Consumer Behavior: Predictability And Big Data

The predictable consumer

Read carefully the following instructions and both cases study, and then answer each question in an essay format. To support your analysis use relevant material from BE201 covered so far and other resources such as AOU e-library articles.

• Cut-off date:Submit this assignment no later than the cut-off date. All late submissions require approval from the branch course coordinator and will be subject to grade deductions.
• Word count: you should discuss the questions in no more or less than the number of words mentioned for each question (plus or minus 10%).
• Referencing: You must acknowledge all your sources of information using full Harvard Style Referencing (in-text referencing plus list of references at the end).  Use E-library: to get journal articles on the topic (Emerald, EBSCO…).  Use at least 2 articles.
• Plagiarism: Remember that you should work the information from references into your own original thoughts and INTO YOUR OWN WORDS.Plagiarism will lead to a significant loss of marks. Extensive plagiarism could mean that you failed your TMA. (Refer to AOU definitions of cheating and plagiarism at the end of this document)
• Essay guidance:Your response to each question should take the form of a full essay format. Avoid using subheadings and bullet points.  Use BE201 textbook, slides, case study and E-Library. Plan what you will write, and have a well-organized outline.
• Using PT3 form: When you have completed your TMA, you must fill in the assignment form (PT3) posted on your moodle account, taking care to fill all information correctly.
• Turnit-in upload:soft copy of your TMA and PT3 form should be uploaded to Turnit-in via the link posted on your moodle account, within the cut-off date.
• This STMA is 30% of BE201 Grade.

Nike is selling its fuelband data to marketing companies as a product. The Nike fuelBand is an activity tracker worn on the wrist, it allows its wearers to track their physical activity, steps taken daily, and amount of energy burned.

Consumers with a Nike fuelband are gifting Nike and its partner companies with a wealth of data. Nike knows exactly when someone needs a new pair of trainers and that is obviously invaluable information.

This is just one of the many examples that demonstrate what modern marketing is all about: getting your hands on relevant consumer behavior data and using it to best advantage. Back in the day marketing was based on understanding the average consumer; nowadays marketing tries to understand every individual customer.

It’s been said that consumer behavior can no longer be predicted. Nothing could be further from the truth. Consumer behavior has never been more predictable. Companies like Netflix only launch new TV shows when the available data predict success. Analysis of Twitter conversations can predict the following day’s stock movements with 95% accuracy. Analysis of our calendars gives a highly accurate picture of what our following day will look like, and so on and so forth.

We live in a world where consumer behavior is more predictable than ever. Every individual consumer feeds the corporate world tips as to his or her current expectations. In reality, though, only a handful of companies are making the most of these opportunities. The concept of big data alone deters a lot of companies. Let’s be honest: most companies can’t even handle a small data. After all, how many organizations have a database that’s truly useful and up to date?

In the future, big data management will become a necessary competency if companies are to be highly customer-centric. Consumer expectations evolve. Customers will be less tolerant towards wrong messages at the wrong time. Apart from this low tolerance, a lack of interest will automatically result in a limited impact. On the other hand, customers display a large degree of openness towards the right (commercial) messages delivered at the right time. This study shows that 1 in 3 customers have a very positive attitude towards personalized ads. Customers like to buy products. They also like information on products but only if it’s the right info at the right time. The modern marketer should turn his attention away from the average consumer and toward the individual consumer.

Question 1: (50 Marks – 500 words)

• “We live in a world where consumer behavior is more predictable than ever” explain this statement and provide examples from the above case study. (25 Marks)
• What is the difference between traditional marketing and modern marketing? Talk about the advantages and disadvantages of each. (25 Marks)

Question 2: (50 Marks – 400 words)

• What is the importance of gathering lots of data about consumers? How can a company take advantage of such data? (25 Marks)
• Why does the consumer have a positive attitude towards personal ads? Explain providing examples (25 Marks)

TMA Presentation: (up to 5 marks)

Up to 5 marks should be deducted for poor presentation or poor organization of the TMA outline and discussion or TMA presented without PT3.

Proper referencing: (up to 5 marks)

Referencing should be both in-text referencing, plus a list of references at the end using Harvard style. Up to 5 marks should be deducted for poor referencing.

Use of E-Library: (up to 5 marks)

A minimum use of 2 articles from AOU e-library is required to support the discussions. Up to 5 marks should be deducted for no use or poor use of e-library.

Word count: (up to 5 marks)

The answers should be within the specified word count. A deviation of 10% is acceptable; if more, a deduction up to 5 marks will be applied.