INDIAN INSTITUTE OF MANAGEMENT RANCHI

MBA: 2020-22
Mid-Term Examination
MARKETING INTELLIGENCE & MARKETING ANALYTICS
MARKS: 25 TIME: 90 Minutes TERM: V
INSTRUCTIONS:
1. All the questions are compulsory. For each question, marks have been indicated.
2. This is an open-book examination.
……………………………………………………………………………………………………………………….
Q. 1. A chain of departmental stores called “India-Mart” having operations only in India, plans to develop a data
warehouse for effective decision-making about their sales and different promotion schemes. India-Mart puts some
of their products on promotional sales from time to time. There may be a large number of different types of
promotions like coupon sales, end-of-the-aisle display, buy-two-get-one-free, etc.
India-Mart would like to analyze how item sale is affected by the promotions at each store, in each state
and across the entire country.

Design an appropriate schema for the data warehouse which can be used for marketing intelligence, clearly
identifying the fact table(s), dimension table(s), their attributes and measures along with the primary key and
foreign key relationships. [4 Marks]

Q. 2. Demand of product A varies with the price as guided by the following equation.

Demand = -1.5 * price + 25

Moreover, sale of product A leads to sale of another product B of the same company. Additional data is as given
below.
Unit cost of A (Rs.) 3
Number of units of B with one A 20
Profit from sale of one unit of B (Rs.) 0.85

Develop an Operations Research based optimization model for pricing of A to maximize total profit earned and
find the optimal price.
[4 Marks]

Q. 3. Design a transaction-based data warehouse schema for deriving business intelligence in retail inventory
management of a company manufacturing the products and also marketing and selling the same. List down all the
transactions. [4 Marks]

Q. 4. Write down the merits and demerits of star schema over snow-flake schema. Which one is less normalized?
[4 Marks]

Q. 5. For 8 new jokes available online and 5 segments of customers with 30%, 30%, 20%, 10% and 10%
distribution for each segment, assume “willingness to pay by a customer for a joke” for each customer-joke
combination. You need to develop an optimization model for three-pricing mechanism for the jokes for generating
maximum revenue where a customer may go for a maximum of 4 jokes. A joke is priced equally to all the
customers. Based on this, answer the following questions.
(i) List down all the variables with description.
(ii) Write down the optimization function.
(iii) Write down all the constraints.
(iv) Describe the procedure for obtaining optimal pricing.
[2+1+2+4= 9 Marks]