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Essay / Consumer Research and Big Data in Online Shopping
IntroductionBig Data is a relatively new concept in the world of marketing that describes the process of analyzing massive data sets to uncover trends. The data sets are so large that finding such trends would be almost impossible without high-powered analytical technology. Big Data has been enabled by the ability to gather massive amounts of information about consumer profiles and purchasing trends. The main facilitators of big data collection are credit card companies and online companies like Google and Facebook, which track people's purchasing and computer usage habits. Big data has been used in many different industries to revolutionize everything from healthcare to manufacturing to government (Manyika et al, 2011). Retailers are using Big Data to better understand the “purchasing journey” and then adapting their strategies to take advantage of this deeper understanding (Macy, 2013). Some retailers have found that the use of Big Data can increase operating margin by more than 60% (Manyika et al, 2011). This happens because retailers are able to better predict demand for specific types of products and then better sell those products by guiding consumers through their purchasing journey. This article will analyze retailers' use of Big Data as they adapt to this new technique and find ways to apply it to their businesses. How does Big Data work? Most marketers are tempted by the promise of big data, but using it effectively is a challenge. . Many marketers are still trying to understand the best applications of Big Data technology. In order to maximize the gains from Big Data, marketers need to understand how it works. In general, big data starts with data collection. Data se...... middle of paper ......fs. Retrieved November 13, 2013 from http://www.marketingprofs.com/articles/2013/11924/how-to-harness-big-data-for-better-holiday-shopping-experiences Hockenson, L. (2013). How Big Data makes online shopping less painful. Gigaom. Retrieved November 13, 2013 from http://gigaom.com/2013/11/06/how-big-data-makes-shopping-online-suck-less/Macy, B. (2013). How we buy: The Internet of Things, big data, social and mobile networks are changing everything. HuffingtonPost. Retrieved November 13, 2013 from http://www.huffingtonpost.com/beverly-macy/retail-30-internet-of-thi_b_4210230.htmlManyika, J., Chui, M., Brown, B., Bughin, J., Dobbs, R., Roxburgh, C. and Byers, A. (2011). Big data: the next frontier of innovation, competition and productivity. McKinsey & Co. Accessed December 11, 2013 from http://www.mckinsey.com/insights/business_technology/big_data_the_next_frontier_for_innovation