CASE SUMMARY: Retailers commonly track customer's shopping patterns and target them with special offers. For example, PTS an Extra care card that, when swiped at checkout applies discounts to purchases and provides rebates called Extra Bucks to be used as cash on future purchases. Behind the scenes, PTS has gathers data on customer’s purchases and using aggregated data to target individuals with special offers. Customers who have not recently shopped may may receive a discount in the mail or an online offer to incentive them to return. Frequent shoppers can scan their Extracare cards to get discounts and offers in the store. Questions Is it right for marketers to track consumer purchases? (Explain.) Should consumers be concerned with what information is being used? What are other examples of marketers using data collection to sell products? Is it ethical?

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.3SD: Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling...
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CASE SUMMARY: Retailers commonly track customer's shopping patterns and target them with special offers. For example, PTS an Extra care card that, when swiped at checkout applies discounts to purchases and provides rebates called Extra Bucks to be used as cash on future purchases. Behind the scenes, PTS has gathers data on customer’s purchases and using aggregated data to target individuals with special offers. Customers who have not recently shopped may may receive a discount in the mail or an online offer to incentive them to return. Frequent shoppers can scan their Extracare cards to get discounts and offers in the store.

Questions

  1. Is it right for marketers to track consumer purchases? (Explain.)
  2. Should consumers be concerned with what information is being used?
  3. What are other examples of marketers using data collection to sell products? Is it ethical?

 

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