Journal of Strategic Marketing

ISSN: (Print) (Online) Journal homepage: https://www.tandfonline.com/loi/rjsm20

The ‘dark side’ of data–driven marketing: a

system’s thinking analysis

Arun A. Elias

To cite this article: Arun A. Elias (2022): The ‘dark side’ of data–driven marketing: a system’s
thinking analysis, Journal of Strategic Marketing, DOI: 10.1080/0965254X.2022.2105741

To link to this article: https://doi.org/10.1080/0965254X.2022.2105741

Published online: 11 Aug 2022.

Submit your article to this journal

View related articles

View Crossmark data

Full Terms & Conditions of access and use can be found at

https://www.tandfonline.com/action/journalInformation?journalCode=rjsm20
JOURNAL OF STRATEGIC MARKETING
https://doi.org/10.1080/0965254X.2022.2105741

The ‘dark side’ of data–driven marketing: a system’s thinking

analysis
Arun A. Eliasa,b
a
College of Business, Hospitality and Tourism Studies, Fiji National University, Fiji; bSchool of Management,
Wellington School of Business and Government, Victoria University of Wellington, Wellington, New Zealand

ABSTRACT ARTICLE HISTORY

Data-driven marketing has become a prominent strategic market­ Received 31 December 2020
ing approach, but it is prone to complex challenges, often referred Accepted 19 July 2022
as its dark side. The literature on data-driven marketing is domi­ KEYWORDS
nated by its positive aspects, but there is an emerging literature Data-driven marketing; dark
stream focussing on its challenges. This study aims at contributing side; systems thinking;
to this literature stream by providing an empirical study involving strategic intervention
a holistic analysis of the undesirable effects of data-driven market­
ing using a systems thinking approach. The challenges faced by
a New Zealand university in its international marketing using data-
driven marketing is used as a case. Using 23 interviews, a systems
model was developed, capturing the underlying structure behind
these challenges. Eight interacting feedback loops were identified
in the model, responsible for these complex challenges. A focus
group was used to formulate three strategic interventions to
address the complex challenges facing this organisation involved
in data-driven marketing.

Introduction
Data-driven marketing is now increasingly used as a strategic approach by organisations
to gain competitive advantage (Kumar et al., 2013). Since its beginning in the 1950s,
marketers have used it for different purposes like new product introduction, product
failure management, and customer conversion-rate enhancement (Jeffery, 2010). Building
on the success of data-driven marketing, experts predict text mining, biometric data,
video analytics, emoji analytics, pattern recognition, and forensic research as the next
frontiers of its opportunity (Sheth & Kellstadt, 2020).
Amidst the resounding success of data-driven strategies as a marketing approach,
some organisations are facing undesirable side-effects of this approach (Nuccio &
Guerzoni, 2019). An example is the ethical issues that emerge out of data-driven market­
ing. Researchers report that some of these ethical issues result from reselling consumer
data to the secondary market for big data (Martin, 2015). The undesirable side effects that
emerge out of data-driven marketing are often counterintuitive and may not have been
expected or predicted, referred as emergent property in systems thinking (Sterman, 2000).

CONTACT Arun A. Elias arun.elias@vuw.ac.nz

© 2022 Informa UK Limited, trading as Taylor & Francis Group
2 A. A. ELIAS

To gain an in-depth understanding of the undesirable effects of data-driven marketing,

there is a need for a holistic analysis of the underlying, interconnected factors that
contribute to the situation, along with the surrounding context. Formulation of strategies
to address this problem situation needs to base on such a holistic analysis (Elias, 2021).
Systems thinking is a holistic approach, which captures the complex interrelationships
between the parts of a system while considering the context in which the system operates
(Senge, 1990). Systems thinking as a methodological approach has been proven useful
and successful in similar situations involving the development of strategic interventions
based on a holistic analysis (Maani & Cavana, 2007). However, studies providing a holistic
analysis of the undesirable effects of data-driven marketing are still limited in the Strategic
Marketing literature.
In this context, the challenges faced by a New Zealand university (WBU, name dis­
guised) while introducing data-driven marketing as a strategic marketing approach pre­
sents an interesting case. This case study specifically focusses on WBU’s international
marketing efforts in India using data-driven marketing. During the last 20 years, WBU has
been increasing its marketing efforts in India to admit international students who pay very
high tuition fees. One such effort that started in 2015 was data-driven marketing that
aimed at gaining a better understanding of prospective students in India who may
consider WBU as a study destination. Originally, WBU’s data-driven marketing was all
handled internally within their international office, but in 2017 some part of it was
outsourced due to internal capacity constraints. Initially, data-driven marketing was
seen as a success as huge amount of student data started flowing in, which helped
WBU to design new Master’s programmes like Master of Global Business and Master of
Engineering Practice targeting Indian international students. The international student
intake during this period also increased by 9%. However, recently WBU is facing some
disturbing challenges. Complaints from key stakeholders like prospective students, their
parents and educational agents have been sharply increasing. For example, a group of
students complained that they were a part of a large cohort targeted by an educational
agent in India with false promises of post-study jobs in New Zealand. Inefficient and
ineffective execution of data-driven marketing is contributing to these issues. Making
things worse, the annual intake of Indian international students is showing a declining
trend even before the Covid-19 restrictions in early 2020 (e.g. 6% decline in 2018). Some
members of WBU’s senior management team are calling for a holistic analysis of this
complex situation. Strategies that can address this challenging situation will go a long
way in helping WBU to come out of this conundrum, as jobs are at stake now.
Based on the above discussions, although different issues related to data-driven
marketing that forms its dark-side are highlighted in the literature, currently it is disjointed
(Daunt & Greer, 2017), lacking a holistic understanding (Alharthi et al., 2017). Therefore,
the overall objective of this research project is to formulate strategic interventions based
on a holistic analysis of the undesirable effects of data-driven marketing using a systems
thinking approach. WBU is used as a case study in this project. The article proceeds as
follows: First, the literature on the challenges or dark side of data-driven marketing is
reviewed. Second, the methodological framework based on systems thinking is pre­
sented. Third, the problem is structured using a behaviour over time graph and associated
stakeholder analysis. Fourth, the findings of the study are discussed using a systems
model in the form of a causal loop diagram. Fifth, the model is elaborated to provide
 JOURNAL OF STRATEGIC MARKETING 3

