Reference no: EM132180975

Given the case of a father's knowledge of his daughter's pregnancy by way of Target's predictive analytics advertising. This story broke through a New York Times article on February 2012, "How Companies Learn Your Secrets" that focused on analytics and its uses by Target. At the time of the incident, headline about Target, consumer privacy, predictive analytics, and teen pregnancy were not racing through media outlets. But, such a sensational story is ripe for media attention.

How would you answer the following questions:

1. How much do consumers actually know and understand about how their data is used by Target? Is knowledge power for Target's customers, or is it better that them remain unaware?

2. How much should store-level employees know and understand about Target's data collection policies?

3. How much should a company reveal about its data collection practices to the public? Would disclosure neutralize Target's competitive advantage?

4. Should warning labels or informative signage displayed at the point of purchase to warn/educate customers about the ramifications of using rewards/member cards programs and credit/debit cards?

5. The decision point in this case occurs just after the pregnanat teenager incident. As the communications director at Target, how would you respond after the New York Times article was published?

6. Given the financial potential from using data mining and predictive analytics, should Target fight against legislation that would limit the use of such data?