Reference no: EM132276904
Assignment -
Instructions: There are two questions in this assignment. Answer the questions in docx using .sav file using SPSS.
Question 1: Customer Targeting Using RFM with Logical Breakpoints
In this question, you will explore RFM segmentation, a technique used to group customers according to their aggregate purchase history with a company. Specifically, look at how recently customers have purchased (R-recency), how often they have purchased (F - frequency), and how much they have spent (M - monetary) to target groups of customers that are most likely to buy "Art History of Florence".
Use the following mapping scheme to create the Recency, Frequency, and Monetary variables from the raw data provided.
Assign index values for R, F, and M based on logical breakpoints in the data. For this dataset, use the following breakpoints:
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Recency
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Frequency
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Monetary
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1-3 months
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3 or more orders
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$201 and up
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4-6 months
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2 orders
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$101-$200
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7-12 months
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1 order
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$51-$100
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> 12 months
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$26-$50
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$1-$25
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Use the above scores to outline segments that you would like to target for "Art History of Florence". Briefly outline how you would target these groups.
Question 2: Logistic Analysis and Customer Targeting
a. Estimate a logistic regression model using BUYER as the dependent variable and a set of independent covariates you think may be affecting buying decision.
b. Summarize and interpret the results (so that a marketing manager can understand them). Which variables are significant? Interpret the coefficients for each of the predictors.
c. Using the logistic analysis, outline segments of customers that you would like to target for "Art History of Florence."
d. Between RFM analysis (question 1) and logistic analysis, which method is better for customer targeting and why?
Please make sure to include screenshots for each step of RFM analysis and each step of logistic regression (5 screenshots total) with your submission.
Attachment:- Assignment Files.rar