A catalog retailer studies about 3,500 variables over the lifetime of a customer's relationship.It has found that customers who change residences are three times more likely as regular customers to buy tables,fax machines,and decorative products but are no more likely to buy jewelry or footwear.By using data analysis to determine which promotion to target to customers who have recently moved,this catalog retailer has engaged in .
A)customer acquisition
B)customer retention
C)customer abandonment
D)customer accrual
E)market basket analysis

Question

Quizplus · Accepted Answer

Market basket analysis is the process of analyzing customer purchase data to identify patterns and associations between products. In this case, the catalog retailer is using data analysis to determine which promotion to target to customers who have recently moved. This is an example of market basket analysis because the retailer is looking for patterns in customer purchases to identify which products are most likely to be purchased by customers who have recently moved.

A Catalog Retailer Studies About 3,500 Variables Over the Lifetime