Step 1: Recall the purpose of a shift register.
A shift register is a group of flip-flops connected to shift binary data from one stage to another.
Step 2: Identify its primary application.
Shift registers are mainly used for
- storing digital data,
- transferring serial and parallel data,
- serial-to-parallel and parallel-to-serial conversion.
Hence,
\[
\boxed{\text{Data storage and transfer}}
\]
is the correct answer.
Therefore,
\[
\boxed{(B)}
\]
is the correct answer.