Navigating privacy concerns: a literature review on data transparency and customer trust in digital marketing

Abstract

As digital marketing continues to evolve into a data-intensive field, consumer concerns about privacy have become increasingly prominent. This review of the existing literature examines how transparency in data practices influences the trust relationship between brands and consumers in digital environments. The evidence consistently indicates that when organizations communicate their data policies clearly and adhere to ethical standards, perceptions of intrusiveness decline and consumer trust increases. Transparent communication regarding privacy practices enhances users' understanding and reduces uncertainty. Trust is also shaped by individual factors, such as digital literacy and privacy sensitivity, particularly in AI-enabled and self-service marketing contexts. Emerging technologies, including blockchain, demonstrate considerable potential for improving accountability, transparency, and decentralized data security. However, significant challenges remain in aligning regulatory frameworks, ensuring technical transparency, and addressing cultural differences in trust expectations. This review provides both a conceptual foundation for future research and practical insights for developing trust-centered digital marketing strategies.