Question

Pelican Stores

Pelican Stores, a division of National Clothing, is a chain of women’s apparel stores operating throughout the country. The chain recently ran a promotion in which discount coupons were sent to customers of other National Clothing stores. data collected for a sample of 100 in-store credit card transactions at Pelican Stores during one day while the promotion was running are contained in the file named PelicanStores. Table 2.19 shows a portion of the data set. The Proprietary Card method of payment refers to charges made using a National Clothing charge card. Customers who made a purchase 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 the promo- tional coupons were not sent to regular Pelican Stores customers, management considers the sales made to people presenting the promotional coupons as sales it would not other- wise make. Of course, Pelican also hopes that the promotional customers will continue to shop at its stores.

Most of the variables shown in Table 2.19 are self-explanatory, but two of the variables require some clarification.

- Items The total number of items purchased

- Net Sales The total amount ($) charged to the credit card

Pelican’s management would like to use this sample data to learn about its customer base and to evaluate the promotion involving discount coupons.

Managerial Report

Use the tabular and graphical methods of descriptive statistics to help management develop a customer profile and to evaluate the promotional campaign. At a minimum, your report should include the following:

1. Percent frequency distribution for key variables.

2. A bar chart or pie chart showing the number of customer purchases attributable to the method of payment.

3. A crosstabulation of type of customer (regular or promotional) versus net sales. Comment on any similarities or differences present.

