 2019).
The dark side of digital marketing and communication

The technological progress we are experiencing is driven by the incessant objective of
facilitating, improving and advancing human interactions, including practical life-situation
aspects as well as work-related tasks. The purposes behind technological advances and
their use in DM are, after all, meant to facilitate routine and, in the future, even more
specialised business activities. Yet, technological advancements, such as those driven by AI
technologies, can pose many challenges of an ethical, normative and even legal nature for
digital marketers and communicators. Thus, there is a dark side to the development and
use of these technologies for marketing and communication purposes.
In the following sections, we elaborate on three main dark aspects related to DM practices
and the use of digital technologies that have emerged in public and academic discussions
during the past few years: free digital labour, data surveillance and the rise of deepfakes. We
believe these aspects will become even more compelling in the years to come.
Free digital labour

A critical aspect related to increasing consumer engagement via DM activities is related
to the phenomenon of digital labour. Paradoxically, one of the main objectives of DM
and communication activities is to increase consumer and customer experiences across
diferent touchpoints and actively engage them to co-create value for the brand and/or
organisations. Often, this means relinquishing some organisational power to consumers
and allowing them to customise and engage in many activities that can create value for
the brand.
This type of engagement is typically unpaid, voluntary and at times rewarded with
contests or sweepstakes, where small prizes are awarded for promotional purposes. Even
in the latter situations, the economic benefts of participation do not match the economic
value that organisations obtain from consumer participation. Media sociologist Fuchs
(2014) argued that many DM and communication activities aim at promoting digital
labour, in which ‘digital publics either consciously or unconsciously become instruments
of economic power’ (Lovari and Valentini, 2020, p. 323). The surplus value generated
from consumers’ digital participation can be seen in all three value-chain moments of
consumption, production and marketing, with the latter taking on an important aspect
of the promotional activities of an organisation in the form of brand endorsement, shar-
ing and resharing product and brand-related content with fellow consumers and friends.
While most of this surplus value is freely ofered, savvy consumers may soon realise
that their digital engagement and participation in a marketing setting produce economic
and reputation capital for organisations. They may start posing questions on the nature of
DM and communication initiatives or challenging established practices related to Infu-
encer Marketing. If any kind of digital labour that results from consumer participation in
the value-chain process is to be monetised, what will it happen to Infuencer Marketing?
Data surveillance
One of the most controversial aspects of digital technology use for marketing and com-
munication purposes is utilising data collected through consumer–organisation interac-
tions, such as via chatbots, and consumers’ online behaviours on organisational websites,
ofcial SM accounts, etc. Every time a consumer interacts with an organisation, brand
or specifc online content, a ‘footprint’ of this interaction is saved and registered. These
data are, indeed, an important resource for digital marketers and communicators, who
can then better understand and target their consumers with further digital content and
enticing ofers. While this practice is widely spread across industries and organisational
types and sizes (Valentini, 2018), it has increased attention towards Data Surveillance – a
specifc form of targeted monitoring of our online behaviours, which often occurs with-
out our knowledge. Han (2015) underlines this paradox when stating that while Web 2.0
and in general digital media have increased the transparency of what is going on around
the world and in organisations, they have also created more control and can produce a
‘digital panopticon’ (i.e. a central place from which everyone can be observed and con-
trolled everywhere and by anyone).
This dark side of data collection, which has been a panacea for many years in DM
research and consumer behaviour understanding, poses several problems in terms of who
owns the data, who can use it and for what purposes.
In recent years, privacy and data security matters have emerged as hot topics among
citizens, legislators and organisations. At the European level, this phenomenon has been
addressed through several regulations limiting the rights of collecting and using data from
consumers without their consent. The 2017 European General Data Protection Regula-
tion (GDPR) is today one of the most advanced regulations in the world for supervising
this specifc aspect. This regulation has already impacted the data collection practices
of many companies worldwide because the protection applies to data collected on EU
citizens, whether it is processed in or outside European countries (Valentini, 2017). How-
ever, new forms of data collection and monitoring are and will occur that can bypass legal
requirements, leaving ethical concerns for future digital consumers.
The rise of deepfakes

The third challenge for digital marketers and communicators is related to the phenom-
enon of deepfakes – the spread of hyper-realistic digital content in the form of manipu-
lated videos and audio content that looks authentic but is fake.
The advancement of digital technologies and AI is already showing some negative
efects regarding how these technologies have been used to distort social reality and pro-
mote media forgeries. AI-based technologies can alter videos and images by replacing
them with someone else’s likeness, resulting in the appearance that someone has said or
done something that they have not (Westerlund, 2019). This phenomenon has been par-
ticularly evident in the area of politics, with high-level politicians, presidents and prime
ministers being shown in manipulated situations that were false. Because of the digital
nature of this content, deepfake videos and images can quickly and widely spread online,
causing problems worldwide for the person and/or organisation that they represent.
However, the deepfake phenomenon is also afecting the business community in many
ways, such as by featuring synthesised talking heads of CEOs or prominent corporate
personalities saying or doing things that they have never done. According to Wired (Simo-
nite, 2020, July 7 – see Further reading), start-ups are now crafting AI technology that
can generate video and images that can pass as substitutes for conventional corporate
footage or marketing photos. The dark side of this practice is that concepts like authen-
ticity, trustworthiness and credibility lose meaning when consumers discover that there
are deepfakes behind the content. Additionally, this practice could be hijacked by trolls
and anti-company groups and used to undermine the credibility of an organisation or its
representatives. However, blockchain technology could help alleviate trust concerns in
the future.
Implications of blockchain technology on marketing practices

