Deck 24: Database Marketing

Question 1

In RFM analysis, an F score of 1 shows that ________.

A)a customer has bought the least expensive items
B)a customer has frequently placed orders
C)a customer has always bought the most expensive items
D)a customer has rarely made a purchase

Answer 1

B

Question 2

________ is a way of analyzing and ranking customers according to their purchasing patterns.

A)Composite forecast
B)RFM analysis
C)Regression analysis
D)Delphi technique

Answer 2

B

Question 3

Customers with an RFM score of 555 are highly valued by organizations.

Answer 3

False

Question 4

Which of the following RFM scores refers to the most valuable customer?

A)111
B)555
C)123
D)333

Question 5

The frequency of customer purchases is not a determining factor for RFM scores.

Question 6

Data mining techniques are essential for database marketing.

Question 7

RFM analysis can be a useful tool to determine the best customers based on the frequency of their purchases.

Question 8

Describe the process of conducting RFM analysis.

Question 9

In RFM analysis, customers who have bought the least expensive items are indicated by an M score of ________.

A)2
B)5
C)1
D)4

Question 10

Which of the following is the first step in the process of producing an RFM score?

A)dividing the customers according to the amount spent on purchases
B)sorting customer purchase records based on the purchase frequency
C)sorting customer purchase records by the date of most recent purchase
D)dividing customers into two groups based on the gender and giving each group a score

Question 11

Which of the following marketing techniques refers to the application of business intelligence systems to the planning and execution of marketing programs?

A)ambush marketing
B)viral marketing
C)database marketing
D)guerrilla marketing

Question 12

What is database marketing?

Question 13

A reporting system that generates RFM data can be automated.

Question 14

A high F score denotes that the customer has bought an expensive item recently.

Question 15

Databases are not a key component of database marketing.

Question 16

In RFM analysis, an R score of 5 shows that ________.

A)a customer has not made any recent purchases
B)a customer has bought the most expensive items
C)a customer has frequently ordered expensive items
D)a customer has purchased the least expensive items

Question 17

RFM analysis is a complex technique that is difficult to implement.

Question 18

The RFM score is obtained by ranking customers based on the positive feedback for a product after purchasing it.

Question 19

Cheryl Inc., a leading cosmetics manufacturer, wants to identify its most valued customers.Each customer is assigned an RFM score based on their purchasing patterns.One of their valued customers has an RFM score of 545.In this case, the ideal action for Cheryl's sales team is to ________.

A)up-sell more expensive goods to this customer
B)contact this customer immediately
C)not waste any time on this customer
D)set up an automated contact system for this customer

Question 20

RFM scores are basically beneficial to salespeople, as it gives a clear picture of a customer's buying pattern.

Question 21

In market-basket terminology, the term used to represent the probability that two items will be purchased together is ________.

A)confidence
B)support
C)cohesion
D)assurance

Question 22

Which of the following statements is true about decision trees?

A)Few decision trees can be transformed into a set of If/Then rules.
B)Decision tree analysis is a supervised data mining technique.
C)The algorithms used in decision trees are similar to each other.
D)Decision tree programs produce computer programs for trees set up by analysts.

Question 23

In market-basket terminology, the ratio of confidence to the base probability of buying an item is called ________.

A)cohesion
B)support
C)confidence
D)lift

Question 24

Which of the following is the basic idea of the decision tree technique?

A)to perform an RMF analysis and rank consumers according to their purchasing patterns
B)to select attributes that are most useful for classifying entities on some criterion
C)to produce computer programs for information systems
D)to use the minimum difference among groups created by the decision tree algorithm

Question 25

________ shows how much the base probability increases or decreases when other products are purchased.

A)Lift
B)Support
C)Confidence
D)Cohesion

Question 26

The more frequently two items occur in the same transaction, the higher the probability of them being purchased together.

Question 27

What are decision trees? How do they classify people into groups?

Question 28

The ratio of confidence to the base probability of buying an item is called support.

Question 29

Which of the following techniques uses a hierarchical arrangement of criteria to predict a classification or value?

A)market-basket analysis
B)RFM technique
C)Cooke method
D)decision tree

Question 30

Groups created by decision tree algorithms are as different from each other as possible.

Question 31

A minimum difference among groups is used as the criterion for constructing the decision tree.

Question 32

In marketing transactions, the fact that customers who buy product X also buy product Y creates a ________ opportunity.

A)relationship selling
B)cross-selling
C)value added selling
D)persuasive selling

Question 33

A market-basket analysis is used to explore cross-selling opportunities.

Question 34

In market-basket terminology, a conditional probability estimate is referred to as ________.

A)support
B)cohesion
C)confidence
D)chance

Question 35

Define the three market-basket terminologies: support, confidence, and lift.

Question 36

A market-basket analysis shows the products that customers tend to buy together.

Question 37

Which of the following is a data mining technique for determining sales patterns?

A)RFM analysis
B)market-basket analysis
C)composite analysis
D)regression analysis

Question 38

A cross-selling opportunity is created when a consumer purchases only a single product.

Question 39

What is a market-basket analysis?

Question 40

Decision tree analysis is a data mining technique that requires a high degree of supervision.