Why Might Businesses Want to Analyze Data That Reveal What

question 13

Multiple Choice

Why might businesses want to analyze data that reveal what consumers do in the marketplace?

• A) to be able to send them tailor-made advertisements
• B) to be able to close the customer service department
• C) to be able to reduce production costs
• D) to be able to stabilize employee turnover
• E) to be able to manage long-term costs

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Definitions:

Industry Output

The total amount of goods or services produced by all firms within a particular industry.

Five Forces Model

A framework developed by Michael E. Porter to analyze a business's competitive environment in five key areas: competitive rivalry, the threat of new entrants, the threat of substitute products, the bargaining power of suppliers, and the bargaining power of buyers.

Competitive Forces

External factors that influence the competitive position of a firm within an industry, including competition, potential entrants, substitutes, buyers, and suppliers.

Profitability

A measurement of the efficiency and effectiveness of a company at generating profits from its operations.