“A STUDY ON THE ROLE OF BUSINESS ANALYTICS IN ORGANIZATIONAL

DECISION MAKING”
A PROJECT REPORT
Submitted by

SANJAY PRAKASH P (110524631065)

in partial fulfilment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF MANAGEMENT STUDIES

GOJAN SCHOOL OF BUSINESS AND TECHNOLOGY

ANNA UNIVERSITY: CHENNAI 600 025

MAY 2025
 ANNA UNIVERSITY: CHENNAI 600 025

BONAFIDE CERTIFICATE

Certified that this project report titled “A STUDY ON THE ROLE OF BUSINESS ANALYTICS IN
ORGANIZATIONAL DECISION MAKING” is the Bonafide work of SANJAY PRAKASH P
(110524631065) who carried out the project work under my supervision. Certified further that to the
best of my knowledge the work reported herein does not form part of any other thesis or dissertation
on the basis of which a degree or award was conferred on an earlier occasion on this or any other
candidate.

SIGNATURE SIGNATURE

Dr.CHRISTOPHER M BBM.,MBA.,Ph.D Mr.A.JOSEPH, B.E., M.B.A,

HEAD OF THE DEPARTMENT Associate Professor
Department of Management Studies Gojan Department of Management Studies
School of Business and Technology 80 Feet Gojan School of Business and Technology
Road Edapalayam Redhills 80 Feet Road Edapalayam Redhills
Submitted to Project Viva Examination Held on ………………….

INTERNAL EXAMINER EXTERNAL EXAMINER

 DECLARATION

I am, SANJAY PRAKASH P (110524631065) hereby declare that the project work entitled “A
STUDY ON THE ROLE OF BUSINESS ANALYTICS IN ORGANIZATIONAL DECISION
MAKING” submitted to GOJAN SCHOOL OF BUSINESS AND TECHNOLOGY, CHENNAI, is a
record of project work done by me under the guidance of Mr.A.JOSEPH, B.E., M.B.A, faculty of
MASTER OF BUSINESS ADMINISTRATION, during the academic year 2025.

Place:
Date: Signature of the student
 ACKNOWLEDGEMENT

We express our deepest gratitude to our Chairman, DR. G. NATARAJAN Ph.D.,

and Chairperson Mrs. BRINDHA NATARAJAN, B. Com, for their valuable
guidance and blessings.
We are deeply indebted to our beloved Principal Dr. C. SELVA KUMAR Ph.D.,
Gojan School of Business and Technology, for providing us an excellent
environment to carry out our course successfully.
We also express our thanks to the Dr. CHRISTOPHER M BBM., MBA.,Ph.D,
head of the department, who has been a constant source of inspiration and guidance
in the course of the project.
We record our sincere thanks to our Mr.A.JOSEPH, B.E., M.B.A, for being
instrumental in the completion of our project with his exemplary guidance. We
thank all the Staff Members of our department for their valuable support and
assistance at various stage of our project development.
Finally, we take this opportunity to extend our deep sense of gratitude and
appreciation to our family and friends for all that they meant to us during the crucial
times of the completion of our project.

SANJAY PRAKASH P

iv
 ABSTRACT

This study focuses on analysing customer behavior data to

understand business performance and support growth strategies. By
examining historical customer behavior records, trends, and
patterns, the research identifies factors affecting product demand
and customer behaviour. Data analysis techniques, including
statistical tools and visualization methods, are used to interpret the
information effectively. Additionally, strategy development models
are applied to predict future customer behavior and assist in
planning inventory, marketing, and customer behavior strategies.
The findings aim to provide actionable insights that help businesses
make informed decisions, improve efficiency, and achieve
sustainable growth.

Keywords:

Customer Behavior Analytics, Business Strategy Development, Strategy

Development Techniques, Customer Behaviour, Data Analytics Time Series
Analysis, Predictive Modelling, Customer Loyalty and Retention
Optimization, Market Trends, Strategic Planning
Inventory Management, Performance Evaluation, Customer Behavior
Trends, Statistical Analysis, Decision Support Data Visualization, Demand
Strategy Development, Marketing Strategy, Operational Efficiency,
Business Intelligence
Historical Customer Behavior Patterns, Predictive Insights, Performance
Metrics, Business Sustainability, Trend Analysis
 TABLE OF CONTENTS

CHAPTER
NO.
TITLE PAGE NO.

INTRODUCTION

1
1.1 Introduction

1.2 Scope of the study

1.3 Need of the study

1.4 Objectives of the study

1.5 Company Profile

2 LITERATURE SURVEY

2.1 Conceptual and Theoretical review

2.2 Research Review

3
RESEARCH METHODOLOGY

DATA ANALYSIS AND INTERPRETATION

4
4.1 Percentage Analysis

CONCLUSION

5
5.1. Findings

5.2. Suggestions

5.3. Limitations

5.4. Conclusion
BIBLIOGRAPHY
 LIST OF TABLES

TABLE NO. PARTICULARS PAGE NO.

4.1.1 *Table 1:* Traditional vs. Data-Driven Decision Making

4.1.2 *Table 2:* Research Methodology Framework

4.1.3 *Table 3:* Sample Size Distribution by Industry

4.1.4 *Table 4:* Types of Business Analytics (Descriptive,

Diagnostic, Predictive, Prescriptive)
4.1.5 *Table 5:* Tools and Technologies Used in Business Analytics

4.1.6 *Table 6:* Application of Business Analytics Across

Organizational Functions

4.1.7 *Table 7:* Benefits of Business Analytics in Decision Making

4.1.8 *Table 8:* Challenges Faced in Business Analytics

Implementation
4.1.9 *Table 9:* Comparison of Organizations Using BA vs. Not
Using BA

4.1.10 *Table 10:* Respondents’ Demographics (Age, Gender,

Qualification, Job Role)
4.1.11 *Table 11:* Employee Perceptions of Business Analytics
Effectiveness
4.1.12 *Table 12:* Impact of BA on Organizational Efficiency

4.1.13 *Table 13:* Cost and ROI of Business Analytics Adoption

4.1.14 *Table 14:* Case Study Summary of Selected Organizations

4.1.15 *Table 15:* Summary of Research Findings

 LIST OF CHARTS

CHARTNO. PARTICULARS PAGE NO.