a holistic analysis of the problem situation. Finally, three strategic interventions are
formulated to address the problem situation, and conclusions of this study are
summarised.

A review of literature on the challenges of data-driven marketing

The literature on data-driven marketing is dominated by research related to its positive
aspects. The impact of data-driven marketing for maximising customer value (Jones, 2007)
and gaining competitive advantage through exclusive customer information (Davenport
& Harris, 2007; Weerawardena, 2011) are regularly highlighted in this literature. But there
is also a literature stream within the data-driven marketing literature that focusses on its
challenges, often called as its ‘dark side’.
Among the different challenges, ethical issues related to data-driven marketing are
frequently reported in the literature. For example, Martin (2015) identified the ethical
issues emerging from reselling consumer data to the secondary market for big data.
Breidbach and Maglio (2020) identified 13 ethical challenges including concealed purpose
of value proposition, coercion, data awareness, data agency, data collection, data quality,
algorithmic decision-making, proxy discrimination, limited freedom of choice, multiple
data beneficiaries, predatory data culture, data sharing, and competitive pressure.
According to Nunan and Di Domenico (2013) individual privacy is a main ethical challenge
posed by big data while Raappana (2020) found confidentiality, privacy, and transparency
as core ethical issues for consumers.
In addition to ethical considerations, Kumar et al. (2013) highlighted top management
support and developing data and analytic capabilities as the main future challenges facing
data-driven marketing. McCallister (2007) mentioned that ethical behaviour should start
with the Chief Executive, but in the context of data-driven marketing it cannot be managed
by just one person. Alharthi et al. (2017) identified barriers related to the domains of people,
technology, and organisation and recommended a holistic approach to overcome these
barriers. According to Sheth and Kellstadt (2020) future challenges in data-driven marketing
will include curating data, data analysis, insights from data and half-life of knowledge.
Davenport and Harris (2007) found transparency as a critical component, while Grayson
and Ambler (1999) identified perceived opportunism, loss of objectivity, and rising expecta­
tion as dark side constructs of data-driven marketing. Frow et al. (2011) observed that
organisation in sectors like banking, credit cards, mobile phone services, health clubs, car
rentals, and credit cards are prone to such dark-side behaviour in marketing. Daunt and
Greer (2017) point out that the analysis of such dark-side dynamics is still disjointed.
De Cremer et al. (2017) studied the impact of the Internet of Things (IoT) on marketing
practices, specifically focussing on its dark side. They developed a framework classifying
the principal manifestations of dark-side behaviours. Eight types of behaviour were
grouped into four broader categories based on the means used to produce dark-side
behaviour and the target of the dark-side behaviour. These four categories and eight
types include: (i) knowledge and intelligence-based dark-side behaviour – information
misuse and privacy issues; (ii) transaction-based dark-side behaviour – confusing custo­
mers, and financial penalties; (iii) relationship-based dark-side behaviour and negligence –
customer favouritism and discrimination, switching barriers, and sunk costs; (iv) and
integrity challenge and manipulative dark-side behaviour – dishonesty and unfairness.
4 A. A. ELIAS

This literature also acknowledges that no data is perfect (Davenport & Harris, 2007).
Poor security and encryption practices can lead to more data and thereby to security
threats (De Cremer et al., 2017). Security of individuals is threatened when data combining
Facebook ‘likes’ and limited survey information can be used to predict user ethnicity,
sexuality, religious and political background as well as their drug, cigarette and alcohol
use and Twitter data to identify people with a high probability of depression (Kosinski
et al., 2013). As an unprecedented level of large-scale human behavioural data is available
today, (Lepri et al., 2017) underlined the dark side of data-driven decision-making includ­
ing violations of privacy; information asymmetry and lack of transparency; and discrimi­
nation and social exclusion. They found the use of coercive power through targeted
marketing efforts to prime and influence customer decisions. Such negative side become
prominent when marketing functions are outsourced (Park et al., 2011). Additionally,
there is a psychological limit for human mind to process information, as information
proliferation increases through social media and communication technologies (Hills,
2019). Some studies also revealed stalking as a dark side of social media (Dhir et al., 2021).
Based on this literature review, the challenges facing data-driven marketing can be
summarised into three broad categories as shown in Table 1.
A critical analysis of this literature can be summarised into three points. First, there is an
emerging stream in the data-driven marketing literature that focusses on its challenges or
dark side. Second, a variety of challenges and associated factors were identified by
different researchers. However, empirical studies that uses a holistic analysis of the
challenges facing data-driven marketing are still limited in this literature. Therefore, this
study aims to plug this gap by contributing an empirical study based on a holistic analysis
of the challenges facing data driven marketing.

