Data Mining
Number of pages: 2 pages/double spaced (550 words)
PowerPoint slides: 0
Additional: None
Number of source/references: 3
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Assignment: Application: Data Mining
Many companies use data mining techniques to improve business outcomes. By better understanding their consumers, companies are able to retain current customers, attract new customers through strategic marketing, and ultimately increase revenue. For this Assignment, you examine the data mining approach used by the Target Corporation and consider the pros, cons, and related ethical concerns.
To prepare:
Review this week’s Learning Resources. In particular, review “How Does Target Know So Much About Its Customers?”, and be prepared to answer the five questions found on page 164.
The Assignment:
Write a 2- to 3-page paper in response to the five questions found on page 164 of the article “How Does Target Know So Much About Its Customers? Utilizing Customer Analytics To Make Marketing Decisions.”
Refer to the following questions from Corrigan, et al. (2014):
The case describes the data mining approach used by Target Corporation to predict when a woman is likely to be pregnant. What types of data/indicators would be helpful for Target to track for identifying changes in consumer buying behavior during other life stage events such as getting a divorce, leaving for college, or preparing for marriage?
What considerations should a corporate executive in industries such as banking, health care, or higher education investigate when deciding on implementing a data mining program?
Consider the pros and cons of data mining from the corporate perspective and the customer.
Privacy concerns and ethics are two controversial topics that have arisen because of data mining and customer analytics. If you are a manager at Target Corporation, what policies could you present that would make customers more comfortable with the idea of collecting and analyzing their data? Please visit the Target home page (located in this week’s Learning Resources) to read its current “Privacy Policy.”
How have other industries or companies been successful with tracking and analyzing consumer behaviors to deliver targeted messages and promotions? Describe how they are similar and/ or different to Target’s approach. Visit the home page for one of the following organizations to find an example for your response: Amazon, Netflix, Pandora radio, Google, Facebook, Visa, eHarmony, iTunes, Ticketmaster, or Kroger. Use the Walden Library or the Internet to search for credible sources and include a citation.