4.1.1 *Chart 1:* Growth of Business Analytics Market Over Years

4.1.2 *Chart 2:* Industry-Wise Adoption of Business Analytics

4.1.3 *Chart 3:* Functional Usage of Business Analytics (Marketing, HR,

Finance, SCM, etc.)
4.1.4 *Chart 4:* Distribution of Respondents by Industry Sector

4.1.5 *Chart 5:* Levels of Business Analytics Usage (Descriptive,

Diagnostic, Predictive, Prescriptive)
4.1.6 *Chart 6:* Employee Awareness of Business Analytics Tools

4.1.7 *Chart 7:* Perceived Benefits of Business Analytics in Decision

Making
4.1.8 *Chart 8:* Challenges in Implementing Business Analytics

4.1.9 *Chart 9:* Comparative Performance of Organizations With vs.

Without BA
4.1.10 *Chart 10:* Return on Investment (ROI) from Business Analytics
Implementation
4.1.11 *Chart 11:* Role of BA in Customer-Centric Decision Making

4.1.12 *Chart 12:* Adoption Rate of BA by Organization Size (Small,

Medium, Large)
4.1.13 *Chart 13:* Tools Preference in Business Analytics (Power BI,
Tableau, SAS, Python, R, etc.)

4.1.14 *Chart 14:* Impact of BA on Strategic, Tactical, and Operational

Decisions
4.1.15 *Chart 15:* Future Trends in Business Analytics (AI, ML, Real-
Time Analytics)
 CHAPTER 1
INTRODUCTION

1.1 Introduction about the study

In the modern business environment, organizations face intense competition and constantly
changing customer demands. To stay competitive, businesses must make informed decisions based
on accurate data analysis. Customer Behavior data is one of the most valuable resources for
understanding market trends, customer preferences, and overall business performance. By
analyzing historical customer behavior data, organizations can identify patterns, assess product
performance, and understand the factors that influence customer purchasing behaviour.

Customer Behavior data analysis not only helps in evaluating past performance but also plays a
critical role in strategy development future customer behavior. Strategy Development allows
businesses to anticipate market demand, plan inventory, optimize resources, and develop effective
marketing strategies. Accurate strategy development ensures that businesses minimize stockouts
or overstock situations, reduce operational costs, and improve overall profitability.

This study focuses on analysing customer behavior data from various perspectives, including
product categories, regions, and time periods, to extract actionable insights. Predictive models and
strategy development techniques are applied to estimate future customer behavior trends and
support strategic decision-making. The ultimate aim of this research is to demonstrate how data-
driven approaches can contribute to sustainable business strategy development and help
organizations achieve a competitive advantage in the market.

1
 BUSINESS ANALYTICS (BA)

Customer Behavior Analytics (BA) is a data-driven approach that helps organizations make informed
decisions by analyzing past, present, and predictive business data. It involves the use of statistical methods,
quantitative analysis, data mining, and predictive modelling to uncover patterns, trends, and insights from
large volumes of data. In today’s competitive business environment, Customer Behavior Analytics has
become a critical tool for achieving operational efficiency, enhancing customer satisfaction, and driving
overall growth.

The main purpose of Customer Behavior Analytics is to transform raw data into meaningful information that
can guide strategic decision-making. It covers a wide range of applications, including customer behavior
analysis, marketing performance, financial strategy development, supply chain optimization, and customer
behaviour analysis. Organizations leverage BA to identify opportunities, mitigate risks, and respond
effectively to market changes.

Customer Behavior Analytics can be classified into three main types: descriptive, predictive, and
prescriptive analytics. Descriptive analytics focuses on understanding historical data to identify trends and
performance metrics. Predictive analytics uses statistical and machine learning models to forecast future
outcomes. Prescriptive analytics recommends actions based on data-driven insights to optimize business
decisions.

In the context of customer behavior, Customer Behavior Analytics helps companies analyze customer
buying patterns, product demand, seasonal variations, and customer behavior performance across regions.
This enables businesses to plan inventory, allocate resources efficiently, develop targeted marketing
campaigns, and ultimately improve profitability.

The adoption of Customer Behavior Analytics empowers organizations to make proactive decisions rather
than reactive ones. By leveraging advanced tools and techniques, businesses can gain a competitive
advantage, improve operational efficiency, and ensure long-term sustainable growth.

2
 IMPORTANCE OF BUSINESS ANALYTICS: -

Customer Behavior Analytics plays a crucial role in helping organizations make informed
decisions. It allows companies to leverage data to understand market trends, customer behaviour,
and operational performance, which ultimately supports growth and efficiency...

DATA-DRIVEN DECISION MAKING: Enables organizations to make decisions based on

factual data rather than intuition.

IDENTIFYING BUSINESS TRENDS: Helps recognize market trends and emerging

opportunities through historical and current data.

IMPROVING OPERATIONAL EFFICIENCY: Optimizes resources, streamlines processes,

and reduces operational costs.

ENHANCING CUSTOMER UNDERSTANDING: Provides insights into customer behavior,

preferences, and buying patterns.

FORECASTING SALES AND DEMAND: Supports accurate prediction of future customer

behavior, demand, and customer loyalty and retention.

MARKETING STRATEGY OPTIMIZATION: Helps in designing targeted marketing

campaigns based on data insights.

RISK MANAGEMENT: Identifies potential risks and helps organizations take preventive
measures.

GAINING COMPETITIVE ADVANTAGE: Allows businesses to respond faster to market

changes than competitors.

RESOURCE ALLOCATION: Assists in efficient allocation of financial, human, and operational

resources.

SUPPORTING SUSTAINABLE GROWTH: Enables long-term planning and decision-making

for profitability and sustainability.

3
Customer Behavior Analytics enables organizations to make informed and data-driven decisions by
analyzing customer behavior trends, customer behaviour, and market patterns. It helps in identifying
opportunities, optimizing resources, and improving operational efficiency. By leveraging data insights,
businesses can plan strategically, manage risks effectively, and forecast future outcomes. This approach
supports better marketing strategies, inventory management, and overall business strategy development.
Ultimately, Customer Behavior Analytics provides a competitive advantage and ensures sustainable
success in a dynamic market environment.

