Customer Behavior Patterns Using Predictive Analytics Essay

I- Bank and all of the surrounding banks have a homogeneous product established by similar functions; a homogeneous product is one that cannot be distinguished from competing products and has essentially the same physical characteristics (Alizon, Shooter & Simpson, 2010). There is a lot of competition in the Memphis banking arena, in the beginning I- bank was not in a position to dictate the price of products sold. However, they still must remain competitive in order to attract customers (Hymans, 1966). Again, being the 35th bank to open in Shelby County proves the field has room for another financial institution, but there are no barriers to the entry of a perfectly competitive market and no limitations on the exit of resources from a perfectly competitive market (Tailan & Liu,

It has recently come to my attention that Target Co. utilizes data mining to extract a wide spectrum of information about its customers by accumulating, analyzing and storing data about customer purchases. While I understand that this practice enables Target Co. to simultaneously deliver individually targeted advertisements across its diverse customer groupings, thereby increasing the potential for sales and improving customer retention, I also understand that large amounts of data unearthed by data mining can be manipulated to uncover hidden purchasing patterns to predict and shape future purchase decisions. Therefore, although there are significant benefits to using data mining, there are also serious costs associated with data mining that

Capital One's information-based strategy (IBS) was more attractive as the company became synonymous with mass customization and the Information Revolution

The ability to compete on analytics is made possible by certain qualities some companies possess which allows them to collect and use immense amounts of data in a way that differentiates the success and practices of those companies amongst any other businesses. Davenport and Harris (2007) define analytics as “extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions” (p. 7). Therefore, to be able to compete on analytics, a firm must not only use the data to extrapolate and execute strategies and models in order to drive business, but also to use that data better and smarter than their competitors. This requires forward thinking and continual developments of current analyses and practices. With regard to Davenport and Harris’s criteria and concepts on the ability to compete on analytics, Old Navy LLC’s practices will be analyzed to find whether the company is able to compete, is a competitor, and how it competes, if at all.

At Bank of America we are looking to deliver what the customer wants. We believe that there are five pillars. They are easy to use, clear, and straight forward banking, friendly and knowledgeable associates in the community, reliable products and services, security and accessibility. These tools will help our customers feel in control of their financial decisions. To make sure that this commitment is communicated we will market through mass media, associates, print ads, and radio. We have also switched the way we will target the customers. The customer will fall into three segments. They are Mass Market, Mass Affluent, and Small business. This will assure that we are delivering the

Data is an important component used by all technology and businesses to gain insights and refine their marketing techniques to improve customer experience. Through the use of data analysis companies can capture a large amount of data, and retrieve information regarding the company’s trends. In Richard’s case using data analytics allows him to gain better insights on customer behaviors, in which he was able to determine which factors influence a user to purchase the eReader early. These factors will allow the team to develop new business models and improve their marketing strategies to capture these individuals (“Big Data Analytics”, 2017). For example, if most of the early users are from California, it would be beneficial to promote the eReader

JPMorgan Chase & Co. is one of the world’s oldest, biggest and well-known financial institutions. With over 200 years of history, it has a significant and lengthy story to tell. Since their founding in New York in 1799, they have grown and succeeded by listening to their customers and also meeting their needs (“The History of JPMorgan Chase & Co.,” 2008). As a global financial services company with operations in over 50 countries, JPMorgan Chase & Co. combines two of the world’s foremost financial brands: Chase and J.P.Morgan. The firm is a leader in financial services for consumers, investment banking, commercial banking and small business, processing financial transactions, private equity, and asset management. (“The History of JPMorgan Chase

The problem that Graybar described in the case was that they were facing pricing pressure from its customers, which resulted in Graybar’s profit margins being squeezed. They were focusing primarily on customers that spent the most money, but that was only a small percentage of their total customer base and they had to learn how to deal with the rest of their customers. Researchers had analyzed the company’s issues and pricing problem before suggesting that Graybar identify each customer to see how costly that customer is to serve. Their technique was to place customers into categories based on their profitability, loyalty, and liability. Additionally, SAP developed a new analytics software (called SAP Customer Value Intelligence), which sped

Over the years, UOB objective is to be seen and be known as a leader in the field of consumer and commercial banking services in the region. And to do so, they have came up with innovative treasury and investment banking products to provide an absolute solutions to their customers.

Technology is another segment that will have a major impact on Best Buy in the near future. Predictive analysis, social media, and multichannel retailing are trends that are most important in Best Buy’s general environment. Knowing your customers is a critical part to any industry, and predictive analysis is becoming one of the best ways to accomplish that objective. By correctly using technology to control the high volume and availability of data, companies can understand customers’ wants. A core competency of both Amazon and Netflix predictive analysis; based on previous purchases or views

IDS Financial Services operate in the consumer financial service industry. After the acquisition by American Express in 1984 the company went through tremendous growth for three consecutive years in terms of revenue (average 30%), financial plan fees (174%) and its sales force (annual rate11%). The company was facing new challenges as to how to maintain this 30 percent growth rate in the market place where the competition was increasing day by day. The consumer financial industry is growing very fast which creates new opportunities to be exploited. With this the competition is also growing as the competitors are becoming more and more aggressive in marketing and selling their products. Now the company

Part 2. How Business Analytics can be used to gain advantage in a competitive marketplace

In 1996, Citibank was an emergent banking institution attempting to increase its market share in the competitive Los Angeles area. In order to do so, the bank’s strategy was to focus slightly less on their financial growth, and much more on providing “a high level of service to its customers”. Management viewed this paradigm shift as “critical to the long term success of the franchise”.

Analysis • Analyzing the industry context – What are the trends in the investment banking industry affecting Campbell and Bailyn in 2007? – Product specialization – Move toward commoditization in some segments of industry. – Increasing sophistication of customers  Analysis •

IKEA was chosen as the target company to study its consumer behavior due to its high brand awareness and large consumer base. 12 young respondents, who are mainly from our friends, are selected to do the depth-interview. Base on the data collected from the