Business Analytics in Retail

Marketing- Residency 1 Quiz 1

1.

What
a.
b.
c.
d.

and

is a SKU?
Store Keeping Unit
Stores Keeping Unit
Stock Keeping unit
Stocks Keeping unit

Correct Answer is c) Stock Keeping Unit

2.

Who assigns a SKU to a product ?

a. Retailer
b. Manufacturer
Correct answer is a) Retailer

3.

Give an example of an intangible SKU ?

a. Milk
b. Honey
c. Warranty
d. Tea
Correct answer is c)Warranty

4.

What
a.
b.
c.
d.

is a UPC ?
Universal Product Codes
Universal Products Code
Universal Products Codes
Universal Product Code

e. Correct answer is d) Universal Product Code

5.

A segmentation using customer spend and visits patterns is often

referred to as what ?
a.
b.
c.
d.

Recent Frequent Money

Recently Frequently Monetarily
Recent Frequency Money
Recency Frequency Monetary

Correct answer is d) Recency Frequency Monetary

6.

A segmentation which is more stable and characterizes the customers

spending DNA is often referred to as what?
a. Customer Lifestyle
1

b. Customer LifeStage
c. Customer Life
d. Customer DNA
Correct answer is a) Customer Lifestyle

7.

What is a good measure of a customers loyalty towards your store What is this metric?
a.
b.
c.
d.

Spend per average visit

Spend per average category
Share of wallet
Share of visit
Correct answer is a) Spend per average visit

8.

Which is the technology which enables an efficient recording of the sale of goods or
services to the customer?

a.
b.
c.
d.

Electronics Point of Sales

Electronic Points of Sale
Electronic Point of Sales
Electronic Point of Sale

Correct answer is d) Electronic Point of Sale

9.

What is the range of the number of segments that you would want to
have in a cluster analysis, to be able to make them actionable?
a.
b.
c.
d.

8 - 15
80 -100
0-100
20 -100

Correct answer is a) 8 - 15

10.

What is the dashboard that you use to keep track of your vendors
called?
a.
b.
c.
d.

Supplier Scoreboard
Vendor Scoreboard
Supplier Score-list
Vendor Scorecard

Correct answer is d) Vendor Scorecard

2

11.

What is one of the most key parameters which determines customer

satisfaction of calls in a call center and in absence of an overall
satisfaction score, can be used as the dependent variable in your
analysis of call center data?
a.
b.
c.
d.

Resolutions on First Calls (ROFC)

First Call Resolution (FCR)
Resolutions on Call (ROC)
First Caller Resolution ( FCR)

Correct answer is a) Resolutions on First Calls (ROFC)

12.

When you send across a request for data at the start of the analysis,
what additional document(s) should you also ask for which will help you
understand the data?
a.
b.
c.
d.

Data Audit documents

Data extraction protocol documents
Documentation of codes used in data extraction
Data Dictionary

Correct answer is d)Data Dictionary

13.

While building models, what percentage of data would you allocate for
the Training/Development data set and what percentage would you
allocate for a hold out/validation data set?
a.
b.
c.
d.

50
30
70
40

for
for
for
for

Training
Training
Training
Training

50 for Validation
and 70 for Validation
and 30 for Validation
and 60 for Validation

Correct answer is c) 70 for Training and 30 for Validation

14.

If there are too many variables in your model, what is a popular

technique to reduce the number of variables in your model?
a.
b.
c.
d.

Cluster Analysis
CHAID Analysis
Logistic regression
Principal Component Analysis

Correct answer is a)Cluster Analysis

15.

Using the retailers data, what could be one of the ways, in which you
can help a retailer, identify categories in which they should launch
private label products?
a.
b.
c.
d.

Identify
Identify
Identify
Identify

product
product
product
product

categories
categories
categories
categories

which
which
which
which

are polarized
have high switching
have very high sales
have low sales

Correct answer is B) Identify product categories which have high

switching

16.

In Market Mix modelling, what are base variables and what are
incremental variables? Can you explain the difference between the
two ?
The variables which cause and determine the basic sales such as brand
awareness, needs etc. These variables indicate consumer preferences(long
term) are called the base variables.
Incremental variables are short term variations likes marketing and
promotional activity.

17.

For the purpose of Market Mix modelling, identify the variables from the
list below that can be classified as base variables and the ones that can
be classified as incremental variables.

Category

Variables

Type(Base/I
)

Radio

Gross Rating Points

(GRPs)
ACV (All commodity
volume)
Competition volume share
% Base volume on
Feature, Display and
Feature & Display
Seasonality Index
Circulations/Redemptions
CPI (Consumer Price
Index)

Distribution
Competition
Trade
Seasonality
FSI
Econometrics
4

B
B
B
I
B
B

Print
Internet
Category
Catalina
Shelf Talk
Price
TV

18.

Gross Rating Points

(GRPs)
Impressions/Clicks
Volume Sales
Distributions/Redemptions
Total Counts
Wtd Avg Base Price Per
Volume
Gross Rating Points
(GRPs)

I
I
B
B
I
B
I

The Loyalty metric shows the level of loyalty the customers have wrt. each
product. For example, when they buy coke, do they always buy the 0.5l bottle
or do they mix and match.
E.g. assuming a product selection of products W, X, Y and Z, these are the sales
for the selected period.

Customer

Product

Transactio
n ID

Spend

3.20

2.80

1.60

3.20

2.80

2.10

1.90

0.60

0.65

Total_spends_by_product

For each customer and product we need to sum total sales by product for each
customer. Using the above example this results in:

Customer

Product

Total_spends_by_prod

uct
A

6.4

5.6

1.6

2.1

1.9

1.25

Total_spends_per_loyal customer

This is calculated at a customer level as the amount spent in total by that

customer. Using the above example this results in:

Customer

Spend

15.7

3.15

Loyalty (expressed as a percentage)

. Calculate totals at a customer and product level.

Loyalty =

Total_spends_by_product
Total_spends_per_loyal
customer

Customer

Product

Calculation

Loyalty

6.4/15.7

.41

5.6/15.7

.36

1.6/15.7

.10

2.1/15.7

.13

1.9/3.15

.6

1.25/3.15

.4

For the final loyalty calculation we need to calculate this at a product level. For
every customer that purchased this product we take the customers individual
product spend and total spend, sum them up and apply the loyalty calculation.
The total spend is only counted once for each customer.

Product

Total spends by
product

Total spends
per loyal
customer

Calculation

Loyalt
y

6.4+0

15.7

6.4/15.7

40.8%

5.6+1.9

18.85

7.5/18.85

39.78%

1.6+1.25

18.85

2.85/18.85

15.11%

2.1

15.7

2.1/15.7

13.33%