Blockchain’s influence on digital marketing
An exploratory study examining blockchain in relation to big data and digital marketing
Jimmy Brauer & Björn Linnala Eriksson
Department of Business Administration
Civilekonomprogrammet med inriktning mot Service Management Degree Project, 30 Credits, Spring 2020
Supervisor: Thomas Biedenbach
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Acknowledgments
First and foremost, we would like to begin to express our appreciation to our supervisor Thomas Biedenbach for providing us with guidance throughout the process of writing,
supporting us with valuable feedback and insights.
We would also like to express our gratitude to all of the individuals who have partaken in this thesis, and those who have helped us get in contact with the interviewees. We are
grateful that the interviewees were willing to invest their personal time in this thesis, and their willingness to share their expertise and knowledge with us.
Umeå, 21th of May 2020
Jimmy Brauer and Björn Linnala Eriksson
Abstract
Today's society has grown to be highly digitalized where technologies are playing a large role in everyone's lives. Moreover, society is still developing at a rapid pace, with a new innovation around every corner and with more and more business conducted online. By using this as a starting point, the authors of this thesis choose to examine how blockchain can influence the use of big data in digital marketing. Moreover, as previous articles have perceived GDPR as an obstacle for implementing blockchain within this context, the authors perceived it as necessary to examine blockchains’ relation to GDPR. Thus, this thesis has set out to both identify challenges and opportunities that exist when applying blockchain within the context of digital marketing.
This exploratory thesis applies a qualitative data collection method in order to fulfill the purpose of the study and to answer the following components of the research question;
(1) How will blockchain influence the use of big data within digital marketing? (2) How will blockchain in a digital marketing context cope with the regulations of GDPR? (3) How will blockchain influence the future of digital marketing? The qualitative collection method chosen is semi-structured interviews and has included six participants from Europe.
The findings of this thesis suggest that blockchain will influence big data and thus, digital marketing will be influenced because it is heavily data-driven. Furthermore, blockchain will influence the companies’ knowledge of the customer, allow more reliable data to be obtained, and allow consumers to retain ownership over their data. Thus, blockchain places a higher demand on companies to deliver relevant information and match the interest of customers in order for the companies to gain access to customers’ data.
Additionally, the findings suggest that blockchain has the ability to remove intermediaries and eliminate fraudulent activities, such as deep fakes, illegitimate reviews, click-fraud, within digital marketing. Despite that blockchain has a lot of potentials, it also faces a lot of challenges and obstacles. For instance, large companies such as Google may feel threatened by the blockchain and thus, these companies may have incentives for disrupting the implementation of the technology. Moreover, practical challenges have been identified. These were related to non-scalable algorithms and limited capacities to store large amounts of data.
Keywords: Blockchain, Digital Marketing, Big Data, GDPR, SEM, SEO, Email Marketing, Social Media Marketing, Influencer Marketing, Reliable Data, Data ownership
Table of content
1. Introduction 1
1.1. Problem Background 1
1.2. Research Gaps 4
1.3. Research Question 5
1.4. Purpose 5
1.5 Expected Contribution 5
1.6 Delimitations 6
2. Scientific Methodology 8
2.1. Choice of Subject 8
2.2. Research Philosophy 8
2.2.1. Axiological Assumptions and Pre-understandings 9
2.2.2. Epistemology Considerations 10
2.2.3. Ontological Considerations 11
2.3. Research Approach 12
2.4. Research Design 13
2.4.1. Research Purpose 13
2.4.2. Research Strategy 13
2.5. Literature Review 14
2.5.1. Literature Criticism 16
3.Theoretical Framework 18
3.1. Digital Marketing 18
3.1.1. Description of Digital Marketing 18
3.1.2. Description of Data and Big Data 20
3.1.3. Data’s Application in Digital Marketing. 20
3.1.4. Cookies 22
3.1.5. Summary and Relevance of Digital Marketing 22
3.2. Blockchain 23
3.2.1. Description of Blockchain 23
3.2.2. Blockchain’s Influence on the Financial Industry 26 3.2.3. Blockchain’s Influence Supply Chain Management 27
3.2.4. Summary and Relevance of Blockchain 28
3.3. Blockchain in Relation to Marketing 28
3.3.1. Credibility and Transparency 29
3.3.2. Big Data and Marketing 30
3.3.3. Summary and Relevance of Blockchain in Marketing 31
3.4. General Data Protection Rule (GDPR) 32
3.4.1. The Emergence of GDPR 32
3.4.2. GDPR’s Eight Citizen’s Rights 33
3.4.3. Summary and Relevance of GDPR 34
3.5. Overview of the Theoretical Framework 35
4. Practical Method 37
4.1. Qualitative Data Collection 37
4.1.1. Interview Guide 39
4.1.2. Sampling Method 40
4.1.3. Establishing First Contacts 41
4.1.4. Pilot Study 41
4.1.5. The Sample 42
4.2. Qualitative Data Analysis 44
4.2.1. Preparing and Transcribing Qualitative Data 44
4.2.2. Analytical Procedure 45
4.3. Ethical Considerations 47
5. Empirical Findings 50
5.1. Understanding of Blockchain and Big Data 50
5.2 Potential of Blockchain in Digital Marketing 52
5.2.1 Fraud within Digital Marketing 52
5.2.2. Knowledge about Customers 54
5.2.3. Ownership and Control of Data 55
5.3. Feasibility of Blockchain in Digital Marketing 57
5.3.1. Practical Challenges with Blockchain 57
5.2.3. Blockchain and GDPR 59
5.4. Future of Blockchain within Digital Marketing 60
6. Analysis and Discussion 62
6.1. Blockchain in Relation to Big Data 62
6.1.1. Big Data and its Five V’s 62
6.1.2. Blockchain’s Attributes in Relation to Big Data 63
6.2. Blockchain in Relation to Digital Marketing 64
6.2.1. Trusted Data Influence on Digital Marketing 65
6.2.2. Data Ownership Influence on Customer Knowledge 68
6.2.3. Digital Marketing Mediums and Blockchain 71
6.3. Blockchain and Future Implementations 75
6.3.1. Blockchain Ability to Cope with GDPR 75
6.3.2. Challenges of Implementing Blockchain 78
6.4. Model Displaying the Relationship Between the Concepts 80
7. Conclusions and Recommendations 83
7.1. General Conclusions 83
7.1.1. How Blockchain Influences the use of Big Data within Digital Marketing 83 7.1.2. How Blockchain in the Context of Digital Marketing Copes with GDPR 84 7.1.3. How blockchain will influence the future of digital marketing 85
7.2. Study Contribution 86
7.2.1. Theoretical Contribution 86
7.2.2. Managerial Contribution 87
7.2.3. Societal Contribution 87
7.3 Study Limitations & Future recommendations 88
7.3.1. Study Limitations 88
7.3.2. Future Recommendations 89
8. Truth Criteria 91
Reference List 94
Appendix 1 – Example of interview recruiting letter 101
Appendix 2 – Letter to participants 102
Appendix 3 – The followed interview guide 103
List of Tables
Table 1. The used databases when gathering literature. 15
Table 2. The used keywords when searching for literature. 15
Table 3. An overview of the respondents. 43
Table 4. Displaying different factors influencing digital marketing mediums. 74 Table 5. Displaying the interviewees’ attitudes towards blockchain’s ability to comply
with GDPR. 77
Table 6. Displaying interviewees’ perceptions of what challenges blockchain
implementation has. 80
List of Figures
Figure 1. Displaying and overview of the cryptographic components of blockchain. 25 Figure 2. The relation between blockchain, big data, GDPR, and digital marketing. 35 Figure 3. Displaying the attributes providing trusted data to digital marketers. 67 Figure 4. Displaying the circumstances within a blockchain network which leads to less
data of higher quality. 71
Figure 5. Revised model displaying the holistic relationship between the investigated
concepts. 81
1. Introduction
This chapter provides the reader with a comprehensive knowledge foundation that is important prior to the following chapters. The introduction chapter leads the reader towards the identified problem and introduces the importance of the chosen topic while providing an understanding of its origin. Related to the problem background, the purpose and the research question of the thesis are presented. The chapter ends with discussing the expected contributions of this thesis and presenting the delimitations which have been made.
