You are a data analyst of an online wine retail shop. The CEO of your company wants to improve the current marketing strategy, and asked you to undertake a project on understanding the relationship between the customer's wine consumption behavior and other traits. You are provided with some data from the marketing research team, and are expected to deliver some useful insight to the CEO based on the data.
Please download the Customer Personality Analysis Data ('marketing_data.xlsx') from the course website and answer the following questions. NOTE: The data was adapted from the Customer Personality Analysis data on Kaggle (https://www.kaggle.com/imakash3011/customer-personality-analysis). Please note that the data we use for this exercise is modified from the original data, so please use the version provided on the course website. DO NOT directly download it from Kaggle.
Below are the description of the variables:
- ID: Customer's unique identifier
- Age: Customer's age
- Income: Customer's yearly household income (GBP)
- Years_Ed: Customer's education level (total years of education)
- Family_Size: Customer's household size
- Living_With: Customer's marital status. 1 indicates the customer lives with a spouse/partner, 0 indicates otherwise.
- Total_Children: Number of children and teenagers in customer's household
- Total_Kids: Number of children in customer's household
- Total_Teens: Number of teenagers in customer's household
- Spent_Wines: Amount spent on wine in last 2 years (GBP)
- Spent_Non_Wines: Amount spent on fruits, meat, fish, sweet, and gold in last 2 years (GBP)
- Spent_Fruits: Amount spent on fruits in last 2 years (GBP)
- Spent_Meat: Amount spent on meat in last 2 years (GBP)
- Spent_Fish: Amount spent on fish in last 2 years (GBP)
- Spent_Sweet: Amount spent on sweets in last 2 years (GBP)
- Spent_Gold: Amount spent on gold in last 2 years (GBP)
Please answer the questions below by analyzing the provided data. You can use Excel to complete this assignment, but using other software is allowed. For each question, please provide the key assumptions you made, the statistical methods you used, and the interpretation of your results. The report should be no more than 5 pages long (not including references/bibliography lists or appendices). It should be produced in a serif font, such as Times New Roman, size 12 and with single spacing. The assignment should be completed independently. Do not discuss with others.
Question 1.
Generate summary statistics of the data. Use at least one Table and/or Figure to support your analysis. Choose three variables that you find the most interesting, and discuss why.
Question 2.
a. A recent study shows that people's socioeconomic status (such as income and education level) and their alcohol consumption are related. Your CEO wants to adapt this research finding in the marketing strategy. How would you advise him/her?
b. According to the 2021 winners of the Nobel prize in economics (and it is also generally believed), people with higher education tend to have higher incomes. Your CEO thinks this result will somehow affect his marketing strategy. How would you advise him/her? Does this affect the advice you provided in part a?
c. Recommend at least one marketing strategy based on your analysis above.
Question 3.
Your CEO likes your analysis. However, given the high marketing cost, s/he wants to only target a specific group of consumers. In particular, s/he suggests a targeting strategy based on the customer's family status. How would you advise him/her?
Question 4.
a. After presenting your analysis to the group, you are given a comment from another data analyst that sometimes a linear model is not the best model to fit the data. How would you address his/her point?
b. After presenting your analysis to the group, the marketing research team raises a concern that collecting the information on the amount spent on each category (e.g., fruits, meat, fish, sweet, and gold) separately is costly and therefore, they are considering not collecting all, or at least part of, this information in the future. What would you advise?
