IDEAS home Printed from https://ideas.repec.org/a/inm/ormksc/v37y2018i1p153-171.html
   My bibliography  Save this article

A Flexible Method for Protecting Marketing Data: An Application to Point-of-Sale Data

Author

Listed:
  • Matthew J. Schneider

    (LeBow College of Business, Drexel University, Philadelphia, Pennsylvania 19104)

  • Sharan Jagpal

    (Rutgers Business School, Rutgers University, Newark, New Jersey 07102)

  • Sachin Gupta

    (S.C. Johnson Graduate School of Management, Cornell University, Ithaca, New York 14853)

  • Shaobo Li

    (School of Business, University of Kansas, Lawrence, Kansas 66045)

  • Yan Yu

    (Lindner College of Business, University of Cincinnati, Cincinnati, Ohio 45221)

Abstract

We develop a flexible methodology to protect marketing data in the context of a business ecosystem in which data providers seek to meet the information needs of data users, but wish to deter invalid use of the data by potential intruders. In this context we propose a Bayesian probability model that produces protected synthetic data. A key feature of our proposed method is that the data provider can balance the trade-off between information loss resulting from data protection and risk of disclosure to intruders. We apply our methodology to the problem facing a vendor of retail point-of-sale data whose customers use the data to estimate price elasticities and promotion effects. At the same time, the data provider wishes to protect the identities of sample stores from possible intrusion. We define metrics to measure the average and maximum loss of protection implied by a data protection method. We show that, by enabling the data provider to choose the degree of protection to infuse into the synthetic data, our method performs well relative to seven benchmark data protection methods, including the extant approach of aggregating data across stores.

Suggested Citation

  • Matthew J. Schneider & Sharan Jagpal & Sachin Gupta & Shaobo Li & Yan Yu, 2018. "A Flexible Method for Protecting Marketing Data: An Application to Point-of-Sale Data," Marketing Science, INFORMS, vol. 37(1), pages 153-171, January.
  • Handle: RePEc:inm:ormksc:v:37:y:2018:i:1:p:153-171
    DOI: 10.1287/mksc.2017.1064
    as