1.1. Problem Background
The evolution of digital technologies has had a major impact on how marketing practices are currently conducted (Mohammad Saleem et al., 2018, p. 79). One of the largest technological advances over the last decades is the emergence of the Internet. This innovation has had a major effect on marketing (Mohammad Saleem et al., 2018, p. 79).
The internet has enabled marketers to gather more precise data about the customer through the use of big data, which has resulted in businesses specializes in big data (Peacock, 2014, p. 2). Big data can offer digital marketers valuable insights, for instance, on, customer engagement, customer retention, and loyalty, as well as optimizing the marketing performance (Sas, n.d). Because of its growing importance, big data is commonly being compared to raw materials and as “the oil of the digital economy”
(Wedel & Kannan, 2016, p. 97). Big data is often used within digital marketing through HTTP cookies, more commonly referred to as cookies. Cookies are often used by marketers in order to target digital marketing actions because it stores user data and behavioral information (Miyazaki, 2008, p. 20).
However, citizens have become increasingly aware of how data is used, collected, and processed. Events such as the Cambridge Analytica and Facebook scandal have made citizens more aware, and hence, more demanding of protection regarding their personal data (Kirk, 2018, p. 40). In the scandal, Cambridge Analytica used data from Facebook, as well as conducted personality tests on the platform in order to gain insights regarding US-citizens (Gibney, 2018). The personal data were used by the company in order to persuade voters and change their behaviors through targeted marketing messages.
Ultimately attempting to change behaviors and gaining votes in favor of Donald Trump (Gibney, 2018). Thus, the Cambridge Analytica scandal shows the importance of data protection and regulations.
In addition to the increasing demand for protection of data, the European Union has enacted a new regulation that regulates how personal data is collected and processed (Kirk, 2018, p. 40). The regulation is called the General Data Protection Regulation, more commonly known as GDPR. The regulation aims of giving back control over personal data to the individual and increase the protection of the individual (Marelli & Testa, 2018, p. 496). Data is only allowed to be used by a company if consent has been given by the individual. Additionally, GDPR applies to both companies operating within the European Union and companies outside the union which processes data of the European Union’s citizens (Kirk, 2018, p. 41).
Although the ascendance of GDPR and the various scandals, the emergence of technologies within the marketing sector is distinctive. Technologies such as artificial
intelligence (AI) are impacting the work of marketers. In the year 2019, the use of AI increased with 27 % from the previous year (Moorman, 2019). These technologies are commonly used by marketers in marketing actions such as consumer segmentation, predictive analytics for customer insights, and targeting decisions (Moorman, 2019). This raises the question, what technology will influence the digital marketing practices next?
During the late 2010s Bitcoin has been vastly discussed in the media (Philippas et al., 2019, p. 37; Dastgir et al. 2019, p. 160). Bitcoin is a decentralized, digital cryptocurrency, which is considered as the most popular cryptocurrency (Vladimir, 2014, p. 111;
Pappalardo et al., 2018, p. 1). The cryptocurrency was developed in late 2008, and the first transaction took place in January 2009 (Bernard, 2018). During its launch, the price per bitcoin was only worth a couple of US-dollars, but in late 2017 the price of 1 bitcoin reached almost 20.000 US-dollars (Edwards, 2019). Bitcoins can be stored, sent, and traded from one participant to another participant of the bitcoin-network (Pappalardo et al., 2018, p. 2). The transactions can be conducted without the need for intermediaries (Eken & Baloðlu, 2017, p. 8). Hence bitcoins can be traded without the use of banks nor clearing-houses.
In the wake of the emergence of Bitcoin, the Riksbank, Sweden’s central bank announced on 20 February 2020, that it will test a digital currency, called the E-krona (Lindström, 2019). The digital currency will be targeted to the general public and will be used in payments within retail, payments between individuals, as well as able to be transferred between banks account. The control of the E-krona will remain in the hand of the Riksbank, thus the central bank will be able to regulate who participates in the bitcoin- network (Ledgerinsights, 2019).
In order to understand the success of bitcoin, and the emergence of E-krona, the technology behind these cryptocurrencies must be explained. These are built on a technology known as blockchain (Pappalardo et al., 2018, p. 1). Blockchain is based on a distributed ledger. A distributed ledger can be described as a database that securely stores, and traces data across a decentralized peer-to-peer network (SAP, n.d.). All participants of the peer-to-peer network have access to the data within the network and receive an identical copy of the record (SAP, n.d), hence the data is decentralized. The copy is automatically updated when new data is added to the network. When data is added, the information is stored in “blocks”. These blocks are stored in chronological order, as a “chain” (Pappalardo, 2018, p. 2), hence the name blockchain. Once data has been added to a “block” it becomes permanent (Marr, 2014), hence, it is unable to change the data. The technology uses cryptography, which ensures that the information is regarded as secure and accurate (Majaski, 2019). These characteristics of a blockchain have made the technology widely discussed, both in media and in scientific articles. The technology’s massive amount of received attention has thus resulted in many projects trying to utilize the technology across several contrasting businesses (Nofer et al., 2017, p. 183).
