Question

A café introduces hot pies to their menu. The manager observes that after the introduction of hot pies sales of coffee also increased. What issues should a manager consider in order to determine the likelihood that the introduction of pies has led to increased coffee sales? (discuss your answer by thinking about does this issue possibly show an independent and dependent variable relationship)

Answer 1

Based on the question mentioned above, we note that there a cafe has introduced hot pies to their menu. The introduction of the hot pies has also resulted in the increase in the sales of coffe significantly.

The following are few of the reasons why this might have happened :-

a.) People would have constantly been attracted to the taste of hot pies. Because of the quality and taste of the hot pies presented, more people would have been visiting the restaurant than the usual number of visitors and as such gradually, the sales of coffee would have increased ;

b.) People visiting the restaurant might have liked the combination of hot pies and coffee. If they feel that both of them complement each other, it might have resulted an increase in sales. Lets say for example :- You visit a cafe to try out the pies in there. However, as a side to it, you wanted something to drink and would want to try their coffee available. It immediatly tricks your taste buds and you order a cup of coffee and you find the combo heavenly.

c.) The restaurant might have offered a combo wherein a person who buys a hot pie and coffe receive some discount if bought as a combo on their purchase. Because of the flexibility to taste two items and also for the fact there are some discounts provided, it might tempt the customers to order for a combo(that includes coffee) which might have ultimately resulted in the increased number of sales in coffee.

The concept of Independent and dependent variable relationship can be easily explained/understood here through this process. While the independent variable would be the sales of coffee, the dependent variable would the sales of hot pies. There is a clear relationship between the hot pies and coffee as there has been a considerable increase because of the introduction of hot pies.

As can be seen in the above explanations,we have tried to reason out the causes for which the manager was able to observe an increase in the sales of coffee. The above list is a suggestive list of reasons which might lead to the explanation of the increase in sales for coffee, but might vary business to business scenarios like reduction of prices, better service provided , etc.