Deck 24: Database Marketing

Question 1

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

Answer 1

False

Question 2

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

A)the customer has bought the least expensive item
B)the customer has rarely made a purchase
C)the customer has always bought the most expensive item
D)the customer has frequently placed an order

Answer 2

D

Question 3

Databases are a key component of database marketing.

Answer 3

True

Question 4

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

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

Question 5

What is database marketing?

Question 6

RFM scores can be used to concentrate the efforts of salespeople.

Question 7

In RFM analysis,an M score of ________ shows customers who have bought the least expensive item.

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

Question 8

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

Question 9

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

Question 10

A reporting system generating RMF data can be automated.

Question 11

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

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

Question 12

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

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

Question 13

RFM can be a useful tool to determine who your best customers are and who hasn't been in to the store in a while.

Question 14

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)dividing customers into multiple groups and giving each group a score
C)sorting customer purchase records based on the purchase frequency
D)sorting customer purchase records by the date of most recent purchase

Question 15

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

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

Question 16

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

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

Question 17

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

Question 18

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

Question 19

Data mining techniques are essential for database marketing.

Question 20

The RFM score is obtained by ranking the customers on the basis of pricing patterns.

Question 21

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

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

Question 22

Which of the following statements is true about decision trees?

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

Question 23

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

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

Question 24

What is a market-basket analysis?

Question 25

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

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

Question 26

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

Question 27

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

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

Question 28

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

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

Question 29

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

Question 30

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

Question 31

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

Question 32

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

Question 33

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

Question 34

Market-basket analysis is used to explore cross-selling opportunities.

Question 35

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

Question 36

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

Question 37

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

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

Question 38

Describe the process of conducting RFM analysis.

Question 39

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

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

Question 40

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

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