The financial sector has become the primary industry that uses blockchain. The ascendance of blockchain has affected the financial industry in multiple ways, not only through the use of cryptocurrencies. Moreover, the financial industry faces many challenges thus, actors within the sector need to adopt new innovative technologies (Underwood, 2016, p. 16) in order to stay on top of the competition. Therefore, financial institutes view blockchain as an opportunity in order to stay innovative (Crosby et al.,
2016, p. 8). Giants such as IBM, Deloitte, and Nasdaq have been highly involved in this technology and utilized it in order to disrupt the financial industry. For instance, Deloitte argues that blockchain can be used to counter some of the regulatory challenges of customer acquisition and ‘Know Your Customer’ procedures (Underwood, 2016, p. 16).
However, there are many more applications within the sector except regulatory areas.
These include decreasing the costs of legacy systems, security issues, immutability, and removing intermediaries (Underwood, 2016, p. 16).
Furthermore, blockchain has been proven to be important and useful in supply chains (Nofer et al., 2017, p. 183). Supply chain management can be described as the management of material, information, and funds as efficiently as possible throughout the whole supply chain (Mitra, 2019). Therefore, companies are looking into the integration of blockchain in order to create more efficient supply chains. Blockchain is speculated to disrupt the management of supply chains and bring major benefits for both corporations and supply chain managers in all sorts of industries. For instance, blockchain would allow supply chains to gain more transparency and traceability of the products throughout all stages (Paine, 2018). Hence, all supply chain managers should be up to date with the technology and be prepared for their arrival (Paine, 2018).
As displayed above, the technology shows major potential in the financial industry and within supply chain management. This is strengthened by a survey conducted by Deloitte, which examines senior managers’ attitudes and perceptions of blockchain’s potential impact on technology in the future (Pawczuk et al., 2019, p. 2). The findings from the survey show that 83 % of the senior managers perceived of having a compelling business case for blockchain (Pawczuk et al, 2019, p. 3). Furthermore, 81 % of the respondents are planning on replacing existing technologies with blockchain, and 53 % perceived blockchain as a critical priority for their organization, an increase of 10 % from the previous year (Pawczuk et al, 2019, p. 3).
However, in the field of digital marketing, the adoption of blockchain has lagged behind.
The expectations regarding the technology’s impact on marketing strategies have not experienced any significant increase from the previous year of 2018 (Moorman, 2019).
Notwithstanding, the result of the survey suggests that the use of blockchain in the context of marketing, is expected to be used the most in sectors such as communication/media, retail/wholesales, and customer services (Moorman, 2019).
From the discussion above regarding the potential of blockchain within various industries, it provides an intriguing starting point for examining the potentials of blockchain in relation to the use of data within the digital marketing context. Additionally, the influence of blockchain on digital marketing is interesting to examine in relation to GDPR, to investigate how blockchain and digital marketing will be able to meet the demand of the regulation. The circumstances created by the application of the technology will preserve the empowerment of the individuals and hence, comply with the GDPR?
Thus, allow individuals to have control over their own data and at the same time eliminate future scandals such as Cambridge Analytica and Facebook.
1.2. Research Gaps
As have been displayed above, blockchain has grown to be a highly relevant topic discussed widely across several industries. Even though the technology has been discussed and studied within different business contexts many of the results have been inconclusive and further research has been suggested on the topic (e.g. Nofer et al. 2017;
Pärssinen et al.; Saberi et al. 2019; Wang et al. 2019). For instance, a study conducted by Saberi et al. (2019, p. 2117) examined the technology of blockchain and its important features such as smart contracts in the context of supply chain management. The findings from the study stressed that blockchain posed a significant impact on supply chain management. However, the researchers argue that further studies are needed on blockchain’s impact in other business contexts (Saberi et al., 2019, p. 2130). Thus, the authors of this thesis chose to examine how blockchain influence digital marketing.
In addition, GDPR is a topic that has been vastly examined by researchers. Most available scientific articles related to the subject have emphasized its impact in relation to data in the field of medicine (e.g. Kayaalp, 2018; Yuan & Li, 2019). However, the focus of data within the field of digital marketing has not been the main focus of these studies.
Furthermore, in relation to GDPR and blockchain, a few studies have focused on this relationship (e.g. Herian, 2018; Posadas, 2018). For instance, Herian (2018, p. 13) examines whether the regulation is hindering the innovative nature of blockchain, and how blockchain stakeholders will interpret the regulation as counteractive and disabling the technology’s ability to disrupt industries. Additionally, articles focusing on the relationship between all three areas; GDPR, blockchain, and digital marketing is rarely investigated. For instance, in the articles by Herian (2018) and Posadas (2018) marketing is only mentioned once. Furthermore, Herian (2018, p. 14) concludes that the ramifications of GDPR within a blockchain context are inconclusive, and thus future research is needed on the relationship. Therefore, the authors of this thesis argue that a gap exists which needs to be filled. Thus, this is a gap which provides this thesis the opportunity to investigate data collection and data processing in the relationship between GDPR and blockchain in the context of digital marketing.
Furthermore, the research findings regarding the relationship between blockchain and digital marketing are few. However, it is concluded that the technology within the context of marketing will bring a lot of significant potentials for marketers, such as transparency and trust that will be of great importance, and thus needs to be studied in future research (Ertemel, 2018, p. 44). Additionally, Wang et al. (2019, p. 407) argue that further studies need to be conducted within different industries and regions in order to assess the impact of blockchain. Furthermore, they argue that the data processing within the technology of blockchain is posing a potential threat for data portability and user control (Wang et al., 2019, p. 407). Hence, this thesis aims to further examine the implications of the technology on digital marketing, but also on the potential disadvantages and advantages that the technology poses.
Despite, that blockchain is a fairly new technology there are in fact some blockchain- based solutions out on the market right now which Pärssinen et al. (2018, p. 54884) reviews and sets in relation to today's challenges of the online advertising environment.
However, the researchers of the study suggest that further studies should be conducted within the field. They argue that in-depth description and qualitative research of different blockchain-based advertising systems are needed (Pärssinen et al. 2018, p. 54897), thus
also showing the importance of investigating this field. Furthermore, Kshetri and Voas (2019, p. 60) present data in relation to advertising fraud, and how this may be one of the key attributes of blockchain and its potential within the area. Hence, also emphasizing the importance of investigating the area of data within the context of blockchain more thoroughly.
There have been a few studies conducted within a more general context of marketing and blockchain (e.g. Eretmel, 2018), and there has been a more narrow focus of studies researching the relationship between blockchain and digital advertising (e.g.Pärssinen et al., 2018; Kshetri and Voas, 2019). Despite this, the authors argue that digital marketing is a concept that allows them to differentiate this thesis from previous studies. Thus, the authors of this thesis chose to formulate research questions related to specific areas of digital marketing that has not been approached before. Hence, as displayed below will they investigate the use of big data within the digital marketing context and take this in relation to the blockchain.
1.3. Research Question
1) How will blockchain influence the use of big data within digital marketing?
2) How will blockchain in a digital marketing context cope with the regulations of GDPR?
3) How will blockchain influence the future of digital marketing?