Methodological framework
This study is based on an interpretivist research paradigm (Cavana et al., 2001) to under­
stand the subjective interpretations of data-driven marketing. The methodological frame­
work used in this study is based on the Systems Thinking approach (Aghalaya et al., 2012).
Systems thinking as an approach analyses a problem situation as an interconnected
whole and thereby have the capability to perform a holistic analysis (Senge, 1990).
While current studies on dark side of data-driven marketing uses analytical approaches
focusing on a few aspects (e.g. Nuccio & Guerzoni, 2019), systems thinking is capable of
analysing the problem holistically (Elias, 2017). Among the different systems thinking
methodologies, this study used the qualitative phases of the Systems Thinking and

Table 1. Challenges of data-driven marketing.

Challenges
Ethical challenges
Organisational challenges
Technical challenges
Examples
Reselling consumer data
Concealed purpose of value
Individual privacy
Top management support
Outsourcing decision
Data and analytic capabilities
Data collection
Data analysis
Data proliferation
 JOURNAL OF STRATEGIC MARKETING 5

Modelling methodology (Maani & Cavana, 2007). As an exploratory study aiming to

capture the subjective interpretations of stakeholders, and acknowledging the problems
associated with quantitative modelling in similar contexts (Coyle, 2000), this study is
limited to qualitative aspects of systems thinking.
The three phases of the Systems Thinking and Modelling methodology employed in
this study are presented in Table 2. They include problem structuring, causal loop
diagramming, and developing strategic interventions. During the problem structuring
phase, first the system behaviour was captured using a behaviour over time graph (Maani
& Cavana, 2007) followed by an analysis of stakeholders (Freeman, 2010). In the second
phase, a systems model, in the form of a causal loop diagram, was constructed by linking
the different parts and associated factors interacting in the system (Sterman, 2000). The
causal loop diagram was further analysed to provide a holistic analysis of the system. In
the third phase, three strategic interventions were formulated by altering the system
structure captured using the systems model (Elias et al., 2021)).
Data for this study was collected using primary and secondary research. For primary data,
23 stakeholders were interviewed using a set of semi-structured questions that involved both
face-to-face and zoom interviews (Table 2). As a qualitative study based on an interpretivist
research paradigm, the purpose of the interviews was to elicit subjective perceptions of
stakeholders and therefore limited to 23 interviews. Secondary data was collected from
government reports, consultant reports and media reports. A focus group involving 12 out
of the 23 interviewees was used to formulate strategic interventions as a part of this study.

Problem structuring
Problem structuring aims at structuring a complex problem situation by defining the scope
and boundaries of the problem situation, along with the identification of the stakeholders in
the system (Elias et al., 2007). In this study, problem structuring was performed by devel­
oping a behaviour over time (BOT) graph and analysing the stakeholders.

Developing a behaviour over time graph

Behaviour Over Time (BOT) graphs are used in systems thinking to present the problem
situation using historical information and to capture the time-variant patterns or trends of
the main variables in a system over an extended period of time (Sterman, 2000). They
show the trends of the main variables like decline, growth, or oscillations, but not their
numerical value and is usually drawn in a rough sense without specifying the numerical
values of the variables (Maani & Cavana, 2007).

Table 2. Methodological framework.

Phases
Problem Structuring
Causal Loop Modelling
Developing Strategic Interventions
Steps
Developing a behaviour over time graph
Identifying and analysing stakeholders
Developing a causal loop diagram
Analysing feedback loops
Identifying leverages
Formulating strategic interventions
6 A. A. ELIAS

Figure 1. International students from India in New Zealand. Source: New Zealand Immigration (2017).

Data collected for preparing the BOT graph showed (Figure 1) that the Indian interna­
tional student numbers in New Zealand is declining from 2010 (New Zealand Immigration,
2017).
A similar declining trend in Indian international student numbers was also seen
from the data collected from WBU. This trend was despite the increasing amount of
data collected from different sources for data-driven digital marketing and corre­
sponding analysis of this data to gain customer insights. Based on the data
collected and analysed, WBU also started new programmes during these years,
this showing an increasing commitment in terms of effort, time, and funding
towards data-driven marketing. However, counterintuitively complaints from differ­
ent stakeholders (e.g. students) were showing an increasing trend. This complex
problem situation is captured using a BOT graph presented in Figure 2.

