Assume you are a marketing executive of a multinational supermarket chain, your team has recently sent some vouchers by post to around 1,800 randomly selected customers who are already registered for the loyalty club to promote kitchenware.The result of this campaign will be used to inform the decision of your team in order to extend the campaign to a wider group of customers.
Your manager would like to get insights and practical advices about this campaign and some other future marketing activities.After discussing with your colleagues, you are going to prepare a report based on the test campaign data (i.e., promoted.sav):
Variable Name
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Variable Description
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CUSTID
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Customer loyalty identification number
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DOB
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Date of birth of the customer
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GENDER
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Gender of the customer
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ADDRESS
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Provided postal address or not
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EMAIL
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Provided email address or not
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NGROUP
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Neighbourhood group
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REGION
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Geographic region
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CLASS
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Customer loyalty status (in order): Tin, Silver, Gold, or Platinum
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AFFL
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Affluence grade on a scale from 1 to 30
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RESPONSE
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Used the voucher or not? (data collected after the campaign)
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Task 1 (35 marks)
Carefully pre-process the datasets for the purpose of building a response model, by considering the following activities:
· Calculate the age of customer (tip: use the DOB variable)
· Pre-processing (e.g. checking whether there are any missing values, outliers, etc., and report them)
· Exploratory data analysis
· Binning age of customer (regulations to be clarified)
· Splitting the resulting data set into a training and test set.
Task 2 (35 marks)
Using the pre-processed data in Task 1, build a response model with logistic regression. Discuss the followings:
· Variables included in the model initially
· Variables included in the final model
·The impact of the input variables on the target
·The performance of model (using suitable performance measures/charts)
Task 3 (30 marks)
·Based on findings, plan a campaign with detailed explanations on the targets, channels, strategies, etc.
Notes:
·Please refer to the grade descriptor of this coursework for the detail marking scheme.
.There is no fixed word count for each task. You can use the relative mark for each task to get an indication of how many words to write for that section.
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