Please read Chapter 3
and the report Customer Research using
Market Basket Analysis - Unraveling-the-Customer-Mind (Cognizant) and
answer the following questions:
1. How
did Kroger use the market basket analysis method?
Kroger used MBA to determine which items drew customers into stores and generated the most profit. to do this, they made up a matrix of all products that customers purchased, and compared which combinations were the most popular. They were then able to use this data to provide customized coupons and offers to their customers.
Kroger used MBA to determine which items drew customers into stores and generated the most profit. to do this, they made up a matrix of all products that customers purchased, and compared which combinations were the most popular. They were then able to use this data to provide customized coupons and offers to their customers.
2. Why
is market basket analysis so popular in the retail industry?
In short, because it can help companies to generate more income. By advertising one item, or offering a certain discount, a company that has performed proper market basket analysis will be able to increase sales based on groups of items that are most commonly purchased together.
In short, because it can help companies to generate more income. By advertising one item, or offering a certain discount, a company that has performed proper market basket analysis will be able to increase sales based on groups of items that are most commonly purchased together.
3. How
easy is it to run a market basket analysis?
Because most companies offer a wide variety of goods and services, market basket analysis can be a complicated process. By using computer algorithms to analyze patterns, the process is greatly simplified, however there is a vast amount of data to consider.
Because most companies offer a wide variety of goods and services, market basket analysis can be a complicated process. By using computer algorithms to analyze patterns, the process is greatly simplified, however there is a vast amount of data to consider.
4. Which
method was introduced in the report?
Kroger created a three dimensional co-occurrence matrix to analyze which combinations of goods were purchased together most frequently.
Kroger created a three dimensional co-occurrence matrix to analyze which combinations of goods were purchased together most frequently.
5. Based
on your shopping experience or direct observation, which Maine-based grocery
store is the best player in market basket analysis? Why? Use pictures if you
can.
While I may not have a great picture of the situation, as I do most of my grocery shopping at Hannaford, I think that they have a great method of market basket analysis. It seems like anything that I might consider buying is conveniently placed just when I'm thinking about it as I walk through the store, and many of the coupons or sales that they offer would pair very well with another item. Today I noticed that the brand of tortilla I prefer was on display at the end of the aisle where beans, salsa, and other ingredients I would choose to put in a burrito are sold in addition to the display in the bread aisle where I usually find them. An example of MBA based more on discounts than display locations is the new My Hannaford Rewards app - upon downloading the app, I was offered a variety of coupons for free items, however, most of the items were something that would either require another purchase with them for the meal to make sense, or they were items that would put the idea of something more in a consumer's head.
While I may not have a great picture of the situation, as I do most of my grocery shopping at Hannaford, I think that they have a great method of market basket analysis. It seems like anything that I might consider buying is conveniently placed just when I'm thinking about it as I walk through the store, and many of the coupons or sales that they offer would pair very well with another item. Today I noticed that the brand of tortilla I prefer was on display at the end of the aisle where beans, salsa, and other ingredients I would choose to put in a burrito are sold in addition to the display in the bread aisle where I usually find them. An example of MBA based more on discounts than display locations is the new My Hannaford Rewards app - upon downloading the app, I was offered a variety of coupons for free items, however, most of the items were something that would either require another purchase with them for the meal to make sense, or they were items that would put the idea of something more in a consumer's head.
Please read Chapter 4 and the News release: The food and beverage industry is marketing our children and youth to
death and answer the following questions:
6. Who
should be responsible for the overconsumption of sugar?
Companies that market processed and unhealthy foods to children are certainly responsible for the unhealthy diets those children will learn to follow. It is unfair for the food and beverage industry to market this way to children, causing either an unhealthy diet or conflict within families if parents won't give in.
Companies that market processed and unhealthy foods to children are certainly responsible for the unhealthy diets those children will learn to follow. It is unfair for the food and beverage industry to market this way to children, causing either an unhealthy diet or conflict within families if parents won't give in.
7. Do
you believe if the government should regulate the sugar advertising?
Yes. I believe that all advertising targeted towards minors should be regulated by the government, because currently many harmful products and lifestyle choices can be marketed to people of all ages and backgrounds. Children in particular are susceptible to the advertisements around them, so products that have been shown to have negative effects on health should not be marketed directly to children.
8. Identify
the stages in the ethical decision-making framework in Chapter 4 and describe
how ethics can be integrated into the snack industry’s advertising strategy?
The first step is identifying what decision must be made - here, should harmful products be marketed to vulnerable children? Step 2 is research - find out what is at stake, who stands to gain and who stands to lose from any possible outcome. Here, the food and beverage industry is a stakeholder, as are children and families. The third step involves considering any alternative choices, and taking time to think about the impact of the decision. In this situation, we can contemplate whether there is, in fact, a happy medium. Maybe we can outlaw certain marketing strategies, or mandate that food and beverage companies must also market healthy lifestyle choices such as exercise or spending time outdoors along with their harmful products. The fourth and final step is to choose a course of action. As I have stated, I believe that government interference is necessary for the question at hand, however others may feel differently.
The first step is identifying what decision must be made - here, should harmful products be marketed to vulnerable children? Step 2 is research - find out what is at stake, who stands to gain and who stands to lose from any possible outcome. Here, the food and beverage industry is a stakeholder, as are children and families. The third step involves considering any alternative choices, and taking time to think about the impact of the decision. In this situation, we can contemplate whether there is, in fact, a happy medium. Maybe we can outlaw certain marketing strategies, or mandate that food and beverage companies must also market healthy lifestyle choices such as exercise or spending time outdoors along with their harmful products. The fourth and final step is to choose a course of action. As I have stated, I believe that government interference is necessary for the question at hand, however others may feel differently.
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