the question is : Read the following statement: Ahmed whenever he checkouts at t
ID: 377065 • Letter: T
Question
the question is :
Read the following statement:
Ahmed whenever he checkouts at the cashier, he always picks up a chocolate bar and a magazine
With regard to MBA, which MBA application is applied to the above statement? Provide a detailed answer.
MBA application is
Cross-Selling. Offer the associated items when customer buys any items from
your store.
Product Placement. Items that are associated (such as bread and butter, tissues
and cold medicine, potato chips and beer) can be put near each other. If the customers
see them, it has higher probability that they will purchase them together.
• Affinity Promotion. Design the promotional events based on associated products.
• Survey Analysis. The fact that both independent and dependent variables of market
basket analysis are nominal (categorical) data type makes MBA very useful to
analyze questionnaire data.
• Fraud Detection. Based on credit card usage data, we may be able to detect certain
purchase behaviors that can be associated with fraud.
• Customer Behavior. Associating purchase with demographic, and socioeconomic
data (such as age, gender, and preference) may produce very useful results for
marketing.
Explanation / Answer
Product placement is the right answer as the chocolate and the magazine are related and thus have a high probability of being picked together. To avoid any loss of sale due to products kept away and the customer forgets to pick one, they are placed close to each other. Rest options are very different except cross-selling which is close nut it is relevant in cases when we offer them as a bundled product or we suggest them as soon as one product is picked (whether by a sales boy in the store or online)
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