4. A scatter diagram to explore the relationship between net sales and customer age.

Table 2.19

Customer	Type of Customer	Items	Net Sales	Method of Payment	Gender	Marital Status	Age
1	Regular	1	39.50	Discover	Male	Married	32
2	Promotional	1	102.40	Proprietary Card	Female	Married	36
3	Regular	1	22.50	Proprietary Card	Female	Married	32
4	Promotional	5	100.40	Proprietary Card	Female	Married	28
5	Regular	2	54.00	MasterCard	Female	Married	34
6	Regular	1	44.50	MasterCard	Female	Married	44
7	Promotional	2	78.00	Proprietary Card	Female	Married	30
8	Regular	1	22.50	Visa	Female	Married	40
9	Promotional	2	56.52	Proprietary Card	Female	Married	46
10	Regular	1	44.50	Proprietary Card	Female	Married	36
11	Regular	1	29.50	Proprietary Card	Female	Married	48
12	Promotional	1	31.60	Proprietary Card	Female	Married	40
13	Promotional	9	160.40	Visa	Female	Married	40
14	Promotional	2	64.50	Visa	Female	Married	46
15	Regular	1	49.50	Visa	Male	Single	24
16	Promotional	2	71.40	Proprietary Card	Male	Single	36
17	Promotional	3	94.00	Proprietary Card	Female	Single	22
18	Regular	3	54.50	Discover	Female	Married	40
19	Promotional	2	38.50	MasterCard	Female	Married	32
20	Promotional	6	44.80	Proprietary Card	Female	Married	56
21	Promotional	1	31.60	Proprietary Card	Female	Single	28
22	Promotional	4	70.82	Proprietary Card	Female	Married	38
23	Promotional	7	266.00	American Express	Female	Married	50
24	Regular	2	74.00	Proprietary Card	Female	Married	42
25	Promotional	2	39.50	Visa	Male	Married	48
26	Promotional	1	30.02	Proprietary Card	Female	Married	60
27	Regular	1	44.50	Proprietary Card	Female	Married	54
28	Promotional	5	192.80	Proprietary Card	Female	Single	42
29	Promotional	3	71.20	Proprietary Card	Female	Married	32
30	Promotional	1	18.00	Proprietary Card	Female	Married	70
31	Promotional	2	63.20	MasterCard	Female	Married	28
32	Regular	1	75.00	Proprietary Card	Female	Married	52
33	Promotional	3	63.20	Proprietary Card	Female	Married	44
34	Regular	1	40.00	Proprietary Card	Female	Married	34
35	Promotional	5	105.50	MasterCard	Female	Married	56
36	Regular	1	29.50	MasterCard	Male	Single	36
37	Regular	2	102.50	Visa	Female	Single	42
38	Promotional	6	117.50	Proprietary Card	Female	Married	50
39	Promotional	5	13.23	Proprietary Card	Female	Married	44
40	Regular	2	52.50	Proprietary Card	Female	Married	58
41	Promotional	13	198.80	Proprietary Card	Female	Married	42
42	Promotional	4	19.50	Visa	Female	Married	46
43	Regular	2	123.50	Proprietary Card	Female	Married	48
44	Promotional	1	62.40	Proprietary Card	Female	Married	54
45	Promotional	2	23.80	Proprietary Card	Female	Married	38
46	Promotional	2	39.60	Proprietary Card	Female	Married	60
47	Regular	1	25.00	MasterCard	Female	Married	46
48	Promotional	3	63.64	Proprietary Card	Female	Married	30
49	Promotional	1	14.82	Proprietary Card	Female	Married	32
50	Promotional	9	145.20	MasterCard	Female	Married	46
51	Promotional	6	176.62	Proprietary Card	Female	Married	38
52	Promotional	5	118.80	Proprietary Card	Male	Married	68
53	Regular	1	58.00	Discover	Female	Single	78
54	Regular	2	74.00	Visa	Female	Single	20
55	Regular	2	49.50	MasterCard	Female	Married	32
56	Promotional	3	141.60	Proprietary Card	Female	Married	38
57	Promotional	6	123.10	Proprietary Card	Female	Married	54
58	Promotional	2	80.40	Proprietary Card	Female	Married	48
59	Promotional	4	65.20	MasterCard	Female	Married	46
60	Promotional	4	113.00	Proprietary Card	Female	Single	50
61	Promotional	1	108.80	Proprietary Card	Female	Married	46
62	Promotional	3	59.91	Proprietary Card	Female	Single	30
63	Promotional	5	53.60	Proprietary Card	Female	Married	54
64	Promotional	1	31.60	Proprietary Card	Female	Single	42
65	Promotional	2	49.50	Proprietary Card	Female	Married	48
66	Promotional	1	39.60	Proprietary Card	Female	Married	62
67	Promotional	2	59.50	Proprietary Card	Female	Married	34
68	Promotional	5	146.80	Proprietary Card	Female	Married	28
69	Promotional	2	47.20	Proprietary Card	Male	Married	46
70	Promotional	8	95.05	Proprietary Card	Female	Married	54
71	Promotional	5	155.32	Proprietary Card	Female	Married	30
72	Promotional	4	58.00	MasterCard	Female	Married	32
73	Regular	1	69.00	Proprietary Card	Female	Single	22
74	Promotional	2	46.50	Proprietary Card	Female	Married	32
75	Promotional	2	45.22	Proprietary Card	Female	Married	74
76	Promotional	4	84.74	Proprietary Card	Female	Married	62
77	Regular	2	39.00	Proprietary Card	Female	Married	42
78	Promotional	4	111.14	Proprietary Card	Female	Married	28
79	Promotional	3	86.80	Proprietary Card	Female	Married	38
80	Regular	2	89.00	Discover	Female	Married	54
81	Promotional	2	78.00	MasterCard	Female	Married	68
82	Promotional	6	53.20	Proprietary Card	Female	Single	30
83	Promotional	4	58.50	Visa	Female	Married	36
84	Promotional	3	46.00	Proprietary Card	Female	Married	44
85	Regular	2	37.50	Visa	Female	Married	44
86	Promotional	1	20.80	Proprietary Card	Female	Married	62
87	Regular	6	144.00	MasterCard	Female	Single	48
88	Regular	4	107.00	Proprietary Card	Female	Married	36
89	Promotional	1	31.60	Proprietary Card	Female	Single	20
90	Promotional	6	57.60	Proprietary Card	Female	Married	42
91	Promotional	4	95.20	Proprietary Card	Female	Married	54
92	Promotional	1	22.42	Proprietary Card	Female	Married	54
93	Regular	5	159.75	Proprietary Card	Female	Married	72
94	Promotional	17	229.50	Proprietary Card	Female	Married	30
95	Regular	3	66.00	American Express	Female	Married	46
96	Regular	1	39.50	MasterCard	Female	Married	44
97	Promotional	9	253.00	Proprietary Card	Female	Married	30
98	Promotional	10	287.59	Proprietary Card	Female	Married	52
99	Promotional	2	47.60	Proprietary Card	Female	Married	30
100	Promotional	1	28.44	Proprietary Card	Female	Married	44

Answer 1

Solution:

a)

b) The most Net sales was done by Propreiter card and least by American express card.

c) The promotion is successful because the net sales for promotional was 70 as compared to 30 for the regular costumer.

d) The correlation between age and net sales is = - 0.010636, Correlation between age and net sales is nearly zero we can say that there is no linear relationship between them.