Breakthrough technological advances, particularly the types that have far-reaching efects
on the economy, society and institutions, have previously transformed the practice of
marketing. For example, the Internet permanently changed the way marketers com-
municate with their target audience, where marketers now appreciate the notion that
information consumption is more of a two-way dialogue than a one-way communication
process. Hence, blockchain technology will signifcantly transform marketing practice
and society as a whole in ways that would be difcult to envisage today.
Like the Internet, blockchain technology promises to not only disrupt marketing prac-
tices but to signifcantly transform the way in which marketing is applied as a business
discipline and to society as a whole (Gleim and Stevens, 2021). Blockchain is a founda-
tional technology positioned to create new foundations for economic and social systems
(Iansiti and Lakhani, 2017). It is particularly well placed to address one key limitation
of the current Internet infrastructure: trust (Ghose, 2018). Blockchain provides the trust
protocol, which is currently missing from the Internet protocol that forms the rules of
Internet communications.
The current architecture of the Internet is not designed to protect consumer pri-
vacy. Blockchain addresses this issue by giving consumers total control of their personal
data; consumers transacting via a blockchain-enabled Internet infrastructure are assured
anonymity because their identities are prevented from being monetised by third parties
(Zheng et al., 2018). Blockchain ensures anonymity through pseudonymity, which allows
users to continue conducting their transactions anonymously while providing their proof
of identity on the Internet Protocol level (Iansiti and Lakhani, 2017). Trust assurances in
the current, predominantly non-blockchain-based Internet infrastructure are governed
by information intermediaries (including dominant centralised server-based technology
platforms, such as Visa, PayPal, Amazon, eBay, Google and Facebook), which are known
as Trusted Third Parties (TTPs). These parties are privy to consumer transaction data
on the Internet. The fundamental faw with this model is that TTPs are able to claim
ownership and monetise consumers’ personal data without the consent of the very con-
sumers who generate these data, given that the TTPs are actually the owners of these
data because consumers are registered on their centralised server-based platforms (Gleim
and Stevens, 2021). Although consumers have become accustomed to this phenomenon
when they register for an account with these TTPs to communicate and transact via the
Internet, in principle, consumers do not own the personal data they produce, and this is
simply unreasonable.
Through the pseudonymity feature ofered by blockchain technology, consumers can
cryptographically store their data in a digitally encrypted secured wallet or smartphone
and present their proof of identity on the Internet Protocol level as a way to remain
anonymous to any other third party. In other words, consumer data are shared only on a
need-to-know basis (Ertemel, 2018). This presents a fundamental transformation in that
data ownership and control shifts from third parties, such as Google and Facebook, to its
rightful owners: consumers. This concept, which is known as Self-Sovereign-Identity,
directly contrasts the centralised identity paradigm upon which the current Internet
protocol is based (Naik and Jenkins, 2020). In instances where a third party needs to
know whether a customer is at a legitimate age to use their product, only that informa-
tion needs to be confrmed (i.e. a yes/no response); other data, such as age and date of
birth, will remain undisclosed for the purpose of that transaction (Ertemel, 2018). In this
regard, blockchain has the potential to fundamentally disrupt entire industries, including
established frms in the fnancial services industries, such as Visa and Mastercard; central-
ised server-based platform providers, such as Google and Facebook and sharing economy
platform providers, such as Uber and Airbnb (Gleim and Stevens, 2021; Mattioli, 2020;
Marr, 2018 – see Further reading).
Blockchain promises to fundamentally reshape the Internet by being the missing and
long overdue trust-layer of the current Internet Protocol architecture. Trust is integrated
into the protocol using cryptographic technology such that not only information but
also value (e.g. tangible or intangible assets, such as patents, property rights, owner-
ship records, and money) can be transferred via the Internet. The key contribution
of blockchain technology to the current Internet infrastructure is its ability to enable
decentralised trustless transactions by removing all the middlemen (TTPs) via crypto-
graphically secured peer-to-peer distributed immutable ledgers, which makes the TTPs’
role between frms and customers efectively redundant (Ertemel, 2018). This phenom-
enon (the disintermediation and decentralisation of the Internet) paves the way for a
fundamental shift in the way marketing theory and practice will be applied in the next
decade (Cui et al., 2021).
Swan (2015) chronicles the evolution of blockchain technology in three distinct phases.
Blockchain 1.0 (Ertemel, 2018) refers to currency transfer over the blockchain network.
Cryptocurrencies, such as Bitcoin, Ethereum and Ripple, are some of the most success-
ful applications of Blockchain 1.0. Blockchain 2.0 pertains to Smart Contracts, which
is essentially a programming logic embedded in cryptographically secured blocks in a
blockchain. Its function is to automatically insert the terms and conditions of an agree-
ment, programming trust and transparency into business transactions (Peters and Panayi,
2016; Ertemel, 2018). As a result, complex transactions involving several parties can be
executed without the need for intermediaries. There are numerous areas of application
for smart contracts, including supply chain integration, smart properties (blockchain-
enhanced IoT), mortgages, titles, etc., where business process logics can be embedded for
automation of the business processes that underpin business transactions. Smart contracts
unfold and self-execute as events occur and hence coordinate and settle all the possibilities
that can occur in a supply chain. In this regard, blockchains signifcantly shift transac-
tion costs between upstream and downstream partners within a supply chain (Cui et al.,
2021). For example, when one party in a business transaction does not deliver the product
as declared, the payment of the other party is automatically rolled back. Blockchain 3.0
refers to digital applications beyond fnance and markets. Blockchain 3.0 application areas
include scaling blockchain applications on the Internet for transactions involving but lim-
ited to government, smart cities, health records, education and science (Ertemel, 2018).
In marketing, the implications of blockchain technology are expected to be far reach-
ing, penetrating the very fabric of marketing strategy, tactics and operations. For example,
blockchain technology provides a solution to the problem of fake identities (deepfakes)
on the Internet through encryption via its underlying cryptographic technologies, spe-
cifcally by applying pseudonymity, which reveals the proof of identity of all interacting
parties, such as the frm and the consumer, at the Internet protocol level (Iansiti and
Lakhani, 2017). This allows for verifcation and authentication of the credibility of each
party in a transaction, thereby restoring trust between the transacting parties.
In managing supply chains, blockchain distributed ledgers serve as an agreed-upon
reality (e.g. proof of work and a form of consensus mechanism) via a Secure Hash-
ing Algorithm among non-trusted parties (Shahzad and Crowcroft, 2019; Zheng et al.,
2018). In this regard, transparent and real-time monitoring of assets eliminates any uncer-
tainties. In brand management, brand promises are verifed and authenticated by provid-
ing full visibility and traceability of supply chain activities from the source to the point
of consumption. For example, the ingredients of a product could be irrefutably traced
throughout its supply chain to verify the organic claims, as stated on product packages,
when developing sustainable business practices (Gleim and Stevens, 2021). To ensure
the authenticity of brand labels, blockchain provides brand protection from the threat of
counterfeits (Ertemel, 2018). Other measures that promote consumer trust for a brand
include their ability to gauge brand performances based on information available to con-
sumers via the blockchain on measures like customer complaint rates, customer satisfac-
tion score, product defect rates and on-time delivery rates (Iansiti and Lakhani, 2017).
In the online advertising domain, blockchain technologies are expected to allow con-
sumers to have authenticated and verifed profles on the blockchain network through
their pseudonymity, which will enable users to opt-in to viewing ads rather than being
compelled to do so and ofer fnancial rewards for interacting with ads of their choice
(Gleim and Stevens, 2021). This will liberate advertising revenue from the monopolis-
tic grip of the major centralised server-based platform providers, such as Google and
Facebook. Brave is an example of a blockchain-based browser that is built with ‘consumer
privacy’ in mind; only blockchain-based advertising is integrated as part of the consumer
Internet experience. The underlying premise of Brave is that users will own the rights to
their data and share in the profts of the frms that are advertising to them (Brave, 2019
– see Further reading). Although the concept underpinning the Brave browser is not
entirely beholden to the principles of blockchain, it nevertheless provides a glimpse into
the world of advertising in a blockchain-enabled Internet experience (Cui et al., 2021).
It is important to recognise that blockchain as a technology for business and marketing
is only in its embryonic stages of development. While blockchain provides promise as
a solution to consumer trust in frms and in markets generally, it also creates new chal-
lenges and opportunities that marketers will need to confront and address as we move
further into the unknowns presented by blockchain technologies. However, it is clear that
marketers will increasingly contend with an online business landscape where consumers
will have a transparent overview of how their data are attributed value and which brands
might be willing to engage in an exchange with them for these data to create value
propositions for more equitable business transactions.
Conclusions
In conclusion, the key changes we foresee changing the DM landscape are as follows:
the future of DM Communication will see greater automation (e.g. AI-enabled chatbot
technology) that aims to create a better customer experience with true 24/7 access, and
with improvements in Natural Language Processing (NLP), future chatbots will be able
