Data Analysis for Business Decisions Essay

1. Introduction survive merchandise holiday Destinations is a worry that produces word picture footage that contains go for-specific and region-specific footage regarding the close popular vacation destination resorts including Hawaiian Islands, Caribbean Islands, Mexico and Florida. The merchandising of destinations serve to guide newlyweds by means of capturing telecastings including rating each resort based on the most important characteristics such as view, constitute and accommodations. These footages attempt to generate an attractive, fascinating and informative product on what the newlyweds rouse expect on their once in a lifetime expedition. (Parry, Mark, 1999)2. Honeymoon Destinations MarketStudies be possessed of indicated that in the past decade, there has been a epochal increase in the fare that newlyweds spent on weddings and in the medium age of first time brides and grooms. U.S. Department of Health and Human operate findings finish that in the year 1967, the reasonable age is 23.8 and 21.6 for men and women, respectively. However, the modal(a) age has increased to 26.4 and 24.5 for men and woman, respectively in the year 1987. This indicates that because first-time brides and grooms atomic number 18 postponing their weddings, they may more fiscal resources to spend more on holiday expenditures down the line. (Parry, Mark, 1999)3. Data AnalysisHoneymoon Destinations has authentic and administered a merchandise feasibility study in order to investigate the impending bring for vacation destination videos. A survey has been mailed to 260 recent acceptance fair participants in the area. Out of the 260 prospective participants, 91 have successfully submitted a responsewith a cypher response rate of 35%. In order to understand the complexity of honeymoon destination trade by means of video footage to newlyweds, this report attempts to analyze, calculate and investigate motley data techniques for business decisions in th e area of strategic foodstuffing and prudence of honeymoon destinations. Additionally, this paper is based on data abridgment enquiry pertaining to the honeymoon destination direct mail survey where comprehensive frameworks have been runninged and implemented discussing a broad range of destination marketing channels, sources and references for the party to yet improve current and future business decisions in the honeymoon destination marketing industry. (Parry, Mark, 1999)First Case ScenarioThe analysis has think on the companys marketing and distribution to as few as channels as doable. Additionally, the report has analyzed what the very vanquish channels would be based on what the data indicates. The survey incertitude reads From what source would you be likely to purchase the video? The sources (distribution channels) have been investigated as to picture at what sources concourse apply to purchase the honeymoon destination video. The descriptive analysis has cipher the search (number) of total recipients who respondedwhich was measured at 91and the mode (frequency) of the 91 recipients who responded with a 1 (check) or a 0 (no check) and has deliberate the count (number) of recipients.In this section, the table and graph high up contains the percentage of respondents who stated that they could be likely to purchase a video from a particular source. The sum follow of responses for variables 45-52 have been divided by the total (count) of the low income convocation (income aim of $25,000-$69,000 and high income company (income take of $70,000-92,000). For instance, using the source Bridal Shopsthe sum of this particular variable is work out at 19. The sum is then divided by the total count of the low income group, which is calculated at 0.35 or 35%. Using the selfsame(prenominal) source, the sum of this particular variable is calculated at 10.The sum of 10 is then divided by the total count of the high-income group, which is calcul ated at 0.28 or 28%. The data findings indicate that both the low-income and high-income group is less(prenominal)(prenominal) likely to purchase a video from the Bridal Shop source. a nonher(prenominal) source that would both groups would not be likely to purchase a video from is the Video Rental Storethe data is calculated at 18% and 25% for low-income and high-income groups, respectively. (Parry, Mark, 1999) (Bowerman, Bruce L., OConnell, Richard T., Murphree, Emily S.,2011) Proposal and Recommendations for Scenario OneAs a result of implementing descriptive statistics analysis and creating an appropriate graph and tabular representation, the findings conclude that the most popular channel types to purchase videos are from1. Bridal magazines which was calculated that 75% of mickle in the bring down income bracket and 82% of people in the higher income bracket. For this particular channel, people with higher income would be most likely to purchase videos from Bridal Magazines th an people with lower income. 