Facebook’s usage of big data analysis
Facebook faced backlash for exploiting big data and analytics to manipulate users’ messages and evaluate their responses. The social media firm used data analytics to change the customers’ News Feed, influence their emotional state, and scrutinize their behavioral reactions based on their subsequent posts. In this psychological research, Facebook endeavored to analyze different marketing environmental forces to gain a meticulous understanding of its consumer base and the holistic market. Although big data analysis has enabled the company to understand its marketing environment and consumer behavior, it has facilitated the infringement of user privacy.
Facebook’s usage of big data analysis relates to several forces in the external marketing environment. First, the action of infringing users’ privacy through the secret psychological research program connects to the sociocultural variable of the marketing setting. According to Lamb et al., social factors embody the lifestyle, attitudes, and values of the targeted customers, which influence their purchasing behavior (105). In this case, Americans respect work ethic and expect companies to uphold high levels of morality. However, Facebook’s study contravened this principle by breaching the users’ privacy and investigating their behaviors without receiving their permission. Therefore, the violation of consumers’ privacy by the social network company contravened their collective values.
Second, the employment of big data analytics to investigate consumer behavior links with the legal force of the marketing environment. In other countries, governments have enacted business regulatory law that protects consumers from devious corporate practices, including breach of privacy (Kotler and Keller 85). For example, the United Kingdom Data Protection Act mandates organizations to use consumers’ information lawfully, reasonably, and transparently. However, Facebook infringed this law by manipulating users’ messages without their consent. Concerning its operation in the United States, the social media company could not face charges for its actions since the privacy law has not illegalized such business practices. Hence, the corporation could face lawsuits in the UK due to the violation of stringent privacy laws.
The prospective litigations encountered by Facebook in the UK market presents several legal risks. First, the corporation could incur a significant financial loss in settling the lawsuits associated with non-complying with the principles of the Data Protection Act. For example, the social network firm would have to pay lawyers and compensate its users for invading their privacy without seeking their permission. Moreover, Facebook could suffer from reputational risks for its privacy malpractice and lack of transparency. Ultimately, the company could incur substantial losses in revenues due to the tarnished brand image and reputation.
Third, Facebook utilizes the technological variable presented in the marketing environment to analyze its users’ behaviors. The technological environment provides businesses with vast opportunities to conduct both basic and applied research to expand their body of knowledge and improve the quality of their products and services (Lamb et al. 125). In this case, Facebook employed big data and analytic technology to manipulate the customers’ News Feed and extract voluminous and complex data sets on their emotional responses. Therefore, big data technology supports the firm’s research and development activities.
Despite facilitating research operations, big data analysis has other pros and cons. Concerning the advantages, the framework has enabled Facebook to garner information and understand customers’ behaviors, as well as the emotional impact of the company and its products on the users (Le and Liaw 5). Furthermore, this data mining activity has enabled the firm to improve its services and provide a personalized user experience. However, this practice has tainted Facebook’s brand reputation for breaching consumers’ privacy. Therefore, big data analysis has both strengths and weaknesses, which affect the corporation positively and negatively.
Ultimately, the marketing environment variables related to Facebook’s case encompass sociocultural, legal, and technological forces. The legal risks faced by the company for infringing users’ privacy include reputational and financial losses. Finally, although big data analysis supports research, it violates consumers’ privacy and exposes the business to legal risks.