to provide expert customer service with ‘standardised politeness’ and without breaks.
The introduction of SM has changed the balance of cyberspace control, with con-
sumers and organisations now co-existing on digital platforms. Consumers are creating
content not only for other consumers but also for brands and organisations (UGC). The
most successful individuals sharing content online have become infuencers whose mes-
sages impact buying behaviour worldwide (we predict that particularly video content will
have a notable impact in shaping future consumption patterns). However, these powerful
infuencers have used business-like analytics to shape their content to attract an audience
and form (paid) business collaborations. To maintain their authentic appeal, infuenc-
ers must fnd a balance between being a paid collaborator and simply another online
consumer.
Unfortunately, the blending of branded communication and UGC has also introduced
negative aspects to digital communication: free digital labour is a potential outcome of
individuals engaging with brands online when data surveillance harvests customer infor-
mation from our online interactions. The GDPR and other recently introduced national
privacy codes aim to empower consumers to take some control of their gathered data.
Unfortunately, until we reach the full implementation of blockchain technology with
cryptographically stored personal identifying data, consumers will not be in full control
of how their data are utilised.
Blockchain technology will also bring new levels of trustworthiness to online interac-
tions through cryptographically secured peer-to-peer distributed immutable ledgers. This
technology can eradicate deepfakes and bring full traceability to supply chains, from raw
materials to fnal consumption, and eliminate counterfeits. Blockchain will also revolu-
tionise online advertising technology: in the future, consumers can choose which adver-
tisements to view and even be fnancially rewarded for doing so.
Future research
• Once AI-empowered chatbots can better imitate human communication, how
should consumer trust (of chatbot-powered online communication) be managed?
• Critical research into the balancing of authenticity and self-branding activities of
SMIs is required. Such studies should compare the views of advertising executives,
SMIs and academic researchers.
• DM and SM can also introduce negative tones of communication to online inter-
actions. How can such negative implications be minimised?
• With consumers confused by blockchain as a concept, how can this new technol-
ogy be harnessed to create trust in the online environment?
Further reading
Brave. (2019). ‘Brave software and TAP network put blockchain to work with new partnership’. Press
Release, February 26. Available at: https://brave.com/brave-tap-Blockchain/
Marr, B. (2018). Why Blockchain Could Kill Uber. Available at: www.forbes.com/sites/bernardmarr/
2018/02/09/whyblockchain-could-kill-uber/ (accessed 6 March 2021).
Mattioli, D. (2020). Amazon Scooped Up Data from Its Own Sellers to Launch Competing Products. Available
at: www.wsj.com/articles/amazon-scooped-up-data-from-its-own-sellers-to-launch-competing-
products11587650015 (accessed 6 March 2021).
Simonite, T. (2020, July 7). ‘Deepfakes are becoming the hot new corporate training too’. Wired/Busi-
ness. Available at: www.wired.com/story/covid-drives-real-businesses-deepfake-technology/
(accessed 16 December 2020).
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16 Conclusions
Outi Niininen
The fve sections of this book covered some key trends evident in the Digital Marketing
(DM) and Communication feld: Data analytics and measurement, Digital trans-
formation and innovations in marketing, Customer experience and (the merging
of digital and physical) servicescapes, Ethics and privacy in digital marketing, and
Future for digital marketing communications and Conclusions relevant to DM.
In Section 1, Chapter 2 highlighted several challenges emerging from Big Data and
the IoT. This chapter addressed these trends across the full 8Ps of the Marketing Mix
structure – Product, Price, Place, Promotion, Process, Physical evidence, Partnerships and
People – to highlight how pervasive these new digital technologies are for the business
of marketing. The volume of unstructured data for marketing decision-making support
has never been this high; notably, we are not yet able to address the volume (too much),
velocity (faster arrival) and variety (diversity) of characteristics of such data (an extensive
description of the ‘V’ characteristics of Big Data can be found in Hussein [2020]). AI
and NLP applications are already assisting managers in decision-making in stable business
environments. While AI-assisted strategic decision-making is also an emerging trend,
any innovative decision-making is best left to human minds (i.e. AI should be used to
augment decision-making and not to replace human strategy formulation and human
responses to unanticipated events).
The Big Data analytics is likely to expand beyond an object’s sphere to include talent
analytics, which aims to assist individuals in achieving their peak performance. This will
extend the debate of privacy, Big Data and AI to the Human Resources (HR) feld. In
general, HR is not within the focus of this book, but it must be recognised that the future
skills required for DM decision-making can be vastly diferent from what is expected of
today’s Marketing Managers.
The volume of data gathered regarding target audiences’ online behaviour is vast; our
digital footprints reach across the business use of online applications to entertainment
and socialising via digital applications. The EU acknowledges that, at times, the data
harvested from individuals do more than simply aim to ofer better services to customers;
such data can potentially be used to build extensive customer profles, which could then
be used for targeted advertisements. The General Data Protection Regulation (GDPR) is
designed to address the harvesting and packaging of personal data (processing) for com-
mercial purposes without explicit permission from the individual. However, the GDPR
has far-reaching implications for DM in general because any data that can be used to
identify a natural person (European citizen) is guided by this regulation, and organisations
dealing with such data must take extra steps to ensure that the data collected are (a) accu-
rate, (b) protected from unauthorised access and transfer outside the EU region and
DOI: 10.4324/9781003093909-21
Conclusions 177
(c) not used for automated profling, which could be detrimental to the individual (see
Further reading: Article 22 of the GDPR). Today’s DM organisations must carefully plan
how personal data are handled within their own processes and shared with partner organ-
isations. The IoT will present interesting questions in this regard (e.g. voice-controlled
devices that can be used to streamline our daily tasks and complete routine transactions
can leave a record of highly personal data because one’s voice is an identifable character-
istic). However, the privacy vs. marketing data challenge has already been acknowledged
by ‘Big Tech’ companies. For example, Google is drafting guidelines for responsible AI
uses that include liability considerations (Goul, Sidorova, and Saltz, 2020), and Apple
appears to be positioning itself as the privacy champion of smartphones.
As is evident in Chapter 3 data-driven (marketing) decision-making processes ofer
organisations unprecedented opportunities to refne their management and strategies
across all organisational functions. The organisational culture refers to all the values and
norms shared within the organisation; thus, it is no surprise that cultural barriers also
infuence data-driven decision-making. Specifcally, the interviewees noted the lack of
common language and ‘silo-thinking’ as a hindrance to data distribution. Proactive data-
sharing practices and encouragement for professional personal development were viewed
as a positive development towards constructive marketing analytics utilisation. Rigid
structural barriers were also identifed as a barrier to fuid data utilisation. Finally, mana-
gerial barriers were cited as an obstacle for the implementation of data-driven processes,
especially when the top management was not familiar with either the data or the analytics
applications. Therefore, a shift in the overall organisational culture is needed to fully uti-
lise these opportunities. For example, marketing analytics and data are not only benefcial
for the marketing department but should be utilised for the competitive advantage of the
entire organisation. Consistent, long-term change initiatives are required from top man-
agement to fnd the balance between overall business opportunities ofered by marketing
analytics and potential data fatigue.
The conclusions from Chapter 4 highlighted several advantages of Programmatic
Advertising, such as sophisticated and granular audience segmentation based on holistic
online audience profles. Granular audience segmentation relies on layers of audience
attributes, such as demographics, location, interests and online behaviour, which enable
lookalike audience targeting. Programmatic Advertising also reduces ad impression dupli-
cation across channels/devices and enables a more holistic evaluation of a campaign’s
success.
However, Programmatic Advertising has some challenges, such as platform and data
fees (the more layers applied to audience targeting, the greater the cost), the audience
buying concept is difcult to appreciate and, at times, it is easy to construe the system as
inefcient. Furthermore, the limits of specifc sizes and formats for banner ad inventories
can also limit Programmatic Advertising. Owners of premium ad placements with high
reach and viewability are reluctant to sell such impressions via programmatic channels.
Regional fragmentation of ad inventories can also limit the efective use of Programmatic
Advertising. Finally, Programmatic Advertising is highly technical in nature, and further
research, especially into Programmatic Creative, is required for a holistic understanding
of this topic.
Section 2 comprised three chapters. Chapter 5 explored the role that Consumer Brand
Experience plays when consumers interact with company web pages. This chapter iden-
tifed the central role that a website’s appearance has in evoking Consumer Brand Expe-
rience, which can, in turn, result in brand trust, electronic Word-of-Mouth (eWOM)
178 Outi Niininen
and favourable behavioural intentions. The fndings from this study elevated the website’s
aesthetic design features to a new level of importance.
Chapter 6 concluded that UX studies are valuable for e-commerce sites because there
is a link between good usability and positive UX and adoption. UX can also predict a
trusting customer–company relationship, which can lead to purchase intention. Perhaps,
the greatest contribution UX studies ofer for e-commerce websites is the opportunity
to remove potential pain points from website design before they can have a detrimental
