ABSTRACT
Predictive analytics is “technology that learns from experience to predict the future behavior of individuals in order to drive better decisions". Predictive analytics, also referred to as analytics, big data, business intelligence, data science and data mining, has infiltrated and shaped many facets of contemporary life. Forecasting makes predictions on a macroscopic level focusing on aggregate behaviors, while predictive technology delivers insights about individual behavior. In conjunction with behavioral experts, the analysts use the data to classify the consumer according to buying patterns which serve as predictors of future purchase behavior. A shrewd understanding of the core behavioral elements underlying habit formation is essential if companies are to benefit from the large pool of consumer behavioral data available to them. In addition to identifying potential target consumers, companies also benefit by removing non-responders from their marketing efforts, cutting costs and conserving resources.
