Question 1

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

Accepted Answer

Cross-selling is the practice of offering customers a complementary or additional product that is related to their initial purchase, in order to increase sales and revenue. By identifying and promoting these related products, businesses can take advantage of the opportunity to increase customer spending and deepen the relationship with the customer.

Question 2

Which of the following is the first step in the process of producing an RFM score?
A)calculating income from most frequently bought items
B)calculating sales of the previous quarter
C)sorting customer purchase records by the date of most recent purchase
D)verifying customer IDs

Accepted Answer

The first step in the process of producing an RFM score is to sort customer purchase records by the date of most recent purchase. This is because the RFM score is based on three factors: recency, frequency, and monetary value. Recency refers to how recently a customer made a purchase, so it is important to sort purchase records by date to be able to calculate this factor accurately. Frequency and monetary value are also based on past purchase history, but sorting by date of most recent purchase is the initial step that is necessary to produce an accurate RFM score.

Question 3

________ is a way of analyzing and ranking customers according to their purchasing patterns.
A)Composite forecast
B)RFM analysis
C)Cooke method
D)Delphi technique

Accepted Answer

RFM analysis (Recency, Frequency, Monetary) is a way of analyzing and ranking customers based on their recency of purchase, frequency of purchase, and monetary value of purchases. The aim of RFM analysis is to identify the most valuable customers to a business and develop targeted marketing strategies accordingly. The other options - Composite forecast, Cooke method, and Delphi technique - are not related to customer analysis and ranking.

Question 4

Data mining techniques are essential for database marketing.

Accepted Answer

Data mining techniques can help businesses analyze customer data and behavior to make informed marketing decisions and improve customer engagement. Therefore, they are essential for effective database marketing.

Question 5

Which of the following is a data mining technique for determining sales patterns?
A)RFM analysis
B)market basket analysis
C)composite analysis
D)Cooke analysis

Accepted Answer

Market basket analysis is a data mining technique used to determine sales patterns by analyzing which items are frequently purchased together. It helps retailers to optimize their product placement and promotional strategies. RFM analysis categorizes customers based on their purchasing behavior, composite analysis is a statistical technique used to analyze multiple variables, and Cooke analysis is not a commonly used data mining technique in retail sales analysis.

Question 6

If a customer has an RFM score of 113,which of the following actions should be implemented by the sales team?
A)should attempt to up-sell more expensive goods to this customer
B)should contact this customer immediately
C)should not waste any time on this customer
D)should set up an automated contact system for this customer

Accepted Answer

The RFM score of 113 indicates that the customer is valuable and has the potential to make repeat purchases. Up-selling more expensive goods to this customer is a good way to increase revenue.

Question 7

In RFM analysis,an M score of ________ shows customers who have bought the least expensive item.
A)2
B)5
C)1
D)4

Accepted Answer

The answer of In RFM analysis,an M score of ________...

Question 8

What is the basic idea of the decision tree technique?
A)to analyze and rank customers according to their purchasing patterns
B)to select attributes that are most useful for classifying entities on some criterion
C)to determine annual sales patterns
D)to capture,store,analyze,and display geospatial data

Accepted Answer

The basic idea of the decision tree technique is to select attributes that are most useful for classifying entities on some criterion. A decision tree is a flowchart-like structure that helps in decision-making where each internal node represents a test on an attribute, each branch represents the outcome of the test, and each leaf node represents a class label (decision taken after computing all attributes). Thus, option B is the correct answer. Options A, C, and D are irrelevant to the decision tree technique.

Question 9

Which of the following RFM scores refer to the most valuable customer?
A)111
B)555
C)123
D)333

Accepted Answer

The answer of Which of the following RFM scores refer...

Question 10

In RFM analysis,an R score of 5 shows that ________.
A)the customer has not made recent purchases
B)the customer has bought the most expensive item
C)the customer has frequently ordered costly items
D)the customer has purchased high end items lately

Accepted Answer

The answer of In RFM analysis,an R score of 5...