impact on certain functions (e.g. sales). Hence, a UX study is recommended after each
website (re)design to solve any potential problems. UX development and customer jour-
ney planning should be a continuous process. Furthermore, UX practice has demon-
strated that the majority of usability issues can be identifed with only six users.
The case study adopted for Chapter 6 asked the participants to complete six main
tasks: go to the brand’s website, evaluate the product’s attributes, add the product to the
shopping cart, proceed to the checkout, sign up for the newsletter and complete the exit
interview. The UX analysis identifed minor design features that reduced the ease with
which the users interacted with the website (e.g. low contrast in buttons and links, small
fonts used and inconspicuous secondary navigation). Such fndings could be added to any
web developer’s checklist because they are easily overlooked at the design stage.
Chapter 7 highlighted future changes in consumer decision-making once we have
become comfortable ordering goods through conversations with the VAs in our homes.
A secondary, and likely, outcome will be that as customers become comfortable buy-
ing products from a narrower selection ofered by VAs and appreciate the convenience,
they will make repeat purchases. Will this result in limited decision-making, learning or
memory capacity in general, such as that reported by Tanil and Yong (2020) for smart-
phone adoption? Furthermore, will our large-scale reliance result in future consumers
losing the capacity to compare complex products or to select the best match from a larger
selection of items?
For marketers, a voice-based ecosystem is an opportunity to increase brand awareness
and create new augmented product oferings – a notable opportunity in the current
COVID-19 social isolation environment. VAs and commerce ofer interesting psycho-
logical challenges for future researchers, whereas digital marketers will have to develop
an entire voice-based ecosystem that is similar to current text- (or image-) based search
engine marketing.
Section 3 included three chapters. Chapters 8 and 9 explored the social aspect of
servicescapes and how digital (and mobile) technology could augment these service
experiences. These two chapters took diferent approaches to place, atmospherics and
servicescape, but both concluded that virtual shopping places can imitate the social
and physical atmospherics of a traditional brick-and-mortar store. Online environ-
ment enhances opportunities for customers to gain added value benefts. Such a trend
is, indeed, recognised by retailers that now ofer multichannel transaction opportuni-
ties. With the COVID-19 pandemic forcing consumers to seek information and buy
products online at increasing rates, the future of omnichannel retailing looks promis-
ing. However, physical retail outlets could start playing an increasingly social role in
retail, even if products are ordered online.
Chapter 10 outlined how Social Media (SM) enables interactions between con-
sumers and organisations. These should be viewed as accumulative social interactions
online and should not be represented by simple numerical values of likes and shares.
Consumers’ motivation to interact with brands online could determine whether the
Conclusions 179
interaction will either co-create or destroy value. DM and communication specialists
can use SM to gauge consumer preferences and identify behavioural patterns. Notably,
Chapter 15 further highlighted the role that infuencers can play in DM as well as the
negative aspects of engaging consumers in (work-like) tasks in the value co-creation
process.
Section 4 included four chapters that focused on ethics, privacy and the EU GDPR
across various DM situations. Chapter 11 linked customers’ perception of retailers’ ethics
to their channel selection (brick-and-mortar, online and multichannel retail). Consumers
evaluated available channels by variables, such as convenience, perceived risk, information
search ability and ethical considerations. The higher perceived risk of online purchases
could be ofset by ethics linked to retailers’ websites. Online and multichannel shoppers
reported heightened concerns for retailer ethics, especially those who bought products
online frequently. This highlighted the importance of transparency of ethical conduct for
all online retailers. However, further research into the consumer interpretation of retailer
ethics is required as new (online) retail channels emerge. Furthermore, as ethical inter-
pretations are highly culturally dependent, fndings from one country to another are not
easily transferable.
Based on interviews conducted in fve diferent countries, Chapter 12 reported
on the impacts that the GDPR initiatives have had on AI applications. Considering
that the GDPR was initially viewed as highly restrictive by organisations working to
become compliant, the feedback from AI technology experts was rather positive: the
GDPR had placed an organisational focus on customer privacy and the processes com-
panies should implement to protect their interests. Private citizens have also become
more aware of the potential for harvesting their data and the value that customer data
can bring to companies. This study also highlighted the notion of consumers ‘trading
their personal information’ for better service, a more enjoyable browsing experience
or targeted, tailor-made ofers, as suggested by Niininen, March, and Buhalis already
in 2006 and 2007.
Chapter 13 applied the GDPR Guidelines for Academic Research in Marketing. Although
the GDPR was supposed to harmonise European data management practices, the real-
ity is that the GDPR (and related privacy regulations) still allows each member state to
supplement the regulations with their own legislation. Thus, a move from one country
to another by a researcher might change the interpretation of the regulation. This chapter
introduced a seven-step approach to achieving GDPR-compliant research, with some
steps aligning with the Institutional Review Board for the ethical conduct of research
recommendations (many national ethical research guidelines have also incorporated the
essential GDPR regulations). Academics conducting research in marketing should pay
special attention to online services (e.g. online survey software or cloud storage) used
for data collection, which could unintentionally result in sharing individual information
between the EU and the United States. Qualitative research colleagues should also take
care when citing study participants who use particularly colourful expressions because
this could result in the individual being identifed. One’s voice is also an identifable vari-
able, and it should be treated as such.
Chapter 14 outlines a study wherein customer loyalty application was piloted (n =
1,259). Qualitative feedback on the new application was classifed under four major
headings: benefts (e.g. customers used the data to make more informed buying decisions,
such as for following a healthier diet or budgeting their expenditures better); uselessness
(i.e. when customers could not understand how they could beneft from access to the
180 Outi Niininen
data); privacy (i.e. when customers were concerned that their shopping behaviour was
being monitored) and transparency (i.e. when the respondent’s emotions varied between
positive and negative, depending on their situation because the loyalty cards to which the
application was linked were commonly issued for all family members).
Chapter 15 re-emphasised the vital role that AI will play in interpreting Big Data into
actionable datasets. Natural Language Processing will introduce human-like communica-
tion to chatbots that never sleep, making this the ultimate customer service opportunity.
However, AI is not yet producing content that entices customers in a way that is equal to
that of human infuencers. The appeal of infuencers is linked to liking peers who share
aspects of our lives or those who volunteer their expertise in a feld that interests us. In
the future, AI infuencers may be possible, but by then, blockchain technology will have
hopefully developed to such an extent that audiences can verify the identity of infuenc-
ers (and deepfakes) whose messages they read.
Some chapters in this book had already addressed the value of User-Generated Con-
tent where private citizens amass an SM following through exceptional content. This
is an interesting paradox: organisations are keen to harness these infuencers (who are
often perceived to be independent from any brand) for positive consumer sentiment, and
some infuencers are keen to explore paid collaboration opportunities with brands. If that
occurs, how will ‘authentic content’ be ensured? Moreover, some argue that enticing
consumers to interact with brands is a form of unpaid digital labour!
The potential future applications of digital communications technology also pose chal-
lenges: as consumers, we regularly trade information about our buying preferences to
obtain better quality services, but when will this enter the realm of ‘data surveillance’?
The introduction of the GDPR has brought publicity to the practice of tracking con-
sumer behaviour online, and new privacy regulations have already been introduced in
many jurisdictions.
Blockchain technology is another major opportunity for DM as well as other busi-
nesses (i.e. a major disruption). The trust protocols ofered by blockchain will, for exam-
ple, make deepfakes easier to identify and increase the tools that consumers have to
protect/manage their personal data. True ownership of our personal data can revert back
to us as consumers if we store our data cryptographically in a digitally encrypted, secure
wallet, which would eliminate third-party access. In this sense, a new layer of trust can be
injected into the Internet’s ecosystem.
This book has outlined major changes currently taking place in the DM and commu-
nications feld. Some of these developments are at the conceptual stage, while for others,
the technology already exists. We have also outlined various research methodologies suit-
able for the DM and communication context and made specifc recommendations for
future research. We hope these will be helpful for the next wave of research in the DM
and communications feld.
As the editor, I thank all the authors and anonymous reviewers who made this project
possible. Special thanks are also owed to the Taylor & Francis team for your support dur-
ing this book editing process as well as for polishing this book into its fnal format.
Further reading
Europa.eu. (2016). Regulation (EU) 2016/679 of the European Parliament and of the Council General Data
Protection Regulation. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=
CELEX:32016R0679&from=EN
Conclusions 181
References
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Index
Note: Page numbers in italics indicate a fgure and page numbers in bold indicate a table on the
corresponding page. Page numbers followed by ‘n’ indicate a note.
8Ps see Marketing Mix (8Ps) framework Ariely, D. 63

