American Express Regularly Stuffs Its Monthly Statements with Combinations of Products

question 54

Multiple Choice

American Express regularly stuffs its monthly statements with combinations of products depending upon customer characteristics.This data mining application is referred to as _______.

• A)customer retention
• B)customer abandonment
• C)market basket analysis
• D)customer acquisition
• E)none of the above

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Definitions:

Marginal Utility

The additional satisfaction or benefit received from consuming one more unit of a good or service.

Total Utility

The complete satisfaction received from consuming a particular quantity of goods or services.

Consumer's Income

The total amount of money earned by a consumer, influencing their purchasing power and spending behavior.