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Bookbinders Book Club

Better Essays

MARKETING ENGINEERING FOR EXCEL



CASE



VERSION 2.0.2

Case

Bookbinders Book Club
By Gary L. Lilien & Arvind Rangaswamy
1. Before beginning any case, students should familiarize themselves with the model being used. Marketing Engineering for Excel comes with tutorials that demonstrate the capability of each model. The tutorial can be found under each model within the ME►XL menu after starting Excel. These tutorials are designed to work with our OfficeStar examples which are located in the My Marketing Engineering directory, usually installed in My Documents during software installation. The data required for this case is located in two files in the My Marketing Engineering directory (usually located within My …show more content…

Gender: 0 = Female and 1 = Male. Amount purchased: Total money spent on BBBC books. Frequency: Total number of purchases in the chosen period (used as a proxy for frequency.) Last purchase (recency of purchase): Months since last purchase. First purchase: Months since first purchase. P_Child: Number of children’s books purchased.

BOOKBINDERS BOOK CLUB CASE

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P_Youth: Number of youth books purchased. P_Cook: Number of cookbooks purchased. P_DIY: Number of do-it-yourself books purchased. P_Art: Number of art books purchased. To assess the performance of the model, the data set includes a second sheet with 2300 customers--a holdout sample representative of the entire target market. The use of such a validation sample is an appropriate way to compare alternative models.

BOOKBINDERS BOOK CLUB CASE

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EXERCISES
BBBC is evaluating three different modeling methods to isolate the factors that most influenced customers to order The Art History of Florence: an RFM (Recency, Frequency and Monetary Value) model, an ordinary linear regression model, and a binary logit model. 1. Summarize the results of your analysis for all three models. Develop your models using the case data files and then assess them on the holdout data sample. Interpret the results of these models. In particular, highlight which factors most influenced the customers’ decision to buy or not to buy the book. Bookbinders is considering a similar

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