University of Central Florida (UCF) GEB4522 Data Driven Decision Making Final Exam Practice

A lagging indicator is one that reflects the results or outcomes of past actions, thereby providing insight into the effectiveness of decisions and strategies over time. Customer satisfaction is a good example of a lagging indicator because it measures how well a company has met customer expectations based on previous interactions or purchases. It indicates past performance and results of business activities, rather than predicting future performance.

In contrast, online catalog ease of use, manufacturing delays, and order fulfillment speed are more predictive or operational metrics. These indicators typically provide insights into current processes that can influence future performance, making them more proactive in nature. They help identify areas that may need improvement to enhance overall effectiveness but do not inherently reflect past outcomes as directly as customer satisfaction does.