What advantage does a retail database offer in product planning?

A retail database plays a crucial role in product planning by significantly reducing manual inventory control efforts. This is because a robust database can automate several tasks associated with inventory management, such as tracking stock levels, predicting inventory needs based on sales data, and generating reorder alerts. This automation helps streamline operations, minimizes errors that can occur with manual processes, and frees up staff to focus on more strategic tasks rather than spending time on routine inventory checks.

In contrast, options like increased advertising costs do not represent an advantage of having a retail database. Advertising costs are generally separate from inventory management. The option regarding the elimination of all customer interactions suggests a complete detachment from customer service, which is not a goal of effective product planning. Retail databases strive to enhance customer interactions through better understanding of purchasing behaviors, rather than eliminating them. Similarly, while improved employee productivity is a benefit, it cannot be effectively achieved without utilizing data; absent data, employees may struggle to make informed decisions. The essence of a retail database is to leverage data for enhancing various aspects of the retail operation, including employee productivity.