Artifcial Intelligence (AI) 1, 3–4, 16, 72, 100,
Abobe 73 110; and automation 4, 18, 74, 165–6, 173;
A/B testing 16, 34 and Big Data 17–18, 131, 176; Dartmouth
“access to resources” 9, 90 Summer Research Project 131; data obstacles
ad blocking 35, 167, 168 and privacy concerns 130–6; discussion 135–6;
additional fees 37, 41–2 empowered systems 17–18; factors afecting
Ad Exchange 34 implementation of 134; fndings 133–5;
ad inventory data 33 literature review 131–2; research methodology
Adobe 74 132–3
Adobe Analytics 91 Aslam, Bilal 130
adoption, of new technology 72, 79, 85, 91 atmospherics 97, 99, 101–2, 178
ad placement 38, 40, 42, 177 attractiveness, of websites 64
Adweek 167 audience targeting, lookalike 37, 40, 177
afective brand experience 50 audio advertising 78
AI-based VAs 73; consequences on authenticity 167, 168, 170
consumer decision-making 75–6; defning automation: and AI 4, 18, 74, 165–6, 173; of
communication mix strategy for voice 77–9; marketing processes through Big Data 15–16;
strategy implications for managers 79–80; Programmatic Advertising 33, 40, 42–3;
Voice Commerce 74–5; voice marketing 73–4 see also chatbots
Airbnb 171 avatars 100
AI see Artifcial Intelligence (AI)
Aladwani, A.M. 50, 51 Banerjee, S. 24, 26
Alarcón-del-Amo, del C. 52 banner blindness 167
Algesheimer, René 72 batch processing 18n2
Alibaba 75, 77 behavioural brand experience 50
Amaro, S. 55 behavioural data 10
Amazon 9, 15; Alexa 3, 72, 73–6, 90, 166; audio behavioural intentions 52, 53, 54, 57
ads platform 78 biased algorithms 42
Amazon Go 16 bid optimisation, as in Programmatic
Amazon Pay 74 Advertising 40
American Express 9 Big Data 1, 9, 152; and AI 17–18, 131, 176;
anonymous data, as in the GDPR 141–2 analytical categories of 11; descriptive analysis
AOL 34 11; Hadoop 10; location-based 13–14;
Apache Software Foundation 10–11 meaning of 10–11
Appearance Quality (AQ) 50, 51–2, 53 Bitcoin 172
Apple 90, 177 Bitner, M.J. 97
AppN 34 Blockchain 1.0 172
AppNexus 34 Blockchain 2.0 172
AQ see Appearance Quality (AQ) blockchain technology 4, 165, 170–3, 180
Index 183
Bloomberg, L.D. 36 Consumers’ Perceptions regarding the Ethics of
Borah, A. 132, 136 Online Retailers (CPEOR) 120, 121–2, 126
Boston Consulting Group 32 consumer trust 90, 121–2, 172
Brakus, J.J. 49–50, 51 Content Management Platform (CMP) 34, 40
branded websites 2 Controller-to-Controller data transfer, as in the
brand experience 49–50, 52, 54 GDPR 144
brand-related cues 51 Controller-to-Processor relationship, as in the
brand-related stimuli 50, 51 GDPR 144
brand trust 52, 54, 57 CorporateCare® service 9
Brandtzaeg, P.B. 107 corporate social responsibility 119
Braun, V. 36, 132–3 COVID-19 pandemic 14, 72, 91, 95, 120, 178
Brave browser 173 CPEOR see Consumers’ Perceptions regarding
browsing 62, 68 the Ethics of Online Retailers (CPEOR)
Buhalis, D. 179 creative optimisation, as in Programmatic
bullwhip efect 14, 18n5 Advertising 40
Business-to-Business (B2B) market 9 credibility 167, 170
cross-border data transfer, as in the GDPR 144–5
capabilities, of organisational marketing 23 cryptocurrencies 172
Carson, D. 25 Cuestas, P.J. 122
CDL see Customer-Dominant Logic (CDL) Cukier, K. 29
centralised server-based platforms 171 cultural barriers 2, 23, 24, 26–7
Chafey, D. 23, 24 customer decision journey, as in UX studies 63
Chang, H. 122, 127 Customer-Dominant Logic (CDL) 153–4
Chang, S.H. 51 customer experience, as in UX study 86; digital–
chatbots 4, 16, 100, 166, 180 physical 87–8; omnichannel 86–7; and social
Chen, G. 40–1 capital in servicescape 88–91
Circuit City 120 customer online journeys 3, 61, 63, 68–9, 120
Clarke, V. 36, 132–3 customer purchase 4, 63, 68
CMP see Content Management Platform (CMP) customer values 154, 155; of MyData 160; and
CNIL see Commission Nationale de places 95, 96
l’Informatique et des Libertés (CNIL)
cognitive walkthrough testing 64, 65 Dartmouth Summer Research Project 131
Coleman, J.S. 90 data collection: dark side of 169–70; interviews
commercial places 96–8 as 35–6; and management systems 136;
Commission Nationale de l’Informatique et des protection of 147; recruiting study participants
Libertés (CNIL) 147 36; semi-structured interviews 36, 132, 136
community (social relations), in relation to social data-driven marketing 2, 22–3, 177; boundaries
capital 90 of 24, 25–8; challenges of 28–9; cultural
community-based power of consumers 108 barriers 26–7; discussion 28–30; in Finnish
consent, as legal basis for data collection in the organisations 25; further perceived barriers 28;
GDPR 143, 146 managerial barriers 27–8; methodologies 24–5;
Constantinides, E. 52 structural barriers 27; theoretical framework
Consumer Brand Experience: antecedents and literature review 23–4
51–2; Appearance Quality (AQ) 50, 51–2, data fee 37, 41–2
53; behavioural intentions 52, 53, 54, 57, datafcation 152
178; brand trust 52, 54, 57, 178; conceptual Data Management Platform (DMP) 34
background 49–50; discussion 56–8; eWOM data orientation 28
intentions 52–3, 54, 57, 178; factor analysis data privacy 130, 132
54; limitations and future research directions data processing activities, as in the GDPR 146–7
58; measurement model 54–5; methodology Data Protection Impact Assessment (DPIA)
53–4; outcomes 52–3; research model and 145, 147
hypotheses 50–3; results 54–6; as second-order Data Protection Ofcer (DPO) 141, 147
construct 56, 57; structural model assessment data protection rights 147, 148
55–6, 57; Technical Quality (TQ) 50, 51, 53; data sciences, in DM 130–1
web content 50 data sharing 144–5, 177
consumer data 32, 131, 135, 136, 171 data surveillance 4, 169–70, 180
consumer engagement 109, 166, 168–9 data utilisation 28
184 Index
Davenport, T. 23, 27, 134, 135 ethical research practices 139–40, 179
Day, G.S. 22–3, 28 ethics: of online retailing 119–27, 125–6;
DCO see Dynamic Creative Optimisation perceived 122; related to data privacy 130;
(DCO) standards in Finland 127; see also online
deceptive practices, of retailers 119 retailers’ ethics
decision-making: of consumers and AI-based ethnography 132
VAs 75–6; marketing 11 European Court of Justice (ECJ) 144
deepfakes 4, 168, 170, 172, 173, 180 European Data Protection Board 145
Deep Learning 18 European Union (EU): and US 144–5, 179;
Dellaert, B.G. 75 see also General Data Protection Regulation
Demand-Side Platform (DSP) 34 (GDPR)
dependability, of websites 64 EU see European Union (EU)
descriptive analysis, of Big Data 11 eWOM see electronic Word-of-Mouth (eWOM)
Diageo 73–4
digital footprints 169, 176 Facebook 35, 106, 130, 171
digitalisation, of retail trade 85–91 Facebook Ad Manager 38
digital labour 4, 168–9, 173, 180 fake reviews 15
Digital Marketing (DM) 1, 72–3, 106; AI and Falk, T. 63
automation 165–6; blockchain technology Fan, S. 10, 11–12, 17
