Mass Data Collection and Consumer Profiling

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Questions and Answers

What is a data broker and what do they do?

A data broker is a company that collects consumer data and sells it to other entities. They gather information like buying preferences, interests, and demographic details.

How is consumer data collected through websites?

Consumer data is collected through tracking user actions on websites and through cookies that monitor movements online. This technology captures data every time a user clicks a link or visits a page.

What are some examples of sensitive consumer segments identified by data brokers?

Data brokers categorize consumers into segments based on financial vulnerability, such as 'Rural and Barely Making It' or 'Zero Mobility'.

What privacy violations can occur through the practices of data brokers?

<p>Privacy violations occur when organizations use consumer information in ways not explicitly permitted by the users, such as selling their data without consent. Customers are often unaware of how their information is used or managed.</p>
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How did Target uniquely identify if a shopper was pregnant?

<p>Target identified pregnant shoppers by analyzing purchasing patterns and inferring pregnancy from changes in buying behaviors, such as increased purchases of specific items related to maternity.</p>
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What strategies do companies like Target use to keep their data collection practices discreet?

<p>Companies like Target attempt to keep their data collecting practices discreet by personalizing marketing efforts without making it obvious to consumers that they are being tracked. This often includes targeted ads that feel intuitive rather than invasive.</p>
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In discussions about data collection, what are two contrasting opinions one might have?

<p>One opinion might argue that data collection is beneficial for personalized marketing, while another might consider it unethical due to privacy violations. It can also depend on the transparency of the companies involved.</p>
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Do you think regulations will catch up with data collection practices in the future? Why or why not?

<p>It is possible that regulations will catch up as public awareness about privacy grows, but there may be challenges to effectively curbing data collection activities. The evolution of technology often outpaces the establishment of new laws.</p>
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What is greenwashing and how does it differ from genuine environmental policies?

<p>Greenwashing is the act of misleading consumers about the environmental practices of a company, often through marketing, while genuine environmental policies involve actual sustainable practices.</p>
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Identify two industries that are significantly affected by the trend towards sustainability.

<p>The automotive and food industries are significantly affected by the trend towards sustainability.</p>
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How does social media influence consumer choices regarding sustainable brands?

<p>Social media can shape consumer perceptions and increase awareness about sustainable brands, influencing buying decisions based on community values.</p>
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What are two reasons consumers might prefer to shop from sustainable companies?

<p>Consumers might choose sustainable companies for ethical considerations and the perception of higher product quality and durability.</p>
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Discuss one example of a company that has been accused of greenwashing.

<p>Volkswagen has been accused of greenwashing due to falsely marketing their vehicles as low-emission while having manipulated emissions tests.</p>
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Why is it important for consumers to assess the sustainability of brands before purchasing?

<p>Assessing sustainability helps consumers make informed choices that align with their values, promoting ethical consumption and environmental responsibility.</p>
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What does sustainability contribute to brand development according to the content?

<p>Sustainability contributes to brand development by enhancing brand reputation and loyalty among consumers who prioritize environmental responsibility.</p>
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Can you name a marketing practice that exemplifies greenwashing? Provide a specific example.

<p>Starbucks' introduction of a 'straw-less lid' is an example, as it contained more plastic than the previous lid and straw combination.</p>
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What is greenwashing and why do companies engage in it?

<p>Greenwashing is the practice of making false or misleading claims about environmental benefits to appear more sustainable. Companies engage in it to boost sales, improve their public image, or attract partnerships.</p>
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What percentage of the world's plastic is recycled, and how does this relate to Starbucks' claims?

<p>Only 9% of the world's plastic is recycled, which casts doubt on Starbucks' assumption that all its lids will be recycled.</p>
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What role do marketing strategies play in the perception of sustainability in businesses?

<p>Marketing strategies can create an appearance of sustainability that may not reflect genuine practices, making it a powerful tool for attracting customers.</p>
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What questions can consumers ask to determine the sincerity of a company's sustainability claims?

<p>Consumers can check if the company provides detailed information about its sustainable practices and look for believable evidence supporting its claims.</p>
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Is sustainability in business necessary for a sustainable future, and why might it be complicated?

<p>Yes, business involvement is crucial for achieving sustainability, but distinguishing genuine efforts from marketing tactics can be complex.</p>
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What are the potential implications of greenwashing for consumers?

