Certificate in Business Data Analytics (CBDA) — Question 34

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?

Answer options

Correct answer: A

Explanation

The retailer is using prescriptive analytics, as it involves using data to inform decision-making on pricing strategies. This contrasts with diagnostic analytics, which examines past performance, descriptive analytics, which summarizes historical data, and predictive analytics, which forecasts future trends without necessarily recommending actions.