The IT Department Has Recommended That Otto's Use Data Mining

question 92

Multiple Choice

The IT department has recommended that Otto's use data mining to build customer profiles and prepare business models to predict future purchasing behavior.Otto's CEO is not in favor of data mining,and argues that it shouldn't be used.Which of the following statements,if true,would support the CEO's argument for NOT using data mining?

• A) Data mining can build profiles of Otto's best customers and then use behavioral characteristics to identify new customers.
• B) Data mining is helpful to salespeople as it can identify customers that would benefit from an individual sales call, or provide them with buying reminders for particular products.
• C) Data mining can be used to track online behavior of the customers by the use of cookies, and identify customer interests and business needs.
• D) A privacy paradox exists whereby mining personal information is intrusive, but also leads to better targeting.
• E) Data mining can help spot trends and patterns in customer purchases, and enable the marketing department to shape advertising around these trends.

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Definitions:

Imine

A compound characterized by a nitrogen atom double-bonded to a carbon atom, often resulting from the condensation of a primary amine and an aldehyde or ketone.

Reagents

Substances or compounds added in a chemical reaction to bring about a reaction or to see if a reaction occurs.

Transformation

A general term for changing one chemical species into another through a chemical reaction.

Organic Product

A substance derived from living matter or composed of organic compounds.