Identifying and analysing stakeholders

To scope the problem situation, broad groups of stakeholders of WBU’s data-driven
marketing initiative was identified using a stakeholder map (Freeman, 2010) in
Figure 3.
This initiative affects these stakeholders differently. For example, the data-driven
marketing initiative aims to support the interest of the Senior Leadership Team to
make WBU a global university. It can also support the business interests of agents
to target and recruit large cohorts of international students, while negatively
affecting the market share of competitors. To narrow down the scope of this
study, key specific stakeholders were further identified and interviewed for this
study (Table 3).
 JOURNAL OF STRATEGIC MARKETING 7

1. WBU’s data collection 2. WBU’s data driven marketing 3. Customer complaints on

marketing 4. Indian international students in WBU

Figure 2. Behaviour over time graph.

Senior Leadership Government

Community
Competitors

WBU’s
Students Agents
Data Driven Marketing

Faculty Media
Management

Internal Alumni

Figure 3. Stakeholder map.

Sampling
According to Emory (1985), a sampling design can be probabilistic or non-
probabilistic. Within non-probabilistic sampling, researchers can use convenience or
purposive sampling, and within purposive sampling judgement or quota sampling
exist. This study used judgement sampling as a non-probability sampling technique.
Zikmund et al. (2013) describes judgement sampling as a non-probability sampling
technique, in which a researcher selects the sample based on personal judgement
about some appropriate characteristics of the sample members. In this study, the
stakeholder map (Figure 3) was used to select the 23 stakeholders who participated
8 A. A. ELIAS

Table 3. Interviewees.
No. Interviewee Stakeholder group
1 Deputy VC (Engagement) Senior leadership team (SLT)
2 Dean (Business) Senior leadership team (SLT)
3 Associate Dean (International) Faculty management team
4 Associate Dean (Students) Faculty management team
5 Assistant VC (International) Internal
6 Associate Director (International) Internal
7 Business Development Manager India Internal
8 Country Manager India Internal
9 Team Leader Data driven marketing Internal
10 Analyst Data driven marketing Internal
11 Indian International Student 1 Student
12 Indian International Student 2 Student
13 Indian International Student 2 Student
14 Indian Educational Agent Delhi Agent
15 Indian Educational Agent Mumbai Agent
16 Indian Educational Agent Kochi Agent
17 Manager Education NZ Government
18 Sr Adviser Ministry of Education Government
19 Manager MU University International Competitor
20 Manager CU University International Competitor
21 Manager Alumni relations Alumni
22 Correspondent Radio NZ Media
23 Former President, NZ Indian Association Community

Table 4. Stakes of selected stakeholders.

International Students
Obtain high quality education
High international fee payment
Future career
Team Leader Data Driven Marketing
Collect and analyse customer data for
developing marketing strategies
Country Manager-India
Indian student recruitment
Build WBU brand in India
Education NZ
Promote NZ as a study
destination
Support the delivery of
education services offshore
Indian Educational Agent Delhi
Business of student recruitment
Maximise profits
Assistant VC (International)
International marketing of WBU.
Budget for quality education

in this study. At least one stakeholder was selected from the ten stakeholder
categories in the stakeholder map. Most stakeholder groups had more than two
representatives as shown in Table 3.
Based on rational level stakeholder analysis proposed by Freeman (2010), stakes of
selected stakeholders are presented in Table 4.
The BOT graph used in problem structuring helped to capture the complex problem
situation associated with WBU’s data-driven marketing. Stakeholder identification and
preliminary stakeholder analysis that followed helped in scoping the problem situation
and in identifying the conflicting interests of different stakeholders involved in WBU’s
data-driven marketing.

Causal loop modelling

In the causal loop modelling phase of this methodology, a systems model in the form of
a causal loop diagram is developed (Maani & Cavana, 2007). A causal loop diagram captures
the cause and effect relationships between the different variables in a system (Sterman, 2000).
 JOURNAL OF STRATEGIC MARKETING 9

Figure 4. Causal loop model.

Developing a causal loop diagram

The data collected was analysed to isolate the different themes in the form of variables
that interact in the system. These variables include data collection, data analysis, customer
knowledge, customer satisfaction, WBU’s Indian international students, data-driven mar­
keting, new product introduction, new product success, data sharing with partners,
privacy issues, ethical challenges, customer complaints, top management commitment,
resistance to change, conflict with business as usual, data proliferation, capacity con­
straints, outsourcing, data security issues, predictive failures, information misuse by
managers, data to support own thinking.
These variables were then connected using the cause and effect logic to develop
a causal loop diagram (Figure 4).
Causal loop diagrams represent the structure of a system using the feedback loops
embedded in that system (Sterman, 2000). This causal loop diagram was drawn from the
perspective of the author (researcher), based on the data collected from the stakeholders.

