According to Nielsen, more than 50 percent of mobile phone consumers own smartphones. Many of
them use free Wi-Fi when available for faster connections and to reduce data usage charges. But
even when they don’t log on to Wi-Fi, the device continues to search, giving information on users’
locations. By using the signals emitted by shoppers’ smartphones, retailers can keep tabs on
shoppers, knowing where they are and what they are searching for on their phones’ browsers.
Retailers can learn on which aisles shoppers are most likely to check online prices at retailers such as
Amazon.com and can send an alert to a sales representative. “Heat mapping” identifies traffic
patterns and locations attracting the greatest number of shoppers checking the Internet. This gives
retailers an idea of the products most vulnerable to “showrooming”—the practice of shoppers
visiting stores to learn about and try products and later purchasing them for less online.
1. What is shopper marketing and how might retailers use Wi-Fi technology to implement it? (5
marks)
2. What may be the likely response as more shoppers learn that retailers gather information without
their knowledge? (5 marks)