Predicting Consumer Tastes with Big Data at GAP
Question 1
Using past consumer purchasing behavior cannot easily predict their future preferences in fashion. It is so because the marketer’s efforts manipulate most consumers’ preferences, thus can change any time, making them very unpredictable. While many consumers believe that they are in charge of their tastes and preferences, research has shown that their choices are subject to manipulation by various elements such as biases, objectives, knowledge, and the emotional state of the customer. Also, most people want to stand out, and thus when new fashion comes into play, the older trend becomes unfashionable to them. Therefore, one cannot easily use the data of past purchasing behavior to predict the future preferences of the customers in fashion. To use past buying behavior to predict future behavior, people have to make several assumptions. One, they have to assume that consumer preferences remain the same, thus making the demand constant. They also have to assume that marketing efforts and social contexts do not easily sway a customer’s taste about a particular fashion.
Question 3
Yes, Peck should allow the selling of gap brands on Amazon. Since Amazon is known all over the world, it will give the brands much-needed exposure, increasing its sales. Also, since it uses big data, it will come up with recommendations for its Gap customers.
Question 4
Predictive analytics is good for selling existing goods. For instance, companies such as Netflix and amazon used the data they got through predictive analytics to come up with personalized recommendations for their customers. The suggestions given were based on customer preferences, usage patterns, and purchasing history. Predictive analytics, however, if not suitable for the development of a new product. Although some companies such as Netflix used the data obtained to decide on the next movie or series to produce, it is not always a surety that the new product will do well. People’s tastes and preferences change over time that using their past behavior to come up with a new product is not always wise. People should make informed decisions before developing a new product.