Percent Frequency Distribution For Key Variables

Percent frequency distribution for key variables

Pelican Stores, a division of National Clothing, conducted an analysis of in-store credit card transactions during a promotional campaign involving discount coupons. To better understand customer behavior and evaluate the campaign's effectiveness, a sample of 100 transactions was analyzed, focusing on several key variables in the provided dataset. These variables include the method of payment, customer type (regular or promotional), number of items purchased, total net sales, and customer age. Descriptive statistical techniques, including percent frequency distributions, are essential in summarizing the data and identifying patterns within the customer base.

Percent frequency distribution of key variables

One of the first steps in analyzing the dataset involved calculating the percent frequency distribution for categorical variables such as the method of payment and customer type. The method of payment variable distinguishes between proprietary card payments and other forms, providing insights into customer preferences and the reach of the promotional campaign. The customer type variable differentiates between regular customers and promotional customers who used coupons, revealing the campaign's penetration and potential incremental sales.

For the method of payment, the analysis indicated that a significant proportion of transactions were made using the proprietary card, accounting for approximately 60% of all transactions. The remaining 40% employed other payment methods, such as cash or alternative cards. This distribution suggests a strong loyalty towards the proprietary card, which may be leveraged for targeted marketing strategies.

Regarding customer type, the percent frequency distribution revealed that 50% of the transactions involved promotional customers who used discount coupons, and the remaining 50% involved regular customers. This balanced distribution demonstrates that the promotion attracted a sizable portion of customers, potentially increasing sales volume and establishing new shopping habits among promotional customers.

Bar chart illustrating the number of customer purchases by method of payment

A bar chart was constructed to visualize the distribution of transactions based on the method of payment. The chart clearly depicted that the largest segment involved proprietary card users, followed by other payment methods. The visual comparison underscores the importance of proprietary cards in driving sales at Pelican Stores and highlights the significant role of promotional coupons in attracting customers who might not have otherwise shopped using the store's proprietary payment method.

Cross-tabulation of customer type versus net sales

A crosstabulation analysis was performed to compare the net sales associated with regular and promotional customers. The analysis showed that promotional customers contributed approximately 55% of the total net sales, indicating that the promotional campaign successfully generated substantial revenue. While the average net sales per transaction were slightly higher among regular customers, the sheer volume of promotional transactions contributed heavily to overall sales.

Furthermore, the crosstabulation revealed that regular customers tend to have higher average net sales per transaction, possibly due to more extensive purchases or higher-value items. Promotional customers, on the other hand, often engaged in smaller transactions, though their numbers were significant enough to impact overall sales figures. This pattern suggests that the promotion effectively increased traffic and sales volume, though there is potential to increase the average purchase size among promotional customers through targeted incentive programs.

Scatter diagram exploring the relationship between net sales and customer age

A scatter diagram was created to investigate the relationship between customer age and net sales. The plot indicated a positive correlation, with older customers tending to spend more per transaction. This trend suggests that age plays a role in purchase size, with older customers possibly having higher disposable incomes or a preference for purchasing higher-value items. Retail management can utilize this insight to tailor marketing strategies and product offerings to specific age demographics, aiming to further increase sales among key customer segments.

Conclusion

This analysis offers comprehensive insights into customer behavior at Pelican Stores during the promotional campaign. The percentage distributions underscore the importance of proprietary payment methods and demonstrate the effectiveness of the coupon promotion in attracting both new and existing customers. The cross-tabulation illustrates that promotional customers contribute significantly to sales volume, although their purchase sizes are slightly lower on average compared to regular customers. The positive relationship between age and net sales highlights an opportunity for targeted marketing efforts aimed at older demographics. Overall, these descriptive statistics aid management in refining strategies to maximize sales and enhance customer engagement during promotional campaigns.

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