Business decisions
Telco is a customer-oriented business that specializes in grocery products and services. It has over 30% market share in the US double their leading competitor’s market share. In order to effectively serve our customer and ensure continued business operations and profitability, the marketing executives are conducting a survey on the level of satisfaction in our customers. Telco provide grocery and baking services to its wide range of clientele. The clients make calls for home delivery services or drop by the stores to purchase their groceries and cakes. Over the years, Telco has served millions of households and continues to serve through provision of high quality products direct from the source and friendly customer service experience.
In this regard, the company seeks to determine the level of satisfaction of its clients. The exercise will deliver important results used to arrive at business critical decisions and service delivery. The questionnaire will be directed at regular and new customers at the store to determine their level of satisfaction of the products and services offered by the company. The marketing executives will use structured and non-structured questionnaires to source for data from the respondents.
Dear Contractor,
I am a marketing executive at Telco and I am researching on level of customer satisfaction in our products and services. As a result I need to collect data and opinions from shoppers and our product users on their effectiveness and customer experience at our stores. . Please help us by taking a few Minutes of your time to answer our questionnaire about your personal experience.
- Age
Less than 20 years
20- 40 years
Over 40 years
- Gender Male Female
- Which of the following do you think you fit. Tick as appropriate
- Regular shopper
- Daily
- Weekly
- Fortnight
- Monthly
- New shopper
- Comment on customer experience at the store and home delivery. How effective are our staff, products, services
- In your opinion what should we improve or do differently?
C) Sampling method
Random sampling method is preferred in the study. The sampling method used will gather data from all the shoppers in the stores and those calling for home deliveries. Information obtained will assist the managers implement tailor made services for particular groups.
d) Secondary sources of data
Additional data can be obtained from external sources. These include publications from government departments, recently published research papers and recent research statistics done in the company.
A)
The Mean and standard deviation have changed over time. Mean is a factor of frequency and the age group. Given that the frequency of different age groups changes after a period of seven years, the mean also changes.
Standard deviation represents the deviation from the mean. It has changed because when the smallest and largest terms changes towards the mean or otherwise, their deviations towards the average mean also changes.
C)
If the advertising budget of the ninth month is £37,000 then using the equation y = y=5119x + 253214 and y = 392.86x + 28107
Where y is the sales revenue
X is the number of months
5119 is the mean
And 253214 is the y intercept
Thus we have Sales revenue = 5119*9 + 253214
= £299285
d)
The tenth month advertising expenditure when the sales revenue is equivalent to £380,000 is calculated from the given equation
y = 392.86x + 28107
= 392.86*10 + 28107
= 3928.6+ 28107
32035.6
IRR is given by a NPV value of zero. NPV is given by
1/(1/(1+r)n) where n is the number of years.
Thus basing on 12.5% we get
Total = =100005.563 which is almost equal to 100000 initial investment.
Thus the IRR is approximately 12.5%
References
Anderson, D 2006, 'Chapter 13: Decision analysis, in Decision making, Cengage Learning, New
York.
Kramer, J 2012, 'Decision making process', Journal of Management, vol 6, no. 2, pp. 71-7
