Although Data Mining Has Been Shown to Be Extremely Beneficial

question 57

Multiple Choice

Although data mining has been shown to be extremely beneficial is conducted properly, that are limitations of data-mining technology. Which of the following was not one of the limitations listed by the authors?

• A) Data mining does not effectively separate customers into major segments.
• B) Data mining analyzes only data collected from existing customers.
• C) Databases used in the mining process are often hotel-brand specific.
• D) Data mining may not segment travelers by psychographic traits.
• E) Data mining does not provide information about consumers' thought processes.

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Definitions:

Prestige Products

High-quality items that are marketed to appeal to consumers' desires for luxury and status rather than practicality.

Lower-priced Products

Items sold at a cost that is below the average price point, often to attract price-sensitive consumers or to compete in the market effectively.

Pricing Orientation

describes a business strategy focused on setting prices based on market factors, cost, customer demand, or competition.

Back-to-school Promotion

Marketing campaigns aimed at students and parents for products and services relevant to the start of the school year.