What types of sports events do they go to? Are they Web savvy? Are they frequent fliers? Once you develop that kind of intimate understanding of your shoppers, you can truly begin to cultivate their loyalties" (Pedersen 1999:1).
On one hand, this may make consumers uncomfortable -- but it may also mean that when a supermarket chain discovers that the majority of its customers have young children, the chain may include a new line of baby care supplies or discounted coupons on diapers bought in bulk. If a credit card company discovers that the majority of its users are not frequent fliers, it may create a new rewards points program that offers different promotional strategies than mere upgrades to first class.
Take for example a promotional strategy whereby Coca-Cola "joined forces with Random House to offer sample chapters of unpublished novels in cases of Diet Coke. The idea was hatched when Coke identified a nexus between Diet Coke drinkers and fiction readers" (Pedersen 1999:1) Everyone is a winner in this scenario -- the consumer gets to read a new chapter, Coca-Cola creates buzz about its products, and the authors gain a wider audience of interested readers.
Of course, marketers have an ethical...
But so long as such cross-sectional use of consumer profiles is not used unethically, the consumer will benefit. Marketers must be aware of the law: "Under the FTC Act, the Commission guards against unfairness and deception by enforcing companies' privacy promises about how they collect, use and secure consumers' personal information" ("Privacy Initiatives, 2007, FCC). But so long as consumer information is not solicited and used disingenuously, it is possible for both companies and consumers to benefit from keeping informational channels free and open regarding a wide range of consumer behaviors.
Works Cited
Kotler, Phillip & Kevin Lane Keller. (2007).A Framework for Marketing Management.
Third Edition. Prentice Hall.
Pedersen, Stephen. (19 Apr 1999). "The incentives that consumers want:
Build customer loyalty by using consumer data." Brandweek. 1999. Retrieved 5 Mar 2007 at http://findarticles.com/p/articles/mi_m0BDW/is_16_40/ai_54448314
Privacy Initiatives." (2007) FCC: Federal Trade Commission. Retrieved 5 Mar 2007. http://www.ftc.gov/privacy/index.html