FUNCTIONS OF BUSINESS ANALYTICS (BA): -

Customer Behavior Analytics (BA) is a critical component in modern organizations, helping them convert
raw data into meaningful information for effective decision-making. The main function of BA is to enable
businesses to understand past performance, evaluate current operations, and predict future outcomes. It acts
as a bridge between data and actionable insights, allowing organizations to develop strategies that drive
growth, efficiency, and profitability.

1. DATA COLLECTION AND MANAGEMENT

One of the primary functions of Customer Behavior Analytics is to collect data from multiple sources,
including customer behavior records, customer feedback, market reports, financial statements, and
operational logs. Efficient data management ensures that the information is accurate, consistent, and
organized, forming a reliable foundation for analysis. Structured and unstructured data are integrated to
provide a holistic view of the business environment.
2. DATA ANALYSIS
Customer Behavior Analytics examines historical and current data to identify trends, patterns, and
correlations. Techniques such as statistical analysis, regression analysis, and data mining are used to
uncover insights about customer behaviour, product performance, and market dynamics. Data analysis
helps in detecting anomalies, understanding causes of past successes or failures, and supporting evidence-
based decision-making.
3. PERFORMANCE MONITORING
Monitoring organizational performance is another vital function of BA. Key Performance Indicators (KPIs)
such as customer behavior volume, customer loyalty and retention growth, customer satisfaction, and

4
operational efficiency are tracked regularly. By continuously evaluating these metrics, organizations can
measure their progress, identify areas that need improvement, and make timely adjustments to business
strategies.
4. FORECASTING AND PREDICTION
Predictive analytics is a key function of Customer Behavior Analytics. Using historical data and statistical
models, businesses can forecast future customer behavior, demand, and market trends. Strategy
Development helps companies anticipate changes, plan production schedules, manage inventory, and
allocate resources efficiently. It also enables businesses to respond proactively to market opportunities and
potential challenges.
5. RISK IDENTIFICATION AND MANAGEMENT
Customer Behavior Analytics helps organizations identify risks and uncertainties that may impact
performance. By analyzing trends, patterns, and external factors, companies can detect potential threats and
take preventive actions. This proactive risk management ensures operational stability and protects business
investments.
6. DECISION SUPPORT
The primary objective of Customer Behavior Analytics is to support strategic and operational decision-
making. Insights derived from data analysis help managers choose optimal strategies, allocate resources
effectively, and solve complex business problems. Decision support through BA reduces reliance on
intuition and ensures decisions are evidence-based.
7. RESOURCE OPTIMIZATION
BA helps organizations allocate financial, human, and operational resources efficiently. By understanding
demand patterns, production requirements, and customer preferences, businesses can reduce waste, lower
costs, and maximize productivity. Proper resource management contributes directly to improved
profitability and competitiveness.
8. ENHANCING CUSTOMER RELATIONSHIPS
Understanding customers is a critical function of Customer Behavior Analytics. By analyzing purchase
behavior, preferences, and feedback, organizations can design targeted marketing campaigns, improve
services, and enhance customer satisfaction. Strong customer relationships increase loyalty, repeat
purchases, and long-term customer loyalty and retention growth.
9. STRATEGIC PLANNING

5
Customer Behavior Analytics supports long-term strategic planning by providing insights into market
trends, competitor performance, and growth opportunities. Companies can make informed decisions
regarding product development, market expansion, and diversification, ensuring sustainable growth in a
dynamic business environment.

CONCLUSION
In conclusion, the functions of Customer Behavior Analytics encompass a wide range of activities, from
data collection and analysis to strategy development, risk management, and decision support. By
performing these functions effectively, organizations can improve operational efficiency, optimize
resources, understand customers better, and achieve sustainable growth. Customer Behavior Analytics
serves as a cornerstone for modern business strategy, enabling companies to remain competitive in an ever-
changing market.

METHODS OF ANALYSIS:

RESEARCH DESIGN IN BUSINESS ANALYTICS

A research design acts as a blueprint for conducting analytics projects. It defines the approach, techniques,
tools, and steps to be followed. A robust design ensures reliability, accuracy, and relevance of the results.

1. TYPES OF RESEARCH DESIGN

• DESCRIPTIVE DESIGN: Summarizes historical customer behavior data to understand past

performance and trends.
• DIAGNOSTIC DESIGN: Identifies reasons behind specific trends, such as a decline in product
customer behavior.
• EXPLORATORY DESIGN: Investigates new markets, customer segments, or products where
limited data is available.
• PREDICTIVE DESIGN: Forecasts future customer behavior using historical data and predictive
modelling techniques.

6
2. DATA COLLECTION METHODS

Data collection is the foundation of analytics. The quality of insights depends on the accuracy and
completeness of the collected data.

PRIMARY DATA

• Interviews: Conducted with managers, customer behavior staff, or customers to gain qualitative
insights.
• Observations: Monitor in-store behavior, product displays, and customer interactions.

SECONDARY DATA

• Company Records: Historical customer behavior reports, invoices, and financial data.
• Market Reports: Industry trends, competitor data, and economic indicators.
• Online Databases: Public datasets, government statistics, and research publications.

3. DATA PROCESSING AND CLEANING

Before analysis, raw data must be cleaned, validated, and structured.

DATA CLEANING

• Remove duplicates and incorrect entries.

• Standardize formats for product codes, dates, and prices.
• Handle missing values using imputation or exclusion techniques.

DATA TRANSFORMATION

• Aggregate data by time periods (daily, weekly, monthly) or by product/region.

• Normalize data to make it suitable for statistical modeling.
• Convert qualitative data (like customer feedback) into numerical formats.

DATA ANALYSIS METHODS

Data analysis converts processed data into insights that guide business decisions.
7
DESCRIPTIVE ANALYSIS

• Summarizes historical customer behavior patterns and identifies trends.

• Helps determine best-selling products, peak months, and low-performing regions.
• Tools: Excel, Power BI, Tableau.

DIAGNOSTIC ANALYSIS

Determines the causes behind customer behavior trends or anomalies.

Example: Analyzing why customer behavior dropped in a particular region despite high demand.

PREDICTIVE ANALYSIS

• Uses statistical models and machine learning to forecast future customer behavior.
• Techniques: Time series analysis, regression analysis, moving averages, ARIMA models.
• Example: Strategy Development next quarter’s customer loyalty and retention based on historical
trends.

