Assignment 2

CHAPTER 3

1.  Kroger used the market basket analysis by collecting data from all the consumers and tries to use that data to better the store. This included setting up the store in specific ways and using interests to target return customers. He sent out specific coupons to each household so depending on the data so they would specifically want to go back to that store. 

2. Market basket analysis is so popular because it benefits the stores and helps with sales. It stops them from buying and trying to sell items that no one is interested in. They can more accurately stock their shelves and make advertisements. 

3. Using market basket analysis can be a bit tough if its not used correctly. The companies can end up spending a lot of money on this and if they don't use their results correctly, it can cost them even more. Not every purchase means something. Just because I buy milk and dish soap during the same trip doesn't mean they should be marketed or advertised together. It needs to be carefully inspected to achieve great results. 

4. The method is market basket analysis. It is a strategic way for businesses to learn what their customers want and need and how they can profit on that. In the report, it states: "This platform allows marketing and merchandising executives to understand sales patterns, customer preferences and buying patterns so they can take appropriate actions to improve product sales and margins, and create targeted and profitable promotions. It also enables retailers to extract and slice information in meaningful ways to identify challenges or opportunity areas. This solution provides agility and flexibility to merchants, marketers, operations and others managers within the retail organization to analyze relevant information and assimilate it with the past as well as what should be the road ahead, by leveraging a common, integrated solution framework/platform.” It’s a great way for businesses to get ahead of the game. 

5. I think in my opinion I would have to go with Walmart. I shop there a lot because its cheap and I've noticed a few ways they rope you in. For one, their chip aisle is right next to the candy, cookies, and crackers. The whole area is filled with snacks. This is a great idea because someone who is looking for chips may be looking for other snacks and since they're right there, they are easy to throw in the basket. Another thing they do is put all their bulk items in one place. You can get 72 oz of ketchup and 100 oz of baked beans in the same place. Although most people don’t buy like this, for the people who do, they might buy more individual items because all their bulk items are together. They don't have to go down different aisles to find all these different items because they are kept together. 

CHAPTER 4

6. I definitely think that its the consumer who is responsible for the overconsumption of sugar. If its children then the parents. I don't think the companies should be blamed because they are just producing a product. Its up to us whether or not we buy and consume it. I drink coffee and energy drinks everyday and if I have too much sugar its my own fault for drinking the drink. I can blame Starbucks or Red Bull since I was the one who chose to put it in my body. 

7. I don’t think its the governments job to regulate this. As I said in question 6, its the consumers choice to ingest the sugar. If thats a choice they want to continue making than they will. Advertising should be free game and its up to the consumer to choose what they will and will not buy into. 

8:The framework for ethical decision making consists of four steps; Identifying issues, gathering information and identifying stakeholders, brainstorming alternatives and lastly, choosing a course of action. When it comes to ethics, I think advertisements just have to let the product speak for itself. The information that is being put out to the public needs to be true. A cigarette company should not be able to make a commercial glorifying cigarettes because they aren't good for you. It would be unethical for them to make an ad that states something about how good cigarettes are for you. The ad needs to be honest and ethical.