170–3; dark side of 168–70; data sciences fan-to-fan ticket marketplaces 13
in 130–1; data surveillance 169–70; free Finland 132; data-driven marketing in
digital labour 4, 168–9, 173, 180; future of 4, organisations 25; ethical standards 127
165–73; rise of deepfakes 170; SM impact on Forbes 23, 167
106–7 free digital labour 4, 168–9, 173, 180
digital panopticon 169 Fuchs, C. 169
digital servicescape 3, 87–8, 91
Di Masso, A. 98–9 Ganesh, J. 119
Ding, M. 131 GDPR see General Data Protection Regulation
DMP see Data Management Platform (DMP) (GDPR)
DM see Digital Marketing (DM) General Data Protection Regulation (GDPR)
Domino’s Pizza 74 1, 3–4, 18, 19n6, 130, 134–5, 169–70, 176;
double-blind review process 4 applicability of 141–2; consent/legitimate
DPIA see Data Protection Impact Assessment interest as legal basis 143, 145–6; data sharing,
(DPIA) use of service providers and cross-border data
DPO see Data Protection Ofcer (DPO) transfer 144–5; documentation of 145–7;
Draper, S. 61 DPIA 145, 147; drafting necessary documents
DSP see Demand-Side Platform (DSP) 145–8; principles of 140; profling 143–4;
Duarte, P. 55 research exemption 143; reviewing documents
Dynamic Creative Optimisation (DCO) 34 provided by DPO 141, 147
dynamic pricing 2, 13, 130 Germann, F. 26
Gilmore, A. 25
Ebay 15 goal-directed behaviour, as in UX study 64, 68
ECJ see European Court of Justice (ECJ) Google 130, 171, 177
e-commerce 61–9, 85 Google AdX 34
efciency, of websites 64 Google Analytics 16
electronic Word-of-Mouth (eWOM) 12, 52–3, Google Display 34
54, 57–8, 177–8 Google DV360 34, 38
e-loyalty 122 Google Home 3, 72, 73
emerging markets 13, 32–3, 37 Google Optimize 16
empowered consumers 3, 105–6, 167; control Google Shopping 74–5
of gathered data 173; and value co-creation in granular audience segmentation 37, 177
SM 108–10, 109, 111; see also Social Media Gupta, S. 33
Infuencers (SMIs) Gustafson, P. 96
e-retail 85–91; digital–physical servicescape 87–8,
91; omnichannel customer experience 86–7; Haapio, Heidi 152
social capital and customer experience 88–91 Hadoop 10
Ethereum 172 Ha, H. 52
Index 185
Hammerschmidt, M. 63 Länsipuro, Heidi 22
Han, B.C. 169 La Trobe University, Australia 140
Harley, A. 62 Lau, R.Y. 10, 11–12, 17
Harris, J. 23, 27 LBSs see Location-Based Services (LBSs)
Hassenzahl, M. 62 Leach, M.P. 35
HCI see Human–Computer Interaction (HCI) Legitimate Interest Assessment (LIA) 143, 146
Herhausen, D. 1 Lenovo 12
high-volume datasets 11 LIA see Legitimate Interest Assessment (LIA)
Hinderks, A. 64 Lilien, G. 26
historical data, as in structured data 10 Limbu, Y.B. 122
Holbrook, M.B. 155, 157 Lindblom, Arto 119
Horáková, Julie 95 Liu, A.H. 35
HR see Human Resources (HR) Liu, S. 131
human capital 23 Location-Based Services (LBSs) 13–14
Human-Centered Design see User-Centered long-term brand-building campaigns 37–41, 39
Design (UCD) Lorenzo-Romero, C. 52
Human–Computer Interaction (HCI) 2–3, 61 Lu, L. 122, 127
Human Resources (HR) 176 Lunsford, D.L. 122
Humphrey, W. 25
Machine Learning (ML) 9, 110
IAB see Interactive Advertising Bureau (IAB) Mannan, M. 53
Iankova, S. 110 March, R. 179
ICO 147 Mari, Alex 72
IKEA 53 marketing campaigns, using Big Data 12
Infuencer Marketing 165, 166–8, 180 Marketing Communications Mix 52
information-based power of consumers 108 Marketing Mix (8Ps) framework 11–12, 18n4,
information exchange 90 176; partnerships 16–17; people 17; physical
In-Skill Purchasing (ISP), as in evidence 16; place 13–14, 95; price 13; process
Voice Commerce 74 15–16; product 12; promotion 15
Instagram 106, 167 marketing processes, automation of 15–16
Institutional Review Board (IRB) 4, 139–40 Martin, K.D. 132, 135, 136
Intel 12 Mastercard 171
intellectual brand experience 50 Mayer-Schoenberger, V. 29
Interactive Advertising Bureau (IAB) 37 MediaMath 34
Internet-of-Things (IoT) 1, 4, 9, 176–7 Media User Typology 107
interviews, as data collection method 35–6 micro-organisations 142
IoT see Internet-of-Things (IoT) ML see Machine Learning (ML)
IRB see Institutional Review Board (IRB) mobile-centric market, in Vietnam 35
ISP see In-Skill Purchasing (ISP) Moorman, C. 22–3, 28
Muhonen, Markus 165
Jiang, Z. 32 multichannel consumers 120–1
jobs-to-be-done, in UX development 63 multichannel retailing 86, 98
Johnnie Walker 73 multichannel shopping 3, 120–1
Johnston, W.J. 35 Murphy, P.E. 132, 135
Joutsela, M. 62 MyData 4; benefts 156–7; customers’ perceived
Just Walk Out technology 2, 16 value 152–60; data and method 154–5;
discussion 159–60; fndings 155; formation
Kajalo, Sami 119 of value 155–60; privacy 158–9; transparency
Kannan, P.K. 23, 27 159; uselessness 157–8; value for consumers
Karjaluoto, Heikki 22, 32, 49, 130, 165 153–4
Key Performance Indicators (KPIs) 37
knowledge management 11, 22, 28, 72, Natural Language Processing (NLP) 15, 16, 173,
110, 130 176, 180
knowledge sharing 90 Neumann, N. 42
Konttinen, Joel 49 New Product Development (NPD) 1, 12
Kozinets, R.V. 107 Niininen, Outi 1, 9, 61, 139, 165, 176, 179
Kumar, V. 27, 33 NLP see Natural Language Processing (NLP)
186 Index
non-deception, as in ethics 120, 121, 124, 126 Power by the Hour (PBH) model 9
non-goal-directed behaviour, as in UX design 64 predictive analysis, of Big Data 11
Norman, D.A. 61 predictive maintenance, facilitated by IoT, Big
novelty, of websites 64 Data 16
NPD see New Product Development (NPD) prescriptive analysis, of Big Data 11
Nuutinen, M. 62 preventative maintenance 14
Nyrhinen, Jussi 85 pricing aspect of Marketing Mix framework 13
privacy 120, 121, 124, 125; data 130, 132; of
Omat ostot service (S-Group) 154, 155, 158–9 MyData 158–9, 180; practices 3; statement 146
omnichannel retail 86–7, 91 process aspect of Marketing Mix framework 15–16
one-way ANOVA test 124 product aspect of Marketing Mix framework 12
online advertising, 32, 34, 36, 173 see also product reordering 74
Programmatic Advertising profling 143–4
Online Consumer Reviews 15 Programmatic Advertisement Creation
online customer journeys 3, 61, 63, 68–9, 120 (PAC) 34
online places, attachment to 98–100 Programmatic Advertising 2, 32, 177;
online retailers’ ethics 119–27; CPEOR 120, automation 40, 42–3; campaigns 37–41, 39;
121–2, 126; discussion 126–7; methodology challenges with 37; data analysis 36; data
122–3; multichannel shopping 120–1; results collection 35–6; data driven 38–40; defning
124–6, 125–6 33–4; empirical study 35–6; intermediary
online shopping 3, 95, 97 platforms 34; managerial implications 41–3;
OpenX 34 methodology 35; non-linearity 38; objective
opinion platforms 106 33; online advertising planning 34; results
organisational culture 23–4, 26–7, 177 37–43; theoretical background 34; theoretical
organisational ethnography 132 implications 40–1; in Vietnam 32, 35
