The marketing manager for a department store wants to know how important quality is to her customers. A consultant reports that based on past research, 30% of all consumers nationwide are more interested in quantity than quality. The marketing manager suspects that customers from her store are different, and that customers of different ages might have different views as well. Using conditional probabilities, marginal probabilities, and joint probabilities constructed from the data in the file ch08_MCSP_Market_Segmentation,4 write a report to the manager on what you find.

As you do your analysis and write up your report, keep in mind that the manager may be more interested in the opinions of “frequent” customers than those who never or hardly ever shop at her store. These “frequent” customers contribute a disproportionate amount of profit to the store.

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Variable and Question Categories 18–24 years old Age 25–34 Which age group are you in? 35–44 45–54 55-64 65 or over Never-hardly ever 1–2 times per year 3–4 times per year Frequency How often do you shop for women's clothing at [this department store]? 5 times or more 1. Definitely disagree 2. Generally disagree 3. Moderately disagree 4. Moderately agree 5. Generally agree 6. Definitely agree Quality For the same amount of money, I will generally buy one good item in preference to several of lower price and quality.