1.4. Purpose
The main purpose of this thesis is to gain a comprehensive understanding of both the potentials and challenges of blockchain, and what influence the technology will have on the future of digital marketing. In particular, the purpose is to examine how the technology will influence the collection and processing of big data, which is often used in digital marketing in order to create a comprehensive understanding of customers. In addition, the purpose of this thesis is to examine how blockchain in a digital marketing context is able to meet the increasing demands for protection of personal data, and how it will comply with new data regulations such as the general data protection regulation (GDPR).
Therefore, the aim is to develop a more thorough and comprehensive understanding of how this technology can influence the future of the digital marketing industry. Thus, the thesis could provide insights that will be of importance for not only marketing managers, but also for marketers and individuals in general. To be able to answer the research questions and fulfill the explorative purpose of this thesis, a qualitative study will be conducted on experts within the field of blockchain and digital marketing.
1.5 Expected Contribution
This thesis aims to explore the identified scientific gaps related to blockchain’s influence on digital marketing. By examining these gaps, the goal of this thesis is to contribute both in theory and in practice.
Blockchain is still a new concept and the majority of the previous research on the blockchain has been conducted on cryptocurrency. Furthermore, blockchain’s influence
on the financial industry and supply chain management are vastly researched.
Researchers within these fields have identified several important influences on these industries. However, little focus in scientific research has been conducted on blockchain’s influence on digital marketing. Hence, the findings of this thesis aim of filling the gap by contributing to the number of studies conducted within the field of digital marketing and blockchain.
From a practical perspective, this thesis expects to contribute to the understanding of the potential of blockchain. It will contribute to marketing managers’ understanding of how this technology can transform how digital marketing is currently conducted. Hence, this thesis will increase the awareness of marketing managers regarding the opportunities that blockchain offers. However, blockchain is also expected to pose challenges for the field of digital marketing. Hence the awareness of marketing managers regarding these challenges is also anticipated to increase.
Moreover, the expected contributions are not only limited to managers but will also address areas of importance related to other societal actors such as individuals, companies, and governments. Events such as the Cambridge Analytica and Facebook scandal have made individuals, companies, and governments more cautious of data collection and processing. Thus, these events raise questions regarding data ownership, privacy, and ethics. Thereby, this thesis’ expected societal contributions are to identify areas of applications where blockchain cryptography can counteract some of these phenomenons of ownership, privacy, and ethics.
1.6 Delimitations
In this thesis, a number of delimitations have been made. These delimitations have been made in order to answer the posed research question and to achieve the purpose of this thesis. Furthermore, delimitations have also been made in regard to the time restraints of the thesis. Because time was limited, the scope and the perspective of the thesis, as well as the data collection was limited. Moreover, the delimitations of this thesis can be divided into five areas.
The first delimitation had to be done in regard to the scope of the research. The field of marketing is broad, thus, all parts of marketing cannot be examined. Therefore, this thesis has been limited to only adopting a focus on digital marketing. However, the digital marketing field is also wide. Hence, the scope was further delimited to how big data are used within this field, and how blockchain may influence digital marketing through this aspect. Thus, the influence blockchain may have on other parts of the field of marketing will, therefore, not be addressed in this thesis.
Secondly, the focus of the thesis is delimited to a business to business (B2B) and a business to customer (B2C) perspective, rather than a customer to customer (C2C). In order to address the research question, the thesis sought out to investigate the attitudes and perceptions of companies. The choice for a company perspective was based on the belief that blockchain is likely to impact how companies currently operate and because of the perception that companies are the actors who are likely to adopt a blockchain solution. Thus, the thesis is delimited to only present the businesses’ attitudes and perceptions, hence, the customer side of the relationship is not as evident. Therefore, the
findings of this thesis are more derived from a business context, rather than from a customer context.
Thirdly, the thesis has been delimited to the European market, more specifically to three countries; Sweden, Germany, and The United Kingdom. This delimitation was based on the aim of this thesis to investigate how blockchain would be able to comply with the GDPR. Thus, in order to investigate this relationship, actors within Europe were interviewed. This decision is based on the belief that European interviewees may be more knowledgeable and familiar with the regulation. Despite, The United Kingdom leaving the European Union, the country is still regulated by GDPR, at the time of this thesis (Itgovernance, n.d). Consequently, with this delimitation, cultural differences from all over the world are not addressed. Hence, this thesis will only present European attitudes and perceptions of blockchain within a digital marketing context.
Fourthly, this thesis has been delimited to two industries; blockchain and digital marketing. Furthermore, the authors have delimited their thesis to only examining companies who have actively discussed blockchain on their websites. This delimitation is based on the aim of this thesis to investigate the attitudes of those who are knowledgeable within the blockchain and data usage in digital marketing. Hence, the authors of this thesis have chosen to delimit their thesis to only include individuals with professional or specialized knowledge in a particular area. Additionally, the thesis was delimited to only interview individuals who have a managerial position. This delimitation was based on the perception that managers have more responsibility and thus, they may have a more holistic view of the various parts of the company, such as having more knowledge within both the areas of blockchain and digital marketing. Hence, interviewing managers could provide the thesis with a better understanding of how blockchain can influence parts of a company, such as their digital marketing.
Finally, another delimitation of this thesis is regarding the number of interviews conducted. Due to the current circumstances of the society, with the emergence of COVID-19, finding managers who were willing to participate in this thesis proved to be harder than initially anticipated. Therefore, the authors decided to delimit their thesis and conduct six interviews. A more thorough description of the sample used in this thesis will be discussed in section 4.1.5.
2. Scientific Methodology
This chapter aims of justifying the methodological choices which will guide this thesis.
Firstly, the choice of subject and pre-understandings will be presented. Thereafter, the philosophical standpoints regarding what is considered as knowledge and the nature of reality, of this thesis will be presented. This chapter ends with discussing the research approach and the literature review.
2.1. Choice of Subject
First and foremost, the choice of topic for this thesis is based on both authors being marketing students at Umeå School of Business and Economics, as well as both having an interest in new technologies. This interest in new technologies is derived from the rapid changes caused by the emergence of new technologies in the business world, especially in the field of marketing. In addition, the authors have during their time at Umeå School of Business and Economics developed an interest in digital marketing.
Hence, the choice of examining digital marketing in relation to the emergence of new technology is based on the author's’ desire to gain more expertise in this particular field.
In particular, the choice for investigating blockchain is based on the increasing attention it has received in recent years. The technology is both expected and has had proven effects on industries such as the financial sector, and on supply chain management. However, previous studies on the blockchain have suggested that there is a need to further investigate the influence blockchain may have in other industries, such as the field of digital marketing. Hence, understanding the effect that this new technology may have on the field of digital marketing is interesting and relevant. Understanding the potentially disruptive effect on the industry as a consequence after the application of the technology may prepare people for the future. In addition, the implications the technology has had on intermediaries within other industries make it both interesting and relevant to investigate if the digital marketing industry will experience similar consequences.
