ACCA Applied Knowledge · Business and Technology · Financial systems and technology
A hotel group studies past booking records to identify which customer segments are most likely to book spa packages, and uses the findings to target its emails. Which type of analytics is this?
This is predictive analytics. The hotel uses historical booking data to find patterns and estimate which customer segments are likely to buy spa packages in future. Merely summarising past bookings would be descriptive, while encryption and transaction processing do not forecast behaviour.
- APredictive analyticsCorrect
- BDescriptive analytics only, summarising past bookings with no forecasting
- CData encryption
- DTransaction processing
Explanation
Using historical data to identify patterns and estimate which customers are likely to buy in future is predictive analytics. Descriptive analytics would only summarise what happened. Encryption protects data and transaction processing records transactions; neither forecasts behaviour.
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