Page 412 - Using MIS

380 Chapter 9 Business Intelligence Systems

uSinG your KnowledGe

9-1. Explain in your own words how Addison used Access Why or why not? Are the 50 pairs of products with the
to implement each of the five criteria that she and highest and lowest lift the best place to focus your at-
Drew developed. Use Figures 9-5 through 9-10 in your tention? What other 50 pairs of products might you
answer. want to consider? Explain.
9-2. Explain why the results in Figure 9-11 do not show 9-5. Describe a use for RFM analysis for AllRoad. Explain
promise for the selling of these part designs. In light what you would do for customers who have the fol-
of these results, should Addison and Drew look at lowing scores: [1, 1, 1], [3, 1, 1], [1, 4, 1], [3, 3, 1], [1,
changing their criteria? If so, how? If not, why not? 1, 3]. Is this analysis useful for AllRoad? Explain your
answer.
9-3. Given the results in Figure 9-11, list three actions that
AllRoad can take. Recommend one of these actions 9-6. Describe an application for market-basket analysis
and justify your recommendation. for AllRoad. Explain how you would use the knowl-
9-4. Suppose you work at Costco or another major, national edge that two items have a lift of 7. Explain how you
big-box store; you do a market-basket analysis and iden- would use the knowledge that two items have a lift of
tify the 25 pairs of items in the store that have the highest .003. If they have a lift of 1.03? If they have a lift of 2.1?
lift and the 25 pairs that have the lowest lift. What would 9-7. Considering all of the BI techniques in this chapter,
you do with this knowledge? Costco (or your big-box which would be most likely to facilitate AllRoad’s
store) doesn’t have salespeople, so up-selling is not an competitive strategy? Explain your answer.
option. What else might you do with information about
these items’ lift? Consider advertising, pricing, item lo- 9-8. Define the characteristics of BigData. Identify and de-
cation in stores, and any other factor that you might scribe three student-related applications at your univer-
adjust. Do you think the lift calculations are valid for all sity that meet BigData characteristics. Describe patterns
stores in the United States (or other country)? and relationships that might be found within that data.

Collabora tion exerCiSe 9

Using the collaboration IS you built in Chapter 2 (page 74), instructions, and summarize the procedures that you
collaborate with a group of students to answer the following need to take to view the cookies issued from a given site.
questions. 9-11. In large measure, ads pay for the free use of Web
Read Case Study 9 (pages 381–383) if you have not already content and even Web sites themselves. If, because
done so. Undeniably, third-party cookies offer advantages to of a fear of privacy, many people block third-party
online sellers. They also increase the likelihood that consum- cookies, substantial ad revenue will be lost. Discuss
ers will receive online ads that are close to their interests; thus, with your group how such a movement would af-
third-party cookies can provide a consumer service as well. fect the valuation of Facebook and other ad-revenue-
But at what cost to personal privacy? And what should be done dependent companies. Discuss how it would affect
about them? Working with your team, answer the following the delivery of free online content such as that sup-
questions:
plied by Forbes or other providers.
9-9. Summarize the ways that third-party cookies are cre-
ated and processed. Even though cookies are not sup- 9-12. Many companies have a conflict of interest with regard
posed to contain personally identifying data, explain to third-party cookies. On the one hand, such cookies
how such data can readily be obtained. (See question help generate revenue and pay for Internet content. On
9-19, page 383.) the other hand, trespassing on users’ privacy could turn
out to be a PR disaster. As you learned in your answer
9-10. Numerous browser features, add-ins, and other tools to question 9-10, browsers include options to block
exist for blocking third-party cookies. Search the Web third-party cookies. However, in most cases, those op-
for block third-party cookies for xxx, and fill in the xxx tions are turned off in the default browser installation.
with the name and version of your browser. Read the Discuss why that might be so. If sites were required