A marketing executive tested two incentives to see what percentage of customers would enrol in a new Web-based loyalty program. The customers were asked to log on to their accounts on the Web and provide some demographic and spending information. As an incentive, they were offered either nothing (No Offer), free flight insurance on their next flight (Free Insurance), or a free companion airline ticket (Free Flight). The customers were segmented according to their past year’s spending patterns as spending primarily in one of five areas: Travel, Entertainment, Dining, Household, or Balanced. The executive wanted to know whether the incentives resulted in different enrollment rates (Response).
Specifically, she wanted to know how much higher the enrollment rate for the free flight was compared with the free insurance and whether it was statistically significant. She also wanted to see whether the Spending Pattern was associated with Response. Using the data in the file ch 16_MCSP_Loyalty_Program, write up a report for the marketing executive using appropriate graphics, summary statistics, statistical tests, and confidence intervals.