Henderson Products Is a National Company That Sells Office Supplies

question 167

Multiple Choice

Henderson Products is a national company that sells office supplies to businesses and household consumers.It is developing an in-house data warehouse so it can identify customers and build long-term relationships with them.The IT department has recommended that the company use data mining to build customer profiles and develop models to predict future purchasing behaviour.However,the CEO is not in favour of data mining,and argues that it shouldn't be used.If the following facts were known,which one would support the CEO's position?

• A) Data mining can help build profiles on Henderson's best customers and then use behavioural characteristics to identify new customers.
• B) Salespeople find data mining helpful because it can identify customers that would benefit from an individual sales call,or provide them with buying reminders regarding particular products.
• C) Data mining can be used to track online behaviour of customers by the use of "cookies."
• D) A privacy paradox exists because mining personal information is intrusive,but it also leads to better targeting of customers and potentially higher sales.
• E) Trends and patterns in customer purchases can be identified by data mining,and this helps the marketing department to shape advertising around these trends.

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Definitions:

Interpersonal Relationships

The connections and interactions between two or more people, ranging from casual acquaintances to deep and long-lasting bonds.

Social Brain Theory

The social brain theory proposes that the size and complexity of an animal's brain, especially in primates, evolved primarily to handle complex social interactions and relationships.

Interpersonal Relations

The social connection or interaction between two or more individuals.

Deliberate System

A cognitive process that is slow, analytical, and effortful, often used when making complex decisions that require attention to detail.