Additionally, due to the emergence of new technologies and the increasing data collection on individuals, issues regarding privacy and ethical considerations have increased. Many of the previous scientific articles argue that the importance of this technology is due to its characteristics as being transparent, secure, and immutable regarding the data it contains.
However, researchers have also argued that blockchain might be incompatible with GDPR. Hence, investigating the topic in relation to how data is collected and processed, as well as if the technology is able to comply with GDPR is also of interest.
2.2. Research Philosophy
Assumptions and beliefs about the development of knowledge are referred to as the philosophy of a research (Saunders et al, 2015, p. 124). These consist of assumptions regarding axiology, epistemology, and ontology (Saunders et al, 2015, p. 124. These assumptions inevitably influence the research question, the interpretation of the result, and the methods used for data collection (Crotty 1998, cited in Saunders et al, 2015, p.
124). Further, a paradigm is a philosophical framework based on the researchers’ view of the world and their view on knowledge. Thus, the paradigm provides guidance on how the research is conducted. The two main paradigms of research are positivism and interpretivism (Collis & Hussey, 2014, p. 43-44).
2.2.1. Axiological Assumptions and Pre-understandings
An individual’s feelings or beliefs are reflected in his or her values and values are a form of pre-understandings (Bryman & Bell, 2015, p. 40). Thus, axiological assumptions are concerned with the researcher’s view of how their own, as well as the values of the participants of the research, affect the research (Saunders et al., 2015, p. 128). According to Heron (1996, cited in Saunders et al., 2015, p. 128), the choice of one variable over the other is reflected by the individual’s values. Hence, the choice of philosophy and method for gathering data is reflected by the researcher’s values.
Within the context of axiological assumptions, positivists believe that research is free from value and that the research is independent of the phenomena that are being examined. Positivism believes that data is collected without being influenced by previous theories (Bryman & Bell, 2015, p. 27). Hence, the phenomena are not affected by the research (Collis & Hussey, 2015, p. 48). Positivists believe that the phenomena that are being examined, existed prior to the research started, as well as after the study is conducted (Collis & Hussey, 2015, p. 48). Meanwhile, interpretivists consider that their values and beliefs influence the research (Saunders et al., 2015, p. 141). The researcher is involved in what is being examined and hence, has an effect on it (Collis & Hussey, 2015, p. 44, 48).
In this thesis, an interpretivist perspective has been adopted in regard to axiological assumptions. The authors of this thesis find it rather naive to approach a thesis without the understanding that values will interfere with what is being studied thus, the positivistic approach is not applicable. Instead, the authors believe that the values they possess, affect the research process through the choices and interpretations made by the researcher, regarding the methods used and data collected. Furthermore, the values of the participants in the research are also believed to influence the findings due to their statements made.
Despite this belief, the authors of this thesis have tried to be as objective as possible and to act in good faith. Thus, not allowing personal values to influence the findings of this thesis. Additionally, since the aim of this thesis is to investigate the attitudes and perceptions, the values of the participants are not viewed as a problem but rather as an asset for this thesis.
With this as a basis, pre-understandings of the topic that is being examined may influence the research process. However, prior to this thesis, the authors had limited knowledge about blockchain, as well as its connection to digital marketing. The authors’ pre- understandings regarding the concept differed from one another due to the different courses they have studied. From studying abroad, Jimmy had gained some experience with blockchain-related solutions in the context of the supply chain. Whereas, Björn had no prior knowledge of the concept. Thus, most of the authors’ knowledge of blockchain was gathered during the execution of the thesis.
Apart from this, the authors have similar educational backgrounds. Both authors have studied the same Business Administration program at Umeå School of Business and Economics. Further, both of the authors have studied Informational Technology courses prior to the thesis. Although, the length and university differed. Björn studied 30 ects at Stockholms University, and Jimmy studied 7,5 ects at Uppsala University. Furthermore, their pre-understanding regarding digital marketing was to some degree established prior to the start of this thesis, due to their interest within the subject, which has been displayed above. However, Jimmy has some practical experience working with digital marketing
from doing an internship. Furthermore, whereas Jimmy has more experience with blockchain and digital marketing, Björn has more knowledge within computer science and information technology. Hence the different knowledge and expertise will be complementary to each other and providing substance to the thesis.
However, when researching the topic on the internet, mostly positive aspects regarding the impact of blockchain was discussed. Hence, these findings may have influenced the authors’ understandings of the topic toward the positive. In order to address potential biases from previous studies, the authors of this thesis have reviewed several articles, and have not relied on a few articles for the majority of the discussion. Further, the authors have tried finding articles from both sides of the spectrum, which both supports and contradicts what is being discussed. Hence, comparing the finding and thus, gaining a more accurate understanding of the phenomena. Whilst taking these pre-understandings in regards, the authors will be able to address the discussed issues. Furthermore, with this realization, it provides the authors with the opportunity to conduct the thesis with open minds, hence limiting the pre-understandings ability to create bias findings or conclusions.
2.2.2. Epistemology Considerations
Epistemology is concerned with what is regarded to be accepted and legitimate as knowledge (Collis & Hussey, 2014, p. 46). Additionally, it is concerned with whether the methods and principles used in natural sciences can be applied in social sciences (Bryman
& Bell, 2015, p. 25). Epistemology can be divided into two doctrines with different assumptions. These are positivism and interpretivism. The various epistemological assumptions affect the choice of methods, and thus the result of the research (Saunder et al., 2015, p. 127).
Positivism believes that methods used in the natural sciences can be applied to the study of social reality (Bryman & Bell, 2015, p. 28). According to positivism assumptions, knowledge can be observed and measured, as well as be scientifically verified (Collis &
Hussey, 2014, p. 44, 46-47). Furthermore, positivists argue that knowledge can be generalized and is best gathered through the use of quantitative methods (Saunders et al., 2015, p. 127). The second epistemological position, known as interpretivism is contrary to positivism. Interpretivism argues that insights are lost when applying a positivist perspective to the complex phenomenon because humans view social reality differently (Saunders et al., 2015, p. 140). Instead, interpretivism argues that knowledge is based on subjective evidence and is derived from the participants (Collis & Hussey, 2014, p. 47).
The aim of interpretivism is to gain an interpretive understanding of the phenomena by exploring the complexity of social phenomena, rather than measuring it. Hence, interpretivism tends to use qualitative methods (Collis & Hussey, 2014, p. 45).
Furthermore, interpretivism argues that social science differs from natural science and therefore, the methods used to study social reality need to be different from natural science (Bryman & Bell, 2014, p. 28).
