Question
Can you imagine receiving an ad from Target informing you that your teenage daughter was pregnant? Yes, this actually happened a few years ago when
Can you imagine receiving an ad from Target informing you that your teenage daughter was pregnant? Yes, this actually happened a few years ago when Target sent an unsuspecting father discount coupons for cribs and baby clothes for his teenagedaughter who had not told anyone she was pregnant. This incident set off a flurry of outrage and privacy concerns against Target's data analysis practices.Andrew Pole, a statistician for Target, explained how big data helped analyze customers' purchases to determine pregnancy. Target analyzes its data using a unique ID linked to a customer's credit card, name, and purchases to look for patterns (for example: a woman buying prenatal vitamins) to then send them special deals andcoupons for baby items. When Target's data analysis system analyzed customer purchase data based on 25 products that pregnant women frequently buy, it could assign a pregnancy prediction score to each shopper and estimate her due date so Targetcould send her relevant coupons for various stages of her pregnancy. After massivecustomer outrage against privacy concerns Target began mixing customized couponsby offering a coffee maker with a crib or coupons for baby clothes with wine glasses,so someone reviewing the coupons could not determine anything about the customer.There is no doubt that some companies' data analysis practices feel more like stalking than strategic business moves. How would you feel if you received coupons indicating someone in your family or household was pregnant or sick? How does a companydetermine if its data analysis practices are crossing the line over data privacy? Do you agree it was a good idea for Target to mix coupons to help ensure customer privacy?
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