A Firm Would Use Data Mining If It Wanted To

Question: uses of data mining

Answer:

Question: data mining

Answer: the process of identifying or discovering meaningful correlations, patterns, and trends using simple database queries and statistical and mathematical techniques (One of the keys to successful data mining is to extract non-obvious and hidden knowledge from data to create value.)

Question: Market Segmentation

Answer: Used to identify the common characteristics of customers who buy the same products from your company.

Question: Customer Churn

Answer: Predicts which customers are likely to leave a company and go to a competitor.

Question: fraud

Answer:

Question: Direct Marketing

Answer: Identifies which prospects should be included in a mailing list to obtain the highest response rate.

Question: Interactive Marketing

Answer: Predicts what each individual accessing a website is most likely interested in seeing.

Question: Market Basket Analysis

Answer: Used to understand what products or services are commonly purchased together, such as beer and diapers.

Question: Trend Analysis

Answer: Reveals the difference in the purchasing behavior among customers this month relative to a previous month.

Question: cross selling

Answer: When a firm attempts to sell other products or services to a customer who has purchased some product or service from that firm. Using this process, a firm can increase revenue and customer reliance, and benefit from economies of scope.