Final answer:
Customer segmentation analysis is the type of analysis that would be used to determine demographic characteristics and purchasing patterns. It involves dividing customers into distinct groups based on their characteristics and patterns, allowing businesses to tailor their marketing strategies.
Step-by-step explanation:
The type of analysis that would be used to determine demographic characteristics and purchasing patterns is customer segmentation analysis. This method involves dividing customers into distinct groups based on their demographic characteristics and purchasing patterns. By analyzing these groups, businesses can gain valuable insights into their customers and tailor their marketing strategies accordingly.
For example, a clothing retailer might divide their customers into groups based on age, gender, and buying preferences. They could then create targeted marketing campaigns to cater to each group's specific needs and preferences.
Lifetime value analysis is another type of analysis that focuses on calculating the predicted value of a customer over their entire relationship with a business. This analysis helps businesses identify their most valuable customers and develop strategies to retain them.