2. Travel Magazines which was calculated that 77.8% of people in the lower income bracket and 82% of people in the higher income bracket. For this particular channel, findings conclude that there is very infinitesimal difference of opinion in the type of income group that would purchase videos from the jaunt magazines.Honeymoon Destinations should charge more attention on using Travel Magazines and Bridal Magazines as the most effective marketing and distribution channels for advertizing honeymoon video footage to newlywedsfor both the low-income and high-income groups. When it comes to investing in a honeymoon getaway, the travel possibilities can be endless however the choices and the decision may give way the couples feeling confused and undecided. (Parry, Mark, 1999) This leads an important question who is primarily responsible for researching a possible honeymoon resort and who makes the decision in selecting the most favorite(a) destinationthe bride, groom or both?As indicated in the above graph, the bride takes primary debt instrument in researching possible honeymoon getaways measured at 76.9% of the time, 11 % for grooms and 12.1% of the time both take equal responsibility in looking for honeymoon resorts. However, 82.4% of the time both couples share equal responsibility on do the actual decision on a honeymoon destination, whereas a mere 8.8% for brides and 8.8% of grooms take primary responsibility in making a decision. With the stress that unavoidably accompanies wedding planning, Honeymoon Destinations can utilize Bridal Magazines and Travel Magazines as its high hat marketing and distribution sources to further assist couples in researching and deciding on the perfect destination and pathas a result, the couples can enjoy their once in a lifetime getaway. (Parry, Mark, 1999) Second Case ScenarioFor this particular case scenario, it is believed that the individuals in the stigma group Individuals with highe r incomesis more unforced to spend at to the lowest degree(prenominal) $15.00 on the Honeymoon Destinations Video. This report tests this hypothesis. The analysis only if observed individuals with higher incomes (upper half of the render $70,000 or more). A z test could not be measured because it requires knowing more information than what was available in the survey analysis. A z-test requires knowing the value of a creation mensuration deviation (sigma) to be able to compute the standard error of the estimate. In most instances, this is rarely knownsuch in this case.The data calculated the standard deviation of the sampling distribution (measured at 3.852848874). As a result a one- consume, one-sided t-Test was employed for the pattern higher-income group (variable 53) because the population standard deviation was not available in a sample of 91 participants in the direct-mail survey the sample standard deviation was utilized as an estimate for testing purposes. (See desc riptive and statistical analysis to a lower place) (Bowerman, Bruce L., OConnell, Richard T., & Murphree, Emily S., 2011)Utilizing the one-sample, one-sided t-Test. the test statistic is t = 20.41606. 4. The P value of 0.00001 has been calculated for the possible test condition and compared it to the alpha level of 0.05. Therefore, the P value has pertinacious to rule out the null hypothesis. 5. Conclusion We can observe that 20.41606 0.00001 in a one tail test (upper) thus the absolute value of our test statistic is greater than the associated p-value and is in the rejection region (and p-value has determined to reject the null hypothesis).Therefore, we reject the null hypothesis in favor of the alternative hypothesis. Therefore, the data analysis findings can statistically conclude that the sample provides enough evidence that the come amount the high-income group will be unforced to spend is more than $15 for the Honeymoon Destinations Video. If the alpha was measured at .0 1 and .10 with the P value still at 0.00001, the null hypothesis would still be jilted in favor of the alternative hypothesis. (Bowerman, Bruce L., OConnell, Richard T., & Murphree, Emily S., 2011)Third Case ScenarioFor the last case scenario, the analysis report is more interested in evolution an estimate for what the average individual would be voluntary to pay kinda than computing a hypothesis testing. Therefore, 95% authorization intervals have been developed for the average charge individuals would be willing to pay one for the lower-income group and one for the higher-income group.Dividing variable 54 into a low-income group and high-income group and in addition dividing Variable 53 (Amount willing to pay to purchase Honeymoon Destinations Video)producing the below descriptive analysis of the sample average, standard deviation and sample coat for the low and high income groups.The population standard deviation is not known, therefore, the sample standard deviation for low-income and high-income groups is estimated which is calculated at 6.876349 and 3.852849, respectivelyutilizing variable 53. (Parry, Mark, 1999) (Bowerman, Bruce L., OConnell, Richard T., Murphree, Emily S., 2011) The sample size (n) of 55 for low-income group measures the sample average amount willing to pay for the video is $8.89 (rounded up). The sample standard deviation is calculated at 6.876349. A 95% corporate trust interval has been developed for the average price the low-income group is willing to pay for the video at $8.89. The findings indicate that the authority interval is 7.03 for the lower limit and 10.75 for the higher limit of amount willing to pay for the video, respectively.The margin of error of 1.86 (the degree of accuracy in the analysis) is the t-multiple of 2.005 time the standard error of the estimation at 0.93 which indicates how far the confidence level would extend on each some of the point estimate. Conversely, the sample size (n) of 36 for high-in come group