Analysing feedback loops

The feedback loops present in the causal loop diagram in Figure 4 were identified as the
next step. Feedback loops are classified into reinforcing/positive or balancing/negative
(Sterman, 2000). Eight feedback loops, including two reinforcing and six balancing feed­
back loops were identified in this systems model. These feedback loops are explained
below.
10 A. A. ELIAS

Loop 1: Customer satisfaction loop (R1)

WBU’s decision to start the data-driven marketing initiative resulted in more data
collection and associated data analysis. Initially, this initiative resulted in gaining
more customer knowledge and thereby customer satisfaction. Customers in this
context include students, parents, and partner institutions in India. Overall, this
meant more effective marketing resulting in an increase of international student in
WBU after some time, which encouraged WBU to put more effort into data-driven
marketing. This positive behaviour is captured as a reinforcing feedback loop sup­
ported by a quote by one of the interviewees:

One good thing that happened out of this is to know what our customers want better. That
way . . .. data direct marketing was sort of a success

Loop 2: New products loop (R2)

The confidence in their knowledge of customer wants encouraged WBU to start new
programmes like Master of Global Business (MGB) and Master of Engineering Practice
(MEP). These new programmes were seen as a success since more Indian international
students joined them in due course. The international student intake during this period
showed an increase of 9%. This reinforcing feedback loop can be summarised using the
words of an interviewee:

We introduced MEP and MGB mainly for the Indian market. We were confident . . .

If these two reinforcing feedback loops were the only feedback loops in the system,
WBU’s data-driven marketing would have been a resounding success. But the remain­
ing feedback loops operating in the system limit the success of WBU’s data-driven
marketing.

Loop 3: Ethical issues loop (B1)

When WBU was collecting more data for data-driven marketing, they also shared it with
their partners. This raised privacy issues and related ethical challenges, resulting in
customer complaints from students and agents. Some of these complaints were similar
to the ones mentioned in the literature like the ethical issues of concealed purpose of
value proposition Breidbach and Maglio (2020), knowledge and intelligence-based beha­
viour of information misuse, transaction-based behaviour of confusing customers, and
manipulative behaviour of dishonesty (De Cremer et al., 2017). Such customer complaints
contributed to the reduced number of Indian international students (after a delay) and
ineffectiveness of data-driven marketing. This first balancing loop can be captured using
the following quote:

‘Before we started this initiative, we were already sharing our data with our benchmarking
partners. But when we shared it in this case, some of our stakeholders became angry . . . . raised
privacy issues . . . . we know that the customer complaints went up’.
 JOURNAL OF STRATEGIC MARKETING 11

Loop 4: Data security loop (B2)

WBU’s data collection for data-driven marketing also resulted in data proliferation.
According to a faculty management team member, the introduction of data-driven
marketing resulted in approximately 90% increase in international student data
compared to the previous year. The international division of WBU was faced with
capacity constraints to handle such a huge amount of data. When they outsourced it
to a company to handle this data, there were issues related to data security which
again raised privacy issues for stakeholders. The remaining part of this loop follows
the path of B1, forming the second balancing loop. This loop is validated by the
following quote:

‘We didn’t have enough people to handle the huge amount of data that was regularly flowing in.
So, we outsourced . . .. . . and then the mess of privacy, complaints and what not’.

Loop 5: Resistance to change loop (B3)

The other negative loop shows the resistance to change in the organisation. Data-driven
marketing is a new and different initiative compared to the traditional international activ­
ities carried out by WBU. Some line managers felt that this was taking too much time and
effort compared to their business as usual activities. They started stopping their immediate
subordinates from engaging in data-driven marketing initiatives and began complaining to
their senior managers about business as usual activities getting delayed, while asking for
additional human resources in their team. Such resistance to change activities reduced the
commitment of senior management towards data-driven marketing and they started
focusing on other initiatives. The balancing loop can be summarised using the following
words:

‘Ours is red bricked, old, traditional university . . .. . . any new initiatives will have resistance from
some corners’.

Loop 6: Data proliferation loop (B4)

As explained in loop 4, WBU’s data collection resulted in data proliferation. They
found it difficult to handle such a huge quality of data with their capacity con­
straints. Their own attempt to handle this data resulted in incomplete, incorrect data
analysis and their predictions about some programmes went wrong. Students and
other stakeholders complained about such decisions which contributed to the
decreasing number of Indian international students. A quote from an interviewee
validates this balancing loop:

Changing our Info Management programme . . .. . . with some analysis of data . . . predicting
more international students were foolish . . .. . . our students and alumni were shocked.
12 A. A. ELIAS

Loop 7: Wrong products loop (B5)

This loop is similar to loop 7 except towards the end of the causal chain. Incorrect
predictions using incomplete data analysis will lead to the introduction of new products
that are destined to fail. This contributes to decreasing number of Indian international
students and ineffectiveness of data-driven marketing. This balancing loop can be cap­
tured using the following quote:

The worst decision during this regime was to change our MBA to EMBA . . . . this was an utter
failure . . . . I don’t know which data gave them this stupidity.

Loop 8: Information misuse loop (B6)

This loop shows how managers manipulated data proliferation. They misused the infor­
mation using selective data analysis that confirmed their own thinking and biases. For
example, a new manager used some aspects of the data to introduce a set of new courses
within his area of expertise to radically change a Master’s programme. He predicted an
increase in student demand due to this change, but it proved to be a failure. This final
balancing loop can be summarised using a quote:

He used data to confirm what he wanted to do . . .. . . it was not objective . . . . you can shape the
data to hear what you want to hear.

