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

question 97

Multiple Choice

A catalog retailer studies about 3,500 variables over the lifetime of a customer's relationship. It has found that customers who are married, are between the ages of 31 and 44, and have moved within the past year are its most profitable customer segment. By sending promotional offers to noncustomers who also fit this description, this catalog retailer has engaged in ________.

• A) customer retention
• B) customer acquisition
• C) customer abandonment
• D) artificial intelligence
• E) market basket analysis

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed by the government, applicable to income, capital gain, or other taxable bases.

IFRS 8

An International Financial Reporting Standard that requires companies to report financial information by business segment to provide a clearer understanding of a company’s performance.

Operating Segment

A component of an enterprise that engages in business activities earning revenues and incurring expenses, whose operating results are regularly reviewed by the enterprise's chief operating decision maker.

Quantitative Threshold

A specified numerical limit or benchmark that must be met or exceeded, often used in contexts like financial regulation or performance measurement.