Reference no: EM133391340

In 2012, a major PR fiasco rocked the retail community having to do with data mining and privacy. A Target statistician found a way to analyze historical purchasing data and correlate that data with possible pregnancies. This led the company marketing department to send pregnancy advertisements and coupons to expecting mothers. Then, one day, an angry father arrived at Target demanding to know why Target was sending his high school daughter such advertisements. Later, the father issued an apology. His daughter was due in later that year (Hill, 2012).

This story raised both applause and triggered repulsion from the public. It is both amazing that data can make such predictions and provide usable suggestions. It's also scary that companies have the power to expose our secrets.

1. Is Target's data mining and predictive analytics a success, a failure, or both? Explain your answer.

2. How does Target create profiles of customers?

3. Is Target's "pregnancy predictor" a long-term competitive advantage? Explain.

4. How does Target make such accurate predictions?

5. What are the ethical considerations of the use of this data?