The combined effect of these eight feedback loops explains the complex, counterintuitive
behaviour of data-driven marketing system in WBU. In systems thinking, a causal loop
diagram captures the system structure responsible for the problem behaviour captured
using the BOT graph (Sterman, 2000). Overall, the system can be seen as a ‘limits to
success’ systems archetype (Maani & Cavana, 2007). The two reinforcing feedback loops
R1 and R2 shows the success while most of the balancing loops capture the limits
associated with this success. Challenges identified in the literature like privacy issues,
ethical challenges, top management commitment, outsourcing, data proliferation are
applicable to WBU and became a part of the causal loop model. Additional challenges
like conflict with business as usual, resistance to change and data to support own thinking
are also included in the model.

Developing strategic interventions

In systems thinking, strategic interventions are introduced to make changes to the
structure of the system (Figure 4) so as to change the long-term behaviour (Figure 3) of
the system (Elias, 2019). The strategic interventions in this case are aimed at addressing
side-effects captured in the feedback loops. To formulate strategic interventions, the
causal loop diagram was taken back to a group of 12 of the 23 stakeholders who originally
participated in the study. The group involved 5 internal, 3 students, 1 faculty management
team member, 1 government, 1 alumni and 1 community stakeholder. The model was
taken back to the stakeholders to also improve its validity (Forrester & Senge, 1980).
 JOURNAL OF STRATEGIC MARKETING 13

The remaining 11 stakeholders were contacted, but they were not available for this
group session. The study decided to proceed with lesser number of participants because
of two main reasons. First, the purpose of the second exercise was to validate the model
with a smaller group of stakeholders than all the stakeholders who participated in the
initial data collection with the purpose of brainstorming. Experts agree that when focus
groups are conducted in qualitative studies, such smaller numbers are common (e.g.
Morgan, 1995). Secondly, systems thinking literature provides similar examples of causal
loop modelling exercises when all the stakeholders in one exercise were not present in
the subsequent ones (e.g. Cavana et al., 1999).

Identifying leverages
In the context of systems thinking, leverage points are places in a system where small
changes in a point can lead to substantial impacts in the entire system (Fischer & Riechers,
2019). During the group session with the stakeholders, after explaining the concept of
leverage points and the different loops in the causal loop model, the stakeholders were
requested to identify three leverage points in the model. They identified data sharing with
partners, capacity constraints and predictive failures as leverage points. Since these were
the only three suggested, reaching a consensus was not difficult in this case.

Formulating strategic interventions

After identifying the leverage points, the group of stakeholders formulated three
strategic interventions (Figure 5). These strategic interventions address most of the
negative effects captured using the five balancing feedback loops but not all loops
are directly affected (e.g. loop 3). The first strategic intervention aims at minimising
the ethical issues emerging out of data-driven marketing by targeting the leverage
point of data sharing with partners. During the group discussion, it became clear that
WBU is forced to share data with partners due to a contractual agreement that was
expiring in May 2021. The group recommended that this contractual agreement be
not renewed after its expiry. This intervention mainly addresses the negative impact
of the Ethical Issues loop (B1).
The main objective of the second strategic intervention is to release the constraints of
data-driven marketing due to WBU’s limited capacity to handle data. It targets the
leverage point capacity constraints by addressing the negative impacts of two feedback
loops, namely data security loop (B2) and data proliferation loop (B4). During the discus­
sion, it was mentioned that currently only one part time and two full time employees work
directly in the data-driven marketing group within WBU’s international marketing divi­
sion. The group recommended that this data-driven marketing group be expanded. If the
university is serious about data-driven marketing, more resources have to be allotted to
this group in terms of people and budget. This will involve recruiting new employees and
allotting existing employees from the broader international marketing group whose work
have been significantly reduced due to the Covid-19 restrictions. A strong internal data-
driven marketing can avoid both outsourcing and predictive failures.
14 A. A. ELIAS

SI 1
SI 2
SI 3

Figure 5. Strategic interventions.

The third strategic intervention recommended by the group is about reducing the
chances of failures while predicting. It targets the leverage point predictive failures and
addresses two feedback loops, wrong products loop (B5) and information misuse loop (B6).
During the group discussions two main issues were raised. Currently, no simulation models
were used for predictions about the success of new programmes. Consultations with key
stakeholders like students, alumni, and community were minimal or namesake. The group
recommended that both these issues be addressed. Using a scientific method for prediction
along with proper stakeholder consultation can minimise the negative impacts of information
misuse by managers to confirm their own thinking as well as improve new product success.
Overall, these strategic interventions are expected to change the behaviour of the system
that was captured using the BOT graph (Elias, 2017). Specifically, two main changes are
expected. First, customer complaints on marketing will start decreasing over time. Second,
Indian international students in WBU will start increasing in the long-term.

Managerial implications
This study provides a caution to those managers keen on embracing data-driven market­
ing, by highlighting some potential risks. The study encourages such managers to take
a balanced approach, considering both opportunities and challenges, while implement­
ing data-driven marketing. It helps them to understand that there are a variety of
challenges, which are interconnected, and a holistic approach is required to address
them effectively.
 JOURNAL OF STRATEGIC MARKETING 15

Specifically, this study illustrates a framework for practicing managers to use while
addressing the interconnected challenges involved in their implementation of data-
driven marketing. It also shows how they can formulate strategic interventions to deal
with the dark side of data-driven marketing effectively.

