Through analysis of sales data, Price-Cutters retail store found that customers who bought peanut butter also tended to buy bananas

Through analysis of sales data, Price-Cutters retail store found that customers who bought peanut butter also tended to buy bananas. Price-Cutters was engaged in

A. syndicated surveying.
B. focus group analysis.
C. behavioral analysis.
D. data mining.
E. structured sampling.

The correct answer and explanation is :

The correct answer is:

D. Data mining.

Explanation:

Price-Cutters’ discovery that customers who bought peanut butter also tended to buy bananas is an example of data mining. Data mining is the process of analyzing large datasets to identify patterns, correlations, and trends that might not be immediately obvious. It involves using statistical methods, machine learning, and database systems to uncover insights that businesses can use to improve decision-making, marketing strategies, and customer service.

In this case, Price-Cutters analyzed sales data and identified a relationship between peanut butter and banana purchases. This is a classic example of market basket analysis, a common data mining technique used in retail. Market basket analysis helps retailers understand which products are frequently purchased together, enabling them to optimize store layouts, create targeted promotions, or bundle products for better sales.

Why the Other Options Are Incorrect:

1. A. Syndicated surveying – This involves collecting and selling data by third-party firms for multiple clients. It does not refer to analyzing internal sales data.
2. B. Focus group analysis – Focus groups gather qualitative feedback from a small group of customers, whereas data mining deals with large datasets and quantitative patterns.
3. C. Behavioral analysis – While related, behavioral analysis focuses on studying customer habits, emotions, and motivations, rather than purely statistical data correlations.
4. E. Structured sampling – This is a method of selecting a subset of a population for research. It does not involve analyzing existing sales data for insights.

Thus, since Price-Cutters examined sales data to find purchasing patterns, the correct answer is data mining.