organisational marketing, four elements of 23–4 Programmatic Buying 2, 32–4, 37
organisational structure 23–4, 27 Programmatic Creation Platform (PCP) 34, 40
organisations, and aggregated datasets 142 Programmatic Creative 2, 33–4
programmatic marketing 16
PAC see Programmatic Advertisement promotion aspect of Marketing Mix
Creation (PAC) framework 15
paid collaborations, as in Infuencer Marketing PubMatic 34
168, 173 Pymnts.com 177
Palmatier, R.W. 132, 136
Palvia, P.C. 50 Qin, X. 32
participation-based power of consumers 108 Qualtrics 144
partnerships aspect of Marketing Mix framework
16–17 Radio Shack 120
Patron, M. 23, 24 Rahman, M.S. 53
PBH model see Power by the Hour (PBH) model Rangaswamy, A. 26
PCP see Programmatic Creation Platform (PCP) Real-Time Bidding (RTB) optimisation
people aspect of Marketing Mix framework 17 algorithms 32
perceived ethics 122 real-time processing 18n3
Perks, H. 52 reciprocal relationships 90
Perry, C. 25 Relph, E. 96, 98
personal data 141–2, 147, 180 research exemption, as in the GDPR 143
personalised ads 33–4 retailers: deceptive practices of 119; digitalisation
perspicuity, of websites 64 of trade 85–91; omnichannel 86–7, 91; see also
Peru 132 online retailers’ ethics
physical evidence aspect of Marketing Mix Retailing Info Systems 91
framework 16 Ripple 172
physical servicescape 87–8, 91 Ritonummi, Saima 61
place: aspect of Marketing Mix framework Rolls-Royce 9
13–14, 95; attachment 98–101; Roman, S. 120, 121–2, 126
conceptualisation of 96–8; dependence 99, Roto, V. 62, 63
100–1; identity 99, 100–1; meanings of 96–7 RTB optimisation algorithms see Real-Time
platform fee 37, 41–2 Bidding (RTB) optimisation algorithms
Index 187
Saura, J.R. 135 Spaeth, J. 42
SCC see Standard Contractual Clauses (SCC) spatial data 14
Schein, E. 26 Srivastava, D. 24, 26
Schepers, J. 63 SSP see Supply-Side Platform (SSP)
Scheuing, Sachiko 139 Standard Contractual Clauses (SCC) 144
Schmitt, B.H. 49–50, 51 Starbucks 77
Schmutz, P. 63 stimulation, of websites 64
Schrepp, M. 64 structural barriers 2, 27
searching (goal-oriented behaviour), as in UX structured data 9, 10
study 62, 68 StubHub 13
security, as in ethics 120, 121, 124, 125 Supply-Side Platform (SSP) 34
Self-Sovereign-Identity 171 surveillance cameras 145
semi-structured interviews 36, 132, 136 SurveyMonkey 144
sensors, embedding 16 Swan, M. 172
sensory brand experience 50 Switzerland 132
service providers 144–5 Sylvester, A.K. 42
service robots 90
servicescapes 3, 86–7; and atmospherics 97; talent analytics, as in Big Data analytics, human
attachment to online places 98–100; changing talent in marketing operations 17
nature of places 97–8; conceptualisation of Talisker 74
place in marketing 96–8; digital–physical 87–8; Tanil, C.T. 178
empirical illustration 100–2; fndings 100–2; targeted audiences 15
meanings of place 96–7; method and data tech fee 41–2
100; place dependence 99; place identity 99; Technical Quality (TQ) 50, 51, 53
social bonds 99–100; social capital in 88–9; technological difculties 28
transformation of 95–102 television ads 15
S-Group (Omat ostot) service 154, 155, 158–9 temporal data 14
Shaikh, Aijaz A. 49 thematic analysis 132
sharable content 105 theoretical sampling 24–5
shopping behaviour 72 Thomaschewski, J. 64
short-term direct-response campaigns 37–41, 39 TicketMaster 13
silo-thinking 177 Tiet, Thanh 32
Singaraju, Stephen 9, 165 TikTok 106
Siri (Apple) 90 Tmall Genie (Alibaba) 77
Skippari, Mika 85, 119 top management involvement 2, 23–4, 27–8
smart contracts 172 Toys ‘R’ Us 120
SMIs see Social Media Infuencers (SMIs) TQ see Technical Quality (TQ)
SM see Social Media (SM) Tractinsky, N. 62
social bonds 99–101 transactional data 10
social capital 86; defned 88; in servicescape 88–9 transparency, of MyData 159, 180
social CRM see social Customer Relationship TripAdvisor 106
Management (social CRM) trust assurances, in blockchain technology
social Customer Relationship Management 170–1
(social CRM) 12 Trusted Third Parties (TTPs) 171
social interactions 85, 87 trustworthiness 167, 170
Social Media (SM) 105, 178; and consumer TTPs see Trusted Third Parties (TTPs)
empowerment 105–11, 109; empowered Tuan, Y.-F. 96
communications 3; impact on DM 106–7; Tucker, C.E. 42
needs/motivations/communicative behaviours
of users 107; opportunities/challenges in Uber 171
research marketing 110–11; platforms 87, 88–9 Uberall 78
Social Media Infuencers (SMIs) 167 UCD see User-Centered Design (UCD)
Social Media (SM) Managers 1, 165 UEQ see User Experience Questionnaire
social networking sites 106 (UEQ)
social servicescape 87, 88, 91 UGC see User-Generated Content (UGC)
Sony Pictures Television 74 UK-Regulator 147
sophisticated audience segmentation 37 United Kingdom (UK) 132
188 Index
United States (US) 132, 144–5, 179; dynamic Voice Assistants (VAs) 3; Alexa 3, 72, 73–6, 90,
pricing 13; e-commerce growth 72; 166; Siri 90; see also AI-based VAs
voice-enabled shopping 75 voice-based ecosystem 77, 79, 178
unstructured data 9, 10, 11, 18n1, 176 Voicebot AI 75
usability, of UX 62–3, 69 Voice Commerce 1, 74–5, 77, 78, 79
uselessness, of MyData 157–8, 179 voice marketing 73–4, 77, 78, 79
User-Centered Design (UCD) 62 Voice Search Optimisation 78
User Experience (UX) 2; data collection Vollero, Agostino 105
64–5; established in 61; fndings 65–6, 65; Volpe, M. 36
implications 66–9, 67; and online customer VPNs see Virtual Private Networks (VPNs)
journeys 63, 68–9; research method 64–5;
UEQ 64, 65–6, 66; usability, and duality of Walmart 2, 11, 17, 75
user needs 62–3, 178; user-friendly website Wang, Y.J. 51–2
design 67–8 Watson, T.J. 132
User Experience Questionnaire (UEQ) 3, 64, WeAreSocial 35
65–6, 66 Web 2.0 169
User-Generated Content (UGC) 12, 106, 166–8, web aesthetics 52
173, 180 web content 50
Uusitalo, Outi 95, 152 Webropol 145
UX see User Experience (UX) website aesthetics 56–7
website experience see User Experience (UX)
Valentini, Chiara 105, 165 Wedel, M. 23, 27
value co-creation, and consumer empowerment Whitfeld, T. 42
105–11, 109 Wilska, Terhi-Anna 85
value creation 153, 155 Wired 170
value destruction 157–8, 160 Wolf, M. 122
value-in-context 109, 111 WOM see Word-of-Mouth (WOM)
value-in-use 109, 111, 153 Word-of-Mouth (WOM) 52–3, 101, 122, 167
Varmavuo, Eevi 130 World Economic Forum 85
VAs see Voice Assistants (VAs)
Vestager, Margrethe 144 Xiao, L. 131
Video 360 34 Xiaomi 12
Vietnam: Internet usage 35; Programmatic
Advertising process 32 Yang, M.-N. 122
virtual assistants 16 Yin, R.K. 35
Virtual Private Networks (VPNs) 168 Yong, M.H. 178
Virtual Research Workplace, as for GDPR YouTube 35, 167
compliant data practice 147 Yu, S. 122, 127
virtual shopping 97
Visa 171 Zanuldin, Kris 77, 78
visual attractiveness 68 Zarantonello, L. 49–50, 51
voice-activated services 73 Zhao, J.L. 10, 11–12, 17

