1. Transparency Paradox
Big data is supposed to make everything more transparent, but at the same time, data collection is becoming increasingly opaque and the algorithms built on it are often not transparent. As a result, it is not clear to consumers what (marketing) decisions are based on.
A good example of this is the Internet of Things . More and more devices in households are becoming intelligent. This is also called Domotics. These household devices generate a lot of usage data that is interesting for the consumer, but also for the manufacturer. However, it is not always clear to the consumer whether and how this data is used by the manufacturer.
2. Identity Paradox
This is about the contrast between who someone is according to themselves ( identity ) and who someone should be according to the data ( identify ). As a result, (marketing) choices are made for consumers that may not be the right ones.
For example, you could think of a consumer who does not qualify for a financial product, or has to pay a higher rate based on his profile. This profile uses information about the postcode greece phone number example area where he lives. This postcode profile does not match his personal profile. This can then lead to an unjustified rejection.
3. Power Paradox
This paradox is about winners and losers. The parties that have the right data and are in possession of the tools to analyze this data properly are the winners, the others are the losers. In the view of both researchers, the winners are given (too) much power. As a result, they determine in which (marketing) communication direction consumers are shown and which are not.
Consider the fine recently imposed on Google for favoring Google Shopping advertisers over both other advertisers and users.
In order to continue to use the possibilities of big data in the future, it is important that we respond to these paradoxes. Europe is already responding to this by further tightening the legislation in the area of privacy. In about one year from now, the General Data Protection Regulation ( GDPR ) will come into effect.