HW 7 – Segmentation Analysis
The tables in the attached file show a cross-tabulation of frequent -flier mileage categories (high, med, low) by Age-category (younger, older). A travel offer was made to 5000 people in the analytic sample
â€¢Table 1 shows the counts of the 5000 people in the analytic sample.
â€¢Table 2 shows the counts as a percentage of the 5000 people in the analytic sample
â€¢Table 3 shows the number of orders placed for the travel offer.
â€¢Table 4 shows the response rate for the travel offer
1.Create a new table showing indexes of observed response rates, relative to the overall rate. Then based on the index table you created, create 3 segments labeled as follows (if nec., refer to textbook chapter 7, and slides from week 3, for a refresher on Indexes)
2.Segments: Yes (index >= 120), Maybe (index between 100-120), No (index <=100)
3.If the entire customer file is 100,000 customers, how many customers are there in each of the â€œYesâ€, â€œMaybeâ€, and â€œNoâ€ categories?
4.What might be the observed response rate for the â€œYesâ€ segment that you want to market to?
5.Past marketing efforts (before this new segmentation) showed an overall response rate of 5.24%. If new offers are to be sent and targeted to the â€œYesâ€ segment, what is the expected response rate for the â€œYesâ€ segment? And what is the response rate index?
6. How many orders to the travel offer would you expect?
Attached excel is the file of cross-tabulation of frequent -flier mileage categories. Attached slides(week8) is the related contents weekly slides. Please see the slides first and then do the chart for the highest accurate.
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