<p>Greenwashing can mislead consumers, leading them to support companies that do not genuinely engage in sustainable practices.</p>
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How might a consumer’s intuition help them assess green marketing claims?

<p>A consumer's gut feeling can guide them to discern whether a green marketing claim feels authentic or simply hype.</p>
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What is one method consumers can use to investigate a company's environmental credibility?

<p>Consumers can Google the company name along with the word 'environment' to uncover any relevant information.</p>
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Name a product that has shifted from traditional gender marketing to more inclusive advertising.

<p>LEGO now markets its products to all children, regardless of gender, emphasizing creativity and exploration.</p>
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What are the 4 P’s and 2 C’s in the context of gender-based market segmentation?

<p>The 4 P's are Product, Price, Place, and Promotion, while the 2 C's are Customer and Competition.</p>
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How does diversity extend beyond race in modern marketing?

<p>Diversity includes various demographics such as age, socio-economic class, and gender, highlighting individual identities.</p>
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What percentage of people indicated that better representing modern society impacts their perception of marketing campaigns positively?

<p>Up to 83% of people cited better representation of modern society as impactful.</p>
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In what way has globalization increased the need for diverse marketing?

<p>Globalization creates a diverse consumer base, necessitating tailored marketing strategies that resonate across cultural contexts.</p>
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Why is it essential for marketers to recognize the changing trends regarding gender?

<p>Recognizing changing gender trends allows marketers to create more relatable and inclusive ads, enhancing consumer connection.</p>
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What is an example of a failed marketing campaign, and what did it illustrate about diversity?

<p>The 'Felicia the Goat' Mountain Dew campaign failed due to its inappropriate portrayal, highlighting the risks of neglecting diversity.</p>
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Why is providing diversified content crucial for staying competitive in modern marketing?

<p>Diversified content allows brands to authentically connect with various audience segments, reflecting contemporary society.</p>
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What trends are apparent in gender marketing today?

<p>Marketers are increasingly recognizing the need for more inclusive and diverse representations of gender in their campaigns.</p>
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How might inappropriate use of gender in advertisements affect consumers?

<p>Inappropriate gender representations can alienate certain consumer groups and reinforce harmful stereotypes.</p>
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What are some arguments for and against gender-based marketing segmentation?

<p>Proponents argue it allows for tailored marketing strategies, while opponents claim it reinforces outdated stereotypes and ignores individual preferences.</p>
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What might be Riley's concerns regarding the portrayal of female superheroes in marketing?

<p>Riley is likely frustrated that strong female characters are often excluded from marketing efforts, suggesting a lack of representation.</p>
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Why is increasing diversity in marketing considered important today?

<p>Increasing diversity is important as it reflects societal changes and helps brands connect authentically with a wider audience.</p>
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What is the main characteristic that distinguishes a distributed ledger from a centralized ledger?

<p>A distributed ledger exists across several locations or among multiple participants, while a centralized ledger is located in a fixed location.</p>
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In what ways might digital currencies impact the future of marketing?

<p>Digital currencies could facilitate faster transactions and enable new marketing strategies that leverage blockchain technology for transparency.</p>
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Explain a trend related to cryptocurrencies that you think is significant for businesses today.

<p>A significant trend is the increasing adoption of cryptocurrencies as payment options, which caters to tech-savvy consumers and expands market reach.</p>
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Describe one potential advantage of using a distributed ledger for businesses.

<p>One advantage of a distributed ledger is its enhanced security and reduced risk of data tampering compared to a centralized system.</p>
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What role does cryptocurrency mining play in the cryptocurrency ecosystem?

<p>Cryptocurrency mining validates and verifies transactions on the blockchain, ensuring network security and generating new coins.</p>
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What is the primary method suggested to counteract bad ideas within the context of cancel culture?

<p>The primary method suggested is through exposure, argument, and persuasion.</p>
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What are two key components that groups must include in their presentations regarding a brand facing boycott or cancellation?

<p>Groups must outline what triggered the outrage and how the brand responded to the controversy.</p>
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In terms of future trends, what are two predictions regarding the evolution of cancel culture?

<p>One prediction is that cancel culture will continue to grow, while another is that it may fade over the coming decades.</p>
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What proactive step could a brand take to mitigate the risk of facing outrage?

<p>A brand could engage in open dialogue with its audience to understand their concerns and expectations.</p>
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What is one potential negative impact of cancel culture on businesses?