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

Accepted Answer

Database marketing involves the use of business intelligence systems, such as customer relationship management (CRM) software, to gather data on customer behavior and preferences. This data can then be used to plan and execute more targeted and effective marketing programs. Ambush marketing refers to the unauthorized use of a trademark or logo to promote a product or service, viral marketing utilizes social media and other online platforms to spread a message or product through word-of-mouth, and guerrilla marketing involves unconventional and creative tactics to promote a product or service.

Question 12

________ shows how much the base probability increases or decreases when other products are purchased.
A)Lift
B)Support
C)Confidence
D)Cohesion

Accepted Answer

Lift is a measure of how much more likely it is for an event to occur when another event has already occurred. It shows the increase or decrease in the probability of an item being purchased when another item is purchased.

Question 13

In market-basket terminology,a conditional probability estimate is referred to as ________.
A)support
B)cohesion
C)confidence
D)chance

Accepted Answer

In market-basket terminology, the conditional probability estimate is known as confidence. Support refers to the frequency with which an itemset appears in a dataset, cohesion is not typically used in market-basket analysis, and chance is not a relevant term in this context.

Question 14

In market-basket terminology,________ is the term used to represent the probability that two items will be purchased together.
A)confidence
B)support
C)cohesion
D)assurance

Accepted Answer

The answer of In market-basket terminology,________ is the term used...

Question 15

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

Accepted Answer

The RFM score is obtained by ranking the customers on the basis of three factors: Recency (the time since the customer's last purchase), Frequency (how often the customer makes purchases), and Monetary (how much the customer spends on purchases). It is not solely based on pricing patterns.

Question 16

Which of the following techniques uses a hierarchical arrangement of criteria to make predictions?
A)market-basket analysis
B)RFM technique
C)Cooke method
D)decision tree

Accepted Answer

The technique that uses a hierarchical arrangement of criteria to make predictions is a decision tree. It presents a visual representation of a series of decisions and their possible consequences, allowing for the prediction of outcomes based on different scenarios. Market-basket analysis is used to identify patterns in consumer purchasing behavior, RFM technique is used for customer segmentation based on recency, frequency, and monetary value, and Cooke method is used for predicting the risk of violence.

Question 17

Database marketing is the application of business intelligence systems to the planning and execution of marketing programs.

Accepted Answer

Database marketing uses data from various sources to inform marketing programs and strategies, allowing for more targeted and personalized communication with customers. Business intelligence systems, such as customer relationship management (CRM) software and data mining tools, can be used to collect and analyze data to inform marketing decisions.

Question 18

In RFM analysis,an F score of 1 shows that ________.
A)the customer has bought the least expensive item
B)the customer has frequently placed an order
C)the customer has always bought the most expensive item
D)the customer has rarely made a purchase

Accepted Answer

F score in RFM analysis represents the frequency of purchases made by the customer. A higher F score indicates that the customer has made more frequent purchases. A score of 1 means that the customer has placed only one order, which may be less frequently as compared to others. Therefore, option B is correct as it states that the customer has frequently placed an order.

Question 19

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

Accepted Answer

The given definition matches the concept of lift, which is calculated by dividing the confidence of a rule by the base probability of buying an item. The other options are incorrect - support refers to the frequency of occurrence of an itemset, cohesion refers to the degree to which items in a cluster or group are similar, and confidence is the probability of finding the consequent item given the antecedent item in a rule.

Question 20

An RFM score of ________ means that if this customer goes to the competitor,loss to the company will be minimal.
A)321
B)333
C)555
D)111

Accepted Answer

An RFM score of 555 means that the customer has made a recent purchase (5), has made many purchases in the past (5), and has spent a lot of money with the company (5). This indicates that the customer is a valuable customer, and if they go to a competitor, the loss to the company will be minimal.

Quiz 24: Database Marketing

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

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

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

Data mining techniques are essential for database marketing.

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

If a customer has an RFM score of 113,which of the following actions should be implemented by the sales team?

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

What is the basic idea of the decision tree technique?

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

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

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

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

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

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

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

Which of the following techniques uses a hierarchical arrangement of criteria to make predictions?

Database marketing is the application of business intelligence systems to the planning and execution of marketing programs.

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

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

An RFM score of ________ means that if this customer goes to the competitor,loss to the company will be minimal.