Reference no: EM132469174

Please help me with these answers

1. Suppose the Smith customer record as shown below as of 6/6/14. Assume customer Smith was sent a promotion for a new gardening book on 6/7/14. In addition, assume customer Smith was sent a promotion for a new cookbook on 8/7/14, Smith ordered the cookbook and the order was received at ACME Direct on 8/15/14, and partial payment of $10.00 towards the cookbook was received at ACME Direct on 9/5/14. Also Jones was promoted for a cookbook. Jones did buy the cookbook and paid $23 on 8/7/14.

2.(a) Assuming no other promotions were sent, orders received or payments received on Smith's and Jones's account between 6/7/14 and 9/10/14, how would the data elements shown below change as of 9/10/14?

Customer database file dump for two customer records, Jones and smith, as of 6/6/14 for selected data fields

2(b) ---try this - make up your own question - starting with 9/11/14, for the next 3 months assume 4 things happened to Jones, 1-a promotion, an order, partial payment for a non-cookbook, full payment for a cookbook order.

Then give the answer to your questions showing the new database status as of 12/11/14

2. You are seeking venture capital for a new direct marketing company start-up. Your new company, should you acquire funding, will sell diamond jewelry using database marketing strategies. The potential investors have several questions regarding your business plan:

a) What do you consider to be the key pieces of data that should be captured for all new customer orders?

The key pieces that should be captured for all new customers are as follows:

· Contact Information which includes the customers personal information like address, phone number etc

· Analyzing their purchasing behavior like when the last time was, they purchased, how frequently they purchased jewelry etc.

· Analyzing their purchasing power i.e. how much they can spend to buy expensive product like a diamond jewelry

· Data about how likely are the potential customers to recommend your product to others. This data can be beneficial as the company will get a feedback from their customers which is very important for new state up since they can make necessary improvements if required.

b) How might you utilize census level data and what types would be beneficial for targeting efforts given your product has a high price point?

Census data is the demographic and other data collected by the US government on a periodic basis. It is not available at an individual level but gives you information about a block group. Since the product has a high price point, demographic data can be collected pertaining to specific geographic areas. Some of the information that can be collected is their household income, monthly mortgage, how many properties do they own, education qualification, their home value, whether they are married or unmarried, number of earning members in the household etc.

c) Could you use credit data such as that from Equifax to append to your file to assist in determining a prospects mkability to pay for product and why or why not?

Credit data can be used to advantage only if the credit reporting agencies like Equifax allows you to do so and also it should comply with the Fair Credit Act

d) It is now five years later and you are running a very successful diamond jewelry business. You wish to expand into gourmet foods. What types of enhancement data elements might you consider appending to the customer file in order to fully leverage your current customer base for this new business?

3. The zip code level variable "Home Value" for the Jones customer record reveals a value of $335,649. Does this value mean this is what customer Jones' home is worth? Explain.

4. Would the census tract level variable denoting "Home Value" for the Jones customer record be a better estimate of how wealthy customer Jones is than the zip code level variable mentioned above in question #3 and why or why not?

5. You are about to promote an expensive jewelry catalogue promotion to your current set of customers. On your database you have individual level income data (that you appended to the customer file) as well as census level data revealing the average income of the zip code that each customer lives in. You only have 50% coverage of individual level income data. That is, when you bought and appended the income data, it only covered 50% of the names on your file. However, you have 100% coverage of the census level data. How do you proceed to select the best and most names from the database for this promotion if having an income over $100,000 is the single most important selection criteria?

6. You are the product manager at a major vacation and travel direct marketing company. It has been two years since the enhancement data residing on your customer file has been updated. Your manager wants to postpone the updating for yet another year. You wanted to use this enhancement data in order to select names with no children for an upcoming "couples only" vacation package. Do you have any concerns with the use of this data for targeting purposes and why or why not?