Methods for Business Students - Research Paper Example

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Competition in the business environment, mainly due to changing customer preferences and proliferation of firms in all industries have driven firms to attempt innovative approaches to lure customers to do business with them. One of these approaches is data mining, whereby data…
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Download file "Research Methods for Business Students" to see previous pages... Moreover, some attempts at acquiring data from customers have resulted in unethical behavior, most of which are the prime target of customer privacy policies. Therefore, firms should decide the most efficient and effective approach to data mining without culminating in unethical or illegal practice (Tan,
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Steinbach and Kumar, 2006).
Laws have changed to reduce the avenues available for data collection, mainly the policies that touch on the sensitive topic of customer privacy. Previously, firms collected customer data without limitations from various sources including online and offline customer surveys, customer records at their premises, phishing through websites and other sources (Monk and Wagner, 2006). This raised concerns because some unscrupulous firms handled customer data without due diligence; this compromised integrity of the data and exposed it to unauthorized access. Theft of personal information reduced the viability of the internet as a medium for business transactions; laws had to be passed to act as guidelines in order to correct this anomaly (Haughton et al., 2003: 305). Since these policies were implemented recently, many firms still have an unclear picture of how to use the data effectively within the confines of the new guidelines. This study will identify the best approach to take in line with the recent policy changes.
Data mining is a management approach to customer relations and involves the short-term and long-term effects on a firm’s profitability. Instead of contacting all customers and potential customers with all offers for products, a business uses data mining in identifying customers who seem most likely to respond with positive action. Therefore, data mining would help the firm to make investments where and when they are likely to realize anin increased revenue (Liu, 2007). Various criteria are used to predict the potential of a venture, after which the customer is contacted with the offer directly ...Download file "Research Methods for Business Students" to see next pagesRead More
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