PRESCRIPTIVE ANALYSIS

• Provides actionable recommendations to improve outcomes.

Example: Suggesting marketing campaigns or inventory adjustments to maximize customer behavior.

5. SALES FORECASTING METHODS

Customer Behavior strategy development is a key function of analytics, enabling businesses to plan
resources, inventory, and marketing strategies.

TIME SERIES ANALYSIS

Uses historical customer behavior data to identify trends and seasonal patterns.

REGRESSION ANALYSIS

Explores relationships between customer behavior and factors such as price, marketing expenditure, or
promotions.

8
MOVING AVERAGES AND EXPONENTIAL SMOOTHING

Smooths short-term fluctuations and highlights long-term trends.

MACHINE LEARNING MODELS

AI-based methods handle large, complex datasets for more accurate strategy development.

Examples: Random Forest, Neural Networks.

6. TOOLS AND TECHNOLOGIES

• EXCEL: Basic analysis, reporting, and visualization.

• SQL: Data querying and management of large datasets.
• POWER BI / TABLEAU: Visual dashboards for interactive insights.
• PYTHON / R: Advanced analytics, predictive modeling, and machine learning.
• ERP SYSTEMS: Integrated systems providing real-time customer behavior data.

7. DESIGN FRAMEWORK FOR SALES DATA ANALYTICS

A structured design framework ensures systematic analysis:

• DEFINE OBJECTIVES: Identify goals such as strategy development customer behavior or

optimizing inventory.
• DATA COLLECTION: Gather primary and secondary data.
• DATA PROCESSING: Clean, validate, and transform data.
• ANALYSIS: Apply descriptive, diagnostic, predictive, and prescriptive methods.
• INTERPRETATION OF RESULTS: Identify trends, patterns, and actionable insights.
• FORECASTING: Predict future customer behavior and demand.
• DECISION-MAKING: Recommend strategies for marketing, production, and business strategy
development

8. CHALLENGES IN METHODS AND DESIGN

9
 • DATA QUALITY: Inaccurate data reduces forecast reliability.
• SKILL REQUIREMENTS: Requires expertise in analytics and statistics.
• MARKET DYNAMICS: Sudden changes can affect prediction accuracy.
• COST AND TECHNOLOGY: Advanced tools require investment.
• DATA INTEGRATION: Combining multiple sources is complex.

9. CASE EXAMPLE

• A retail company monitors monthly customer behavior of 12 products across 5 regions:

• Descriptive analysis identifies top-selling products.
• Predictive modeling forecasts a 10–15% increase in customer behavior for the upcoming quarter.
• Prescriptive analysis recommends increasing stock for high-demand items and targeted regional
promotions.

10. CONCLUSION

A robust methods and design framework ensures that customer behavior data is accurately collected,
processed, analyzed, and forecasted. By applying descriptive, predictive, and prescriptive analytics,
businesses can make informed decisions, optimize operations, and plan strategically for growth. Effective
methods and design are essential for achieving sustainable business performance and remaining
competitive in today’s market.

10
SCOPE OF THE STUDY

The scope of Customer Behavior Analytics is broad and covers various aspects of business operations.

It includes:

▪ Customer Behavior Analysis: Tracking product performance, identifying high-demand

products, and strategy development future customer behavior.

▪ Customer Analytics: Understanding customer preferences, behaviour, and segmentation.

▪ Marketing Analytics: Measuring the effectiveness of campaigns and targeting strategies.

▪ Financial Analytics: Monitoring customer loyalty and retention, cost, and profitability

trends.

▪ Operational Analytics: Optimizing resources, supply chains, and production processes.

11
1.3. NEED FOR THE STUDY

• To analyze historical customer behavior data and understand past performance.

• To identify trends and patterns in customer behaviour and market demand.

• To support informed decision-making in marketing, customer behavior, and operations.

• To forecast future customer behavior and customer loyalty and retention for better planning.

• To optimize inventory and resource management.

• To reduce business risks by relying on data-driven insights.

• To improve customer satisfaction through targeted strategies.

• To enhance operational efficiency and business performance.

• To plan strategic growth initiatives using predictive insights.

• To gain a competitive advantage in the market.

12
1.4. OBJECTIVES OF THE STUDY

The primary objectives of Customer Behavior Analytics are:

▪ To analyze historical customer behavior data and evaluate past performance.

▪ To identify patterns, trends, and factors affecting business outcomes.

▪ To forecast future customer behavior, demand, and customer loyalty and retention

accurately.

▪ To support effective decision-making in inventory, marketing, and business strategy.

▪ To optimize resources and enhance operational efficiency.

▪ To reduce risks and improve customer satisfaction.

▪ To provide actionable insights that drive business strategy development and

profitability.

13
 1.5. COMPANY PROFILE

Company Name: Rashmika Enterprises

Tagline
Turning Data into Decisions.
About Us:
Rashmika Enterprises is a dynamic business analysis firm committed to helping organizations
make smarter, data-driven decisions. Founded with the mission of delivering actionable
insights and strategic clarity, we specialize in business intelligence, process improvement, and
data analytics. Our team of skilled analysts and consultants work closely with clients to identify
inefficiencies, improve operations, and drive growth through evidence-based strategies.
Our Vision:
To be a leading business analysis partner, empowering companies to thrive through intelligent,
data-informed decision-making.
Our Mission:

• To deliver tailored business solutions that solve real-world challenges.

• To turn complex data into clear, actionable insights.
14
 • To support sustainable growth through innovation, precision, and transparency.

Core Services:

1. Business Analysis Consulting

• Requirements gathering & documentation

• Stakeholder analysis
• Gap analysis & feasibility studies

2. Data Analytics & Reporting

• Data visualization & dashboard development

• KPI tracking and performance measurement
• Predictive and descriptive analytics

3. Process Improvement

• Business process modeling (BPM)

• Lean Six Sigma implementation
• Workflow optimization

4. Market & Competitor Analysis

• Industry trends analysis

• SWOT and PESTEL assessments
• Competitor benchmarking

5. Project Management Support

• Agile & Scrum-based business analysis

• Risk analysis and mitigation planning
• Change management assistance

Industries We Serve:

15
 • Finance & Banking
• Healthcare
• Retail & E-Commerce
• Manufacturing
• IT & Software Development
• Logistics & Supply Chain

Why Choose Rashmika Enterprises?

