Exam 27: Database Marketing

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

RFM scores can be used to concentrate the efforts of salespeople.

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

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

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

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

A common business application of decision trees is to classify loans by likelihood of default.

The decision tree makes decisions based on If/Then decision rules.

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

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

The RFM score of customers is obtained by multiplying their recency score,frequency score,and money score.

RFM analysis does not provide an understanding of the dollar value spent by a customer.

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

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

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

Describe the process of conducting RFM analysis.

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

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

RFM can be a useful tool to determine who your best customers are and who hasn't been in to the store in a while.

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