Homework 2_RFM Analysis hw Spring 2024
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Marketing
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Jun 19, 2024
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2
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Prof. Andrew Gershoff Marketing Management: WP MBA SPRING 2024 page 1 M
ARKETING M
ANAGEMENT
S
PRING 2024 HOMEWORK EXERCISE 2 This exercise is to be submitted to Canvas by 11:59 p.m. on Monday, April 8
th
2024. Please submit your answers in an Excel file with the following naming convention: “last_first_c#_rfm” (for example, Andrew_gershoff_c1_rfm) Your submission file should be neatly formatted and contain four tabs, one for each question. This is an individual homework assignment. That means you should complete it on your own. You should not consult with others nor compare answers. In addition to this document there is an Excel workbook (ATX_Outerwear_Market_Rollout_Data.xlsx) containing the data necessary to complete the excercise posted on Canvas. BEHAVIORAL SEGMENTATION AND TARGETING AT ATX OUTERWEAR The marketing director at ATX Outerwear, a small outdoor apparel retailer, is considering reaching out to existing customers in the company’s database to offer customers the opportunity to purchase item
s from the company’s Spring 202
4 catalog. The database contains purchase history data for 96,551 customers
, including how long since the customer’s last transaction, how frequent the customer purchases (in a window of the last 24 months), and the monetary value of purchases (in a window of the last 24 months). The director is considering mailing the catalog to either the entire database or a subset of customers from the database. The cost of reaching a customer via a catalog mailing is $0.80. She decides to run an experiment to help choose which strategy to pursue. First, she has a database programmer conduct an RFM segmentation based on quintiles of the recency, frequency, and monetary
Prof. Andrew Gershoff Marketing Management: Spring 2024 spend data. This results in each of the 96,551 customers being assigned a 3-digit RFM code between 111 and 555 (see the class notes for more on this approach). She then takes a random sample of about 10% of the database resulting in a sample of 9,565 customers and mails each customer in this sample a catalog. After 4 weeks she observes which customers have made a purchase. The average spend on purchases made is $104. ATX Outerwear earns a 50% profit margin on purchases. The Excel dataset ATX_Outerwear_Market_Rollout_Data.xlsx
contains the data for the market test customers (9,565 customers) and the rollout customers (86,947 customers). The market test data contains the customer ID, a binary indicator (labelled “buy”) of whether or not the customer in the test market placed an order, and the RFM code. The rollout data contains the customer ID and the RFM code. Using these data please answer the following questions. 1) What is the overall average buy rate among the market test sample? Provide a neatly formatted bar chart of the average response rate by 3-digit RFM codes for the market test data. 2) Assuming the director decides to mail to all 86,947 customers in the rollout sample. What is a. Total mailing costs? b. Number of customers expected to purchase? c. Total expected profit or loss from this plan? 3) What is the response rate required to break even on the mailing costs? 4) Now consider using the RFM information. If you use the breakeven rate as a guide for sending out catalogs, h
ow many of the 86,947 customers ought to be targeted to receive a catalog?
5) If you use the breakeven rate to target a subset of rollout customers, what is
a. Total mailing costs? b. Number of customers expected to purchase? c. Total expected profit or loss from this plan? 6) Provide some explanation for why your targeted approach differs from the approach of mailing to all customers.
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Related Questions
Consider the following linear programming problem
Max. Z = 9X₁ + 16X₂
Subject to:
C1:
C2:
C3:
C4:
C5:
Variable Cells
X₁
2X₁
X₁
X₁
Microsoft Excel 16.0 Sensitivity Report
Worksheet: [Question Sensitivity analysis.xlsx]Sheet2
Report Created: 10/24/2021 10:45:53 AM
$B$5 Values x1
$C$5 Values x2
$D$10 C5Z
$D$6 C1Z
$D$7 C2Z
$D$8 C3Z
$D$9 CAZ
X₂
This problem was solved using MS Solver of MS Excel.
Following is the output of the solution.
3
6
3X₂
0
0
X₂
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase
Decrease
6
3
24
9
3
Constraints
Cell Name Value Price R.H. Side
05500
-5
5
15
3
0
0
0
3
24
10
0
Final Shadow Constraint Allowable Allowable
Increase Decrease
1E+30
5
1E+30
24
10
6
3
3
1E+30
1E+30
7.5
3
18
1
3 1E+30
Write your report on the sensitivity analysis of constraints
C2 and C3
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Problem 13-3 Determining the Time Value of Money [LO13-1]
Complete the following table. Use Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, Exhibit 1-D.
