On Mon, 19 Jul 2004 00:05:35 GMT, Julia Altshuler
> wrote:

>The most benign explanation is that it allows the store to gather
>marketing information.
>
>
>For example, the store knows that more people will buy a particular
>brand of orange juice if they put it on sale from a regular price of
>$2.99/half gallon down to $2.19/half gallon, but they also have good
>reason to want to know details.
>
>
>Do the people who buy it on sale stock up and then not buy it the
>following week? Do the people who buy it on sale normally buy a less
>expensive brand and switch when the more expensive stuff goes on sale?
>Do the people who never buy orange juice try it when the price goes down?
>
>
>The store can gather all sorts of useful information if they can track a
>particular customer's buying habits. They can discover if the person
>who avoids orange juice with sugar added also avoids all products with
>added sugar or just orange juice. Does that customer ever buy candy, or
>does the customer also buy diet soda? It tells how well advertising is
>working in specific ways. Do customers who buy premium ice cream read
>the ads in the local paper, or do they respond to a promotion at the
>local school?
>
>
>The information is incredibly useful in setting prices. This way they
>can discover just how much the customer will pay for orange juice before
>switching to apple or grape or no juice at all. It helps them discover
>how high the prices can go before the customer will buy groceries elsewhere.
>
Thanks for the detailed view....

I have no problem with "privacy issues".
But I think you give the marketeers too much credit.

A grocery store may have some 15,000 items in inventory.
they deal in cases, and pallets.
They have loss leaders, and high-profit items.

I would think the question would be;
"How many cases of peanut butter did we move last week"
rather than; What size jar of peanut butter did Mary Smith buy.

Demographics ??
I wouldn't care where the shoppers come from.
How many cases of peanut butter did we move ?

Response to sales or coupons ?
How many cases of..... did we move?

????

<rj>