1. Targets Pregnancy Prediction [1]

Lets first look at one of the most notorious examples of the potential of predictive analytics. Its well known that every time you go shopping, retailers are taking note of what you buy and when youre buying it. Your shopping habits are tracked and analyzed based on what time you go shopping, if you use digital coupons vs paper coupons, buy brand name or generic, and so much more. Your data is stored in internal databases where its being picked apart in an effort to find trends between your demographics and buying habits (supposedly in an effort to serve your needs better).

Your retailer arguably knows more about your consumption habits than you do or they are sure trying to. One Minneapolis man learned of his daughters pregnancy because Target effectively targeted his daughter with coupons for baby products once her buying habits assigned her a high pregnancy prediction score. This caused a social media firestorm, because Target did not violate any privacy policies, but did that mean this private, life-event was appropriately targeted? The predictive analytics project was successful, but the public thought the targeted marketing was a little too invasive and direct. This was one of the most known cases of big data ethics, and the potential misuse.

1. What ethics related questions should users of the data be asking before embarking collection and use of data?

2. What moral principles are being violated in this example? (consider the normative theories)

3. Discuss what you might do in this scenario as a business executive using the stakeholder view and upholding moral principles.