What type of analytics is the retailer using to maintain their pricing structure?

An online retailer of men’s athletic apparel is seeking to become the market leader in the industry. To deliver on this strategy, the analytics team continuously collects data on the prices of competitor products and uses this information to adjust the retailer’s prices.

What type of analytics is the retailer using to maintain their pricing structure?
A . Descriptive
B . Diagnostic
C . Predictive
D . Prescriptive

View Answer

Answer: D

Explanation:

Prescriptive analytics is the type of analytics that the retailer is using to maintain their pricing structure, because it is a technique that uses data and models to recommend the best course of action for a given situation. Prescriptive analytics can help the retailer optimize their prices based on the data collected from the competitors, the market conditions, and the customer preferences, and thus achieve their strategic goal of becoming the market leader.

Reference:

• Business Analysis Certification in Data Analytics, CBDA | IIBA®, CBDA Competencies, Domain 3: Analyze Data

• Understanding the Guide to Business Data Analytics, page 17

• CERTIFICATION IN BUSINESS DATA ANALYTICS HANDBOOK – IIBA®, page 8, CBDA Exam Sample Questions and Self-Assessment, Question 11