measures the sample average amount willing to pay for the video is $28.11 (rounded up). The sample standard deviation is calculated at 3.852849. A 95% confidence interval has been developed for the average price the high-income group is willing to pay for the video at $28.11. The findings indicate that the confidence interval is $26.81 for the lower limit and $29.41 for the higher limit of amount willing to pay for the video, respectively.The margin of error of 1.30 (the degree of accuracy in the analysis) is the t-multiple of 2.030 times the standard error of the estimation at 0.64 which indicates how far the confidence level would extend on each some of the point estimate. (Bowerman, Bruce L., OConnell, Richard T., Murphree, Emily S., 2011) As part of the comparative analysis in the midst of the low-income group and high-income group take for granted that if this procedure were to be repeated on multiple samplesthe calculated confidence interval would encompass the tr ue population parameter 95% of the time. Thus, the repeated samples that are taken from both groups, 95% of the time, the average amount people in the low-income group willing to pay will be among $7.03 and $10.75. And, 95% of the time, the average amount people in the high-income group willing to pay will be between $26.81 and $29.41. (Bowerman, Bruce L., OConnell, Richard T., Murphree, Emily S., 2011)Proposal and Recommendations for Scenario twain and ThreeAlthough it has been suggested to sell each 45 minute video for a retail price of $14.95, the Company needs to recognize that its rocky to appeal to all consumers in the honeymoon marketplace, or at least cannot appeal to all consumers in the same way. Consumers are extremely diverse, widely scattered and significantly varied in their particular needs and buy practices. Its important to note that low-income individuals who are looking to book a honeymoon resort face challenges of economic stability and an increase in the am ount spent towards weddings. Since the high-income group is willing to pay more between $26.81 and $29.41, whereas the low-income group is willing to pay between $7.03 and $10.75 for honeymoon destinations videos, the company must shift from mass marketing strategies to both a target marketing and variantial pricing method. (See diagram below)Customer-Driven merchandise Strategy Creating Value for luff CustomersFirst, the company must effectively identify and select diverse market segments (i.e. low income, high income, age, etc), differentiate based on their interest/financial resources and needsand further improve channels of distribution/products/services tailor to each particular population segment in various pie-eyed and discounted retail store locations. Secondly, Honeymoon Destinations can then implement a differential coefficient pricing practice which entails charging the high-income group more, while charging the low-income group less for the same productwhich in t his case is the honeymoon video. (Marshall, Greg W. & Johnston, Mark, 2010)Possible implications of differential pricingIf Honeymoon Destinations sells the 45 minute video footage for several different prices, higher income individuals who are willing and able to spend more than $15.00 for the video may end up deciding its cheaper to pay for the lower priced video. However, this would force the lower-income individuals to pay more. (Marshall, Greg W. & Johnston, Mark, 2010) Each difference has potential to either shape company costs as well as customer benefits. A difference is worth establishing to the extent that it will satisfy not only the high income group but, more importantly the low income group. The company should look to improve marketing strategies that satisfy both the high-income and low-income groups by meeting the side by side(p) criteria 1. Importance the video will deliver a highly wanted benefit to the target group 2.Distinctive and Superior Emphasize that the c ompany offers a more informative and distinctive video footage over new(prenominal) competitorswhich can be tailored based on the target groups financial resources, needs, desires and personality. 3. Visibility the video footage is visible and easily affectionate to the target audience. Therefore, providing the broadest possible access to the video allowsand encourages differential pricing. Not implementing differential pricing will only ensure that the low-income individuals will have little to no access to purchasing the video they couldnt otherwise afford. Overall, selecting the best position of the product can be challenging however, providing a wide-range of choices and prices is life-and-death to the companys overall current and future success. (Marshall, Greg W. & Johnston, Mark, 2010)ReferencesBowerman, Bruce L., OConnell, Richard T., & Murphree, Emily S. (2011). Chapter 9 Hypothesis Testing. In Data Analysis for pipeline Decisions (Sixth ed., pp. 351-392). New York, NY, regular army McGraw-Hill Companies, Inc. . Bowerman, Bruce L., OConnell, Richard T., Murphree, Emily S. (2011). Data Analysis for Business Decisions (Sixth ed.). New York, NY, USA McGraw-Hill Companies, Inc. Marshall, Greg W. & Johnston, Mark. (2010). Marketing Management. New York, NY, USA McGraw-Hill/Irwin. Parry, Mark. (1999). Honeymoon Destinations. University at Virginia , Darden Graduate School of Business Administration. Charlottesville, VA Darden Business Publishing. Retrieved December 27, 2012