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concentrate on recruiting loyal customers to begin with, they will have a much easier time retaining their customers once they are acquired. In business-to-business customer acquisition, customers can be scored using Dun & Bradstreet data, such as Standard Industrial Classi cation (SIC) codes, annual sales, number of employees, and other such data. By using this type of appended data, enterprises can learn which types of companies are most likely to buy which of their products. Their acquisitions can be accurately targeted. In consumer acquisition, cluster coding has proved useful in many cases. Cluster coding systems, marketed by Claritas and other providers, segment the U.S. population into 62 different clusters based on lifestyle, with catchy names like Shotguns & Pickups, Money & Brains, Furs & Station Wagons, Pools & Patios, and Hard Scrabble. If you apply these clusters to your existing customer base, you may discover that your services appeal primarily to 30 percent or so of the 62 possible clusters. Marketing to the remaining 70 percent may be a losing proposition. By concentrating your acquisition resources on the prospects that are most likely to buy, you can increase your success and your pro ts. Cluster coding works for only a few products and services, but where it works, it is well worth the money.

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glutathione in HIV infection and other human immunodeficiency viral infections, NAC also plays a very important role in increasing the level of glutathione in these immune disorders, which in turn stimulates the immune system. NAC provides protection against many different types of free radicals as well as a broad range of toxic and carcinogenic agents found in cigarette smoke, automobile exhaust, toxic pesticides and herbicides, charcoaled and smoked meats, overdoses of drugs such as acetaminophen (Tylenol), anticancer drugs, and radiation. In terms of its antimutagenic and anticarcinogenic effects, NAC inhibits the induction of cancer in the skin, liver, breast, lung, bladder, colon, and oral cavity. It inhibits not only the tumor initiation and promotion stages, but also the tumor progressional stage of carcinogenesis. Because of the many protective effects of NAC and the fact that it is nontoxic, it has become a popular subject in clinical trials for cancer prevention studies in the United States and Europe. Preliminary results are pointing to NAC s effectiveness.

There are really two different kinds of databases in any company that is engaged in direct marketing of products and services. One is an operational database, and the other is a marketing database (see Figure 1-2). An operational database is used to process transactions and get out the monthly statements. For a cataloger, the operational database is used to process the orders, charge the credit cards, arrange shipment, and handle returns and credits. For a bank, the operational database processes checks and deposits, maintains balances, and creates the monthly statements. For a telephone company, the operational database keeps track of the telephone calls made and arranges the billing for them.

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Old-fashioned business-to-business ordering systems using fax and phone to order products that are used daily and in quantities. Manufacturers not concerning themselves with the business problems of their agents. Assuming that intermediaries can do their job without your help. Maybe they can, but why take a chance

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1. In the CSC business-to-business case, how were the top 10 prospects for each agent selected a. Agents were asked to select them. b. Existing customers were modeled. c. Prospects were surveyed. d. Prospect sales were modeled. e. D&B provided prospect purchase intentions.

on the trade Has the trading been fairly consistent Are recent trades worse than those of the past Or are they better How might some of the worst trades be characterized in a way to improve the trading system These are the kinds of questions that cannOt be answered by a distant panoramic view of the forest (a summary report), but they can be answered with a good trade-by-trade or detail report. In addition, a properly formatted detail report can be loaded into a spreadsheet for further analysis. Spreadsheets are convenient for sorting and displaying data. They make it easy, for instance, to draw histograms. Histograms can be very useful in decisions regarding the placement of stops (Sweeney, 1993). Histograms can show how much of the potential profit in the trades is being captured by the system s exit strategy and is also helpful in designing profit targets. Finally, a detailed examination of the worst and best trades may generate ideas for improving the system under study. SIMULATOR PERFORMANCE

2. Which of the following is not typically part of D&B businessto-business data a. Market penetration b. Number of employees c. Prizm cluster codes d. Annual sales e. SIC codes 3. Which of the following was not a feature of the Bene tMall case study a. Broker newsletters b. Satisfaction surveys c. SIC analysis d. Welcome kits e. Reactivation emails 4. In the Isuzu case study, what percentage of dealers logged on to the site and ordered postcards a. 2 percent b. 4 percent c. 6 percent d. 12 percent e. 50 percent 5. Which of the following is not a bene t of vendor-managed inventory a. Vendors do the selling for their customers. b. Vendors own the products in their customers warehouses. c. Vendors can call back slow-moving items. d. Vendors can predict customer product usage. e. Inventory costs for customers are down. 6. In the Radisson Hotels case, what did the hurdle mean a. A goal for total sales b. A minimum that was the same for all agents c. A level that only top agents could achieve d. A rate calculated using the agent s previous sales e. None of the above