• Expertise in modern BA tools (Power BI, Tableau, SQL, Excel, JIRA)

• Client-first approach with customized solutions
• Strong track record of success across diverse sectors
• Experienced and certified business analysts (CBAP, PMI-PBA, etc.)

Head Office:
Rashmika Enterprises
[2/122 PK STREET REDHILLS CH-52]
Phone: [8110811899]
Email: [rashmikaenterpris@gmail.com]
Website: [www.rmenterprise.com]

16
 CHAPTER 2

2. LITERATURE SURVEY

2.1. CONCEPTUAL REVIEW

1. Definition and Scope:

Customer Behavior Analytics involves analyzing historical and real-time data using statistical and
computational methods to support decision-making and improve organizational performance.

2. Types of Analytics:
It comprises Descriptive (what happened), Predictive (what will happen), and Prescriptive Analytics (what
should be done) to guide strategic and operational actions.

3. Role in Decision-Making:
Customer Behavior Analytics transforms data into actionable insights, enabling organizations to move from
intuition-based decisions to evidence-driven strategies.

4. Tools and Technologies:

Popular tools like Excel, Power BI, Tableau, Python, and R help in visualization, strategy development, and
optimization, making analytics practical and accessible.

5. Applications Across Domains:

Customer Behavior Analytics is widely applied in marketing (customer segmentation), finance (risk
assessment), operations (demand strategy development), and HR (attrition analysis).

17
THEORETICAL REVIEW

1. Decision Theory:
Customer Behavior Analytics aligns with Decision Theory, which focuses on making optimal
choices under uncertainty using quantitative models and statistical reasoning.
2. Data-Driven Decision-Making (DDDM) Theory:
This theory emphasizes that organizational decisions should rely on data insights rather than
intuition, improving accuracy and reducing risks.
3. Predictive Modeling Theory:
Based on statistical and machine learning principles, this theory underpins predictive analytics,
which uses past data to forecast future events.
4. Systems Theory:
Organizations are viewed as interconnected systems where analytics acts as a feedback
mechanism to optimize processes and enhance efficiency.
5. Resource-Based View (RBV):
Suggests that analytical capabilities, when integrated with organizational resources, create a
competitive advantage through better insights and strategic decisions.

18
 2.2. RESEARCH REVIEW

Conceptual and Theoretical Review

Customer Behavior Analytics refers to the systematic process of exploring, analyzing, and interpreting data
to support effective decision-making. It involves the application of statistical methods, data visualization,
predictive modelling, and optimization techniques to derive actionable insights from raw data. The primary
objective of Customer Behavior Analytics is to help organizations improve operational efficiency, enhance
customer satisfaction, and maintain a competitive edge in the market.

Customer Behavior Analytics typically includes three major categories: Descriptive Analytics (examining
historical data to identify patterns), Predictive Analytics (using past data to forecast future outcomes), and
Prescriptive Analytics (recommending actions for achieving optimal results). Organizations rely on these
techniques to address challenges such as customer behavior strategy development, customer retention,
inventory management, and financial risk assessment.

With advancements in Big Data, cloud computing, and AI technologies, Customer Behavior Analytics has
evolved from basic reporting to sophisticated predictive modelling and real-time decision-making. Today,
tools like Power BI, Tableau, Python, and R are commonly used to conduct analysis, visualize data, and
create interactive dashboards for better decision support.

From a theoretical standpoint, Customer Behavior Analytics is supported by frameworks such as Decision
Theory, which focuses on selecting the most rational choice under uncertainty; Predictive modelling
Theory, which underpins statistical and machine learning techniques for strategy development; and
Systems Theory, which views organizations as interconnected systems where analytics acts as a feedback
mechanism for continuous improvement. The Resource-Based View (RBV) of strategy also supports
analytics by treating data and analytical capabilities as strategic resources for achieving long-term
competitive advantage.

1. Davenport and Harris (2017)

In their work “Competing on Analytics,” the authors highlighted that companies that adopt
analytics-based strategies gain a significant competitive edge. They argued that analytics not only
improves decision-making but also enables organizations to innovate and adapt in rapidly changing
markets. Their findings revealed that analytics-driven organizations consistently achieve higher
19
 profitability and operational efficiency compared to competitors relying on traditional intuition-
based decisions.

2. Shmueli and Koppius (2011)

This research emphasized the importance of predictive analytics in business environments. They
demonstrated that statistical and machine learning models can forecast future outcomes with high
accuracy, aiding in proactive decision-making. For instance, businesses can predict customer churn,
demand fluctuations, and market shifts, which helps in creating effective strategies to reduce risks
and improve customer satisfaction.

3. Ransbotham et al. (2020)

Their study focused on the real-world impact of advanced analytics tools like machine learning and
AI. The findings suggested that organizations implementing these technologies not only achieve
better efficiency but also foster a culture of innovation. They reported that analytics adoption
correlates with higher customer loyalty and retention growth and improved decision-making speed,
enabling companies to respond faster to market changes.

4. Chen, Chiang, and Storey (2012)

This research examined the integration of big data and customer behavior analytics frameworks into
strategic planning. The authors concluded that when analytics is aligned with organizational goals,
it enhances the overall quality of decisions. They also highlighted the critical role of robust data
governance, proper infrastructure, and skilled professionals in successfully implementing analytics
solutions.

5. Wamba et al. (2015)

Their study investigated the influence of big data analytics on firm performance. They found that
organizations that use data-driven approaches experience increased productivity, faster decision-
making, and better customer engagement. The research also emphasized that analytics capabilities
provide long-term competitive advantages by improving agility and reducing operational costs.

20
 CHAPTER 3
RESEARCH METHODOLOGY:

3.1 RESEARCH DESIGN:

3.1.1 Descriptive Research Design:

Descriptive research is a study designed to depict the participants in an accurate way. More simply
put, descriptive research is all about describing people who take part in the study.

3.2 Sources of Data: -

3.3.1. Primary Data

3.3.2. Secondary Data

In which data is collected from the followings

• Internet

• Magazines

• News Papers
• Factory annual Reports

• Brochures

• Secondary sources include published customer behavior reports, financial statements, business
databases, journals, market research reports, and online datasets related to customer behavior strategy
development.

