Transparency May Ease Worries About Data Manipulation

The New York Internet company's revelation follows news earlier this month that Facebook let researchers change news feeds to see how it would affect users' moods. "Every company is trying to influence consumers to purchase their product or feel a particular way about their company," says Kit Yarrow, consumer psychologist at Golden Gate University in San Francisco. Brick-and-mortar stores and restaurants have long used data drawn from customer loyalty programs, satisfaction surveys and exit interviews, to figure out how to best target consumers. Alex and Ani, a New York jewelry and accessories maker that runs its own stores and also sells goods at department stores nationwide, works with technology company Prism Skylabs to use data taken from video footage to create so-called heat maps. Once the company has the traffic patterns, they also evaluate time stamps on receipts and other point-of-sale information in an effort to create a profile of what types of people are shopping in the store and customize products to them. "In the past, we would have used a gut feeling or anecdotal evidence, more low-tech ways to determine whether or not we should move the escalator," says Stephanie Shriver-Engdahl, vice president of digital strategy. The key to conducting studies without sparking outrage - both online and offline - is transparency, says marketing expert Allen Adamson, managing director of branding firm Landor Associates.