Reference no: EM133635835

Question 

Many grocery stores sponsor "card" programs, in which customers use special cards to receive purchase discounts. Shoppers Drug Mart, for example, sponsors the Optimum Card. The customer provides personal data, including his or her name, phone number, and address, and in return receives an identification card with a magnetic strip. When checking out, the customer gives the card to the cashier and receives discounts on purchase prices. The discount encourages people to use the card.

a. Card programs are popular; many grocery and retail chains have them, so they must provide value. What is that value? (Considering from a business intelligence perspective.)

b. What might Shoppers Drug Mart or a grocery chain do with data that correlates a particular customer to that customer's purchases over time?

c. What information can such data provide? Assuming that the data include not only the customer's identity, purchases, and purchase items, but the store location and the date and time of sale. The cards are valid at any store in the chain, so purchases at different stores can be associated with the same customer at a centralized data warehouse.

d. What is market-basket analysis and how a grocery store could perform such an analysis using its club card data? If the lift of high-quality dog food and premium cheese is 3.4 what does this means? What are the four possible ways that Shoppers could use this information. As a team, what would be the raking of the four possibilities from best to worst with justification?