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Which of the following is an example of a data-driven decision?

  1. Deciding on a price based on a gut feeling

  2. Sending general promotional emails to all customers

  3. Offering personalized product recommendations based on user behavior

  4. Choosing colors for a website based on design trends

The correct answer is: Offering personalized product recommendations based on user behavior

Offering personalized product recommendations based on user behavior is a prime example of a data-driven decision because it relies on specific data collected about individual users, such as their past purchases, browsing history, and interactions with products. This process involves analyzing that data to understand customer preferences and behaviors, leading to tailored recommendations that can enhance user experience and increase conversion rates. By utilizing data to inform these recommendations, businesses can create a more relevant and engaging shopping experience for customers, helping to drive sales and foster loyalty. This approach contrasts with making decisions based on assumptions or general trends, as it directly leverages real-time insights specific to the customer’s individual actions and interests.