Value of Technology in Gathering and Analysing Data

• What type of technology can firms use to gather data and analyse their market?

  • Websites
  • Store cards (e.g. Tesco club card)
  • Online questionnaires and internet surveys
  • Sales data using EPOS
• When using technology data can be processed and analysed quickly and in greater depth
• Data gathered from websites and store cards is usually more accurate as it is collected directly by the firm rather than through an intermediary such as a research agency.
• Technology is often cheaper than other methods, e.g. online surveys are free or very cheap compared with postal surveys.
• Technology allows businesses to collect large amounts of information about customers, which they can then use to target them with personalised marketing messages.
• Another problem with using technology is that some people do not trust giving personal information over the web because there is a risk of identity theft.
• Firms need to ensure that any website used has security measures in place to protect customer details.
• If a business has a poor website design, users will find it difficult to navigate around the site and this could lead to errors when filling out forms.
• The quality of data obtained from websites depends on how well designed the website is.
• Online surveys have been criticised for having low response rates due to the fact that many people ignore emails asking them to complete a survey.
• Too much information can be hard to analyse and may actually slow down decision-making while using technology
• Can be costly to acquire the required technology and activities to be able to gather the data