Exam 24: Database Marketing

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

A reporting system that generates RFM data can be automated.

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

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

RFM scores are basically beneficial to salespeople, as it gives a clear picture of a customer's buying pattern.

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

RFM analysis can be a useful tool to determine the best customers based on the frequency of their purchases.

A reporting system can generate the RFM data, but it can only be delivered by e-mail.

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

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

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

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

In RFM analysis, customers who have bought the least expensive items are indicated by an M score of ________.

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

What is database marketing?

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

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

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

Jason has so many customers he is has lost count of them. One of his employee's upset a loyal customer and Jason did not know about it. Jason could use some ________.

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