Loyalty Program and File Import Node

Topics: Loyalty program, Organic food Pages: 3 (883 words) Published: January 29, 2013
Individual Exercise 1 (10 Points) – You must do it alone (it is not a group activity) Data set is on D2L with the exercise
Exercise Description:
Initial Data Exploration
* A supermarket is offering a new line of organic products. The supermarket’s management wants to determine which customers are likely to purchase these products. * The supermarket has a customer loyalty program. As an initial buyer incentive plan, the supermarket provided coupons for the organic products to all of their loyalty program participants and collected data that includes whether or not these customers purchased any of the organic products. * The ORGANICS data set has 13 variables and over 22,000 observations. The variables in the data set are shown below with the appropriate roles and levels.

Name| Model Role| Measurement Level| Description|
ID| ID| Nominal| Customer loyalty identification number| DemAffl| Input| Interval| Affluence grade on a scale from 1 to 30| DemAge| Input| Interval| Age, in years|
DemCluster| Rejected| Nominal| Type of residential neighborhood| DemClusterGroup| Input| Nominal| Neighborhood group|
DemGender| Input| Nominal| M = male, F = female, U = unknown| DemRegion| Input| Nominal| Geographic region|
DemTVReg| Input| Nominal| Television region|
PromClass| Input| Nominal| Loyalty status: tin, silver, gold, or platinum| PromSpend| Input| Interval| Total amount spent|
PromTime| Input| Interval| Time as loyalty card member| TargetBuy| Target| Binary| Organics purchased? 1 = Yes, 0 = No| TargetAmt| Rejected| Interval| Number of organic products purchased| * Although two target variables are listed, this exercise will focus on the binary variable ORGYN. a. Create a new diagram named Organics.

b. Define the data set ORGANICS as a data source for the project. Use basic option in metadata advisor options. c. Check the model role and...
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