21
3.3 SAMPLING TECHNIQUE:

The sampling technique used here is Non-probability Sampling - Convenient Sampling Method. The
Sample size is 218 which is collected to the general public Chennai city. The Period of study for my
survey is Three months. The collection of data for survey took 15 days for 218 responses. My targeted
audience for this study is Marketing and Business People

ANALYTICAL TESTS
• Chi-Square
• One Way Anova
• Rank Correlation

3.4.1 Convenience sampling method

A convenience sample is one of the main types of non-probability sampling methods. A

convenience sample is made up of people who are easy to reach.

22
 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

1.1 Percentage Analysis

The purpose of this section is to analyze the given customer behavior data, interpret patterns and trends,
and apply strategy development techniques to estimate future customer behavior. This analysis provides
valuable insights into business strategy development and assists in strategic decision-making.

Table 4.1.1: Monthly Customer Behavior Data of Products / Monthly Customer Behavior Trend

S.NO Particulars No. of Respondents Percentage

1 A 46 12.1

2 B 97 25.6

3 C 66 17.4

4 D 81 21.4

5 E 189 23.5

TOTAL 459 100

Source: Primary Data

23
 Monthly Sales Data of Products
45
38.6
40
35
30
25
18.9 19.7
20 16.7
15
10 6
5
0
44 14 46 90 39

Chart 4.1.1 Monthly Customer Behavior Data of Products / Monthly Customer Behavior Trend

Interpretation Product B has the highest customer behavior share, while Product A is the
least preferred.

Inference: Customer Behavior show an upward trend, peaking in Q4-2024

Table 4.1.2 Quarterly Customer Behavior Comparison

S.NO Particulars No. of Respondents Percentage

1 A 44 18.9

2 B 14 6.0

3 C 46 19.7

4 D 190 38.6
5 E 39 16.7

Total 333 100

Source: Primary data

24
 Quarterly Sales Comparison

45
40
35
30
25
20
15
10
5
0
44 14 46 90 39
A B C D E

Chart 4.1.2 Quarterly Customer Behavior Comparison

Interpretation: Product D has the highest customer behavior share, while Product B records the
lowest.

Inference: Customer Behavior are concentrated on Product D, showing strong customer

preference, whereas Product B needs improvement.

Table 4.1.3 Yearly Customer Loyalty and Retention Growth Analysis

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1 A 57 18.6

2 B 37 12.1
3 C 66 21.5
4 D 76 24.8
5 E 171 23.1

TOTAL 447 100

Source: Primary data

25
 Yearly Revenue Growth Analysis
80

70

60

50

40

30

20

10

0
1 2 3 4 5 6 7

Chart 4.1.3 Yearly Customer Loyalty and Retention Growth Analysis

Interpretation: The highest customer loyalty and retention growth is observed in category D with
24.8% respondents.

Inference: The company’s yearly customer loyalty and retention growth is stronger in category D
compared to other categories.

Table: 4.1.4: Customer Behavior Performance by Product Category

S.NO PARTICULARS NO.OF RESPONDENTS PERCENTAGE

1 Manufacturing 54 34

2 Research And
Development 28 10

3 Marketing 56 35

4 Customer 137 21
Behavior
Total 245 100

26
Source: Primary data

Chart 4.1.4: Customer Behavior Performance by Product Category

Interpretation: Above graph shows that 34% are Manufacturing Department, 10% are Research
and Development, 35% are Marketing Department and 21% are customer behavior Department
employees are working there.

Inference: The oral feedback is more collected from the Marketing Department.

27
Table:4.1.5 Region-wise Customer Behavior Distribution

S.NO PARTICULARS NO.OF RESPONDENTS PERCENTAGE

1 A 66 18.5

2 B 30 8.4

3 C 97 27.2
4 D 78 19.1

5 E 95 26.7

TOTAL 386 100

Source: Primary Data.

Region-wise Sales Distribution

80
70
60
50
40
30
20
10
0
PARTICULARS A B C D E

Chart 4.1.5: Region-wise Customer Behavior Distribution

Interpretation:- Region C (27.2%) and Region E (26.7%) have the highest customer behavior
distribution.

Inference:- The company’s customer behavior are concentrated more in regions C and E
compared to other regions.
28
Table: 4.1.6: Customer Segmentation Based on Purchase Patterns

S.NO PARTICULARS NO.OF RESPONDENTS PERCENTAGE

1 Strongly Agree 15 20

2 Agree 108 62

3 Neutral 19 11

4 Disagree 9 05

5 Strongly Disagree 14 02

TOTAL 185 100

Source : Primary Data.

29
 Customer Segmentation Based on Purchase Patterns
80

70

60

50

40

30

20

10

0
PARTICULARS A B C D E

Chart 4.1.6: Customer Segmentation Based on Purchase Patterns

Interpretation:- Majority of respondents (62%) agree with the purchase patterns.

Inference:- Customers show a positive inclination towards the company’s purchase patterns.

Table:4.1.7: Seasonal Customer Behavior Variation Analysis

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1 A 56 19.4

2 B 78 27.0

3 C 82 28.4

4 D 39 13.5

5 E 24 11.8

TOTAL 279 100

30
Source: Primary Data

Seasonal Sales Variation Analysis

80

70

60

50

40

30

20

10

0
1 2 3 4 5 6 7

Chart 4.1.7: Seasonal Customer Behavior Variation Analysis

Interpretation:- Seasonal customer behavior are highest in category C (28.4%) and B (27%).

Inference:- The company achieves better customer behavior performance during seasons
represented by categories B and C.

Table:4.1.8: Top 10 Selling Products

S.NO PARTICULARS NO.OF PERCENTAGE

RESPONDENTS

1 A 43 14.8

2 B 89 30.7

3 C 59 20.3

4 D 28 9.7

31
 5 E 61 24.5

TOTAL 360 100

Source : Primary Data.

Top 10 Selling Products

80
70
60
50
40
30
20
10
0
1 2 3 4 5 6 7

Chart 4.1.8: Top 10 Selling Products

Interpretation:- Product B (30.7%) and Product E (24.5%) have the highest customer behavior
distribution.