    Download full text from publisher

    File URL: https://doi.org/10.1287/mksc.2017.1064
    Download Restriction: no

    File URL: https://libkey.io/10.1287/mksc.2017.1064?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Harald J. van Heerde & Peter S. H. Leeflang & Dick R. Wittink, 2002. "How Promotions Work: Scan Pro-Based Evolutionary Model Building," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 54(3), pages 198-220, July.
    2. Hadfield, Jarrod D., 2010. "MCMC Methods for Multi-Response Generalized Linear Mixed Models: The MCMCglmm R Package," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 33(i02).
    3. Reiter, Jerome P., 2005. "Estimating Risks of Identification Disclosure in Microdata," Journal of the American Statistical Association, American Statistical Association, vol. 100, pages 1103-1112, December.
    4. Steven Tenn, 2006. "Avoiding aggregation bias in demand estimation: A multivariate promotional disaggregation approach," Quantitative Marketing and Economics (QME), Springer, vol. 4(4), pages 383-405, December.
    5. Avi Goldfarb & Catherine E. Tucker, 2011. "Privacy Regulation and Online Advertising," Management Science, INFORMS, vol. 57(1), pages 57-71, January.
    6. Matthew J. Schneider & John M. Abowd, 2015. "A new method for protecting interrelated time series with Bayesian prior distributions and synthetic data," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 178(4), pages 963-975, October.
    7. Thomas J. Steenburgh & Andrew Ainslie & Peder Hans Engebretson, 2003. "Massively Categorical Variables: Revealing the Information in Zip Codes," Marketing Science, INFORMS, vol. 22(1), pages 40-57, August.
    8. Vibhanshu Abhishek & Kartik Hosanagar & Peter S. Fader, 2015. "Aggregation Bias in Sponsored Search Data: The Curse and the Cure," Marketing Science, INFORMS, vol. 34(1), pages 59-77, January.
    9. Randolph E. Bucklin & Sunil Gupta, 1999. "Commercial Use of UPC Scanner Data: Industry and Academic Perspectives," Marketing Science, INFORMS, vol. 18(3), pages 247-273.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Artur Strzelecki & Mariia Rizun, 2022. "Consumers’ Change in Trust and Security after a Personal Data Breach in Online Shopping," Sustainability, MDPI, vol. 14(10), pages 1-17, May.
    2. Ronny Behrens & Natasha Zhang Foutz & Michael Franklin & Jannis Funk & Fernanda Gutierrez-Navratil & Julian Hofmann & Ulrike Leibfried, 2021. "Leveraging analytics to produce compelling and profitable film content," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 45(2), pages 171-211, June.
    3. Shaobo Li & Matthew J. Schneider & Yan Yu & Sachin Gupta, 2023. "Reidentification Risk in Panel Data: Protecting for k -Anonymity," Information Systems Research, INFORMS, vol. 34(3), pages 1066-1088, September.
    4. Robert W. Palmatier & Andrew T. Crecelius, 2019. "The “first principles” of marketing strategy," AMS Review, Springer;Academy of Marketing Science, vol. 9(1), pages 5-26, June.
    5. Matthew J. Schneider & Shawn Mankad, 2021. "A Two-Stage Authorship Attribution Method Using Text and Structured Data for De-Anonymizing User-Generated Content," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 8(3), pages 66-83, September.
    6. Elliot Shin Oblander & Sunil Gupta & Carl F. Mela & Russell S. Winer & Donald R. Lehmann, 2020. "The past, present, and future of customer management," Marketing Letters, Springer, vol. 31(2), pages 125-136, September.
    7. Grewal, Dhruv & Guha, Abhijit & Satornino, Cinthia B. & Schweiger, Elisa B., 2021. "Artificial intelligence: The light and the darkness," Journal of Business Research, Elsevier, vol. 136(C), pages 229-236.
    8. Mingyung Kim & Eric T. Bradlow & Raghuram Iyengar, 2022. "Selecting Data Granularity and Model Specification Using the Scaled Power Likelihood with Multiple Weights," Marketing Science, INFORMS, vol. 41(4), pages 848-866, July.
    9. Stefan Vamosi & Michael Platzer & Thomas Reutterer, 2022. "AI-based Re-identification of Behavioral Clickstream Data," Papers 2201.10351, arXiv.org.
    10. Piyush Anand & Clarence Lee, 2023. "Using Deep Learning to Overcome Privacy and Scalability Issues in Customer Data Transfer," Marketing Science, INFORMS, vol. 42(1), pages 189-207, January.
    11. Wieringa, Jaap & Kannan, P.K. & Ma, Xiao & Reutterer, Thomas & Risselada, Hans & Skiera, Bernd, 2021. "Data analytics in a privacy-concerned world," Journal of Business Research, Elsevier, vol. 122(C), pages 915-925.
    12. Matthew J. Schneider & Dawn Iacobucci, 2020. "Protecting survey data on a consumer level," Journal of Marketing Analytics, Palgrave Macmillan, vol. 8(1), pages 3-17, March.
    13. Ming-Hui Huang & Roland T. Rust, 2021. "A strategic framework for artificial intelligence in marketing," Journal of the Academy of Marketing Science, Springer, vol. 49(1), pages 30-50, January.