In order to answer the posed research question of this thesis, an interpretive view on epistemological assumptions is best suited. Because the phenomenon of blockchain in relation to digital marketing is a new and highly complex topic, the purpose of this thesis is to gain a deeper understanding of this new phenomenon. Thus, the authors of this thesis believe that the knowledge needed, in order to answer the presented research question is based on subjective evidence that can be gathered from the interviewees of the research.
Further, the knowledge will be based on attitudes and perceptions of the participants, hence being subjective rather than being objective. Therefore, relying on positivist assumptions and using quantifying methods would limit the findings. In addition, since humans view social reality differently, insights are lost in the positivist perspective.
Instead, interpretivist considerations and the use of qualitative methods are of better use.
Thus, applying an interpretivist perspective will enable interpretation and exploration of this new and complex concept, through the use of qualitative methods and subjective evidence.
2.2.3. Ontological Considerations
Ontology is referring to researchers’ different views about social entities or the nature of reality (Collis & Hussey, 2014, p. 47). Ontological assumptions influence the choice of research and the researchers’ view of, and how they examine the research phenomenon (Saunders et al., 2015, p. 127). The different views are commonly referred to as either objectivism and constructionism (Bryman & Bell, 2015, p. 32), or referred to as positivism and interpretivism (Collis & Hussey, 2014, p. 47).
According to objectivism assumptions, or positivism, the social phenomenon that is being studied is objective and external to the researcher, and the social actors (Saunder et al., 2015, p. 128; Collis & Hussey, 2014, p. 47). Hence, the social phenomenon is independent and cannot be influenced, nor reached by actors within the society (Bryman
& Bell, 2003, p. 32). Therefore, objectivists argue that all social actors experience the same reality, thus, only one true reality exists (Saunder et al., 2015, p. 128; Collis &
Hussey, 2014, p. 47). An alternative perspective on the ontological considerations is constructionism (Bryman & Bell, 2015, p. 32), or interpretivism (Collis & Hussey, 2015, p. 47). According to Bryman and Bell (2015, p. 32), this perspective challenges the objectivism ontology. This view of ontology argues that social entities are created by social interactions and society. Further, it implies that the social phenomenon is constantly changing (Bryman & Bell, 2015, p. 33). Rather than the social reality being objective, constructionism argues that it is subjective due to the social reality is being socially constructed. Hence, one true reality does not exist, but every individual has its own view of reality (Collins and Hussey, 2014, p. 47).
For this thesis, the constructionist perspective, in other words, the interpretivist perspective matches best the philosophical standpoints of the authors. The authors believe that people experience reality in different ways and therefore, multiple realities exist rather than one true reality. When conducting the data collection of this thesis in order to explore the influence of blockchain within the context of digital marketing, it is believed that experts within the field will express different views of what the technology can do and what relation it may have on digital marketing. Hence, multiple realities are believed to exist. In support of this, blockchain is highly dependent on the underlying design of a blockchain solution, and thus have different mechanisms (Wang et al., 2019, p. 407). This strengthens the perception regarding the existence of multiple realities since various actors may have worked or researched different designs and thus, they perceive the technology differently.
Additionally, the authors of this thesis believe that individuals are highly involved in the constructions of these realities, through their perceptions and actions. Thus, the phenomenon that is being examined is influenced by social actors. Furthermore, the phenomenon of blockchain in digital marketing is constantly evolving and influenced
because of social interactions between the various actors. Therefore, an interpretivist perspective on ontology is more suited than a positivist perspective.
2.3. Research Approach
Two main approaches are used within research, these are known as deductive approach and inductive approach. In the deductive research approach, research is concerned with moving from the general to the specific (Collis & Hussey, 2014, p. 7). Furthermore, a deductive approach is concerned with conducting a conceptual and theoretical structure as a basis, which is tested against empirical observations. Hence, a deductive approach is concerned with moving from the more general to the narrower deductions (Collis &
Hussey, 2014, p. 7). Positivistic research often uses a deductive process (Collis & Hussey, 2014, p. 44), and it is commonly used in natural science (Bryman & Bell, 2003, p. 9).
Meanwhile, an inductive research approach is contrary to the deductive approach. The inductive approach is concerned with moving from the specific to the general (Collis &
Hussey, 2014, p. 7), and is often used within interpretivism (Collis & Hussey, 2014, p.
44). Saunder et al. (2016, p. 145), present the inductive logic as a logic that uses known theories in order to find new conclusions. Furthermore, data are collected to explore a specific phenomenon, find themes, and patterns, in order to create conceptual frameworks (Saunder et al., 2016, p. 145) and by following the data, one can create this conceptual framework (Saunder et al., 2016, p. 147).
Besides the two main approaches; deduction and induction, there is also abduction (Saunder et al., 2016, p. 145). Abductive research logic is a combination between both induction and deduction since it moves back and forth between the two (Suddaby, 2006, cited in Saunder et al., 2016, p. 148). The abductive approach has emerged due to the weaknesses of deductive and inductive reasoning; difficulties in choosing which theories to test, and difficulties in generating theories (Bryman & Bell, 2015, p. 27). In an abductive approach, data is collected in order to explore the phenomena and to develop a new or modify an existing theory. Afterward, this theory is tested with an additional collection of data (Saunder et al., 2016, p. 145).
For this thesis, an inductive research approach will be applied. Rather than testing any hypotheses nor any theories, as within a deductive research approach, this thesis is meant to be exploratory, with the aim to obtain a deeper understanding of the particular research area. Therefore, this thesis’ goal is to examine previous theories in relation to the phenomena that are being investigated and to find new conclusions. The authors of this thesis aim of identifying new themes and patterns within the relation between blockchain and digital marketing. Hence, the aim is to move from the specific to the general, rather than adopting a deductive research approach, moving from the general to the specific.
Conclusively, since the philosophical standpoints made throughout this chapter has been within the interpretivist paradigm, it is not surprising that the inductive research approach, which is commonly associated with this paradigm, is fitting for this thesis. However, an abductive research approach could be suited for this thesis. But employing an abductive research approach is believed to be time-consuming since it requires data to be collected in order to develop a new, or modify an existing theory, which is later tested with an additional collection of data. Therefore, because of the time restraints of this thesis, an abductive approach is not employed. With this as an argumentation, the authors have chosen to apply an inductive research approach.
2.4. Research Design
The design of the research acts as a framework for how data is being collected and analyzed (Bryman & Bell, 2015, p. 49; Collis & Hussey, 2014, p. 3), and how the research question will be answered (Saunders et al., 2015, p. 163). The research design is influenced by the researcher’s philosophical standpoints which are adopted (Bryman &
Bell, 2015, p. 37; Collis & Hussey, 2014, p. 6). Hence, the choice of research design will be influenced by what has been stated in previous sections.
