A grocery store chain purchases customer data from a credit card company. The grocer uses this data to identify its most loyal customers and offer them special promotions and discounts. What type of data is being used in this scenario?

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This scenario centers on data-sharing between partners. The grocer didn’t collect the information directly from its own customers; instead, it purchases purchase data from a credit card company. That data originated with the credit card issuer and is being shared with a partner through a direct agreement. This is second-party data—first-party data from one company shared with another through a partnership.

For contrast, first-party data would be information the grocer collects itself from its customers, third-party data comes from external data brokers with no direct relationship to the customers, and internal data refers to data the grocer already owns and uses from its own systems.