Deck 7: Database and Customer Data Development

Question 1

Most data mining efforts use a data mart as their source for data and information.

Answer 1

True

Question 2

RFM is an easy and cost effective data mining technique.

Answer 2

True

Question 3

Decision trees are structured like a tree, where leaves represent classifications and branches represent conjunctions of features that lead to these classifications.

Answer 3

True

Question 4

Cluster analysis uses three key variables as part of its process: recency, frequency and monetary.

Question 5

Fuzzy logic is not a data mining method.

Question 6

Regression analysis and correlation are statistic methods that can be used as part of a data mining process.

Question 7

Consumer fatigue prevention is a benefit of data mining.

Question 8

Data mining has many benefits, but the ability to create new differentiation strategies is not one of them.

Question 9

The casino industry is one of the best examples of dynamic CRM.

Question 10

Organizations in the financial services industry are very proficient in data mining techniques.

Question 11

It is extremely hard, if not impossible, for a small business to perform data mining.

Question 12

An ancillary benefit of data mining is identification of unusual customer activity.

Question 13

Fraud detection is a major benefit of data mining.

Question 14

A major data mining challenge is organizational obstacles to attaining the data necessary for analysis.

Question 15

_______ is an example of a data mining process.

A)Sorting and analyzing data
B)Processing all online orders immediately
C)Updating a data warehouse
D)Browsing information in search of patterns and anomalies
E)Data preparation

Question 16

____ is not a data mining activity.

A)Transaction buyer identification
B)Word of mouth calculation
C)LTV calculation
D)Clustering
E)POS sales transmission

Question 17

Recently the term "dashboard" is used to describe a (an) ______.

A)Automobile part
B)ERP
C)DSS
D)EIS
E)RIP

Question 18

Identifying transaction buyers is a (an) ____ function.

A)Prospecting
B)RFM
C)Data Mining
D)ERP
E)EIS

Question 19

A data warehouse could contain_____.

A)Demographic information
B)Product information
C)Promotion information
D)Prospect information
E)All of the above

Question 20

A ____ would be the best source of information on the last 10 years of customer transactions.

A)Data mart
B)Operational data store
C)Data warehouse
D)Reference database
E)Web site database

Question 21

A (An) _____ would be a less-than-optimal source of information for data mining.

A)Data warehouse
B)Operational data store
C)Web site database
D)Data warehouse or data mart
E)Data mart

Question 22

Data mining usually accesses a ________ for its source of information.

A)Data warehouse
B)Operational data store
C)Web site database
D)Reference database
E)Data mart

Question 23

RFM is a (an) _____ technique.

A)Costly
B)Simple
C)Complex
D)Outdated
E)None of the above

Question 24

RFM is a _____ technique.

A)Pattern recognition
B)Regression
C)Clustering
D)Sorting
E)Suppression

Question 25

RFM is dependent on the use of ___ variable (s)

A)Three
B)Six
C)Two
D)Five
E)One

Question 26

A _____ can be learned by splitting the source set into subsets based on an attribute value test.

A)Clustering
B)RFM
C)Decision Tree
D)Regression analysis
E)Fuzzy Logic

Question 27

___ is the process of placing customers into groups such that everyone in the group has similar traits.

A)Geo-analysis
B)Clustering
C)Sorting
D)Decision tree analysis
E)Suppression

Question 28

Cluster analysis would not include _____ as a variable category.

A)Behavior
B)Psychographic
C)Geographic
D)Demographic
E)Scalable

Question 29

Home ownership is an example of a _____ variable.

A)Behavior
B)Psychographic
C)Geographic
D)Demographic
E)Scalable

Question 30

Product usage rate is an example of a _____ variable.

A)Behavior
B)Psychographic
C)Geographic
D)Demographic
E)Scalable

Question 31

State and climate are examples of a _____ variable.

A)Behavior
B)Psychographic
C)Geographic
D)Demographic
E)Scalable

Question 32

Data mining helps answers all of the following questions except ____.

A)Who are my customers
B)Which database entity is the optimal data repository
C)How can I retain customers
D)What does a loyal customer look like
E)What do my customers buy

Question 33

_____is not a common data mining method.

A)Fuzzy logic
B)Pattern recognition
C)ERP
D)Artificial Neural Network
E)Data stream mining

Question 34

____ is not a statistical method.

A)RFM
B)Chi-square
C)Regression analysis
D)Correlation
E)Analysis of Variance

Question 35

By adding the modeling component, organizations can enhance data mining by making it

A)Cost-justified
B)Measurable
C)optimal
D)B and C
E)A, B, and C

Question 36

The best industry example of dynamic CRM is the

A)Toy
B)Packaged goods
C)Casino
D)Computer
E)Grocery

Question 37

______ is an ancillary benefit to data mining.

A)Unusual customer activity
B)Data transformation into information
C)Privacy issues
D)Interpretation of information
E)Information transformation into knowledge

Question 38

______ is not a challenge to data mining.

A)Inability to capture customer transactions
B)Cost versus benefit
C)Organization expertise
D)Fraud detection
E)Privacy issues