    14. Guha, Abhijit & Grewal, Dhruv & Kopalle, Praveen K. & Haenlein, Michael & Schneider, Matthew J. & Jung, Hyunseok & Moustafa, Rida & Hegde, Dinesh R. & Hawkins, Gary, 2021. "How artificial intelligence will affect the future of retailing," Journal of Retailing, Elsevier, vol. 97(1), pages 28-41.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Piyush Anand & Clarence Lee, 2023. "Using Deep Learning to Overcome Privacy and Scalability Issues in Customer Data Transfer," Marketing Science, INFORMS, vol. 42(1), pages 189-207, January.
    2. Kurt A. Jetta & Erick W. Rengifo, 2009. "Improved Baseline Sales," Fordham Economics Discussion Paper Series dp2009-02, Fordham University, Department of Economics.
    3. Zizhuo Wang & Chaolin Yang & Hongsong Yuan & Yaowu Zhang, 2021. "Aggregation Bias in Estimating Log‐Log Demand Function," Production and Operations Management, Production and Operations Management Society, vol. 30(11), pages 3906-3922, November.
    4. Suresh Divakar & Brian T. Ratchford & Venkatesh Shankar, 2005. "Practice Prize Article—: A Multichannel, Multiregion Sales Forecasting Model and Decision Support System for Consumer Packaged Goods," Marketing Science, INFORMS, vol. 24(3), pages 334-350, July.
    5. Weber, Anett & Steiner, Winfried J., 2021. "Modeling price response from retail sales: An empirical comparison of models with different representations of heterogeneity," European Journal of Operational Research, Elsevier, vol. 294(3), pages 843-859.
    6. Shaobo Li & Matthew J. Schneider & Yan Yu & Sachin Gupta, 2023. "Reidentification Risk in Panel Data: Protecting for k -Anonymity," Information Systems Research, INFORMS, vol. 34(3), pages 1066-1088, September.
    7. Wieringa, Jaap & Kannan, P.K. & Ma, Xiao & Reutterer, Thomas & Risselada, Hans & Skiera, Bernd, 2021. "Data analytics in a privacy-concerned world," Journal of Business Research, Elsevier, vol. 122(C), pages 915-925.
    8. Ma, Shaohui & Fildes, Robert, 2017. "A retail store SKU promotions optimization model for category multi-period profit maximization," European Journal of Operational Research, Elsevier, vol. 260(2), pages 680-692.
    9. Leeflang, Peter, 2011. "Paving the way for “distinguished marketing”," International Journal of Research in Marketing, Elsevier, vol. 28(2), pages 76-88.
    10. Baecke, Philippe & De Baets, Shari & Vanderheyden, Karlien, 2017. "Investigating the added value of integrating human judgement into statistical demand forecasting systems," International Journal of Production Economics, Elsevier, vol. 191(C), pages 85-96.
    11. Scott Duke Kominers & Alexander Teytelboym & Vincent P Crawford, 2017. "An invitation to market design," Oxford Review of Economic Policy, Oxford University Press, vol. 33(4), pages 541-571.
    12. Wolfgang Goymann & John C. Wingfield, 2014. "Male-to-female testosterone ratios, dimorphism, and life history—what does it really tell us?," Behavioral Ecology, International Society for Behavioral Ecology, vol. 25(4), pages 685-699.
    13. Emek Basker, 2012. "Raising the Barcode Scanner: Technology and Productivity in the Retail Sector," NBER Chapters,in: Standards, Patents and Innovations National Bureau of Economic Research, Inc.
    14. I. Albarrán & P. Alonso-González & J. M. Marin, 2017. "Some criticism to a general model in Solvency II: an explanation from a clustering point of view," Empirical Economics, Springer, vol. 52(4), pages 1289-1308, June.
    15. Randall Lewis & Dan Nguyen, 2015. "Display advertising’s competitive spillovers to consumer search," Quantitative Marketing and Economics (QME), Springer, vol. 13(2), pages 93-115, June.
    16. Esther Gal-Or & Ronen Gal-Or & Nabita Penmetsa, 2018. "The Role of User Privacy Concerns in Shaping Competition Among Platforms," Information Systems Research, INFORMS, vol. 29(3), pages 698-722, September.
    17. Andrés López-Sepulcre & Sebastiano De Bona & Janne K. Valkonen & Kate D.L. Umbers & Johanna Mappes, 2015. "Item Response Trees: a recommended method for analyzing categorical data in behavioral studies," Behavioral Ecology, International Society for Behavioral Ecology, vol. 26(5), pages 1268-1273.
    18. Jesse Shore & Ethan Bernstein & David Lazer, 2014. "Facts and Figuring: An Experimental Investigation of Network Structure and Performance in Information and Solution Spaces," Harvard Business School Working Papers 14-075, Harvard Business School, revised Jun 2014.
    19. Jeonghye Choi & David R. Bell & Leonard M. Lodish, 2012. "Traditional and IS-Enabled Customer Acquisition on the Internet," Management Science, INFORMS, vol. 58(4), pages 754-769, April.
    20. Amalia R. Miller & Catherine Tucker, 2017. "Frontiers of Health Policy: Digital Data and Personalized Medicine," Innovation Policy and the Economy, University of Chicago Press, vol. 17(1), pages 49-75.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:37:y:2018:i:1:p:153-171. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.