<p>One potential negative impact is damage to the brand's image and loss of consumer trust.</p>
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What is the primary objective of cancel culture in society?

<p>The primary objective of cancel culture is to publicly express disapproval and 'cancel' a brand, product, or individual perceived to have committed injustices.</p>
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How can cancel culture serve as a response to issues in the justice system?

<p>Cancel culture serves as a form of retribution when the justice system fails to address crimes or inequalities effectively.</p>
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Give an example of a fashion brand that has faced cancel culture and the reason behind it.

<p>Dolce &amp; Gabbana faced cancel culture due to prejudice and racist comments made against the Chinese community.</p>
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What impact can cancel culture have on consumer behavior towards brands?

<p>Cancel culture can significantly alter consumer behavior, leading to boycotts and shifts in how products are consumed based on social values.</p>
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Describe one argument against cancel culture.

<p>One argument against cancel culture is that it restricts open debate and hurts marginalized voices, inhibiting democratic participation.</p>
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What role do social media platforms play in the phenomenon of cancel culture?

<p>Social media platforms amplify cancel culture by allowing widespread public discourse and mobilization for boycotts in real-time.</p>
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How might a business prepare to respond to potential cancel culture threats?

<p>A business can prepare by actively engaging in corporate social responsibility and maintaining transparent communication with consumers.</p>
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In what ways can cancel culture contribute to positive social change?

<p>Cancel culture can drive awareness and demand for social change by highlighting injustices and pressuring brands to improve their practices.</p>
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Flashcards

Data Broker

A company that collects consumer data and sells it to other entities.

Consumer Data

Information about individual consumers, including buying habits, interests, demographics, and online activity.

Data Collection Methods

The ways in which data brokers track and gather consumer data, often involving website visits, clicks, and cookies.

Privacy Violation

When an organization uses consumer data in ways not explicitly permitted or understood by the consumer.

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Consumer Profiling

Creating detailed descriptions of consumer characteristics and behavior patterns.

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Ethical Data Collection

Gathering consumer data in a way that respects privacy and provides transparency.

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Cookie Technology

Tools used to track user activity on websites.

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Data Broker Criticism

Data brokers are frequently criticized for lack of consumer transparency, limited consumer access to data, and a lack of accountability.

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Greenwashing

Marketing tactic used by companies to portray themselves as environmentally friendly when their practices are not.

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Sustainable Companies

Businesses that prioritize environmentally friendly practices and social responsibility in their operations.

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Environmental Impact

The effect a company's activities have on the environment, including pollution, resource consumption, and waste generation.

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Consumer Interest in Sustainability

Growing demand from consumers for products and services sourced from environmentally friendly companies.

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Brand Development

Creating a positive image and reputation for a company through marketing and other strategies.

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Impact of Sustainability on Brands

Sustainability plays a key role in building a brand's reputation and attracting environmentally conscious consumers.

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Volkswagen Case Study

A real-world example of greenwashing where Volkswagen marketed its vehicles as environmentally friendly but used software to cheat emissions tests.

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Starbucks Case Study

Another example of greenwashing, where Starbucks marketed a new lid as “straw-less” but it was actually made of more plastic than the old lid and straw.

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Greenwashing Benefit

A company can gain benefits like increased profits, positive public image, or partnerships by seeming environmentally friendly.

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Sustainability Marketing

Using environmental concerns to promote products or services, often with exaggerated or misleading claims.

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Genuine Sustainability

Companies genuinely work to reduce their environmental impact and create a sustainable future.

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Greenwashing Index

A resource that helps consumers identify and analyze greenwashing claims.

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Greenwashing Detection

Investigating a company's claims by reviewing their website, searching for environmental information, and assessing the authenticity of their messages.

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Ethical Green Marketing

Marketing that is honest about a company's environmental impact and focuses on genuine sustainability efforts.

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Case Study Analysis

Examining real-world examples to understand the techniques used in greenwashing and to distinguish genuine sustainability efforts.

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Gender Marketing

Promoting products or services specifically targeting a particular gender.

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Gender Marketing Ethics

Debating whether marketing products based on gender stereotypes is morally right.

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Diversity in Marketing

Representing people from different backgrounds, cultures, and identities in advertising.

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Marketing to Girls

How advertisers approach products specifically for girls.

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Marketing to Boys

How advertisers approach products specifically for boys.

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Gender Based Market Segmentation

Dividing the population into groups based on gender to target products or services specifically to men or women.

