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:

Market for Shrimp

The global marketplace where buyers and sellers trade shrimp, influenced by factors like quality, supply, demand, and seasonal trends.

Price Ceiling

A legal maximum price that can be charged for a good or service, above which it cannot be sold.

Black Market

The black market is an illegal trade of goods and services, operated outside of the lawful economic frameworks and regulations.

Underground Transactions

Economic activities that occur outside of the formal economy and are not reported to government agencies, often to avoid taxes or regulation.