ACCA Strategic Professional · Strategic Business Leader · Big data and data analytics
Orlanda Airways analyses booking patterns, weather feeds and competitor fares in near real time and automatically adjusts seat prices several times a day. Which primary business benefit of big data does this illustrate?
The scenario illustrates dynamic, data-driven pricing. By analysing bookings, weather and competitor fares in near real time, Orlanda adjusts prices to match demand and market conditions, which improves revenue. It does not remove management judgement or relate to audit fees or data protection compliance.
- AReduction of statutory audit fees through automated sampling
- BDynamic, data-driven pricing that responds to demand and market conditionsCorrect
- CElimination of the need for any management judgement in strategy
- DImproved compliance with data protection law by anonymising customers
Explanation
Using high-velocity external and internal data to adjust prices is dynamic pricing, a classic big data use that improves revenue. Option 3 overstates: judgement is still needed. The audit and data protection options are not what the scenario describes.
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