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 than customers who do not move as frequently to buy tables, color printers, 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 retention
B) customer acquisition
C) customer abandonment
D) customer accrual
E) market basket analysis

Question

Quizplus · Accepted Answer

The retailer is using data analysis to understand purchasing patterns (in this case, the likelihood of buying certain products after moving) and target promotions accordingly. This approach is known as market basket analysis, which involves analyzing large datasets to uncover patterns, correlations, or associations among items that customers buy together.

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