The Data Mining By Retailers Essay

949 WordsOct 8, 20154 Pages
It is widely known that retailers like Target or Kohl’s are collecting their customers’ data which we know as a data mining. Based on the Merriam-Webster dictionary, data mining is defined as “the practice of searching through large amounts of computerized data to find useful patterns or trends” (n.d.). Retailers argue that they use the data to improve their business performances. The data mining by retailers is still debatable whether or not the action is ethical or unethical. Based on comparing the advantages and the disadvantages, the data mining by retailers are ethical to the extent of using the data for the purpose of improving their business performances. The competition between retailers is really intense, which force them to improve themselves to avoid a business failure. Data mining is one of the ways that retailers use to help with improvement. The data mining can be done by having a special program that can track the customers’ purchases. Most retailers use the “membership card” method to collect their customers’ data. Every time a customer purchases goods with the card, the system will collect the purchase history for analyzation. Retailers then use the data “to learn what customers want, understand historical trends, and improve the quality of marketing decisions” (Corrigan, Craciun, & Powell, 2014, p. 160). It is important to retailers to understand the demand from both suppliers and customers so that they can have a better marketing strategy in the future.

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