Answer :
Final answer:
London Drugs is using predictive analytics to analyze loyalty program data for forecasting future product purchases by customers, a process that leverages historical data and statistical algorithms. The correct option is 4.
Explanation:
When an organization like London Drugs analyzes its loyalty program data to determine what products customers are most likely to buy in the future, the process being described is known as predictive analytics.
This is because predictive analytics involves using historical data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on historical data.
It is a form of advanced analytics which predicts future events and behaviors, allowing businesses to make proactive, knowledge-driven decisions.
Options such as data mining, market research, and customer segmentation are all integral parts of the broader business intelligence framework, but specifically predicting future customer purchases falls under the scope of predictive analytics. The correct option is 4.
