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.