Chapter 8 Marketing Information Management Notes.docx

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Chapter 8 Marketing Information Management Notes
8.1 Identifiably
- On a Basic level, we are all the same but upon closer inspection we are all different
- Behavioural characteristics describe one way to differentiate ourselves but there are other ways as well…
Your name, birthdate, parents, drivers license number
- The collection of biological attributes, cultural traditions, observable circumstances, and institutional
attachments that you acquire over your lifetime combine to form your identity
- Governments need to differentiate their citizens, employers their employees, banks their patrons, schools their
students etc.
Gary Marx proposed 7 methods to identify people:
1. Name: Legal names distinguish us from eachother. Also connect us to our biological or social linage
2. Location: Can be identified by our addresses. This can also relate to places we frequent
- Personal identification is easier now b/c our mobile technology broadcasts our location frequently
3. Traceable alphanumeric Symbols: Can be identified via #s or other symbols that we acquire through the
normal course of life (Phone #, Credit card #, social security #, bank account # etc.)
4. Untraceable alphanumeric Symbols: Sometimes we acquire numbers or symbols that aren’t linked to our
identity but serve to distinguish people from one another (E.g. take a number @ deli counter in grocery store)
5. Pattern Behaviour: Purchase habits, schedules, and online communication can all be analyzed to distinguish
6. Social Categorization: We differentiate people based on social categories like gender, age, sex, religion,
class, employment status, language and culture (categories might even expand into leisure activities)
7. Certification & Eligibility: People can be identified by their possession of knowledge, artifacts, or skills
- E.g Artifacts like badges/uniforms separate police officers from regular people
- Nature of identity is so important b/c its closely tied to privacy
- Privacy is the right to remain unidentified but also the right to choose when identity should be concealed or
8.2 Anonymity
- Anonymity describes conducting yourself w/o revealing your identity
- When nobody knows who you are, you can act anonymously
- In info age this means you can participate in discussion forums, complete transactions, and visit websites
without your identity being revealed
- Online anonymity and offline anonymity are different because…
1. Distribution: Info can be disseminated far and wide at relatively low cost. B/c of this, anonymity becomes
harder to protect
2. Persistence: Info remains archived for much longer. Evidence doesn’t simply just disappear easily. Companies
keep terabytes of consumer data, governments keep decades of personal records, and websites keep clickstream
data on millions of visitors
in many cases all of these data are backed-up multiple times on multiple servers
- Pseudonymity (another type of anonymity) involves conducting affairs under an assumed name
Might be a nickname, pen name, or a symbol
- Confidentiality (another type of anonymity) means that identity is known, but such knowledge remains
protected and isn’t made public
8.3 Privacy Legislation
- In a democratic society, our right to privacy is closely associated w/ similar rights like freedom of the press,
freedom of speech, or freedom of assembly.
- We regularly surrender personal info to governments, companies, and other organizations
Give info up in exchange for goods, services or another benefit
Organizations agree to protect our info & respect our privacy in return for right to provide us with
those goods, services etc.
- Unspoken social contracts are not always good. Legislating the negotiations between public & private interests
or individual and collective interests can get messy
- By concealing identity we provide improved freedom from detection, retribution and embarrassment
but also opens door for deception, impersonation, misrepresentation, fraud etc,
- The law represents our best attempt to reconcile the individual’s need for anonymity with society’s need for
- Federal trade commission just adopted the following standards:
1. People should be given notice that info is being collected about them and what info
2. People should provide consent and choose how they want their info to be used/shared
3. People should have right to view data that has been collected
4. Organizations that collect data should provide safeguards and secure the info accordingly
5. Should be enforcement mechanism in place to ensure organizations comply w/ these standards
- These standards may not have found their way into a unified federal act in the US, but they are found in the
foundation for Canada’s national privacy legislation
- In Canada, organizations involved in commercial activity must adhere to the Personal Info Protection &
Electronic Documents Act (PIPEDA)
Requires organizations to be accountable for their info gather processes & protect their data,
limit how it is used, enable people to access their info upon request, and discard un-useful info
8.4 Data Mining
- Sometimes organizations protect privacy and ensure the anonymity of people by aggregating the data they
collect. This involves lumping data together according to similar characteristics, making it hard to identify and 1
person. Also allows organizations to recognize key patterns.
Eg. Government census data
- Typically companies collect 2 types of data
1. Subscription Data: personal details that consumers submit willingly @ time of purchase
2. Transaction Data: Preference details. Consumers create this activity data while they interact w/
the company (Eg. Buying a book: type of book, payment method, preferred shipping option etc.)
- By pooling consumer data companies can use data mining to identify important patterns
Some applications of data mining:
Propensity to buy: Past patterns of purchase sin order to keep stock of right products
Next Sequence Purchase: Analyzing consumer data to deliver promotional offers at correct times
- Managers can use past data to determine which product consumer will likely buy next
Product Affinity: Can determine common product combo (E.g. Diapers and formula)
Price Elasticity Modeling: Past data can help timeize pricing and maximize profits for
- Managers can use supply and demand data to tie prices to circumstances
- By cross examine available data or by querying for multiple criteria, we can uncover the secrets of aggregated
8.5 Privacy doesn't exist
- Introduction of caller ID features initially raised a lot of privacy concerns
- With sophisticated databased driven systems our identities can be found through our names, street addresses,
emails, phone numbers, passports, creditcards etc.