Final Examination, Session 1, 2010 1. Time allowed: 2 hours 2. Total number of questions: 5 3. Answer all FIVE questions. 4. Answer questions in the examination booklet provided 5. Marks for Questions are as displayed. 6. Total marks: 45 7. There are 5 pages in this paper, including this page. 8. The candidate may retain this paper. 9. All answers must be written in ink, except that pencils may be used for drawing, sketching or graphical work
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QUESTION 1: (9 Marks) “Cheeky Chook” is a retail chain specialising in the sale of freshly cooked chickens and accompanying dishes – chips and other potato products, salads – and beverages. What started out as a small family-run chicken shop has expanded into a large chain of stores offering their customers a “frequent-Chook” discount card and associated loyalty program. With the help of a Customer Relationship Management System (CRM), “Cheeky Chook” has been able to send their 1.5 million customers one of 12,000 variations of discount coupons and offers, based on individual customer purchase history. This promotion has helped to generate an additional $4.5 million in sales in the last financial year. “Cheeky Chook” implemented their now-famous frequent-Chook program in 2005. Using the frequent-Chook card, a customer get a discount at the time of purchase and Cheeky Chook gets information about their purchases, creating a detailed database of customer preferences. The information collected has enabled the management of “Cheeky Chook” to identify several groups of customers based on lifestyle such as “gourmet selections” “convenience” and “budget focused”. They then use these categories to customise discounts and mailing to individual customers, generating increased sales and identifying new products and services to expand their offerings. At the individual stores, data can