Saul is planning a direct-marketing campaign that has a relatively limited budget.To make the best use of his budget,Saul wants to identify which of the company's recent customers should be sent a full-length catalog and which of the company's recent customers should be sent a less expensive mini-catalog.Saul should use a(n)________ model.
A) recency
B) frequency
C) conversion rate
D) fulfillment rate
E) optimization

Question

Quizplus · Accepted Answer

Saul should use an optimization model to determine the customers who would respond better to a full-length catalog and those who would be satisfied with a mini-catalog. An optimization model would allow Saul to allocate his limited budget in the most efficient way while achieving the maximum return on investment (ROI). The other options, such as recency, frequency, conversion rate, and fulfillment rate, can be used to analyze customer behavior and preferences, but they do not specifically address Saul's goal of optimizing his budget for the direct-marketing campaign.

Saul Is Planning a Direct-Marketing Campaign That Has a Relatively