Which of the following techniques allow extracting valuable information from…

Ans : b

Solution

Data mining techniques allow extracting valuable information from large volumes of data and predicting outcomes of future situations

Data Mining: Bringing out the most important data from a huge data set is known as data mining. With the help of Artificial Intelligence (AI), a CRM tries to answer the most important data queries of a business. In a CRM, data mining helps to find relations among data, classifies the customers according to business value, and helps to find answers to the following questions −

Which customers the business should target?

What is the cost of customer acquisition?

Which customers are buying (or not buying) the products?

Who are high/medium/low margin customers?

What profile customers are defaulting payment repeatedly?

How can a business segment it's market?

Can the business offer a common price for all customer segments?

For example, an analyst at Flipkart found that customers who buy a smartphone are also looking for tempered glass and cover for it. He used this information to create a bundle in which there is a smartphone, a tempered glass suited to the screen size of the smartphone, and a cover. This helped in accelerating the sale of the tempered glass and the phone back cover.