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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.
Courtney Moses (z3373503) – ECON1203
the marketing campaign has been successful in attracting the target market to the resort. The typical customer that has stayed at the resort is middle aged. This demonstrates how the marketing campaign has succeeded in positioning the resort as an ‘upmarket’ family friendly facility. with older children and is earning a substantially high income. 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.1. 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. The failure to meet this requirement suggests that a review is to be undertaken strategies and policies to achieve this level of expenditure. the marketing campaign has been successful in achieving one of the two Key Performance Indicators (KPI’s) of the resort. 2 Courtney Moses (z3373503) – ECON1203 . However. Based on the sample data of 200 customers that have made bookings at the resort within the past year.
Number 4.1. Executive Summary Table of Contents Introduction Type of Customer 4. Income 4.2. Average 6. 2.2. Key Performance Indicators 5. TABLE OF CONTENTS Page Number 1. Age 2 3 4 4 4 4 5 6 6 7 8 in the Booking Party 5. 3.3. Recommendations 3 Courtney Moses (z3373503) – ECON1203 .1. 4. Average Nights Stayed Expenditure 5.2.
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.000 spend $1454. 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 $80.000 per year. This is confirmed by the sample data. As shown in figure 1. as people with larger incomes have a greater proportion of disposable income to spend on discretionary activities. Therefore.1.1. 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.2. The company has invested a large amount of money into a marketing campaign in order to promote and attract the newly established resort. 2. 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 . Key demographic features from the sample have been analysed to provide a univariate analysis of the following three key characteristics. 69% of customers have a family income that exceeds $80. which is approximately three times as much. as the average total expenditure of low income earners is $525 whilst those earning above $80. 4. 4. INTRODUCTION CPResorts is a successful resort chain that has established a new facility in Forster. This is also pivotal to consumer expenditure.000 per year. a popular holiday destination on the mid-north coast of New South Wales. 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. INCOME Annual family income is an important characteristic as it is a determining factor influencing the amount of nights stayed. number of people in the booking party and customer expenditure on resort facilities available.
revealing that 34% of people were in a party of 2. represented by 35% of bookings. 5 Courtney Moses (z3373503) – ECON1203 . 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. which are bookings with 2 or 4 people in the party. below.5% of customers are aged between 46 and 65 years old. this can potentially translate to families with older children choosing to stay at the resort. the median age group is 46 to 50 years old and 50. This corresponds to Figure 2.the resort. The sample data displays that these numbers are relatively close. whilst 4 people was the modal class and marginally larger. Therefore the marketing campaign can be deemed successful in terms of attracting families to stay at the newly established resort. As displayed by table 2. which can be inferred to be represented by a number of 3 or more guests. Through a statistical analysis. it can be inferred that the majority of those choosing to stay at CPResorts Forster are families. it has become apparent that the resort has attracted a middle aged customer base. which is positively skewed indicating that the majority of the ages of those booking accommodation are middle aged.3. 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. As shown in table 1. The table also displays that approximately 66% of bookings contained 3 or more people in the booking party. As a result. 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. according to the above definition of families. there are two relatively large booking numbers. 4.
44.00% 49. seven nights)’ and secondly hat ‘the average customer spends more than $260 per day in excess of accommodation costs. 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. KEY PERFORMANCE INDICATORS As stated in the business plan.5 and a 5% rejection region.’ 5. 6 Courtney Moses (z3373503) – ECON1203 .Age Frequenc y 7 20 33 39 34 32 22 13 200 Cumulativ e% 3. This fulfills the marketing campaign objectives by successfully positioning the resort as an “upmarket” facility that appeals to families.60 61 .30 31 .50% 66.50% 13.50% 30.50% 93. 3.50% 100.e.50% 82.35 36 .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 .1.00% 100. Overall.45 46 .50 51 . AVERAGE NIGHTS STAYED Figure 3: A normal distribution of the sample proportion with hypothesised mean of 0. firstly that ‘more than 50% of customers stay for a full week (i.40 41 . constituting a critical value of 0.55 56 . management aim to meet two KPI’s.65 Total Figure 2: A Histogram displaying the frequency of age groups booking accommodation at CPResorts Forster within the previous 12 months.
5. there is not enough statistical evidence to reject the null hypothesis in favour of the alternative hypothesis. Therfore. 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. 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. As seen in figure 4b). more than 50% customers stay for a full week at the resort which successfully meets the target established by the KPI. a one tailed hypothesis test has been conducted using the sample data.44 and constitutes a p-value of 0. It is assumed that although it unknown whether the population is normally distributed.51. Therefore. 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). Figure 3 illustrates that the sample proportion. As a result. The null hypothesis is that 50% of customers stay for a full week (H0 = p = 0. there is enough statistical evidence to infer that the null hypothesis should be rejected in favour of the alternative hypothesis. the standardized sample mean falls within the rejection region of 5% and has a p-value of 0.5). shown in figure 4a). Removing the effects of standardization. whilst the alternative hypothesis is that less than 50% of customers stay for 7 nights (H1 = p < 0. 0.5). the sample mean expenditure of $239 per day is significantly less than the lower control limit of $254 per day. the large sample size will mean that the sample distribution will be approximately normal according to the central limit theorem. Conclusively.Using sample data. 7 Courtney Moses (z3373503) – ECON1203 .6103.2. AVERAGE EXPENDITURE In order to infer whether the average spending per day is greater than $260. is much greater than the critical value of 0.
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. 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 0.05. Whilst the majority of customers earn a substantial income and therefore have a larger proportion of discretionary income. showing the unstandardized and standardized sample data relating the daily expenditure of customers in excess of accommodation costs. 8 Courtney Moses (z3373503) – ECON1203 . 4.
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