For the individual assessment, you are required to prepare a $2000-$word paper based on themes and

topics covered in our lectures, as well as the Artea case $($the case description and the relevant dataset are

provided on Moodle$).$

Your report should answer the following questions $($marks per question in parentheses$)$:

Q$1.$ What is the marketing problem that Alex is trying to solve? $[5]$

Q$2.$ Does the A$/$B help solve the problem Alex is dealing with? Why not simply rely on the past data where

they might have sent coupons to some consumers or send coupons to the full set of $5000$ consumers and

see how their behaviour changes? $[10]$

Q$3.$ Evaluate whether the coupons work using data from the AB test $[20]$

a$.$Remember to conduct a randomization check

b$.$Evaluate the effect of coupon on customer behaviour

c$.$Make sure you report t$-$tests or linear regressions

Q$4.$ Evaluate heterogeneity in consumer response to coupons. Consider heterogeneity along multiple

variables such as acquisition channels, shopping cart status, past purchases and browsing and spending

behaviour. $[10]$

Q$5.$ Which customers should Artea target in the next targeting campaign? $[5]$

Q$6.$ What are expected revenues and transactions if Artea targets those consumers? $[5]$

Q$7.$ Discuss conceptually $($without calculation$)$ how the targeting strategy proposed in Q$5$ can affect

customer lifetime value. $[5]$

Q$8.$ How do your answers to the previous questions inform potential customer acquisition strategies, such

as where to advertise? $[5]$

Q$9.$ Compare the demographics for the targeted vs non$-$targeted groups determined in Q$5.$ Is there a

disparity? Should Artea be concerned about it$?$ Why or why not? $[5]$

Q$10.$ Are your findings in the previous question surprising given that you did not use demographic data to

determine the targeted population? Why or why not? $[5]$

Q$11.$ Should Campbel use demographic data? Are there any ethical concerns from collecting and using

customer level$-$demographic data? $[5]$

Q$12.$ Propose $($informally$)$ a method of targeting customers that would ensure that the targeted and nontargeted groups are demographically balanced while still improving conversion rates. $[10]$

Q$13.$How would privacy regulations $($e$.$g$.,$ GDPR$)$ affect Artea$$s targeting capability? $[10]$