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Econ Report 2012 s1

Econ Report 2012 s1

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Published by Leon W Li
UNSW Econ1203 Project, marked 18.5/20
UNSW Econ1203 Project, marked 18.5/20

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Published by: Leon W Li on May 19, 2013
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Statistical Report: CPResorts Forster

D y n a m i c Courtney Moses E c o n o m e t r i c C o n s u l t i n g (z3373503) S e r v i c e s ( D E C S ) A statistical report that evaluate the S u b j e c t : effectiveness of the marketing campaign to E C O N 1 2 0 3 promote the newly established CPResorts M a y 2 0 1 1 Forster.

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Courtney Moses (z3373503) – ECON1203

2 Courtney Moses (z3373503) – ECON1203 .1. This demonstrates how the marketing campaign has succeeded in positioning the resort as an ‘upmarket’ family friendly facility. the marketing campaign has been successful in attracting the target market to the resort. However. The typical customer that has stayed at the resort is middle aged. Based on the sample data of 200 customers that have made bookings at the resort within the past year. The failure to meet this requirement suggests that a review is to be undertaken strategies and policies to achieve this level of expenditure. Whilst the majority of customers stay for a week of more the average customer spends significantly less than $260 per day in excess of accommodation costs. with older children and is earning a substantially high income. the marketing campaign has been successful in achieving one of the two Key Performance Indicators (KPI’s) of the resort. EXECUTIVE SUMMARY The following report is a statistical analysis of the effectiveness of the recent marketing campaign that has promoted the newly established CPResorts Forster facility.

Executive Summary Table of Contents Introduction Type of Customer 4. Income 4. Average 6.1. 3.1. Age 2 3 4 4 4 4 5 6 6 7 8 in the Booking Party 5.3.2. 4. Key Performance Indicators 5. Number 4. TABLE OF CONTENTS Page Number 1. Recommendations 3 Courtney Moses (z3373503) – ECON1203 .2. Average Nights Stayed Expenditure 5. 2.2.

This is confirmed by the sample data. Key demographic features from the sample have been analysed to provide a univariate analysis of the following three key characteristics. Therefore. 2. 4. as people with larger incomes have a greater proportion of disposable income to spend on discretionary activities. number of people in the booking party and customer expenditure on resort facilities available.000 spend $1454. INCOME Annual family income is an important characteristic as it is a determining factor influencing the amount of nights stayed.2. a popular holiday destination on the mid-north coast of New South Wales. NUMBER IN BOOKING PARTY Figure 1 This pie chart displays the family income from a sample of 200 customers based on the two categories of earning below or above $80. TYPE OF CUSTOMER An integral component to the success of CPResorts Forster is an understanding of the type of customer that has been attracted to the resort. The number of guests in each booking party is another statistic which displays the type of customer as the aim of the marketing campaign is to attract families to 4 Courtney Moses (z3373503) – ECON1203 . which is approximately three times as much. To evaluate the effectiveness of this campaign it is important to statistically analyse of the type of customer that has been attracted as well as analyzing the performance of the resort through measuring the degree to which the Key Performance Indicators (KPI’s) have been achieved. As shown in figure 1.000 per year.1.000 per year. INTRODUCTION CPResorts is a successful resort chain that has established a new facility in Forster.1. 69% of customers have a family income that exceeds $80. The company has invested a large amount of money into a marketing campaign in order to promote and attract the newly established resort. 4. This is also pivotal to consumer expenditure. it can be inferred that the promotional efforts to position the resort as an ‘upmarket’ facility have been successful as the majority of customers who have chosen to stay at the resort within the past year earn relatively high incomes. as the average total expenditure of low income earners is $525 whilst those earning above $80.

As shown in table 1. which is positively skewed indicating that the majority of the ages of those booking accommodation are middle aged.the resort. it has become apparent that the resort has attracted a middle aged customer base. Number of People Frequency Relative Frequency Cumulative Relative Frequency 0% 34% 46% 80% 90% 100% 1 2 3 4 5 6 TOTAL 0 67 24 69 20 20 200 0% 34% 12% 35% 10% 10% 100% Whilst there are a relatively large number of couples booking accommodation at the resort. 4. according to the above definition of families. Through a statistical analysis. which are bookings with 2 or 4 people in the party. the median age group is 46 to 50 years old and 50. The table also displays that approximately 66% of bookings contained 3 or more people in the booking party. This corresponds to Figure 2. Table 2: A cumulative relative frequency table displaying the number of people in the booking party based on sample data from bookings made within the past 12 months. there are two relatively large booking numbers.3. As a result. represented by 35% of bookings. below. whilst 4 people was the modal class and marginally larger. AGE Age is another demographic feature that is useful in revealing whether the marketing campaign has succeeded in achieving the objective of attracting a certain type of family to stay at the resort. this can potentially translate to families with older children choosing to stay at the resort. revealing that 34% of people were in a party of 2. As displayed by table 2. it can be inferred that the majority of those choosing to stay at CPResorts Forster are families. The sample data displays that these numbers are relatively close. Therefore the marketing campaign can be deemed successful in terms of attracting families to stay at the newly established resort. which can be inferred to be represented by a number of 3 or more guests. 5 Courtney Moses (z3373503) – ECON1203 .5% of customers are aged between 46 and 65 years old.