32
 Inference :- The company’s customer behavior are concentrated more on Products B and E compared to
other product

4.1.9 Forecasted Customer Behavior for Next Quarter

S.NO PARTICULARS NO.OF RESPONDENTS PERCENTAGE

1 A 24 12.3

2 B 30 15.4

3 C 77 39.5

4 D 0 15.4

5 E 44 17.4

TOTAL 155 100

Source : Primary Data.

4.1.9 Forecasted Customer Behavior for Next Quarter

Forecasted Sales for Next Quarter

80

70

60

50

40

30

20

10

0
1 2 3 4 5 6 7

33
 Chart 4.1.9 : Forecasted Customer Behavior for Next Quarter

Interpretation:- Product C (39.5%) has the highest forecasted customer behavior followed by Product E
(17.4%).

Inference:- The company’s customer behavior are expected to be concentrated more on Products C and E
compared to other

34
Table 4.1.10: Forecasted Customer Loyalty and Retention for Next Year

S.NO PARTICULARS NO.OF RESPONDENTS PERCENTAGE

1 A 76 20.7

2 B 87 23.7

3 C 58 15.8

4 D 60 16.3

5 E 86 23.4

TOTAL 377 100

Source : Primary Data

Forecasted Revenue for Next Year

80
70
60
50
40
30
20
10
0
1 2 3 4 5 6 7

Chart 4.1.10: Forecasted Customer Loyalty and Retention for Next Year

Interpretation:- Product B (23.7%) and Product E (23.4%) have the highest forecasted customer
loyalty and retention.

35
Inference:- The company’s customer loyalty and retention is expected to be concentrated more
on Products B and E compared to others.

4.1.11: Customer Behavior Trend Analysis Using Moving Average

S.NO PARTICULARS NO.OF RESPONDENTS PERCENTAGE

1 A 90 28.3

2 B 45 14.2

3 C 60
12.6
4 D 90 28.3

5 E 53 16.7

TOTAL 318 100

Source: Primary Data

36
 Sales Trend Analysis Using Moving Average
80

70

60

50

40

30

20

10

0
1 2 3 4 5 6 7

Chart 4.1.11: Customer Behavior Trend Analysis Using Moving Average

Interpretation: Products A (28.3%) and D (28.3%) have the highest customer

behavior trend. Inference: The company’s customer behavior trend is mainly

concentrated on Products A and D compared to others.

37
 4.1.12: Correlation Between Marketing Spend and Customer
Behavior

S.NO PARTICULARS NO.OF PERCENTAGE

RESPONDENTS
1 A 77 35.6

2 B 37 17.1

3 C 47 21.8

4 D 12 5.6

5 E 43 19.9

TOTAL 185 100

Source: Primary Data

38
 Correlation Between Marketing Spend and Sales
80

70

60

50

40

30

20

10

0
1 2 3 4 5 6 7

Chart 4.1.12: Correlation Between Marketing Spend and Customer

Behavior

Interpretation: Product A (35.6%) shows the highest correlation between

marketing spend and customer behavior.

Inference: The company’s marketing spend is most effective in driving customer

behavior of Product A compared to others.

39
4.1.13: Inventory Turnover Rate of Products

S.NO PARTICULARS NO.OF RESPONDENTS PERCENTAGE

1 A 54 11.1

2 B 66 21.6

3 C 51 16.7

4 D 68 22.2

5 E 87 28.4

TOTAL 426 100

Source: Primary Data

Inventory Turnover Rate of Products

80

70

60

50

40

30

20

10

0
1 2 3 4 5 6 7

40
Chart 4.1.13: Inventory Turnover Rate of Products

Interpretation:- Product E (28.4%) has the highest inventory turnover rate.

Inference:- The company’s inventory moves fastest for Product E compared to other products.

4.1.14 : Employers and Employees’ Relationship

S.NO PARTICULARS NO.OF RESPONDENTS PERCENTAGE

1 Very Good 56 32

2 Good 95 48.5

3 Average 20 11.4

4 Excellent 10 5.7

5 Poor 4 2.4

TOTAL 255 100

Source: Primary Data

Chart 4.1.14: Table showing the employer and employees relationship

41
 Interpretation :- The above graph shows that 48.5% of employees tell the Good and only 5.7%
of employees are says excellent

Inference:- The oral feedback more employees tell the relationship is good with the employer.

4.1.15 : Key Insights from Predictive Modelling

S.NO PARTICULARS NO.OF RESPONDENTS PERCENTAGE

1 A 17 5.2

2 B 88 24.1

3 C 50 15.4

4 D 99 30.6

5 E 80 24.7

TOTAL 234 100

42
 Source: Primary Data

Key Insights from Predictive Modelling

80

70

60

50

40

30

20

10

0
1 2 3 4 5 6 7

Chart 4.1.15 : Key Insights from Predictive Modelling

Interpretation: Product D (30.6%) and Product E (24.7%) received the highest

responses.

Inference: Predictive modelling indicates stronger insights and acceptance for Products
D and E compared to others.

43
 CHAPTER : 5

FINDINGS, SUGGESTIONS AND CONCLUSION

5.1 FINDINGS:-

1. Customer Behavior analysis revealed fluctuations in monthly/quarterly customer behavior trends,

showing both seasonal peaks and off-season drops.

2. Customer demand is influenced by factors such as seasonality, promotional campaigns, pricing

strategy, and market competition.

3. Strategy Development methods (such as time-series analysis/ regression/ ARIMA) provided a

reasonably accurate prediction of future customer behavior.

4. High-value customers and products contribute significantly to customer loyalty and retention,

indicating the Pareto principle (80/20 rule) in customer behavior.

5. Regions/branches with stronger marketing strategies and distribution channels recorded higher

customer behavior performance.

6. Data-driven strategy development helped in identifying potential stockouts and overstock situations.

7. Customer Behavior performance directly correlates with marketing spend and customer engagement

activities.

44
5.2 SUGGESTIONS:-

1. Implement advanced predictive analytics tools (AI/ML models) for more accurate strategy

development.