Note: Use appropriate factor(s) from the tables provided. Round time value factors to 3 decimal pla
nearest whole number.
Annual
Deposit
Rate of Number of
Return
Years
Investment
Value at the End
of Time Period
Total Amount of
Investment
$ 3,000
4 %
9
$ 3,000
8%
9
$ 3,000
4 %
18
$ 3,000
8%
18
Total Amount of
Interest or
Earnings
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PRODUCT
PK ProductID
char(4)
ORDER_DETAILS
PK SalesOrderDetailID char(6)
SALES_ORDERS
PK SalesOrderNumber nvarchar(50)
ProductName
ProductNumber
ProductLine
ProductClass
ProductStyle
nvarchar(50)
nvarchar(50)
FK2
SalesOrderNum
FK1 ProductID
nvarchar(50)
FK1 CustomerID
char(5)
char(4)
OrderDate
datetime
nvarchar(2)
nvarchar(2)
OrderQty
UnitPrice
smallint
DueDate
datetime
money
ShipDate
datetime
nvarchar(2)
Product Color
ProductListPrice
nvarchar(50)
UnitPriceDiscount
Line Total
money
decimal(28,6)
SubTotal
money
TaxAmt
money
ProductStandardCost
money
Freight
money
TotalDue
money
ProductSize
ProductSizeUnit MeasureCode
Product Weight
money
nvarchar(50)
nvarchar(3)
Product Weight UnitMeasureCode
decimal(8,2)
nvarchar(3)
CUSTOMER
PK
CustID
char(5)
Cust Type
nvarchar(1)
AddLine1
nvarchar(50)
AddLine2
City
nvarchar(50)
nvarchar(50)
PostalCode nvarchar(50)
Shown above are the tables in a database with all the relevant information including the data type for each of the columns.
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M Question 7 - Week 13 - Homework #8 (100 points) - Connect
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7
Seminoles Corporation's fiscal year-end is December 31, 2024. The following is a partial adjusted trial balance as of December 31.
Accounts
Debit
Retained Earnings
Credit
$30,000
Dividends
$3,000
Service Revenue
15
points
Interest Revenue
50,000
6,000
Salaries Expense
15,000
Rent Expense
6,000
Skipped
Advertising Expense
3,000
Insurance Expense
11,000
Interest Expense
5,000
eBook
101
Hint
Required:
1. Prepare the necessary closing entries.
2. Calculate the ending balance of Retained Earnings.
Complete this question by entering your answers in the tabs below.
Print
Required 1
Required 2
References
Mc
Graw
Hill
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What is true about the hotel room reservation booked by a guest through expedia.com?
Select one:
a. It is unwise to use such websites because they don’t help to increase hotel rooms’ revenue.
b. No distribution channel fees will be paid on the revenue this reservation generates.
c. It is the lowest possible cost distribution channel.
d. There are fees associated with using online distribution channels such as expedia.com that hotels must pay.
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8
There are ______ stages in the process of developing a sales and operations planning (S&OP) plan.
a
four
b
five
c
six
d
seven
9
The objective of ______ is to ensure that there is sufficient manufacturing and distribution capacity to meet the demand forecasts.
a
operations planning
b
financial planning
c
supply planning
d
demand planning
10
Which planning approach is appropriate for companies that produce a combination of products and services that require similar resources?
a
bottom-up
b
top-down
c
aggregate
d
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Show all steps used in arriving at the final answers. Incomolete solutions will receive partial credit.
3. Provide formulas using Equation Editor and diagrems using Drawing Tool.
4. Use the Solver to obiain computer solutions in an Excel workbook.
5. Submit the Word and Excel workbook(s) separately as attachments.
2.
Problern 1
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destinations P, Q, and R. (The numbers next to each arrow represent the cost of transporting one unit from that
particular source to the destination located at the other end of that arrow}.
Sources (Supplies)
Destinations (Demands)
2500
2900
4
A000
3800
8.
3800
....
**.**
9.
R.
at
2700
12
3700
oce
D.
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Calculate the annual interest and the
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calculations. Round your answers to 2
decimal places.
Annual
Semiannual
Annual
Interest
Interest
Interest Rate
Amount
Payment
3.80%
4.50%
2.45%
3.00%
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G SYSTEM (ACADEMIC)
Time left 0:53:48
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to be cor
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What should be the calculated cycle time in minutes?
a.
6.40
O b. 4.80
Oc.
None is correct
O d. 6.00
O e. 5.30
om/mod/quiz/summary.php?attempt3D18493758&cmid%3845634
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Please do not give image format
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