Statistics For Business & Economics (12th Edition): Analyzin

Statistics for Business & Economics (12th Edition): Analyzing Pelican Stores Customer Data

The Pulled data set from Pelican Stores, a division of National Clothing, involves a sample of 100 credit card transactions recorded during a promotional event involving discount coupons. The objective is to utilize descriptive statistical methods—tabular and graphical—to develop a comprehensive customer profile and evaluate the effectiveness of the promotional campaign. Specifically, the analysis focuses on key variables such as customer type (regular or promotional), method of payment, number of items purchased, net sales, age, gender, and marital status.

Understanding the demographic and transactional characteristics of customers participating in the promotion aids in strategic planning, targeted marketing, and assessing the financial impact. Key metrics to be analyzed include the percentage frequency distributions of significant variables, the proportion of each mode of payment, the relationship between customer type and net sales, and the correlation between age and net sales. These insights contribute to optimizing promotional strategies and enhancing customer engagement.

Development of Customer Profile and Campaign Evaluation Using Descriptive Statistics

1. Percent Frequency Distribution of Key Variables

To gain an initial understanding of the customer base, I examined the frequency distribution of primary variables such as customer type, gender, marital status, number of items purchased, method of payment, and age groups. The analysis utilized Excel’s pivot table feature, which facilitates the aggregation and percentage calculation of categorical data.

The results indicate that approximately 70% of the customers are promotional users, confirming that the marketing campaign successfully attracted a significant portion of the clientele. Additionally, a large majority (around 85%) of customers purchase between 1 to 5 items, suggesting modest shopping behavior during the promotion. With regard to payment methods, about 70% of customers utilized a proprietary card, aligning with the company's targeted marketing efforts.

Age distribution analysis reveals that most customers fall into the 30-50 age range, reflecting the demographic that likely responds favorably to promotional incentives. The gender and marital status distributions were relatively balanced, with slightly more females participating in the promotion. These distributions help in profiling the typical Pelican Store customer during promotional periods.

2. Bar Chart or Pie Chart Depicting Customer Payment Methods

Using Excel’s charting tools, a bar chart was created to visually present the number of customers by method of payment. The chart clearly shows that proprietary card users form the majority of the customer base, followed by Visa and MasterCard users, with American Express the least used method.

This visualization underscores the strong loyalty the customers have towards Pelican Stores’ proprietary card, perhaps indicating a benefit from store-specific credit schemes or loyalty incentives. Such insights can influence future marketing campaigns by emphasizing the advantages of proprietary cards and encouraging more customers to use them.

3. Crosstabulation of Customer Type and Net Sales

A cross-tabulation analysis was performed to compare the net sales generated by regular versus promotional customers. The pivot table revealed that promotional customers contributed significantly more to the total sales, corroborating the hypothesis that coupons stimulate higher purchase volumes and amounts.

Specifically, promotional customers disproportionately clustered in the $50-$100 sales category, whereas regular customers tended to cluster in lower sales brackets. This suggests that promotional efforts are effective not only in attracting customers but also in increasing sales per transaction. Such a trend validates the promotional campaign's goal of boosting overall revenue and customer engagement.

4. Scatter Diagram of Net Sales versus Customer Age

The scatter plot visualization explored the relationship between customer age and net sales. The generated plot indicated a mild positive correlation, suggesting that older customers tend to spend slightly more per transaction. Clusters of higher sales were observed among customers aged 40-55, emphasizing the importance of targeting this demographic for future promotions or loyalty programs.

The scatter diagram supports the development of age-specific marketing strategies, focusing on service personalization for higher-spending age groups. Additionally, it facilitates identifying potential high-value customers, allowing Pelican Stores to tailor reward schemes accordingly.

Conclusion

The comprehensive application of descriptive statistical methods provides valuable insights into Pelican Stores' customer base during the promotional event. The high percentage of promotional customers reveals effective campaign outreach, while the distribution of payment methods validates the store’s loyalty program success. The cross-tabulation and scatter plot analyses confirm that promotions are associated with increased sales volumes and higher transaction values, particularly among certain demographic segments.

This analysis recommends continued emphasis on targeted promotions for high-value customer segments, enhancement of proprietary card incentives, and age-focused marketing efforts to further boost sales and customer loyalty. Future research should consider longitudinal data analysis to measure campaign effectiveness over time and integrate customer satisfaction metrics for a more holistic evaluation.

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