Patxiko just opened his website, where he sells his Patxaran online. His websites gatheres all kinds of data from customers navigation (time spent on each page, how long the customer has products in his cart before purchasing, what he purchased, etc). He is trying to optimize the website to increase the probability of a purchase. First, he wants to predict whether a customer will purchase or not. What model would you advise him to use? Suggest two methods and explain how one of them works.

Patxiko just opened his website, where he sells his Patxaran online. His websites gatheres all kinds of data from customers navigation (time spent on each page, how long the customer has products in his cart before purchasing, what he purchased, etc). He is trying to optimize the website to increase the probability of a purchase. First, he wants to predict whether a customer will purchase or not. What model would you advise him to use? Suggest two methods and explain how one of them works.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.6: Moving Averages Models

Problem 22P: The file P13_22.xlsx contains total monthly U.S. retail sales data. While holding out the final six...

See similar textbooks

Similar questions

Explain the following based on CRM – Customer Relationship Management The customer is always right Interface of retaining current customers and gaining new customers CRM’s important function of follow-up with customers CRM’s role in Sales Forecasting Importance of Safety Stock
The following table shows the number of televisions sold over the last ten years at a local electronic store. Year TV Sales 1. 150 2. 300 3. 480 4. 600 5. 630 6. 640 7. 700 8. 825 9. 900 10. 980 Using trend projection, develop a formula to predict sales for years 11 and 12. You have to show all working. You will need to develop a table to calculate the slope and the intercept. [9 marks] 2. Use that formula to forecast television sales for years 11 and 12. [2 marks]
Based on the underlying research, which of the following statements accurately interprets the model (above) for the relationship between SFA usage and its outcomes? SFA usage increases the integration and application of customer information which directly improves salesperson performance. Job experience positively influences SFA usage and that increase in SFA usage results in greater salesperson adaptability which indirectly improves relationship quality. SFA usage increases the integration and application of customer information which directly improves the relationship quality with customers. Job experience negatively influences the integration and application of customer information which directly improves salesperson.
Provide an explanation of the operation of predictive analytics and a practical application of the method.
marketing company is facing some issues with his new marketing strategy since the data he and his team gathered from surveys wasn’t compatible with the analysis tool they’re most comfortable using. Which of the following current issues in Data Warehousing best describes the given scenario? * The company cannot have access to the data. The data gathered by the company is unusable. The data gathered by the company is impossible to understand. The company cannot find the needed data. Which of the following is NOT a characteristic of a Data Warehouse? * A data warehouse is most often than not, normalized. All of the above are characteristics of a data warehouse. The data stored in a data warehouse is usually large. The data stored in a data warehouse came from sources, both inside and outside the organization.
Which one of the following responses is not true about an annual fundraising campaign? Group of answer choices An annual campaign is primarily used in the private sector. An annual campaign is conducted each year. An annual campaign is used to support operating expenses. An annual campaign can be used for short-term purposes.
The BIR need to assess a taxpayer for payment of taxes Group of answer choices True False
Consider a telecommunication service provider. You have the following quarterly data: STATISTICS TYPICAL CONSUMER Number of referrals per period (n=n1+ n2) 5 of which, customers that joined due to the referral (n1) 3 of which, customers that would have joined anyway (n2) 2 Marketing cost per period (Mty) $30 Average gross margin (Aty) $78 Cost of referral (aty) $15 Acquisition cost savings (ACQ1ty and ACQ2ty) $10 Yearly discount rate (r) 15% Calculate CRV of a typical customer for one year (over 4 quarters).
A study on the probable savings of students after 5 years based in their saving for the past year. O Descriptive research O Correlational research Experimental Research O Historical quantitative research Causal research
MovieFlix - Advertising and Subscriptions Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Advertising Expenditure $ 000 51 58 62 65 68 75 77 78 78 84 85 76 Membership Subscriptions (1) Plot the scattergraph for the data. 62 68 66 66 欲 72 73 72 78 73 75 67 76 (ii) Use the data, to develop a regression equation relating advertisi. expenditure to membership. (iii) Estimate the membership if $40 000 is spent on advertising. (iv) How much must be spent on advertising to obtain a membership of 80 (000)? (v) What is the nature of the relationship between advertising expenditure and membership? (vi) Forecast 2024 membership using an alternative method, clearly explaining the limitations of your selected method. (vii) What are the limitations of the method used in (iii)?
Cost Estimation Using High-Low; Graphs Lawson Advertising Agency is trying to persuadeKansas City Sailboards Company to spend more on advertising. The agency’s argument is that a constant and strong positive relationship exists between advertising and sales in the sailboard industry.Sue Lawson presents these data taken from industry data for stores similar in size and market share toKansas City Sailboards:Advertising Expense Annual Sales$2,500 $ 96,000 3,000 110,0003,500 124,0004,000 138,0004,500 143,0005,000 147,0005,500 150,000Required1. Use the high-low method to estimate the relationship between increased advertising and sales.2. Graph annual sales and advertising expense.3. Do the data prove Sue’s point?
People have been using Twitter’s social media platform to Tweet short bursts of information in 140 characters or less since 2006 and now average 500 million Tweets a day. The full stream of Tweets is referred to as Twitter’s fire hose. Various firms analyze data from the fire hose and sell the information gleaned from that analysis to other companies. Twitter recently purchased Gnip, the world’s largest social data provider and one of the few companies that had access to the fire hose. Gnip also mines public data from Facebook, Google+, Tumblr, and other social media platforms. Analyzing social data has become a big business because companies such PepsiCo, Warner Brothers, and General Motors pay to learn about consumers’ sentiments toward them. According to the CEO of social media analysis company BrandWatch, “We’re at the bottom of the foothills in terms of the kind of global demand for social data.” Twitter alone earned more than $70 million last year from licensing its data. Perhaps…