Final Case Questions
To analyze these questions, use the dataset provided for Southwest Bank in your
assignment page. In this scenario, Southwest Bank has made a significant investment in
online banking and is trying to decide if streamlining operations has had an impact on
profitability. Since the bank is operating in a large retirement community in
the Southwest, it knows many of its customers still have not adopted online banking. It
wonders how aggressive it should be in moving these customers to online. As a
consequence of its investment, the Bank is also trying to decide which customers are
most profitable and how to target them. It wonders about the role of demographics in
determining its most profitable customers.
Assume you are a new Marketing Data Analyst at the bank. You have been given the last
year’s most recent data that describe whether customers are using online banking,
Fortunately, you have just taken a class in Marketing Data Analytics. Your boss says that
you can use all of the information from that class in answering the questions for this
• This case is worth 150 points total
• Submit in WORD format, copy and paste SPSS output into the final document as
you have been doing, 12 point type, all answers typewritten.
• Please answer the following questions for Southwest Bank and support your
answers with data from the case.
• Label each question by question number.
1. What is the average profit per customer? How many are profitable, have zero profit
or negative profit? Next, create deciles for profitability and create a bar chart of profits
by decile. Is it true that the Pareto Principle applies and the top 20 percent of customers
contribute to 80 percent of profits? Why or why not? Support your answers. 25 points
2. What is the average profit offline versus online customers? Run a regression to
determine if the adoption of online banking is related to customer profitability. Does
online banking adoption appear related to customer profitability? Support your answers.
3. Without age and income, what is the effect of retention and district on profitability?
Use a regression to explain your results. Why? 15 points
Final Case Questions