Read case study Case 3.3: Target CorporationPredictive Analytics and Customer Privacy and answer the questions (1-8) below:
1. As the communications director for the company, what course of action would you take after you hear of the enraged father visiting one of Targets stores?
2. At the time of the incident, headlines about Target, consumer privacy, predictive analytics and teen pregnancy were not yet racing through media outlets. But, such a sensational story is ripe for media attention. What will happen if a major, trusted news outlet learns about the incident and publicizes trade secrets? Will the company itself become a target for media and consumer backlash?
3. How much do consumers actually know and understand about how their data is used by Target? Is knowledge power for Targets customers, or is it better that they remain unaware?
4. How much should store-level employees know and understand about Targets data collection policies?
5. How much should a company reveal about its data collection practices to the public? Would disclosure neutralize Targets competitive advantage?
6. Should warning labels or informative signage be displayed at the point of purchase to warn/educate customers about the ramifications of using rewards/member cards programs and credit/debit cards?
7. The decision point in this case occurs just after the pregnant teenager incident. As the communications director for Target, how would you respond after the New York Times article was published?
8. Given the financial potential from using data mining and predictive analytics, should Target fight against legislation that would limit the use of such data?
