Thursday, November 14, 2013

Are retailers the new Big Brother?


These days we rely heavily on our smartphone to get around. It is so easy to ask Siri where the nearest In-N-Out is and how to get there….but is this convenience at the cost of our privacy?
Google has started to expand its maps to include the inside of museums, airports and large stores in a number of countries. According to a recent article, stores have started to experiment with harnessing indoor positioning technology in order to track a customer’s movements within the store. The article says that some systems use video cameras, sound waves and magnetic fields. However, the most widely used technique is to intercept Wi-Fi signals emitted by shoppers’ smartphones, allowing their position within the store to be calculated. Stores also collect a unique identifier that allows them to build up behavioral information on return visitors. Ultimately, this technology will enable stores to push behavioral ads to shoppers’ smartphones.



Of course our movements as consumers are tracked online but indoor positioning is a new frontier of targeted advertising.  Is this an invasion of consumer privacy? Should stores be allowed to track and record movements of customers? How about using this data to push targeted ads? Could this new technology have an effect on the sales and marketing of brick and mortar stores? Comment with your opinion.

1 comment:

  1. This is a tough subject to make a decision on. I think this new move in marketing all depends on where it will go in the future. For now I think it is not a bad idea to push targeted ads to buyer's smartphones and track their position. The power that retailers will hold with this technology is what we need to be aware of. If eventually the ads become annoying or overbearing, then the retailers have abused their power. Getting consumer positions within stores can help the retailers place certain products in certain locations to grab the buyer's eye. On the other hand, consumers may be subjected to really expensive items or items in general that they might not need, but they might "want" it. This will probably have a negative effect on brick and mortar stores especially the mom and pop ones since it will take a long time for them to catch up with the technology. I think this method will yield greater sales for the retailers that do decide to implement it, but the consequences are still unknown.

    ReplyDelete