Conclusions
To assess the effectiveness of data-driven marketing as a strategic marketing approach,
a systemic analysis is necessary. While there are numerous strengths of data-driven
marketing, there are also associated challenges, often known as its dark side (Lepri
et al., 2017). This study conducted a holistic analysis of the challenges and undesirable
effects of data-driven marketing using a systems thinking approach (Sterman, 2000).
Using the case of a New Zealand university that used data-driven marketing for its
international marketing efforts in India, a systems model was developed, and strategic
interventions formulated to address the challenges of data-driven marketing holistically.
Theoretically, this research contributes an empirical study to the literature stream on
the challenges or dark side of data-driven marketing (Sheth & Kellstadt, 2020) within the
Strategic Marketing literature (Weerawardena, 2011). It also contributes a methodological
framework based on systems thinking (Elias, 2017) to assess strategic marketing
approaches like data-driven marketing holistically. However, this study acknowledges its
limitation as a purely qualitative research based on 23 interviews and a focus group. As
the study is based on a single organisation in the university sector, the scope for general­
isations is also limited. Multiple case studies could improve the robustness of the model.
This study could lead to more empirical studies on data-driven marketing, especially on
its challenges or dark side. Such studies could employ a qualitative systems thinking
methodology or a quantitative systems approach based on methodologies like system
dynamics (Sterman, 2000). Finally, this research sets a platform for further research, not
just on data-driven marketing, but on other strategic marketing approaches as well, which
can contribute to theory building in understanding the challenges of data-based decision-
making.

Disclosure statement
No potential conflict of interest was reported by the author(s).

References
Aghalaya, S. N., Elias, A. A., & Pati, R. K. (2012). Analysing reverse logistics in the Indian pharmaceu­
ticals industry: A systems approach. In Proceedings of the 26th Australian and New Zealand
academy of management conference (pp. 1–19). Perth. December 5–7, 2012.
Alharthi, A., Krotov, V., & Bowman, M. (2017). Addressing barriers to big data. Business Horizons, 60(3),
285–292. https://doi.org/10.1016/j.bushor.2017.01.002
Breidbach, C. F., & Maglio, P. (2020). Accountable algorithms? the ethical implications of data-driven
business models. Journal of Service Management, 31(2), 163–185. https://doi.org/10.1108/JOSM-
03-2019-0073
16 A. A. ELIAS

Cavana, R. Y., Davies, P. K., Robson, R. M., & Wilson, K. J. (1999). Drivers of quality in health services:
Different worldviews of clinicians and policy managers revealed. System Dynamics Review: The
Journal of the System Dynamics Society, 15(3), 331–340. doi:10.1002/(SICI)1099-1727(199923)
15:3<331:AID-SDR167>3.0.CO;2-G
Cavana, R. Y., Delahaye, B. L., & Sekaran, U. (2001). Applied business research: Qualitative and
quantitative methods. John Wiley & Sons Inc.
Coyle, G. (2000). Qualitative and quantitative modelling in system dynamics: Some research
questions. System Dynamics Review: The Journal of the System Dynamics Society, 16(3), 225–244.
https://doi.org/10.1002/1099-1727(200023)16:3<225:AID-SDR195>3.0.CO;2-D
Daunt, K. L., & Greer, D. A. (2017). The dark side of marketing: Introduction to the special issue.
Journal of Marketing Management, 33(15–16), 1231–1235. https://doi.org/10.1080/0267257X.
2017.1382188
Davenport, T. H., & Harris, J. G. (2007). How can these companies leverage the customer data
responsibly? Harvard Business Review, 85(5), 1–9 http://courses.nus.edu.sg/course/bizchucl/con
sult/Dark%20Side%20of%20Customer%20Analytics.pdf.
De Cremer, D., Nguyen, B., & Simkin, L. (2017). The integrity challenge of the Internet-of-things (IoT):
On understanding its dark side. Journal of Marketing Management, 33(1–2), 145–158. https://doi.
org/10.1080/0267257X.2016.1247517
Dhir, A., Talwar, S., Kaur, P., Budhiraja, S., & Islam, N. (2021). The dark side of social media: Stalking,
online self-disclosure and problematic sleep. International Journal of Consumer Studies, 45(6),
1149–1442. doi:10.1111/ijcs.12659
Elias, A., & Zwikael, O. (2007). Stakeholder participation in project management: A New Zealand
study. In Proceedings of the 5th annual Australian and New Zealand academy of management
operations management symposium, (pp. 7–8). Melbourne.
Elias, A. A. (2017). Systems thinking and modelling for stakeholder management. IIM Kozhikode
Society & Management Review, 6(2), 123–131. https://doi.org/10.1177/2277975216681105
Elias, A. A., Donadelli, F., Paiva, E., & Bacic Araujo, P. (2021). Analysing the Complexities of Sustainable
Wood Supply Chain in the Amazon: A Systems Thinking Approach. The International Journal of
Logistics Management, 32(4), 1481–1505. https://doi.org/10.1108/IJLM-07-2020-0276
Elias, A. A. (2021). Kerala’s innovations and flexibility for Covid-19 recovery: Storytelling using
systems thinking. Global Journal of Flexible Systems Management, 22(1), 33–43 https://doi.org/
10.1007/s40171-021-00268-8 .
Emory, C. W. (1985). Business research methods. Richard D. Irwin. Inc.
Fischer, J., & Riechers, M. (2019). A leverage points perspective on sustainability. People and Nature, 1
(1), 115–120. https://doi.org/10.1002/pan3.13
Forrester, J. W., & Senge, P. M. (1980). Tests for building confidence in system dynamics models. TIMS
Studies in Management Sciences, 14, 209–228 http://static.clexchange.org/ftp/documents/road
maps/RM10/D-2926-7.pdf.
Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge University Press.
Frow, P., Payne, A., Wilkinson, I. F., & Young, L. (2011). Customer management and CRM: Addressing
the dark side. Journal of Services Marketing, 25(2), 79–89. https://doi.org/10.1108/
08876041111119804
Grayson, K., & Ambler, T. (1999). The dark side of long-term relationships in marketing services.
Journal of Marketing Research, 36(1), 132–141. https://doi.org/10.1177/002224379903600111
Hills, T. T. (2019). The dark side of information proliferation. Perspectives on Psychological Science, 14
(3), 323–330. https://doi.org/10.1177/1745691618803647
Jeffery, M. (2010). Data-driven marketing: The 15 metrics everyone in marketing should know. John
Wiley & Sons.
Jones, G. L. (2007). How can these companies leverage the customer data responsibly? Harvard
Business Review, 85(5), 7 http://courses.nus.edu.sg/course/bizchucl/consult/Dark%20Side%20of%
20Customer%20Analytics.pdf .
Kosinski, M., Stillwell, D., & Graepel, T. (2013). Private traits and attributes are predictable from digital
records of human behavior. Proceedings of the National Academy of Sciences, 110(15), 5802–5805.
https://doi.org/10.1073/pnas.1218772110
 JOURNAL OF STRATEGIC MARKETING 17

