In One Famous Example of How Data- Mining Was Used

question 7

Multiple Choice

In one famous example of how data- mining was used to find hidden relationships, it was found that on Thursday evenings, customers who buy diapers are much more likely to also buy:

• A) beer.
• B) formula.
• C) frozen pizzas.
• D) wipes.
• E) motor oil.

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Definitions:

Price Discrimination

The practice of charging different customers different prices for the same product.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes.

Price-Setting Process

The procedure companies use to determine the price at which they will sell their products and services, taking into account costs, demand, competition, and profit objectives.

Pricing Objectives

Goals that a company wants to achieve through its pricing strategies, including maximizing profit, increasing market share, or positioning the product.