CHAPTER 3.

ANALYTICS
CONCEPT CHECK

This activity contains 20 questions. Please select your multiple choice answer (there is only
one right answer per question) and answer the open question at the end.

1. Zara is planning to launch an exploratory analysis within the marketing department. Which
of the following statements does correspond to this type of study?
A. Focus on forecasting marketing and consumer metrics
B. Sales forecasting serves as an excellent illustration of exploratory marketing analysis
C. Focus on why specific phenomena happens
D. None of the previous answers is right

2. What distinguishes a dynamic approach from a static approach in both exploratory and
predictive marketing analytics?
A. Static approaches focus on historical data, while dynamic approaches focus on real-time
data
B. Static approaches use machine learning algorithms, while dynamic approaches rely on
traditional statistical methods
C. Static approaches are more cost-effective, while dynamic approaches require substantial
financial investments
D. Static approaches prioritize short-term results, while dynamic approaches are better suited
for long-term strategic planning

3. When UK-based retailer Tesco was analyzing data of their loyalty card, they discovered that
consumers buying diapers also frequently buy beer and chips. What kind of analytical approach
does this example belong to?
A. Problem solving
B. Data Modelling
C. Collateral Catch
D. Data Mining

4. ChatGPT reached its first million users in a record time of only five days, but in recent months
the number of users has decreased. What kind of level is being used to understand this
evolution?
A. Customer level changes
B. Market level changes
C. Brand level changes
D. None of them

5. In an era where data becomes readily accessible, we are transitioning towards a trend where
models can be updated much more frequently. What specific changes are illustrated by this
situation?
A. From analyzing samples to analyzing the full population
B. From ad hoc models to real-time models
C. From significance to substantive and size effects
D. From data-based model to perfect-fit models

6. In marketing analytics reporting, which of the following best describes the purpose of Key
Performance Indicators (KPIs)?
A. To provide detailed customer profile
B. To summarize the entire dataset for easy understanding
C. To measure and track the performance of specific business goals and objectives
D. To collect raw data for analysis
7. In the context of the statement, "If you have one foot in boiling water and the other foot in
freezing water, on average, you should be comfortable," why might considering the standard
deviation be crucial?
A. The standard deviation helps calculate the exact average temperature
B. The standard deviation ensures that the average temperature is always comfortable
C. The standard deviation determines the most comfortable temperature
D. The standard deviation indicates the degree of temperature variation or spread

8. What are the primary distinctions between market segmentation and market profiling in the
context of marketing strategies?
A. Market segmentation involves identifying and categorizing target audiences, while market
profiling focuses on creating detailed customer persona
B. Market segmentation and market profiling are interchangeable terms with no significant
differences
C. Market segmentation is a qualitative approach, while market profiling is quantitative
D. Market segmentation and market profiling both involve analyzing competitors' strategies

9. In the context of customer migration analysis, what does it primarily aim to understand?
A. The age and demographics of new customers
B. The patterns and trends of customer movement over time
C. The reasons why customers leave a business
D. The overall customer satisfaction with a product or service

10. In the price formation process, how do manufacturers, intermediaries, and retailers collectively
contribute to determining the final consumer price?
A. Manufacturers set the final price, intermediaries negotiate with retailers, and retailers add
distribution costs
B. Intermediaries set the retail price, manufacturers handle distribution, and retailers add
production costs
C. Manufacturers establish the base price, intermediaries may add distribution costs, and
retailers determine the final price to consumers.
D. Retailers solely control the pricing process, while manufacturers and intermediaries focus on
production and logistics

11. Coca-Cola is sending emails to its customers, and they have prepared two different email
content options. They decide to use an A/B testing approach. What is the primary purpose of
conducting an A/B test in this scenario?
A. To randomly assign recipients to two groups and assess the performance of the different
email content variations
B. To compare Coca-Cola's email campaign with competitors
C. To gather customer feedback through surveys and interviews
D. To analyze historical sales data for Coca-Cola products

12. A popular e-commerce website is analyzing its customer journey. They want to understand how
customers progress through different stages before making a purchase. What is the initial stage
in the marketing funnel that represents when customers become aware of the brand or
products?
A. Conversion
B. Retention
C. Evaluation
D. Awareness
13. In the context of the customer journey, what term describes the behavior of customers who visit
physical stores to examine products but make the actual purchase online?
A. Webrooming
B. Showrooming
C. Conversion
D. Retention

