Question

To make sure they stock clothes that their customers will purchase, a department store implements a new application that analyzes spending levels at their stores and cross-references this data to popular clothing styles. This is an example of using information systems to support a business strategy of?

1) Market research
2) Inventory management
3) Customer relationship management
4) Data analysis

Answer 1

The implementation of an application to analyze spending levels and clothing styles at a department store is an example of using information systems to support a strategy of customer relationship management.

Step-by-step explanation:

To make sure they stock clothes that their customers will purchase, a department store implements a new application that analyzes spending levels at their stores and cross-references this data to popular clothing styles. This is an example of using information systems to support a business strategy of:

• Market research
• Inventory management
• Customer relationship management
• Data analysis

The correct answer is customer relationship management. The department store is utilizing advanced analytic tools to understand consumer preferences and behavior. This strategic approach allows for more effective stocking of items that align with consumer demands and trends. This is not merely about managing inventory or just analyzing data, but about establishing a system that enhances the relationship with customers by offering them goods they are more likely to desire. It is also fundamentally linked to market research since it involves an analysis of spending trends and popular styles.