An online retailer of men’s athletic apparel is seeking to become the market leader in the industry. To deliver on this strategy, the analytics team continuously collects data on the prices of competitor products and uses this information to adjust the retailer's prices.
What type of analytics is the retailer using to maintain their pricing structure?
Prescriptive analytics involves analyzing data to recommend actions that can help achieve a specific goal. In this scenario, the retailer collects data on competitor prices and uses this information to adjust its own prices. This involves not only understanding current market conditions but also making actionable recommendations to influence desired outcomes, which aligns with the definition of prescriptive analytics.
See pg 8 - 1.3 Bss data Analytics Objectives Prescriptive Analytics involves using data to make recommendations or decisions about what actions should be taken to achieve a specific goal. In this case, the online retailer is adjusting prices based on competitor data to gain a competitive advantage, which is a direct application of prescriptive analytics. It involves not only analyzing current data but also recommending actionable changes to influence the desired outcome.