14. Toyota is working with his marketing analytics team. They are defining the marketing plan for
next year, and in order to optimize the media spending, they decide to launch an attribution
model. What is the primary objective of an attribution model in marketing analytics?
A. To measure the total number of conversions in a marketing campaign
B. To identify the most popular car models in the market
C. To assign credit to different touchpoints or channels that contribute to conversions.
D. To determine the overall return on investment (ROI) of a marketing campaign

15. A leading technology company is utilizing social listening and NLP(Natural Language Process)
in its marketing strategy. What is the primary relationship between social listening and NLP in
this context?
A. To assess customer sentiment and extract insights from unstructured social media data
B. To measure the total number of products sold through online channels
C. To identify the most popular social media platforms among competitors
D. To determine the company's overall market share in the technology industry

16. Imagine you are a marketing analyst for a retail company, and you want to assess the
performance of different customer segments based on their purchase behavior. You have
data on the average monthly spending of customers in three different cities: City A, City B,
and City C. Your task is to calculate the index values for each city's customer segment
compared to the overall customer base.
• City A's average monthly spending: $500
• City B's average monthly spending: $600
• City C's average monthly spending: $450
• Grand average monthly spending across all cities: $550
Calculate the index values of customer crossing for each city's customer segment. What do
these index values tell you about the spending behavior in each city compared to the overall
customer base?

A. City A's segment spends approximately 91% of the average spending across all cities,
indicating they spend less.
B. City B’s segment spends approximately 95% of the average spending, indicating they spend
more.
C. City C’s segment spends approximately 80% of the average spending, indicating they spend
less.
D. City C’s segment spends approximately 90% of the spending, indicating they spend less.

17. A company gathers extensive consumer data and attempts to create market segments for a
new product launch. After careful analysis, they identify several distinct segments based on
demographics, psychographics, and behaviors. However, when they start designing tailored
marketing campaigns for each segment, they encounter a unique challenge. Many consumers
seem to fit into multiple segments, and there is no clear consensus on which segment should be
the primary target. What strategic approach should the company consider to address this
complex situation?
A. Develop customized marketing messages that appeal to each overlapping segment
B. Prioritize one dominant segment and create a hybrid marketing strategy
C. Abandon the segmentation approach and adopt a mass marketing strategy
 D. Refine the segmentation criteria to eliminate overlapping characteristics, as it is always
possible to have clear segments

18. A company is preparing its sales forecast for an upcoming product launch. They have gathered
historical sales data, market trends, and economic indicators. After extensive analysis, they find
that their sales forecast models produce significantly different results based on various
assumptions and methodologies. What strategic approach should the company adopt to
navigate this complexity?
A. Choose the most conservative forecast to minimize risk
B. Combine all forecast results into an average for a balanced estimate
C. Tailor different forecasts for specific scenarios and decision-making
D. Rely solely on the forecast that aligns with their initial expectations and not take any other
factor into account

19. A marketing team is planning a new social media campaign to engage with their customers and
gather feedback. They need to analyze their web site to get the customer feedback such as
social media comments and feedback in order to design a model to better tailor the customer
experience. What kind of methodology do you think is best suited to this problem?
A. A/B Testing: Conducting A/B tests to compare different social media engagement strategies
and identify which one results in more positive customer feedback and sentiment
B. Natural Language Processing (NLP): Utilizing NLP techniques to analyze customer comments
and sentiments in an automated and efficient manner, enabling the team to gain insights
from large volumes of data
C. Customer Journey Mapping: Mapping the entire customer journey and using qualitative
feedback to identify pain points and areas for improvement in the customer experience
D. Traditional Survey Methods: Conducting structured surveys and questionnaires to gather
customer feedback, relying on well-defined questions and responses.

Open question

1. Consider the following scenarios related to Tesla's data analysis efforts:

• Collateral Catch: Explain what a 'collateral catch' is in data analysis and provide an
example where Tesla could encounter one in its customer data analysis.
• Problem Solving: Describe a specific problem or challenge that Tesla is facing,
where data analysis is essential to find a solution.
• Data Mining: Explain when and why Tesla might employ 'data mining' in its
operations and provide an example of the kind of insight or result they could obtain.
• Data Modeling: Describe how Tesla could utilize 'data modeling' with its customer
database for a particular purpose or prediction.
Write down your responses for each scenario.