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Imagine that your business had a complete log of your customers' wanderings—every trip to the grocery store, every work commute, every walk with the dog. What could you learn about them? Armed with that knowledge, what sorts of goods and services might you try to sell them? Just as important, if you made your best pitch—relevant and timely, of course—would customers concerned about privacy tell you to get lost? This isn't science fiction. A nascent industry extending from the laboratories of Google (GOOG) and Nokia (NOK) to a host of data-fueled startups is wrestling with these very questions.