2.4.1. Research Purpose
Saunders et al. (2015, p. 174) argue that several types of research purposes can be used;
exploratory, descriptive, explanatory, evaluative studies, or a mix of them. An exploratory study is often used when asking open-ended questions in order to discover and gain insights about a topic. This type of study is of particular interest when the aim is to clarify a specific phenomenon (Saunders et al., 2015, p. 174-175), and to find patterns rather than test hypothesis (Collis & Hussey, 2014, p. 4). Descriptive studies aim to identify and obtain information on the characteristics of a particular phenomenon (Collis & Hussey, 2014, p. 4). In descriptive studies, it is vital to have prior knowledge of the phenomenon which is being examined (Saunders et al., 2015, p. 176). Whereas, the purpose of explanatory studies is to analyze and explain the correlation between variables (Saunders et al., 2015, p. 176; Collis & Hussey, 2014, p. 5). Finally, evaluative studies aim to investigate the performance of various variables and compare them, for instance measuring the effectiveness of an organization, strategy, or process (Saunders et al., 2015, p. 176).
Based on these definitions, this thesis will adopt the characteristics of exploratory research. The aim of this thesis is to attain a comprehensive understanding of the relation between blockchain and digital marketing, with a rather open-ended research question.
This purpose is supported by the few amounts of pre-existing studies of the phenomena.
Hence, exploratory research is of a better fit than a descriptive study since the aim is to contribute to the understanding of the phenomenon, and thus, increase the theoretical body of the topic. Furthermore, this thesis does not aim of examining and analyzing the correlation between the two variables, nor examine the various performance between them.
2.4.2. Research Strategy
Research strategy acts as a general orientation for how the research is carried out (Bryman
& Bell, 2015, p. 37). Two types of research strategies can be outlined, these are qualitative research and quantitative research (Bryman & Bell, 2015, p. 37). These differ in terms of their connection between theory and research, epistemological orientation, and ontological orientation as well as how data is collected and analyzed (Bryman & Bell, 2015, p. 37).
Quantitative research is concerned with examining the relationship between various variables and, quantification of data (Bryman & Bell, 2015, p. 37; Saunders et al, 2015, p. 166). Testings of hypotheses are often associated with quantitative methods (Collis &
Hussey, 2014, p. 105). This type of research is closely connected with the deductive approach, in which the aim is to test theories (Bryman & Bell, 2015, p. 37; Saunders et al, 2015, p. 166). Furthermore, quantitative research tends to be connected with
positivism in regard to epistemological assumptions and to objectivism regarding ontological orientation (Bryman & Bell, 2015, p. 38). The qualitative research is characterized by focusing on words and their meanings (Bryman & Bell, 2015, p. 38).
Qualitative research is context-bound and transient (Collis & Hussey, 2014, p. 130), hence it is only understood within context. Thus, data gathered from literature is needed, such as data on location, legal, or time (Collis & Hussey, 2014, p. 130-131). Furthermore, qualitative research is often used to develop insights and understandings from patterns in the data rather than collect data for testing hypotheses, or theories (Taylor et al., 2016, p.
18). Additionally, rather than adopting a deductive approach, qualitative research utilizes inductive research, which aims of generating new theories (Bryman & Bell, 2015, p. 38;
Saunders et al, 2015, p. 168). Furthermore, qualitative research tends to be connected with an interpretivistic epistemological assumptions and with constructionist ontological considerations (Bryman & Bell, 2015, p. 38).
In order to answer the research question at hand, the focus on the data collection and the data analysis will be more on words and their meanings, rather than examining the relationship between the various variables and quantification of data. Furthermore, the aim of the research is to develop insights and understandings about the topic which is being examined. This is based on the author’s perception of the topic as being new and thus, a more thorough understanding of the topic is sought for. Hence, a qualitative research design will be more suited than a quantitative research design. Further, a qualitative research design complies with the previously posed philosophical standpoints of this thesis, interpretivist perspective on epistemology and ontology. Additionally, the chosen research strategy matches the choice of adopting an inductive research approach.
Since the topic of blockchain in relation to digital marketing is a new concept, few studies exist within the field. Hence, the aim of this exploratory thesis is to generate new theories of the topic rather than to test current theories on blockchain and digital marketing.
2.5. Literature Review
Literature review refers to a systematic process with the aim of identifying the current body of theories of a particular topic (Collis & Hussey, 2014, p. 76). Literature reviews are important for several reasons. According to Hart (2001, p. 3) literature reviews helps researchers to avoid making the same mistakes as others have made. Further, it enables the researcher to get an overview of what methodologies other studies have used, and what their focus has been (Hart, 2001, p. 3). Previous scientific articles tend to highlight their limitations and thus, pose areas that need to be examined in the future (Collis &
Hussey, 2014, p. 24). Hence, it helps the researcher to identify research gaps and suitable research questions (Hart, 2001, p. 3; Collis & Hussey, 2014, p. 76). Therefore, the literature review was used in this thesis to identify research gaps, and thus identify a suited research area.
Furthermore, the purpose of the literature review in this thesis can be defined as a theoretical review. The aim of a theoretical review is to examine the current theories of the research phenomenon (Saunders et al., 2015, p. 74). Theoretical reviews tend to be used in order to establish that previous studies are inappropriate or inadequate for explaining new or emerging research questions (Saunders et al., 2015, p. 74). The literature review of this thesis was conducted in order to get a comprehensive overview of the pre-existing topic and establish that inadequate theories exist in regard to the relation between blockchain and digital marketing.
The sources used throughout this thesis has been gathered mainly from Umeå University Library’s search engine. The scientific articles used from this search engine have all been peer-reviewed. However, since a small number of articles related to the phenomenon that is being examined were reachable from Umeå University Library’s search engine, articles were also gathered from Google Scholar. In order to assure the quality of these articles, the researchers of the various articles were examined. The authors were mainly professors, and some were experts within the field of blockchain. Further, to ensure the quality, the articles from Google Scholar were gathered from similar databases as those found through Umeå University Library’s search engine. In addition, many of the reviewed articles and other literature, referenced as well as cited other authors in their articles. Hence, the primary sources of information were examined to ensure that the gathered articles did not contain any biased or modified interpretation. Thus, assuring the quality of the information gathered from these articles, as well as obtaining an objective view of the research area. However, due to the infancy of the research topic, several of the reviewed articles on the phenomenon have referred to sources of more informal characteristics, e.g. blockchain blogs. The authors of this thesis have had this in mind, and therefore additional articles were sought in order to strengthen the statements made in the previous studies. Thus, ensuring the quality of the literature review. A more thorough description of how quality was established in this thesis will be discussed in the section regarding literature criticism (2.5.1.).
The databases used in order to obtain previous articles in relation to the phenomena which are being examined in this thesis are presented in the table below.
DOAJ Ebscohost Elsevier Emerald Insights IEEE Xplore
Informs ProQuest Sage Journals SpringerLink SpringerOpen
Table 1. Displaying the used databases when gathering literature.
