Cluster Analysis Is Frequently Used to Segment Customer Information for CRM

question 81

True/False

Cluster analysis is frequently used to segment customer information for CRM systems to help organizations identify customers with similar behavioural traits, such as clusters of best customers or one-time customers.

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Definitions:

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one’s preexisting beliefs or hypotheses.

Confirmation Bias

A cognitive bias that involves favoring information that confirms one's preexisting beliefs or hypotheses.

Satisficing

A decision-making strategy that involves choosing an option that meets a minimum level of satisfaction rather than the optimal solution.

Not-invented-here Bias

A mindset or culture within an organization that undervalues or disregards ideas, products, or solutions simply because they originate from external sources.