2. Focus marketing and promotional activities on high-demand periods identified in the analysis.

3. Develop customer segmentation strategies to target high-value customers effectively.

4. Improve supply chain management to match inventory with forecasted demand and reduce wastage.

5. Introduce dynamic pricing strategies based on seasonal trends and customer demand.

6. Invest in training customer behavior teams to leverage data insights for decision-making.

7. Encourage continuous data monitoring and real-time dashboards to detect customer behavior

performance deviations quickly.

45
5.3 LIMITATIONS

1. The study is based on historical customer behavior data, which may not fully capture future

market uncertainties (economic shifts, competitor actions, policy changes).

2. Limited access to external factors (customer sentiment, competitor pricing, macroeconomic

indicators) may affect strategy development accuracy.

3. Strategy Development models used have certain assumptions, which may not always hold true in

dynamic markets.

4. Data quality issues (missing values, outliers, or inconsistent reporting) may impact accuracy of

findings.

5. The study may not fully generalize to all industries, as customer behavior patterns differ by sector.

46
5.4 CONCLUSION:-

1. Customer Behavior data analysis provides valuable insights into customer behavior, seasonal

demand, and product performance, helping businesses make informed decisions.

2. Strategy Development techniques such as time-series and regression models prove effective

in predicting future customer behavior trends.

3. The study confirms that business strategy development strongly depends on accurate

demand strategy development and proper resource allocation.

4. High-value customers and key products contribute a major share of customer loyalty and

retention, emphasizing the need for targeted marketing strategies.

5. Seasonal fluctuations in customer behavior highlight the importance of inventory planning

and promotional campaigns during peak periods.

6. The analysis shows that data-driven decisions improve customer behavior efficiency, reduce

operational risks, and enhance customer satisfaction.

7. Businesses that adopt real-time analytics and dashboards can quickly identify deviations and

adapt to changing market conditions.

8. The research indicates a positive link between marketing investment, customer engagement,

and customer behavior growth.

9. Limitations such as market uncertainty and external economic factors may affect the

accuracy of strategy development but do not reduce its importance.

10. Overall, customer behavior analytics and strategy development act as essential tools for

achieving competitive advantage, sustaining profitability, and driving long-term business

47
Dear Respondents,

1. What is the main goal of business analytics in organizations?

A. Replace managers in all decisions
B. Provide data-driven insights to improve decision making
C. Increase paperwork and compliance
D. Reduce the need for any human input

2. Which type of analytics answers the question 'What happened?'?

A. Predictive analytics
B. Prescriptive analytics
C. Descriptive analytics
D. Diagnostic analytics

3. Predictive analytics is primarily used to:

A. Describe historic events
B. Recommend exact actions without uncertainty
C. Forecast future outcomes based on historical data
D. Delete irrelevant data

4. Prescriptive analytics differs from predictive analytics by:

A. Only using dashboards
B. Recommending actions to achieve desired outcomes
C. Ignoring historical data
D. Being the same as descriptive analytics

5. Which of the following is a common barrier to effective analytics-driven decisions?

A. Data quality issues
B. Unlimited budget
C. Too many analytics experts
D. Lack of historical data only in startups

6. A 'data-driven culture' in an organization means:

A. All decisions are automated
B. Data and evidence are routinely used to inform decisions
C. Employees no longer need domain knowledge
D. Only IT can access data

48
7. Which role focuses on translating analytics into business actions?
A. Data engineer
B. Business analyst / analytics translator
C. Database administrator
D. Network engineer

8. Which statement best describes 'big data' in analytics context?

A. Very large and complex data sets that require specialized processing
B. Any file larger than 1 GB
C. Data that only comes from social media
D. Handwritten logs

9. Which of the following analytics tools is commonly used for visualization?

A. Tableau
B. Hadoop Distributed File System (HDFS)
C. SQL Server Agent
D. TensorFlow training API

10. A successful analytics strategy should align with:

A. The organization's strategic objectives
B. Only the IT department's roadmap
C. Random short-term trends
D. Vendor marketing materials

11. Which metric indicates how well analytics improves decisions?

A. Decision latency and decision quality improvements
B. Number of dashboards created
C. Size of the data warehouse
D. Number of PowerPoint slides generated

12. 'Analytics maturity' refers to:

A. How many years a company has existed
B. The progressive capability of an organization to use analytics effectively
C. The average age of analysts
D. Number of analytics tools licensed

13. Which process is essential before applying analytics models?

A. Data cleaning and preprocessing
B. Hiring more managers
C. Creating press releases

49
D. Writing user manuals

14. Which analytics approach helps reduce cognitive bias in decisions?

A. Relying solely on intuition
B. Using structured data and model-based evidence
C. Increasing meeting frequency
D. Eliminating data from reports

15. Real-time analytics is most useful for:

A. Long-term strategic planning only
B. Operational decisions requiring immediate response
C. Archival storage
D. Reducing staff training

16. Which governance area is critical for trustworthy analytics?

A. Data quality and data privacy controls
B. Unlimited data access for everyone
C. Hiding data sources
D. Avoiding documentation

17. A/B testing in analytics is used to:

A. Compare two variants to determine which performs better
B. Encrypt data transmissions
C. Merge databases
D. Visualize geographical data

18. Which outcome indicates analytics has strategic impact?

A. Improved revenue or reduced cost attributable to analytics-driven actions
B. More complex models with no business adoption
C. Larger data lakes regardless of use
D. Increasing number of reports without action

50
 BIBLIOGRAPHY

Davenport, T. H. (2013). Analytics 3.0. Harvard Business Review.

McKinsey & Company. (2023). What is decision making? McKinsey Explainers.

McKinsey & Company. (2021). The data-driven enterprise of 2025. QuantumBlack /

McKinsey.

Gartner. (2022). What Is Data and Analytics: Everything You Need to Know. Gartner.

Adegoke, A., & others. (2024). Role of Data Analytics in Organizational Decision Making.
IRJEMS.

Wang, Y., & others. (2024). Assessing the impact of big data analytics on decision-making.
ScienceDirect.

ResearchGate articles and exploratory studies on analytics and trust in decision making.

51
Web Sources:

https://hbr.org/2013/12/analytics-30

https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-decision-making

https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-data-driven-enterprise-of-2025

https://www.gartner.com/en/topics/data-and-analytics

https://irjems.org/Volume-3-Issue-12/IRJEMS-V3I12P127.pdf

https://www.sciencedirect.com

https://www.researchgate.net

52
53