Technology reveals what kind of shopper you are

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WASHINGTON (AP) — Advances in technology have never made finding deals this holiday season so easy
— or so creepy.Marketersand mobile app developers have developed creative new ways to helpshoppers find what
they want for less. But these inventive techniquesalso allow for more aggressive tracking of consumer
behavior, whetherbuyers are on their work computer, a mobile device or standing in thegrocery aisle. It also
now includes the ability to connect that datatogether and with other personal information like income, zip
code andwhen a person’s car insurance expires.The goal is to monitorconsumers online and off to determine
exactly what kind of buyer theymight be and how much they’re willing to pay. Retailers say thesetechniques
help customize shopping experiences and can lead to gooddeals for shoppers. Consumer advocates say
aggressive tracking andprofiling also opens the door to price discrimination, where companiesmight charge
someone more online or deny them entirely based on theirhome price or how often they visit a site."You
can’t haveChristmas any more without big data and marketers," said Jeff Chester,executive director at
the Center for Digital Democracy. "You know thatsong where Santa knows when you’ve been sleeping? He
knows when you’reawake? Believe me, that’s where he’s getting his information from."Consumertracking
has long been a part of American consumerism. Retailers pushshoppers to sign up for loyalty cards, register
purchased items forwarranty programs and note zip codes to feed their mailing lists. Onlinestores and
advertising services employ browser "cookies," the tiny bitsof software code that can track a
person’s movements across theInternet, to analyze shoppers and present them with relevant pop-up
ads.Morerecently, marketers have developed increasingly sophisticated ways tocombine offline and online data
that creates detailed profiles ofshoppers. They also are perfecting location-tracking technology as ameans
of attracting new customers and influencing shoppers as theywander through brick-and-mortar stores.A major
push encouragesshoppers to agree to be tracked in exchange for a good deal.Brick-and-mortar stores used to
balk at customers who used smartphonesto compare prices at rival stores, but retailers like Target are
nowpushing their own mobile apps and offering in-store Wi-Fi. The mobileapps entice shoppers with coupon
deals or ads as they move throughout astore, while in-store Wi-Fi is another way to track a consumer’s
onlinemovements.To further lure buyers, major holiday retailersincluding, Macy’s, Best Buy and JCPenney,
have partnered with theShopkick mobile app. If shoppers turn on the app while in their store,they can be
rewarded with discounts or song downloads for trying onclothes, scanning barcodes and making
purchases.Another app,Snapette, blends American’s addiction to social media sites withlocation technology.
Aimed at women keen on fashion, consumers can seewhat accessories or shoes are creating a buzz in their
particularneighborhood, while stores get a chance to entice nearby shoppers withads or coupons.Not all new
technology tracking is voluntary.Stores have been experimenting with heat sensors and monitoringcellphone
signals in their stores to monitor which aisles attract themost attention. One product called
"Shopperception" uses the samemotion-detection technology in the Xbox Connect to pick up a
customer’smovement, including whether they picked up a product only to return itto the shelf. In addition to
analyzing customer behavior, it can triggernearby digital signs offering coupons and steering shoppers to
certainproducts.The company contends that the technology is lessintrusive than other tracking devices,
including security cameras,because a person’s image is never stored and their movements onlyregistered as a
data point.Marketers also are learning toovercome limitations with software cookies. One tech startup
calledDrawbridge claims to have found a way to link a person’s laptop andmobile device by analyzing their
movements online, enabling advertisersto reach the same consumer whether they’re on their work computer
orsmartphone.But how all that information is used and where it endsup is still unclear. The Federal Trade
Commission, along with severallawmakers, has been investigating the "data broker" industry,
companiesthat collect and sell information on individuals by pooling onlinehabits with other information
like court records, property taxes, evenincome. The Government Accountability Office concluded in November
thatexisting laws have fallen behind the pace of technological advancementsin the industry, which enables
companies to aggregate large amounts ofdata without a person’s knowledge or ability to correct
errors."Thereare lots of potential uses of information that are not revealed toconsumers," said
Susan Grant, director of consumer protection at theConsumer Federation of America. To protect themselves,
"consumers stillneed to do quite a bit of shopping to make sure that they get (what)meets their needs
the best and is the best price."___Follow Anne Flaherty on Twitter:
https://twitter.com/AnneKFlahertyCopyright 2013 The Associated Press. All rightsreserved. This material may
not be published, broadcast, rewritten orredistributed.

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