Assignment for Lecture 5
Based on Slide 21, take a look at Exhibit 8.12. Recode the data, get to the final weighted RFM scores and make your conclusions based on what you see. Use the table below in place of Exhibit 8.12 Assume October 2000 is the start date.
Customer
Recency Last Purchase Date
Frequency
Monetary Value (last 24 months)
Smith
10/1998
5
$200
Jones
04/2000
12
$300
Johnson
09/1999
8
$50
Take a look at the below picture. This is taken from sciencedirect.com from a study in 2002. This represents the segmentation on tourism in the Spanish island of LaPalma with a representative sample of n =324 tourists. Some of the variables include Season, Nationality, Gender, Age, Whether the tourists are traveling alone or not, expenditure, profession, income and services contracted. The Direct marketers of a travel agency want to adjust characteristics of their offers to what homogeneous groups of tourism servicers customers expect. As discussed in class, the number of categories of independent variables depend on statistical significance. Chaid analysis is used for a particular large dataset.
What are some of the strengths of Chaid analysis in relation to this problem.
What are the data types of these variables?
How many segments are there and what are they?
What kind of information do you get from the table? What are the trends of these tourists?
ATTACHMENTS
lecture_5_updated.pptx
assignment_for_lecture_5_updated.dotx
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