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d. Eliminate toll-free calls so that people must use the Web. e. None of the above; they are all rules for successful customer service. Which of the following is not one of the rules for successful Web customer service a. The Web site must be as good as or better than a CSR. b. The Web site must be publicized. c. The Web site must be personalized. d. You must have a live agent function. e. None of the above; they are all rules for successful Web customer service. Which of the following is not a feature of the Dell Premier Pages system a. Vendor-managed inventory b. Monthly reports c. IDs and passwords d. Volume-pricing discounts e. 30-minute setup time What does forward deployed mean in the Boeing parts case a. The parts are owned by Boeing customers. b. The parts are warehoused in customers warehouses. c. The text does not make this clear. d. Boeing does not know where the parts are. e. None of the above. Which of the following is not one of the advantages of letting customers come behind the counter a. Customers become more loyal. b. Costs are lower. c. Customers like it better. d. Errors are reduced. e. More CSRs are needed. Prepare a 3-year lifetime value table for a business-to-consumer supplier who has a retention rate of 45 percent, 55 percent, 65 percent; a cost ratio of 65 percent, 62 percent, 60 percent; an average sale of $60, $65, $70 per visit; visits per year of 2.1, 2.5, 2.8; an interest rate of 8 percent; a risk factor of 1.5; an acquisition cost of $46; and an original number of customers of 200,000.

M any trading system developers have little familiarity with inferential statistics This is a rather perplexing state of affairs since statistics are essential to assessing the behavior of trading systems How, for example, can one judge whether an apparent edge in the trades produced by a system is real or an artifact of sampling or chance Think of it-the next sample may not merely be another test, but an actual trading exercise If the system s edge was due to chance, trading capital could quickly be depleted Consider optimization: Has the system been tweaked into great profitability, or has the developer only succeeded in the nasty art of curve-fitting We have encountered many system developers who refuse to use any optimization strategy whatsoever because of their irrational fear of curve-fitting, not knowing that the right statistics can help detect such phenomena.

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9. Prepare a revised table showing a 4 percent increase in the retention rate, an increase in the number of visits per year of 0.4, and a $4 increase in the average spending per visit. Spend $8 per customer per year on marketing to achieve these results. 10. Using the previous two tables, prepare a table showing the gains or losses from the new marketing program in Question 9, assuming that the company continues to have 200,000 customers.

In short, inferential statistics can help a trader evaluate the likelihood that a system is capturing a real inefficiency and will perform as profitably in the future as it has in the past In this book, we have presented the results of statistical analyses whenever doing so seemed useful and appropriate Among the kinds of inferential statistics that are most useful to traders are t-tests, correlational statistics, and such nonparametric statistics as the runs test T-rests are useful for determining the probability that the mean or sum of any series of independent values (derived from a sampling process) is greater or less than some other such mean, is a fixed number, or falls within a certain band.

atalogs are the fastest-growing and most pro table direct marketing method in use today. The old Sears Roebuck and Montgomery Ward big books are gone forever. But what has replaced them are 16 billion small specialized catalogs that are mailed each year to millions of U.S. households. Why are catalogers succeeding today Lightning-fast ful llment. Remember allow 6 to 8 weeks for delivery Who can stay in business today saying that Many catalogers today even offer next-day service. That means that they have streamlined their warehouses and have UPS and FedEx trucks constantly backed up to their doors. Massive exchange of names. North America is about the only place in the world where you can rent the names of mail-order buyers. In almost every other country in the world, marketers hold customer names in an Al Gore lock box. Helena, my wife, is an avid catalog shopper. She gets from six to ten catalogs a day, all year long. She loves them she reads every page of every catalog as if they were novels. As soon as she places an order, the cataloger immediately rents her name to dozens of other catalogers, who rush to ll our mailbox. Without this universal name exchange, the U.S. catalog industry as we know it would soon die. Universally available credit cards. Not only do all catalogers depend on them, but all consumers have them. Just about every American family receives at least two credit card solicitations per week.