Database Assignment: 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
o Table 1 shows the counts of the 5000 people in the analytic sample.
o Table 2 shows the counts as a percentage of the 5000 people in the analytic sample
o Table 3 shows the number of orders placed for the travel offer.
o Table 4 shows the response rate for the travel offer
Task
o 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)
o Segments: Yes (index >= 120), Maybe (index between 100-120), No (index <=100)
o If the entire customer file is 100,000 customers, how many customers are there in each of the "Yes", "Maybe", and "No" categories?
o What might be the observed response rate for the "Yes" segment that you want to market to?
o 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 "Yes" segment, what is the expected response rate for the "Yes" segment? And what is the response rate index?
o How many orders to the travel offer would you expect?
Format your assignment according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.