You are a marketing manager for Pelican Stores, a division of National Clothing that sells women's...
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You are a marketing manager for Pelican Stores, a division of National Clothing that sells women's apparel throughout the country. Over the past few months, you initiated and executed a promotion whereby discount coupons were sent to customers of other National Clothing stores. Now, after the promotion ended, data has been collected resulting in a sample of 100 in-store credit card transactions at Pelican during one day when the promotion was running. In the dataset, the Proprietary Card method of payment refers to charges made using a National Clothing charge card (store- issued card). Customers who made a purchaše using a discount coupon are referred to as Promotional Customers and customers who made a purchase but did not use a discount coupon are referred to as Regular Customers. Because you did not send promotional coupons to regular Pelican Store customers, you consider sales made to people presenting the promotional coupon as sales the store would not had made otherwise; they usually shop elsewhere. Of course, the goal of your marketing strategy is to turn these new customers who used the coupon into regular customers at Pelican Stores. You are tasked with learning more about your customer base and evaluating the effectiveness of the promotion by presenting the sample data in a manner that effectively communicates your findings. This will require using the appropriate tabular or graphical display for the data type you wish to present. You determine that another interesting metric to analyze would be the relationship between the "Type of Customer" variable and the "Method of Payment" variable. To examine this relationship you develop the crosstabulation below: You determine that another interesting metric to analyze would be the relationship between the "Type of Customer" varlable and the "Method of Payment" variable. To examine this relationship you develop the crosstabulation below: Type of Customer Method of Promotional Regular Grand Total Payment American Express $266.00 $66.00 $332.00 $241.00 $241.00 $386.00 Discover Master Card $553.60 $939.60 Proprietary Card $4,709.86 $880.75 $5, 590.61 Visa $342.40 $286.00 $628.40 Grand Total $5,81.86 $1,859.75 $7,731.61 Which statement below offers the correct analysis and best insight about your customers in the context of these two variables? a. Promotional Customers using a Proprietary Card accounted for greater than 80% of all Promotional Sales dollars and nearly 61N of total sales dollars. Since so many new customers made purchases on their Proprietary Cards, the marketing effort appears to be a success. O Promotional Customers using a Proprietary Card accounted for more than 72% of overall sales dollars. Therefore it may be a good marketing decision to promote Proprietary Cards to gain more customers during similar promotions. Oc Since greater than 95% of all Promotional Sales dollars were made by customers having a Proprietary Card, the other 5% who are not using a Proprietary Card should be encouraged to apply for one. d. Regular customers using a Proprietary Card accounted for a greater percentage of all Regular Customer sales dollars than did Promotional Customers using a Proprietary Card as a percentage of overall Promotional Sales dollars, Therefore the promotion was not effective. You are a marketing manager for Pelican Stores, a division of National Clothing that sells women's apparel throughout the country. Over the past few months, you initiated and executed a promotion whereby discount coupons were sent to customers of other National Clothing stores. Now, after the promotion ended, data has been collected resulting in a sample of 100 in-store credit card transactions at Pelican during one day when the promotion was running. In the dataset, the Proprietary Card method of payment refers to charges made using a National Clothing charge card (store- issued card). Customers who made a purchaše using a discount coupon are referred to as Promotional Customers and customers who made a purchase but did not use a discount coupon are referred to as Regular Customers. Because you did not send promotional coupons to regular Pelican Store customers, you consider sales made to people presenting the promotional coupon as sales the store would not had made otherwise; they usually shop elsewhere. Of course, the goal of your marketing strategy is to turn these new customers who used the coupon into regular customers at Pelican Stores. You are tasked with learning more about your customer base and evaluating the effectiveness of the promotion by presenting the sample data in a manner that effectively communicates your findings. This will require using the appropriate tabular or graphical display for the data type you wish to present. You determine that another interesting metric to analyze would be the relationship between the "Type of Customer" variable and the "Method of Payment" variable. To examine this relationship you develop the crosstabulation below: You determine that another interesting metric to analyze would be the relationship between the "Type of Customer" varlable and the "Method of Payment" variable. To examine this relationship you develop the crosstabulation below: Type of Customer Method of Promotional Regular Grand Total Payment American Express $266.00 $66.00 $332.00 $241.00 $241.00 $386.00 Discover Master Card $553.60 $939.60 Proprietary Card $4,709.86 $880.75 $5, 590.61 Visa $342.40 $286.00 $628.40 Grand Total $5,81.86 $1,859.75 $7,731.61 Which statement below offers the correct analysis and best insight about your customers in the context of these two variables? a. Promotional Customers using a Proprietary Card accounted for greater than 80% of all Promotional Sales dollars and nearly 61N of total sales dollars. Since so many new customers made purchases on their Proprietary Cards, the marketing effort appears to be a success. O Promotional Customers using a Proprietary Card accounted for more than 72% of overall sales dollars. Therefore it may be a good marketing decision to promote Proprietary Cards to gain more customers during similar promotions. Oc Since greater than 95% of all Promotional Sales dollars were made by customers having a Proprietary Card, the other 5% who are not using a Proprietary Card should be encouraged to apply for one. d. Regular customers using a Proprietary Card accounted for a greater percentage of all Regular Customer sales dollars than did Promotional Customers using a Proprietary Card as a percentage of overall Promotional Sales dollars, Therefore the promotion was not effective.
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Statement a Total promotional sales is 5872 and purchase made on proprietary card by promotional cus... View the full answer
Related Book For
Purchasing and Supply Chain Management
ISBN: 978-1285869681
6th edition
Authors: Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Posted Date:
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