(Solved) : Grey Code Corporation Gcc Media Marketing Company Involved Magazine Book Publishing Televi Q37214269 . . .
Grey Code Corporation (GCC) is a media and marketing companyinvolved in magazine and book publishing and televisionbroadcasting. GCC’s portfolio of home and family magazines havebeen a long running strength, but the company has expanded tobecome a provider of a spectrum of services (market research,communications planning, Web site advertising, etc.) that canenhance its clients’ brands. GCC’s relational database containsover a terabyte of data encompassing 75 million customers. GCC usesthe data in its database to develop campaigns for new customeracquisition, customer reactivation, and identification ofcross-selling opportunities for products. For example, GCC willgenerate separate versions of a monthly issue of a magazine thatwill differ only by the advertisements the magazines contain. Theywill mail a subscribing customer the version with the print adsthat the GCC database has determined will most interest thatcustomer. A problem facing GCC is how to boost the customerresponse rate to the renewal offers that it mails to its magazinesubscribers. The industry response rate is about 2 percent, but GCChas historically had a higher response rate. GCC’s director ofdatabase marketing, Chris Grey, wants to ensure that GCC maintainsits place as one of the top achievers in targeted marketing. In oneeffort directed at maintaining this position, GCC is currentlyconsidering the development of a targeted marketing strategy for ahobby-based magazine. The file GCC contains 38 columns (eachcorresponding to a distinct variable) and over 40,000 rows (eachcorresponding to a distinct customer). The Description worksheetcontains a description of each variable in the file GCC. The Dataworksheet contains the data to be used to train, validate, and testa classification method. The NewDataToPredict worksheet containsdata on a new set of former subscribers to the hobby-based magazinewhom GCC would like to classify as likely or not likely to respondto a targeted renewal offer.
Managerial Report
Play the role of Chris Gray and construct a classification modelto identify customers who are likely to respond to a mailing. yourreport should include the following analyses:
1. The data provided is still relatively raw. Prepare the datefor data mining by addressing missing data entries and transformingvariables. you may want to use XLMiner’s Missing Data Handlingutility and Transform Categorical Data utility.
2. Explore the data. Due to the large number of variables, youmay want to identify means of reducing the dimensions of the data.In particular, analyze relationships between variables usingcorrelation and pivot tables.
3. Experiment with various classification methods and propose afinal model for identifying customers who will respond to thetargeted marketing.
a. Provide a summary of the classification model that youselect.
b. Provide a decile-wise lift chart and analysis of your model’sperformance on the test set.
c. Provide a chart of the Class 1 and Class 0 error rates on thetest set for various values of the cutoff probability.
d. Classify the customers in the NewDataToPredict worksheet
For question 3, apply the kNN classification method in R.
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