AVERAGE NIGHTS STAYED Figure 3: A normal distribution of the sample proportion with hypothesised mean of 0.44. 6 Courtney Moses (z3373503) – ECON1203 .50% 93.60 61 .00% 100.30 31 .00% Table 1: The distribution from the sample of the ages of the person who booked to stay at CPResorts Forster within the past year 25 .50 51 . firstly that ‘more than 50% of customers stay for a full week (i.’ 5.65 Total Figure 2: A Histogram displaying the frequency of age groups booking accommodation at CPResorts Forster within the previous 12 months. descriptive statistics have revealed that the type of customer that is choosing to stay at the Forster resort is older families that are earning a substantially high income.1. KEY PERFORMANCE INDICATORS As stated in the business plan.e. management aim to meet two KPI’s.55 56 .50% 30.50% 82.00% 49.40 41 .50% 13. Overall. seven nights)’ and secondly hat ‘the average customer spends more than $260 per day in excess of accommodation costs. 3.50% 66. This fulfills the marketing campaign objectives by successfully positioning the resort as an “upmarket” facility that appeals to families.35 36 .50% 100.45 46 .Age Frequenc y 7 20 33 39 34 32 22 13 200 Cumulativ e% 3. constituting a critical value of 0.5 and a 5% rejection region.

6103.2. the large sample size will mean that the sample distribution will be approximately normal according to the central limit theorem.5). shown in figure 4a). Therefore. 5. Conclusively. As seen in figure 4b). As a result. AVERAGE EXPENDITURE In order to infer whether the average spending per day is greater than $260. It is assumed that although it unknown whether the population is normally distributed.5). The null hypothesis is that 50% of customers stay for a full week (H0 = p = 0.51. there is not enough statistical evidence to reject the null hypothesis in favour of the alternative hypothesis.44 and constitutes a p-value of 0. there is enough statistical evidence to infer that the null hypothesis should be rejected in favour of the alternative hypothesis. is much greater than the critical value of 0. a one tailed hypothesis test on the sample proportion has been used as an inferential method to analyse whether the first KPI is being achieved. Figure 3 illustrates that the sample proportion. the standardized sample mean falls within the rejection region of 5% and has a p-value of 0. whilst the alternative hypothesis is that less than 50% of customers stay for 7 nights (H1 = p < 0. 0. The null hypothesis is that the average spending above accommodation costs is $260 per customer (H0 = µ = 260) whilst the alternative hypothesis is that the average customer spends less than $260 per day in excess of accommodation costs (H1 = µ < 260). more than 50% customers stay for a full week at the resort which successfully meets the target established by the KPI. the sample mean expenditure of $239 per day is significantly less than the lower control limit of $254 per day.Using sample data. it can be stated that the average customer is not spending more than $260 per day in excess of accommodation costs and thus this KPI is not being achieved. 7 Courtney Moses (z3373503) – ECON1203 . a one tailed hypothesis test has been conducted using the sample data. Therfore. Removing the effects of standardization.

05. It is recommended that management review the pricing policies of the facilities at the resort in order to achieve this target and attain prosperous success.Figure 4: Two normal distributions with a rejection region of 0. Whilst the majority of customers earn a substantial income and therefore have a larger proportion of discretionary income. 4. 8 Courtney Moses (z3373503) – ECON1203 . showing the unstandardized and standardized sample data relating the daily expenditure of customers in excess of accommodation costs. data has shown that they are not spending $260 per day in excess of accommodation cost. RECOMMENDATIONS The statistical analysis of the type of customer and KPI’s of the newly established CPResorts Forster has revealed that whilst the marketing campaign has been successful in attracting the target market to stay for a full week it has not resulted in the achievement of the second KPI.

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