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Inclusive Marketing

Marketing strategies that embrace diversity and target a wide range of people, regardless of gender, race, age, or other characteristics.

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Impact of Globalization on Diversity

Globalization increases the need for companies to be aware of and cater to diverse audiences worldwide.

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Failing Marketing Campaigns

Marketing efforts that miss the mark due to inappropriate representation or lack of awareness about diversity.

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Marketing Ethics

Considering the ethical implications of marketing strategies, including how they portray and treat diverse groups.

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Modern Marketing Trends

Shifting trends in marketing away from traditional gender-based segmentation and towards inclusive representation and diversity.

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Impactful Marketing

Marketing that resonates with consumers and is perceived as impactful because it reflects modern society and its diverse groups.

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Digital Currency

A type of currency that exists only in digital form and uses cryptography for security.

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Blockchain

A special type of digital ledger that records transactions in a decentralized and secure way, making it difficult to tamper with.

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What is Cryptocurrency?

A type of digital currency that uses cryptography for security and relies on a blockchain network for transactions.

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Cryptocurrency Mining

The process of verifying and adding new transactions to the blockchain, which rewards miners with cryptocurrency.

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Centralized vs Distributed Ledger

A centralized ledger is stored in a single location, while a distributed ledger is spread across multiple locations or participants, making it more secure and resistant to manipulation.

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Cancel Culture

A trend where individuals or groups publicly condemn and attempt to 'cancel' a person, brand, or product for past actions deemed offensive or harmful.

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Public Discern

Publicly expressing disapproval or disagreement with a brand, product, or company on social media, often leading to boycotts and calls for cancellation.

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Cancel Culture's Social Impact

Cancel culture aims to address social inequalities by holding individuals and organizations accountable for past behaviours or beliefs considered unacceptable.

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Cancel Culture's Influence on Brands

Cancel culture can significantly impact consumer behaviour and influence purchasing decisions by highlighting ethical issues and potentially affecting a brand's reputation.

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Diet Prada Example

An Instagram account that criticizes fashion inequalities and copycats, leading to calls for boycotts against brands like Dolce & Gabbana for racist and prejudiced behaviors.

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Argument Against Cancel Culture

Cancel culture can stifle freedom of speech and suppress diverse opinions, potentially leading to a restrictive environment where people are afraid to express themselves.

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Justice System vs. Cancel Culture

Cancel culture is often seen as a form of retribution when the justice system fails to deliver consequences for offenses, but critics argue it can be a form of mob justice.

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Cancel Culture's Impact on Marketing

Marketing strategies must address cancel culture by emphasizing ethical practices, diversity, and responsible behavior to avoid being targeted and losing consumer trust.

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Boycott

A coordinated effort by consumers to stop buying products or services from a specific company or brand as a form of protest.

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Brand Response to Controversy

How a brand reacts to negative publicity or public outcry, including apologies, explanations, changes in practices, and communication strategies.

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Proactive Brand Strategy

Steps a brand takes in advance to prevent negative publicity and maintain a positive image, such as promoting ethical practices and diversity.

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Reactive Brand Strategy

Actions taken by a brand after a controversy has emerged to minimize damage and regain public trust, such as issuing apologies, addressing concerns, and making changes.

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Study Notes

Mass Data Collection and Consumer Profiling

  • Data brokers are companies that collect consumer data and sell it to other entities.
  • They aim to understand consumer preferences, buying habits, and lifestyle choices.
  • Data brokers use various methods, like tracking website visits and clicks, to gather information.
  • This data collection relies heavily on cookie technology.
  • Data brokers categorize consumers into different income groups, like "Rural and Barely Making It," "Rough Retirement: Small Town and Rural Senior," and "Zero Mobility."
  • This practice is often criticized for failing to disclose data collection practices to consumers.
  • Data brokers' practices identify financially vulnerable consumers, often operating behind secrecy.
  • Privacy violation occurs when an organization uses consumer information (phone numbers, credit card histories, online behavior) in ways not explicitly agreed upon by the consumer.
  • Case studies analyze how companies like Facebook and Target build consumer profiles and use data for profiling and targeting.
  • The ethical implications of data collection, profiling, and selling are highlighted, including questions about benefits and potential future trends.
  • Students should assess whether data collection is ethical, analyze the advantages and disadvantages for consumers and businesses, and predict the future trajectory of this practice.

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