Contemporary Issues in Digital Marketing

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Contemporary Issues in Digital Marketing

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Contemporary Issues in Digital

• Big Data, Artifcial Intelligence and Analytics in Digital Marketing

Outi Niininen teaches Digital Marketing at the University of Jyväskylä School of

Edited by Outi Niininen

List of contributors vii

2 Understanding Big Data and its application in the digital

3 Data-driven marketing processes: boundaries and how to

4 The planning and implementation process of Programmatic

5 The antecedents and outcomes of online consumer brand

6 User experience of an e-commerce website: a case study 61

7 AI-based voice assistants for digital marketing: preparing for

8 The role of social capital in digitalised retail servicescape 85

9 From places to platforms: examining the transformation of

10 Social media and consumer power: opportunities and challenges

11 The importance of online retailers’ ethics for traditional,

12 Data obstacles and privacy concerns in artifcial intelligence

13 GDPR guidelines for academic research in marketing 139

14 ‘Interesting but scary’: customers’ perceived value of MyData 152

15 Future look: communicating with customers using digital channels 165

René Algesheimer (https://orcid.org/0000-0002-3293-7928) is the Chair of Market-

Why is it important to study digital marketing?

Data analytics and

What is Big Data?

Big Data and its fusion with marketing practice

Conclusions and the future convergence of Big Data and AI

Key lessons for future research

Theoretical framework and literature review

Fluidity of organisation Impacting thoughts and

Culture affects Setting cultures

Interviewee Duration Date Situation of interview Industry

Company A 31:22 18.11.2019 Face-to-face Projects

Results: data-driven marketing boundaries

Further perceived barriers to data-driven marketing

Limitations of the study and future research directions

Key lessons for future research

The potential of emerging markets

Defning Programmatic Advertising

Intermediary platforms in the programmatic ecosystem

The online advertising planning and implementation process

Case context: overview of the Vietnam market’s Internet landscape

Interviews as a data collection method

Recruiting study participants

Conducting semi-structured interviews

1. The Programmatic Advertising process is non-linear. This is especially true

PRE- DURING POST-

Figure 4.1 Programmatic Advertising process of long-term brand building campaign.

PRE- DURING POST-

(1) Setting campaign

Figure 4.2 Programmatic Advertising process of short-term direct response campaign.

Key lessons for future research

Digital transformation and

Research model and hypotheses

Figure 5.1 Structural model.

Antecedents of Consumer Brand Experience

H1: Website technical quality is positively related to consumer brand experience.

Brand-related websites include brand-related cues as aesthetic features of the web-

H2: Website appearance quality is positively related to consumer brand experience.

H3: Website appearance quality is positively related to behavioural intentions.

Outcomes of Consumer Brand Experience

H4: Consumer Brand Experience has a positive infuence on brand trust.

H5: Consumer Brand Experience positively infuences eWOM intentions.

Behavioural intentions, such as repurchase intention, willingness to pay (Risitano et al.,

H6: Consumer Brand Experience positively infuences behavioural intentions.

Table 5.1 Measurement items