Question 1198573: HyTex is a direct marketer of stereo equipment, personal computers, and other electronic
products. HyTex advertises entirely by mailing catalogs to its customers, and all of its orders are
taken over the telephone. The company spends a great deal of money on its catalog mailings,
and it wants to be sure that this is paying off in sales. For each customer there are data on the
following variables:
Age: age of the customer at the end of the current year
Gender: coded as 1 for males, 0 for females
Own Home: coded as 1 if customer owns a home, 0 otherwise
Married: coded as 1 if customer is currently married, 0 otherwise
Close: coded as 1 if customer lives reasonably close to a shopping area
that sells similar merchandise, 0 otherwise
Salary: combined annual salary of customer and spouse (if any)
Children: number of children living with customer
Previous
customer:
coded as 1 if customer purchased from HyTex during the previous
year, 0 otherwise
Previous spent: total amount of purchases made from HyTex during the previous
year
Catalog: number of catalogs sent to the customer this year
Amount spent: total amount of purchases made from HyTex this year
2
Sample of Data Table
Discussion questions:
1. What factors would affect customer spending?
2. With all these factors, can you rank them by their importance to the spending?
3. What are the pros and cons, if we analyze each and every factor that we have in the
database?
4. What do you want to do with factors that turn out to be statistically insignificant?
Answer by ikleyn(52795)   (Show Source):
|
|
|