The authors of this thesis did use specific keywords in order to assure that relevant and consistent literature were gathered throughout the thesis. These specific keywords are displayed below in table 2.
Bitcoin Marketing Blockchain
Blockchain + marketing Blockchain + advertising Big data
Blockchain + big data GDPR Cookies
Cookies + GDPR Blockchain + digital marketing Research methodology Business research method Data hiding Cookies + blockchain
Blockchain + GDPR Blockchain + supply chain Blockchain + financial industry GDPR + digital marketing GDPR + marketing GDPR citizen’s rights
Digital marketing Advertisement fraud Social media marketing
Web Analytics Web Analytics + Digital Marketing
SEO
SEO + Digital marketing Email marketing Email marketing + digital marketing
E-commerce E-commerce + big data E-commerce + digital marketing
SEM Influencer Marketing
Table 2. Displaying the used keywords when searching for literature.
Lastly, this thesis has used well-known literature within the business and administration research field. This literature has been used in order to meet the methodological standpoints that need to be accounted for in research. Further, these books have all been retrieved from the Umeå University Library and thus are presumed to be credible.
Additionally, these books have been commonly used in other theses that the authors of this thesis have retrieved inspiration from. Hence, this literature is perceived to be accurate and reliable.
2.5.1. Literature Criticism
In order to ensure that all the literature used in the thesis is of sufficient quality, the four criteria presented by Thurén (2003, p. 21) have been used by the thesis’ authors. These criteria are; (1) Authenticity, which refers to that the source is not counterfeit. (2) Time, which might affect the memory of things. (3) Dependency, which addresses what the source has been influenced by. (4) Tendency refers to the participation rate of the source, is it highly involved or neutral in the matter (Thurén, 2003, p. 21).
The authenticity aspect of the sources is meant to be the criterion that evaluates if the source is what it is said to be or not, thus being or not being subject to counterfeiting (Thurén, 2003, p. 28). When looking at authenticity, it becomes relevant to look at what kind of articles have been used in the thesis. Since the authors of the thesis have mainly used Umeå University Library’s search engine for finding articles, it has been convenient to look if the scientific articles were peer-reviewed. Thus, the authors have only included articles that are peer-reviewed when gathered from this search engine. However, since this was not the single search engine used for this thesis, other measurements for ensuring the quality had to be conducted. Before using an additional article that was not peer- reviewed, the authors discussed the article between one and another. Furthermore, the researcher of the various articles used was investigated by the authors of this thesis, and thus their background, title, and possible area of expertise was examined.
Secondly, the time aspect refers to, the closer in time something is the more trustworthy is it (Thurén, 2003, p. 44). Thurén (2003, p. 44) argues that one tends to forget as time goes on, thus, this aspect is related to memory. Hence, literature, do not lose their credibility because they are old, but rather because things change during this time.
However, the articles and books used in this thesis, are all from this millennium, and due to the centricity of technology in the thesis, the vast majority of the articles used are from the 2010s. Additionally, when the various articles and books had been reviewed, the findings were immediately noted, hence avoiding memory loss or misconceptions due to the time aspect. Hence, the literature in this thesis is used accordingly to the time criterion (Thurén 2003, p. 44-45).
The third criterion, dependency, presents that independent sources that have not been influenced by others are to be preferred. Meanwhile, all statements should have two independent sources who confirm the statement in order to be fully reliable (Thurén, 2003, p. 51). In order to fulfill this criterion, the authors of this thesis have tried to present multiple perspectives and use additional sources to concur and strengthen statements posted by other researchers.
The last criterion of tendency refers to the evaluation of biases in the sources (Thurén, 2003, p. 61). In that way, it urges researchers to look at potential incentives for covering specific information or to give specific information. Thurén (2003, p. 61), clarifies that people that have a clear interest in the matter does not automatically mean that they are lying, but it should open up for suspicion. As previously stated, the literature used in this thesis has been critically evaluated, as well as compared with other literature in order to strengthen the statements made by the researchers. Thus, eliminating potential biases and ensuring the quality of the sources.
3.Theoretical Framework
This chapter will discuss the previous studies which are relevant to the research question of this thesis. The theoretical framework begins with describing the digital marketing, data and, big data, and the use of data within digital marketing. Furthermore, cookies are discussed in relation to digital marketing. Thereafter, blockchain is described in detail, and its potential effect on various industries is examined. Finally, theories regarding the new European Union’s data regulation, GDPR, and its potential influence on digital technologies are reviewed.
3.1. Digital Marketing
3.1.1. Description of Digital Marketing
The concept, digital marketing was primarily used in advertisements directed towards customers when it was introduced in the 1990s. However, as digital marketing transformed during the last two decades the concept has come to focus on creating customer engagement (Brosnan 2012, cited in Fierro et al. 242). Digital marketing is concerned with how to interact and build sustainable relationships and how to meet the ever-changing demands of customers (Wymbs, 2011, p 95). Digital marketing can be defined as “an adaptive, technology-enabled process by which firms collaborate with customers and partners to jointly create, communicate, deliver, and sustain value for all stakeholders” (Kannan & Li, 2017, p. 23). Moreover, digital marketing is broad and involves several topics such as social media marketing, mobile marketing, analytics, e- commerce, customer data mining (Langan et al., 2019, p. 33). Digital marketing has primarily been used by companies on Internet-based search marketing, digital advertising, and banner ads (Wymbs, 2019, p. 95).
Furthermore, digital marketing involves applying digital technologies, such as web, mobile, digital TV, e-mail, and databases. These technologies are used to support interactive and non-interactive marketing activities with the aim of achieving profitable customer acquisition and customer retention (Chaffey 2010, cited in Wymbs, 2011, p.
94). Digital marketing connects customer digital touchpoints with digital conversation interfaces, which companies use to provide relevant content to the customers. For instance, customer digital touchpoints consist of social networks, search, e-commerce, and mobile. Whereas, firm conversation interfaces can be described as the tools used by marketers, such as marketing research, E-mail, digital advertising, and search engine optimization (Wymbs, 2011, p. 95).
In addition, Key (2017, p. 29) presents three diverse mediums of digital marketing; email marketing, social media marketing, and search engine marketing. Firstly, a commonly used communication channel is email marketing (Hartemo, 2015, p. 212), which is used for delivering informative and promotional information to a large audience (Key, 2017, p. 30, 31). Further, email marketing is important for building and maintaining relationships with customers (McCloskey 2006, cited in Ellis-Chadwick & Doherty, 2012, p. 843). In order for email marketing to be effective, marketers need to deliver relevant content. This can be achieved by taking advantage of segmentation, such as gender, age, and purchase history (Key, 2017, p. 31). Additionally, marketers need to balance the number of promotional emails with the number of emails that do not have the aim of conducting a sale. Further, marketers need to consider timing in email marketing (Key, 2017, p. 31).
