Information Technology Reference
In-Depth Information
W Corp.
Data mining
(secondary use)
Direct mail
X Corp.
Y Corp.
Z Corp.
FIGURE 5.4
Companies use computers to record information about their customers and
their buying habits. They analyze this information to suggest additional purchases, provide
incentives, and deliver better service. They may also sell this information to other companies.
By combining information from various sources, a company can build sophisticated profiles
of individuals and target its direct mail advertising to those people most likely to be interested
in its products.
score. Competition among banks leads to lower interest rates, a definite advantage for
consumers.
Of course, if you have a poor record of paying bills on time and repaying loans, your
credit score will be low. People with low credit scores have a harder time getting loans
and pay higher interest rates on the loans they do get.
A poor credit report can come back to haunt people in ways they might not have
anticipated. Many employers conduct a credit check late in the job interview process as a
way of double-checking a candidate before making a job offer. A credit report received by
an employer doesn't give the applicant's credit score, but it does list the applicant's debts.
Critics of the use of credit reports when making hiring decisions have stated that these
reports can cause employers to shy away from minorities and those who are currently
out of work. “I think the assumption that is made is, if somebody is behind on their
bills, then it tells something about their integrity or responsibility, but in many cases
that assumption is flawed,” said Sarah Crawford of the Lawyers' Committee for Civil
Rights Under Law [52].
TARGETED DIRECT MAIL
Years ago direct mail marketing meant mass mailings of advertisements. Today the trend
is toward targeted direct mail, in which businesses mail their advertisements only to the
leads most likely to be interested in purchasing their products. Customized mailing lists
