Question 1: After completing MMK365, you are hired to help with data analysis work in a Marketing Insights firm. From the following issues you are asked to identify the ones that can be solved by conducting a regression analysis (no justification required) 

1.  
2. Segment the market based on the income and age simultaneously.
3.  
4. Predict whether a person will take a COVID-19 vaccine.
5.  
6. Investigate how advertising affects firms sales.
7.  
8. What is the average income for firms consumers above 30 years old in Australia?
9.  
10. How effective is Deakins new advertising campaign in attracting new students?
11.  
12. Explore how price promotion affects firms profit.
13.  

Question 2. Tom, a micro-entrepreneur who runs a local grocery store at Burwood, is planning to open his second store in a nearby neighbourhood. He is considering borrowing money to fund his second store from a crowdlending platform where he has been maintaining a good credit history. Tom knows how the platform determines initiators (borrowers) loan interest rates. However, he is unaware of how initiators (borrowers) credit scores are calculated on this platform. He would like to seek some insights about this. Tom provided you with the dataset (data_question2.xlsx) collected from the crowdlending platform. You are asked to help Tom understand the data and obtain the insights.  

1.  
2. What is the best central tendency statistic for credit score in this dataset?
3.  

 

1.  
2. What is the effect of ones income on her/his credit score on this crowdlending platform? What insights can you draw? What will you recommend Tom to do based on these insights?
3.  

Question 3. Aussie Farmers Direct (AFD) is an Australian online grocery retailer. The company would like to know whether changing the colour of the logo from blue to yellow helps bring more conversions in its online advertising campaigns. The two versions of the logo are presented in the following Table:  When AFD conducts an A/B test, it randomly assigns customers to both logos and collects the data for conversions (data_question 3.xlsx).  

1.  
2. Which variable in the dataset tells you the number of conversions for the online store website with the new logo?
3.  

 

1.  
2. Can the above A/B test conducted by AFD help the company with understanding the effect of logo colour change (from blue to yellow) on conversions? Explain your answer. (Hint: If yes, then conduct the A/B test analysis to obtain the effect. If no, then explain why.)
3.  

 Question 4. Digitalworld is a company that sells digital products and was impressed by your past work on (RFM) segmentation. Recently, Digitalworld developed a new product which could improve user online viewing experience and would like to promote the new product to the market. Digitalworld reached you again and would like to seek some insights about customer segmentation. Digitalworld provided you the dataset with the following variables:                

Variable	Definition
customer	Customers ID
income	Customers annual income (in dollars)
age	Customers age (in years)
purchase_location	The purchasing location where a customer buys Digitalworlds products (takes one of the following five values: specialty stores, mass-consumer electronics, discount stores, regular retail stores, and online stores)
spending	Customers annual spending on Digitalworlds products (in dollars)
online_hours	The number of hours that a customer spends online per day
early_adopter	Whether customer is an early adopter of the digital product, 1 = early adopter and 0 = late adopter

 You compute the correlations among variables such as income, age, spending, and online_hours and get the following table:                          

Correlation Coefficient Table
	income	age	spending	online_hours
income	1
age	0.7698	1
spending	0.5385	0.4123	1
online_hours	-0.1732	-0.6245	-0.7874	1

 You also generate a pivot table that shows customers annual income (affordability) and annual spending on Digitalworlds products (profitability) based on their purchasing locations.                  

Purchasing location	Average annual income	Average annual spending on Digitalworlds product
specialty stores	$69,910	$5,500
mass-consumer electronics stores	$55,080	$4,100
discount stores	$29,840	$610
regular retail stores	$29,970	$590
online stores	$30,020	$3,900

 Based on the above information, please answer the following questions  

1.  
2. Digitalworld would like to know how consumers annual spending is associated with their hours spent online per day. Please provide this insight.
3.  

 

1.  
2. Digitalworld is considering using the variables income and age to segment the customers. Do you agree with the Digitalworlds approach? Please explain why you agree or disagree. Digitalworld is also considering using the variables online hours and spending to segment the customers simultaneously. Do you agree with the Digitalworlds approach? Please explain why you agree or disagree.
3.  

 

1.  
2. Digitalworld presents you three segmentation plans as follows:
3.  

                    

Segment ID	Plan A	Plan B	Plan C
1	Customers who buy at specialty stores and customers who buy at online stores	Customers who buy at specialty stores and customers who buy at discount stores	Customers who buy at specialty stores
2	Customers who buy at mass-consumer electronics stores and customers who buy at discount stores	Customers who buy at mass-consumer electronics stores	Customers who buy at mass-consumer electronics stores
3	Customers who buy at regular retail stores	Customers who buy at retail stores	Customers who buy at discount stores and customers who buy at regular retail stores
4		Customers who buy at online stores	Customers who buy at online stores

 Among three customer segmentation plans above, which one is the best segmentation plan for Digitalworld and Why? Question 5. Please help solve the problems of the following scenarios for the decision maker or managers.  

1.  
2. Carmens Kitchen would like to know how much sales of its muesli bar packs (in dollars) it would require, to generate $100,000 in profit. The muesli bar packs sell for $7.50 each. There are 5 bars in each pack. It costs Carmens Kitchen $0.20 to make each muesli bar. Carmens Kitchen has a fixed cost of $50,000.
3.  

 

1.  
2. Suppose a grocery store at CBD Melbourne sells a brand of canned soup at $10 per can. During one month, it decreased the price to $9 per can and observed an increase of demand from 1000 to 1200 cans. Please help the store figure out what is the price elasticity for this brand of canned soup. What insights can you draw based on this price elasticity and share with the grocery store manager?
3.  

 

1.  
2. Calculate the Net Promoter Score based on the sample data in the following table:
3.  

                                          

ID	On a scale from 0 to 10 how likely are you to recommend company X to a friend or colleague?
1	10
2	1
3	0
4	5
5	9
6	7
7	2
8	1
9	7
10	9
11	6
12	4
13	7
14	7
15	9
16	7
17	1
18	2
19	2
20	8

 Question 6 The following cumulative concentration (lift) chart presents the performance of RFM on a dataset of 100,000 customers. Based on the information given on the chart: What is the top 20% cumulative lift of the model? What does this number mean? How does the model perform compared to the random targeting (blue diagonal line)?