statistics

MKTG 6322 Final Case Questions

To analyze these questions, use the dataset provided for Southwest Bank in your

assignment page. In this scenario, Southwest Bank has made a significant investment in

online banking and is trying to decide if streamlining operations has had an impact on

profitability. Since the bank is operating in a large retirement community in

the Southwest, it knows many of its customers still have not adopted online banking. It

wonders how aggressive it should be in moving these customers to online. As a

consequence of its investment, the Bank is also trying to decide which customers are

most profitable and how to target them. It wonders about the role of demographics in

determining its most profitable customers.

Assume you are a new Marketing Data Analyst at the bank. You have been given the last

year’s most recent data that describe whether customers are using online banking,

Fortunately, you have just taken a class in Marketing Data Analytics. Your boss says that

you can use all of the information from that class in answering the questions for this

assignment.

• This case is worth 150 points total

• Submit in WORD format, copy and paste SPSS output into the final document as you have been doing, 12 point type, all answers typewritten.

• Please answer the following questions for Southwest Bank and support your answers with data from the case.

• Label each question by question number.

1. What is the average profit per customer? How many are profitable, have zero profit

or negative profit? Next, create deciles for profitability and create a bar chart of profits

by decile. Is it true that the Pareto Principle applies and the top 20 percent of customers

contribute to 80 percent of profits? Why or why not? Support your answers. 25 points

2. What is the average profit offline versus online customers? Run a regression to

determine if the adoption of online banking is related to customer profitability. Does

online banking adoption appear related to customer profitability? Support your answers.

20 points

3. Without age and income, what is the effect of retention and district on profitability?

Use a regression to explain your results. Why? 15 points

4. What role does demographics play? HINT: Create summary charts and bar charts for

demographic variables of age and income. If demographics are significant, then which

segments are more likely to be profitable? Create crosstabs reports to analyze online

usage by age and income level. Create a regression model that answers the demographic

question and explain. Run a regression model that includes age and income levels in

your regression. Explain the results. 25 points

5. Create a regression model that incorporates all variables. Which variables are most

important in predicting profitability. What is the best model and why? 20 points

6. If Southwest Bank were to create a segmentation model, what variables should they

use and why? What would be the best segments for them to target? Please limit your

answer to five sentences. 15 points

7. Could Southwest Bank benefit from an RFM analysis? Why or why not? What would

need to happen to run RFM? Explain your answer in no more than three sentences. 15

points

8. What additional data would you recommend Southwest Bank place on its database to

help the company analyze its customers? Include both internal and external sources and

limit your answer to five sentences. 15 points.