MAR4613 Chapter 6 Notes

MAR4613 Marketing Management Chapter 6 Decision Support Systems: Working with "Big Data" "Big Data" Definition • The capturing, merging, and analyzing large and varied data sets to understand current business practices and seek new opportunities to enhance future performance. The Four V's of Big Data VOLUME The sheer amount of data being collected in "big data" systems. VELOCITY The pace of data flow, both into and out of a firm. The Three V's of Big Data VARIETY The combination of structured and unstructured data collected in "big data" systems. VERACITY The accuracy and trustworthiness of data collected in "big data" systems The Fifth V: Value • Improving Customer Retention Rates Dealing with Negative Word of Mouth Enhancing Health Care Creating Personalized Promotions Research Window 6.1: Target, Big Data, and You The Value of "Big Data" • Companies worldwide invest in big data analytics to improve services and increase revenues. In a 2012 study of business executives and managers across 18 countries... 91% of companies were working with big data. 75% planned to make additional investments. 73% had increased revenues due to big data. The Value of "Big Data" to Best Western International BWI uses both structured data (survey responses) and unstructured data (social media, travel websites) to gauge customer response to its hotels. When something negative pops up in social media, the information is matched to the particular hotel, and the manager is notified. MAR4613 Marketing Management Chapter 6 Decision Support Systems: Working with "Big Data" Target, Big Data, and You Target, Ilig Data, and You Sources of "Big Data" STRUCTURED DATA Data that can be written into rows on a spreadsheet or database based on standard column headings. Examples: transactional data, customer profile information obtained from registration materials or other sources UNSTRUCTURED DATA Data include social media comments, blog posts, other text-based communication, photos, video, audio, or any other form that is not easily arranged in structured format. Key Types of Unstructured Data: Social Data "Voice of the Customer" Data: unstructured posts on social media networks such as Facebook, Twitter, Google+, YouTube, Instagram, LinkedIn, Tumblr, Pinterest, etc. Social Network Analysis: a popular tool for studying the social connections between people. Key Types of Unstructured Data: Mobile Data • Smartphone and Tablet Data: data from texting, photo sharing, in-store shopping. Location-based Services: geo-targeted text messages, mapping services, location- sharing, and location data from call records. MAR4613 Marketing Management Chapter 6 Decision Support Systems: Working with "Big Data Key Types of Unstructured Data: Omni-channel Transactional Data Data that are connected to a particular purchaser across multiple purchasing channels. Data across different platforms in potentially different formats are collected and tied together. Types of "Big Data" Analyses DESCRIPTIVE ANALYSIS Designed to enhance understanding of available data to benefit firm performance. Examples: data mining, data fusion, neural network analysis, visualization PREDICTIVE ANALYSIS Designed to aid explanatory and forecasting abilities for the betterment of the firm. Examples: regression analysis, time series analysis, simulation PRESCRIPTIVE ANALYSIS Designed to optimize the various courses of action available to enhance firm performance. Examples: optimization tools Key Challenges of "Big Data" Integration Access to and retrieval of data (including data integration) • Analytic skills Firm integration of big data