Question 1

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

Accepted Answer

A)  dividing the customers according to the amount spent on purchases 
B)  sorting customer purchase records based on the purchase frequency 
C)  sorting customer purchase records by the date of most recent purchase 
D)  dividing customers into multiple groups and giving each group a score 
A)  dividing the customers according to the amount spent on purchases 
B)  sorting customer purchase records based on the purchase frequency 
C)  sorting customer purchase records by the date of most recent purchase 
D)  dividing customers into multiple groups and giving each group a score

Question 2

Market-basket analysis is used to explore cross-selling opportunities.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A)  Lift 
B)  Support 
C)  Confidence 
D)  Cohesion 
A)  Lift 
B)  Support 
C)  Confidence 
D)  Cohesion

Question 4

A reporting system generating RMF data can be automated.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  ambush marketing 
B)  viral marketing 
C)  database marketing 
D)  guerrilla marketing 
A)  ambush marketing 
B)  viral marketing 
C)  database marketing 
D)  guerrilla marketing

Question 6

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

Accepted Answer

A decision tree is a hierarchical arrang

Question 7

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

Accepted Answer

A)  support 
B)  cohesion 
C)  confidence 
D)  chance 
A)  support 
B)  cohesion 
C)  confidence 
D)  chance

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is true about decision trees?

Accepted Answer

A)  Decision trees can be transformed into a set of If/Then rules. 
B)  Decision tree analysis is a supervised data mining technique. 
C)  Decision tree algorithms are similar to one another. 
D)  Decision tree programs produce computer programs for trees set up by analysts. 
A)  Decision trees can be transformed into a set of If/Then rules. 
B)  Decision tree analysis is a supervised data mining technique. 
C)  Decision tree algorithms are similar to one another. 
D)  Decision tree programs produce computer programs for trees set up by analysts.

Question 10

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

Accepted Answer

A)  confidence 
B)  support 
C)  cohesion 
D)  assurance 
A)  confidence 
B)  support 
C)  cohesion 
D)  assurance

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The more number of times two items occur in the same transaction higher is the probability of them being purchased together.

Accepted Answer

A) True 
 B)False

Question 13

RFM analysis is a complex technique which is difficult to implement.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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 the least expensive item 
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 the least expensive item

Question 15

Databases are a key component of database marketing.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Customers with an RFM score of 555 are highly valued by organizations.

Accepted Answer

A) True 
 B)False

Question 18

Cheryl Inc.,a leading cosmetics manufacturer,wants to identify their most valued customers: Each customer is assigned an RMF score based on their purchasing patterns: One of their valued customers is rated a score of 545: In this case,the ideal action for Cheryl's sales team is to ________.

Accepted Answer

A)  up-sell more expensive goods to this customer 
B)  contact this customer immediately 
C)  not waste any time on this customer 
D)  set up an automated contact system for this customer 
A)  up-sell more expensive goods to this customer 
B)  contact this customer immediately 
C)  not waste any time on this customer 
D)  set up an automated contact system for this customer

Question 19

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

Accepted Answer

A)  111 
B)  555 
C)  123 
D)  333 
A)  111 
B)  555 
C)  123 
D)  333

Question 20

A market-basket analysis shows the products that customers tend to buy together.

Accepted Answer

A) True 
 B)False

Exam 24: Database Marketing

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

Market-basket analysis is used to explore cross-selling opportunities.

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

A reporting system generating RMF data can be automated.

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

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

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

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

Which of the following statements is true about decision trees?

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

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

The more number of times two items occur in the same transaction higher is the probability of them being purchased together.

RFM analysis is a complex technique which is difficult to implement.

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

Databases are a key component of database marketing.

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

Customers with an RFM score of 555 are highly valued by organizations.

Cheryl Inc.,a leading cosmetics manufacturer,wants to identify their most valued customers: Each customer is assigned an RMF score based on their purchasing patterns: One of their valued customers is rated a score of 545: In this case,the ideal action for Cheryl's sales team is to ________.

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

A market-basket analysis shows the products that customers tend to buy together.

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