Deck 8: Marketing Analytics With Linear Programming

Question 1

Descriptive marketing analytics are used to help firms to identify current response rates, conversion rates, and campaign profitability.

Answer 1

True

Question 2

Predictive marketing analytics are used to predict future response rates, conversion rates, and campaign profitability.

Answer 2

True

Question 3

Prescriptive marketing analytics can be used to reallocate future funds of marketing campaigns, provide the best possible mix of marketing channels, and optimize social media scheduling.

Answer 3

True

Question 4

The recency-frequency-monetary value framework is an analytical tool that can be used in combination with descriptive, predictive, and prescriptive analytics.

Question 5

Descriptive analytics can be used to categorize customers into homogenous RFM segments based on their previous purchasing behavior.

Question 6

Marketing prescriptive models can utilize RFM data to maximize future valuation of marketing campaigns under limited campaign resources.

Question 7

Marketing prescriptive models can be used to create a balance between type I and type II errors.

Question 8

The specific cutoff points for each recency category depend on the type of purchases and products.

Question 9

The specific cutoff points for each frequency category depend on the type of purchases and products.

Question 10

The specific cutoff points for each monetary value category depend on the type of purchases and products.

Question 11

Which of the following is the main factor that has led to the explosion of available data about customers?

A) The increased number of customers
B) The increased number of purchases by customers
C) The increase number of records due to automatic capture of customer transactions
D) Increased customer feedback via online surveys

Question 12

Automatic capture of online and offline customer transactions has generated data that can be used to:

A) Generate valuable information about customers.
B) Generate information about the purchase patterns of customers.
C) Generate information about customer behavior.
D) All of the above

Question 13

Marketing analytics has three dimensions. Which of the following is not such a dimension?

A) Descriptive analytics
B) Campaign analytics
C) Predictive analytics
D) Prescriptive analytics

Question 14

The major purpose of descriptive marketing analytics is to:

A) Analyze the effectiveness and efficiency of investments in marketing.
B) Predict future response rates.
C) Predict the future of campaign profitability.
D) All of the above

Question 15

The major purpose of predictive marketing analytics is to:

A) Analyze the effectiveness and efficiency of investments in marketing.
B) Analyze marketing contributions to the sales pipeline.
C) Predict the future of campaign profitability.
D) All of the above

Question 16

The major purpose of prescriptive marketing analytics is to:

A) Analyze the effectiveness and efficiency of investments in marketing.
B) Analyze marketing contributions to the sales pipeline.
C) Provide the optimal mix of marketing channels.
D) All of the above

Question 17

Which of the following must be captured, stored, and calculated to measure the recency dimension of the RFM approach?

A) The date of the least recent purchase
B) The date of the most recent purchase
C) The average time between two purchases
D) All of the above

Question 18

Which of the following must be captured, stored, and calculated to measure the frequency dimension of the RFM approach?

A) The number of purchases within a given period
B) The date of the most recent purchase
C) The date of the first purchase
D) All of the above

Question 19

Which of the following must be captured, stored, and calculated to measure the monetary value dimension of the RFM approach?

A) The date of most recent purchase
B) The average amount of sales for each customer
C) The average time between two purchases
D) All of the above

Question 20

Which of the following is a marketing strategy that can be used when a given customer segment shows relatively high values for frequency and monetary value, but a low value for recency?

A) An upselling strategy
B) A "We Want You Back" strategy
C) A "Buy One, Get One Free" strategy
D) All of the above

Question 21

Which of the following is a marketing strategy that can be used when a given customer segment shows relatively high values for frequency and recency, but a low value for monetary value?

A) An upselling strategy
B) A "We Want You Back" strategy
C) A "Buy One, Get One Free" strategy
D) All of the above

Question 22

Which of the following is a marketing strategy can be used when a given customer segment shows relatively high values for monetary value and recency, but a low value for frequency?

A) An upselling strategy
B) A "We Want You Back" strategy
C) A "Buy One, Get One Free" strategy
D) All of the above

Question 23

Prescriptive marketing models can be used to identify any of the following except:

A) RFM segments that should be reached because they are most profitable.
B) RFM segments that are not worthy of pursuing because they are unprofitable.
C) RFM segments that are not worthy of pursuing due to budget constraints.
D) All of the above

Question 24

Marketing prescriptive models can be used to:

A) Identify which customer segments will be most profitable.
B) Determine whether to continue promotional spending in order to generate future sales.
C) Determine whether to curtail spending and allocate marketing resources to more profitable customer targets.
D) All of the above

Question 25

Which of the following Microsoft Excel functions can be used to count the number of purchases for a customer?

A) VLOOKUP
B) HLOOKUP
C) Pivot table
D) Data series

Question 26

Which of the following Microsoft Excel functions can be used to calculate the average amount of sales for a customer?

A) VLOOKUP
B) HLOOKUP
C) Pivot table
D) Data series

Question 27

Which of the following Microsoft Excel functions can be used to assign RFM scores for a customer?

A) VLOOKUP
B) Correlation
C) Pivot table
D) Data series

Question 28

Linear programming models with a single RFM dimension are formulated as:

A) Binary linear programming models.
B) Non-binary linear programming models.
C) Either a or b
D) Neither a nor b

Question 29

The objective function of linear programming models with a single RFM dimension seeks to:

A) Minimize the expected revenue of the marketing campaign.
B) Maximize the expected revenue of the marketing campaign.
C) Maximize the expected number of purchases during the marketing campaign.
D) Maximize the expected recency of the marketing campaign.

Question 30

When the decision maker changes the binary requirement of the decision variables to become continuous variables in order to allow the partial reach of a given group, the solution will indicate:

A) A greater-than-or-equal-to final value for the objective function.
B) A lower-than-or-equal-to final value for the objective function.
C) That the available budget will not be used.
D) That available budget usage will not change.

Question 31

The challenges and opportunities of implementing marketing analytics in the era of Big Data are similar to those of business analytics. However,

A) Big Data in marketing analytics tends to be generated mostly by customers.
B) Big Data in marketing analytics tends to be structured and unstructured.
C) Both a and b
D) Neither a nor b

Question 32

Which of the following is not required for a successful marketing analytics project?

A) Supportive analytics culture and support from the top management team
B) Appropriate data and analytics skills
C) Necessary information technology support
D) All of the above are required for a successful marketing analytics project