Imagine that you work in the Marketing Analytics Department of a large Retail Bank. You are responsible for a project called Customer Management.

The aim of this marketing project is:

i) to understand the drivers of customer profitability and

ii) to assess if the current customer satisfaction program retains customers from switching. For this project, you got information about individual customer profitability (CLV). Additionally, you conducted a survey and asked the questions presented in Table 1.

After collecting the data, you also have to develop various research models explaining/predicting individual customer profitability and explain the effects of customer satisfaction. Give a theoretical rationale for these hypotheses and test the hypotheses using R/Studio. Linear regression should be applied for the main analysis. You are also encouraged to try multiple independent variables and at least one mediator and one moderator analysis. Do not forget to check for any assumption violations before you report the results. Please compare at least 5 different models and use charts for visualization.

Data Analysis

Write up all your steps in your analysis and come up with some meaningful conclusions. You must have a small theoretical part (regarding the hypotheses development) but focal point of the assignment is the technical part. The dataset does include missing values. “Odd” values are imputed values.

The project will seek to demonstrate the students’ capability of marketing analytics. Additionally, students are to work individually to analyze a given data set.

Learning Objectives

The main objectives of the assessment include:

• making “informed” or data-driven decisions in marketing,
• learning how marketing analytics apply in the business world, as well as
• using how R Studio for both data science and decision-making.

Task Overview and Approach

The research topic of this year is related to “Drivers of Customer Profitability”. Students will take over the role as a junior data scientist in a large retail bank. In a new project called “Customer Management,” students will also analyze if the current customer satisfaction program effectively retains customers from defection. The final submission will be a written marketing research report (max. 3,500 words).

Layout & Style

Lastly, the report should follow the suggested format guidelines: Font Arial 11pt, 1.5 line spacing, page numbers, numbered headings, numbered and labeled figures and tables.  Most importantly, provide references in Harvard referencing style.

Additional Files