The term "big data" refers to the vast volume of structured and unstructured data generated every second from various sources, including social media, transactions, and sensors. The key characteristics include volume (large datasets), variety (different data types), and velocity (speed of data generation). Organizations analyze big data to uncover meaningful patterns and trends, enhancing decision-making processes and predicting consumer behavior. By leveraging big data analytics, businesses can optimize operations, innovate products, and tailor services to meet customer needs more effectively.