MGT 100 midterm study guide ACTUAL
UPDATED Exam Questions and
CORRECT Answers
Data Visualizations are the most important step in customer analytics in most firms. -
CORRECT ANSWER - (Wk 1, 11) True (?); Data visualizations is the first step that raises
deeper Q's. Data visualizations usually won't settle the matter.
Regression is the best technique to check an unfamiliar dataset for problems. - CORRECT
ANSWER - (Wk 2, 14) False; Each dataset can have the same summary statistics (mean,
std. dev, correlation), but can be clearly different and visually distinct. That's why we shouldn't
use regression to summarize data.
Predictive Analytics tells you what will happen in the future. - CORRECT ANSWER -
(Wk 2, 25) False; Predictive Analysis tells you what is likely to happen.
There are four, and only four, ways to make money from customers: Acquire, develop, retain,
and fire customers. - CORRECT ANSWER - True; (Wk 2, 21) DARF - develop, acquire,
retain, fire is called customer relationship management.
Ideally, a segmentation scheme has as many segments as there are customers. - CORRECT
ANSWER - False(?) (Wk 2, 44); a market is a potential customer group with common core
need (think fish & pacific ocean); segment are distributed subgroup of similar customers;
targeting is which segments a firm tries to serve.
Good segments should be Measurable, Accessible, Substantial, and Actional. - CORRECT
ANSWER - True; Measurable, accesible, substantial, and actionable.
Customer demographics are often overrated as predictors of behavior. - CORRECT
ANSWER - True (Wk 2 11, 34) Demographics don't predict behavior very well. In most
markets, (smartphones, uni, cars,) demographics correlate weakly with behaviors.
, It is easy to distinguish selection effects from treatment effects. - CORRECT ANSWER -
False (?) it's not easy b/c both can influence outcomes.
Customers buy products. Consumers experience core benefits. The customer is sometimes
different from the consumer. - CORRECT ANSWER - True (Wk 2, 42) The consumer is
the entity that experiences the core benefit; the customer is the entity that purchases and pays.
We should typically look to segment based on demographics first. - CORRECT
ANSWER - False (Wk 2; 71); customer behavior best predicts behavior (not
demographics).
Designing different products for differently gendered segments is inherently sexist, but marketers
often do it anyway. - CORRECT ANSWER - True (Wk 2, 9) Yes because there's "for her"
pens, pink tax, etc.."
The availability heuristic refers to a phenomenon whereby people often use their own internal
information (e.g., attitudes, beliefs, preferences, etc.) to substitute for missing data about other
people's internal information. - CORRECT ANSWER - False; this statement is describing
the projection bias or the false consensus effect where individuals substitute their own internal
information when they lack insight into someone else's mental state. The availability heuristic is
the tendency for people to estimate the likelihood or frequency of an event based on how easily
examples comes to mind usually from memory or recent experience - not based on their own
internal attitudes or beliefs. For example, you may hear a lot of plane crashes on the news, so
you think they are more common than they really are.
Most firms publicly describe their targeted segments accurately. - CORRECT ANSWER -
False (Wk 2, 17) Firms don't publicize segments.
Optimizing a model for either statistical criteria or economic criteria will usually lead to similar
results. - CORRECT ANSWER - False; optimizing a model for statistical criteria (e.g. p-
values) and economic criteria (e.g. profit maximization) because they prioritize different
outcomes.
UPDATED Exam Questions and
CORRECT Answers
Data Visualizations are the most important step in customer analytics in most firms. -
CORRECT ANSWER - (Wk 1, 11) True (?); Data visualizations is the first step that raises
deeper Q's. Data visualizations usually won't settle the matter.
Regression is the best technique to check an unfamiliar dataset for problems. - CORRECT
ANSWER - (Wk 2, 14) False; Each dataset can have the same summary statistics (mean,
std. dev, correlation), but can be clearly different and visually distinct. That's why we shouldn't
use regression to summarize data.
Predictive Analytics tells you what will happen in the future. - CORRECT ANSWER -
(Wk 2, 25) False; Predictive Analysis tells you what is likely to happen.
There are four, and only four, ways to make money from customers: Acquire, develop, retain,
and fire customers. - CORRECT ANSWER - True; (Wk 2, 21) DARF - develop, acquire,
retain, fire is called customer relationship management.
Ideally, a segmentation scheme has as many segments as there are customers. - CORRECT
ANSWER - False(?) (Wk 2, 44); a market is a potential customer group with common core
need (think fish & pacific ocean); segment are distributed subgroup of similar customers;
targeting is which segments a firm tries to serve.
Good segments should be Measurable, Accessible, Substantial, and Actional. - CORRECT
ANSWER - True; Measurable, accesible, substantial, and actionable.
Customer demographics are often overrated as predictors of behavior. - CORRECT
ANSWER - True (Wk 2 11, 34) Demographics don't predict behavior very well. In most
markets, (smartphones, uni, cars,) demographics correlate weakly with behaviors.
, It is easy to distinguish selection effects from treatment effects. - CORRECT ANSWER -
False (?) it's not easy b/c both can influence outcomes.
Customers buy products. Consumers experience core benefits. The customer is sometimes
different from the consumer. - CORRECT ANSWER - True (Wk 2, 42) The consumer is
the entity that experiences the core benefit; the customer is the entity that purchases and pays.
We should typically look to segment based on demographics first. - CORRECT
ANSWER - False (Wk 2; 71); customer behavior best predicts behavior (not
demographics).
Designing different products for differently gendered segments is inherently sexist, but marketers
often do it anyway. - CORRECT ANSWER - True (Wk 2, 9) Yes because there's "for her"
pens, pink tax, etc.."
The availability heuristic refers to a phenomenon whereby people often use their own internal
information (e.g., attitudes, beliefs, preferences, etc.) to substitute for missing data about other
people's internal information. - CORRECT ANSWER - False; this statement is describing
the projection bias or the false consensus effect where individuals substitute their own internal
information when they lack insight into someone else's mental state. The availability heuristic is
the tendency for people to estimate the likelihood or frequency of an event based on how easily
examples comes to mind usually from memory or recent experience - not based on their own
internal attitudes or beliefs. For example, you may hear a lot of plane crashes on the news, so
you think they are more common than they really are.
Most firms publicly describe their targeted segments accurately. - CORRECT ANSWER -
False (Wk 2, 17) Firms don't publicize segments.
Optimizing a model for either statistical criteria or economic criteria will usually lead to similar
results. - CORRECT ANSWER - False; optimizing a model for statistical criteria (e.g. p-
values) and economic criteria (e.g. profit maximization) because they prioritize different
outcomes.
