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Manager Essay

1029 words - 5 pages

When using traditional marketing methods to understand consumer behavior, managers must consider “whether the participating groups are truly representative of the larger population, whether the answers given in these formats represent actual market behavior, (and) how to isolate the effects of different variables that influence demand” (Farnham, 2014, p. 93). The use of technology in marketing to expand the use of these traditional methods can create biases that may unduly influence manager decisions about consumer behavior.
For example, a type of bias that can result from the use of technology is sampling bias. “A common cause of sampling bias lies in the design of the study or in the ...view middle of the document...

87). In addition to tracking online behavior, “Data-gathering firms and technology companies are aggressively matching people's TV-viewing behavior with other personal data -- in some cases, prescription-drug records obtained from insurers -- and using it to help advertisers buy ads targeted to shows watched by certain kinds of people. (Vascellaro, 2011).
Take for instance that “New data from cable TV boxes combined with other household data now allow advertisers to target audience segments more narrowly. Cable companies such as Cablevision Systems Corp. are also developing systems that can show different commercials at the same time to different households viewing the same program” (Farnham, 2014, p. 87).
Another example of a company using new technology with regards to consumer behavior is Rentrak Corporation. This is “a company that started out distributing videocassettes, (and) has diversified into TV ratings, using data from cable set-top boxes. Rentrak has signed up more than 70 TV networks and nearly 300 TV stations, about 50 in the last quarter, to track their audiences' viewing behavior. Rentrak is also challenging Nielsen in the growing business of linking TV viewership with consumer information gathered about specific households” (Sharma, 2014). If the geographic region of the target audience is too narrow, this would create a bias that may not be accurate. Likewise, a target group may be largely one ethnicity or age group and this would create bias in the results of the data.
In Bible times, the Phoenician economy was affected by the use of technology. “The early Phoenician economy was built on timber sales, wood working, and cloth dyeing. Dyes ranging in color from a pink to a deep purple were made from the rotting gland of a sea snail. Gradually the Phoenician city-states became centers of maritime trade and manufacturing. Having limited natural resources, they imported raw materials and fashioned them into more valuable objects that could be shipped profitably, such as jewelry, metalwork, furniture, and housewares. They borrowed techniques and styles from all corners of the world that they touched as traders’ (Phoenician culture, n.d.). With regard to the cloth dyeing, “The association of royalty with the color purple stems from the ancient...

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