Kumar, V., Chattaraman, V., Neghina, C., Skiera, B., Aksoy, L., Buoye, A., Henseler, J., & Aksoy, L. (2013).
Data-driven services marketing in a connected world. Journal of Service Management, 24(3),
330–352. https://doi.org/10.1108/09564231311327021
Lepri, B., Staiano, J., Sangokoya, D., Letouzé, E., & Oliver, N. (2017). In T. Cerquitelli, D. Quercia, &
F. Pasquale (Eds.), Transparent data mining for big and small data. Studies in big data (Vol. 32, pp.
3–24). Springer. doi: 10.1007/978-3-319-54024-5
Maani, K. E., & Cavana, R. Y. (2007). Systems thinking, system dynamics: Managing change and
complexity. Pearson Education NZ (Prentice Hall).
Martin, K. E. (2015). Ethical issues in the big data industry. MIS Quarterly Executive, 14(2), 67–85.
https://aisel.aisnet.org/cgi/viewcontent.cgi?article=1310&context=misqe
McCallister, M. B. (2007). How can these companies leverage the customer data responsibly?
Harvard Business Review, 85(5), 9. http://courses.nus.edu.sg/course/bizchucl/consult/Dark%
20Side%20of%20Customer%20Analytics.pdf
Morgan, D. L. (1995). Why things (sometimes) go wrong in focus groups. Qualitative Health Research,
5(4), 516–523. https://doi.org/10.1177/104973239500500411
New Zealand Immigration. (2017). India market. Retrieved from https://www.immigration.govt.nz/
assist-migrants-and-students/assist-students/internationalmarkets/india
Nuccio, M., & Guerzoni, M. (2019). Big data: Hell or heaven? Digital platforms and market power in
the data-driven economy. Competition & Change, 23(3), 312–328. https://doi.org/10.1177/
1024529418816525
Nunan, D., & DiDomenico, M. (2013). Market research and the ethics of big data. International Journal
of Market Research, 55(4), 505–520. https://doi.org/10.2501/IJMR-2013-015
Park, J. E., Lee, S., & Morgan, R. M. (2011). A negative side of outsourcing marketing functions and
market-based learning process. Journal of Strategic Marketing, 19(5), 471–486. https://doi.org/10.
1080/0965254X.2011.565881
Raappana, H. K. (2020). Ethics in data-driven marketing. Retrieved from https://osuva.uwasa.fi/bit
stream/handle/10024/11356/UniVaasa_2020_Heli_Raappana.pdf?sequence=2&isAllowed=y
Senge, P. (1990). The fifth discipline. Currency Doubleday.
Sheth, J., & Kellstadt, C. H. (2020). Next frontiers of research in data driven marketing: Will techniques
keep up with data tsunami? Journal of Business Research. 125, 780-784. https://doi.org/10.1016/j.
jbusres.2020.04.050
Sterman, J. D. (2000). Business dynamics: Systems thinking and modeling for the complex world.
McGraw Hill.
Weerawardena, J. (2011). The role of marketing capability in innovation-based competitive strategy.
Journal of Strategic Marketing, 11(1), 15–35. 10.1080/0965254032000096766
Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2013). Business research methods. Cengage
Learning.