Question 1

Disneyland in Tokyo has 2 different customer segments. Their annual visit frequency is captured by a negative binomial distribution of the following characteristics:

		Seg 1	Seg 2
NBD parameter	Alpha	0.1	0.4
	Gamma	0.4	1.6
Individual impact	Average mobile web access	4	4
Segment size	by customer number	50%	50%

Average mobile web access influences significantly the average of visit frequency with its beta of 0.1. (average of visit frequency * exp(beta*average mobile web access)).

Q1-1. Which segment has more eligible customers for a membership that requires minimum visit frequency of 6 per year?

Q1-2. If it costs the same amount of marketing budget to make customers of segment 1 and 2 increase mobile web access from 4 to 12, which segment need to be selected to maximize the increased number of eligible customers for the membership program? Why?