This case study analyzes the price differentiation by brands, state, and locations in Cunningham Holdings. It also examines the price differentiation between different accommodation brands and locations.
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AnalyticalcasestudyofCunningham Holdings
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Table of Contents Issue 1 current average price of differentiation by brands, state and locations...........................2 Issue 2 Price differentiation exist between price and brands.......................................................3 Issue 3: Price differentiation exist between state and brands......................................................4 Issue 4 Price differentiation between location and accommodation brands................................4 Issue 5..........................................................................................................................................5 APPENDIX......................................................................................................................................6 Issue 2..........................................................................................................................................6 Issue 3..........................................................................................................................................7 Issue 4..........................................................................................................................................8 Issue 5........................................................................................................................................10
Overview The current study is based upon the Cunninghm Holdings which is a diversified family owned business and it also focus on the sustainable products and services which is underpinned by the have a global business perspective and build leadership and management skills that helps to meet the define aim. For that the study will analyse the 5 issues through which the company determine the new price of its accommodation facilities. Therefore, current study will help to determine the current average price of accommodation as per brands, states and locations. Further, study will analyze price differentiation exist between the state, location and comfort brand with accommodation brands. Issue 1 current average price of differentiation by brands, state and locations ParticularsAverage of Price Resort200.2704167 Cottage202.65625 Classic201.4627083 Grand Total201.463125 Row LabelsAverage of Price NSW201.02375 QLD202.196875 VIC201.16875 Grand Total201.463125 Row LabelsAverage of Price Metropolitan Cities201.5591667 Regional Cities201.3670833 Grand Total201.463125 Interpretation:From the above, it is analyzed that the average price of all the i.e. Brand, comfort and location is $201.463 such that average price of the accommodation by brand, stated andlocationisnotvaries.Fromtheabovetable,itisinterpretedthatbyusingexcel, accommodation price of all the areas is similar and that is why, the price is nit varies as per the availability and it is fixed i.e. 201. 46 in dollars.
Issue 2 Price differentiation exist between price and brands ParticularsPrice of resortPrice of CottagePrice of Classic Price of resort10.270.24 Price of Cottage0.2710.49 Price of Classic0.240.491 Descriptive statistics ParticularsResortCottageClassic Mean200.2704202.6563201.4627 Standard Error0.3935410.4459790.48986 Median199.55202.695200.995 Mode199.18198.43#N/A Standard Deviation2.726533.089833.393848 Sample Variance7.4339669.54704911.5182 Kurtosis0.8605470.692926-0.20077 Skewness0.780740.766590.638174 Range12.0112.9413.54 Minimum195197.63196.11 Maximum207.01210.57209.65 Sum9612.989727.59670.21 Count484848 ANOVA Source of VariationSSdfMSFP-valueF crit Rows734.734715.632632.8775480.0002121.623755 Columns34.19134.1896.2932780.0156284.0471 Error255.33475.432622 Total1024.25695 Interpretation:As per the above, it is interpreted that the significant value is 0.0002 which is below from 0.05 and as a result, there is a different between the factors. Such that customers
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analysed that price is changes as per the brands. For instance, when a customer prefer to stay in a resort, then they have to pay high value as compared to others two. While on the other side, when customer stay in cottage then they pay lower amount as compared to resort, further those who stay in classic then they pay minimum amount. Thus this Anova test is also shows that there is a significant difference between the price and accommodation brands Issue 3: Price differentiation exist between state and brands Anova: Single Factor SUMMARY GroupsCountSumAverageVariance NSW489649.14201.02389.708803 QLD489705.45202.196911.96402 VIC489656.1201.16888.897547 ANOVA Source of VariationSSdfMSFP-valueF crit Between Groups39.26861219.634311.9267980.1494283.060292 Within Groups1436.80714110.19012 Total1476.076143 Interpretation:As per the above it is interpreted by the Anova table, that there is no statistical difference between the price and state because the significant value is 0.14 which is above off 0.05. As a result, it is stated that the price of the accommodation did not changes as per the state and it is possible only if the state have rich location then the price did not affect due to state . Issue 4 Price differentiation between location and accommodation brands Anova: Single Factor SUMMARY GroupsCountSumAverageVariance Metropolitan Cities7214512.26201.559211.25642 Regional Cities7214498.43201.36719.514677 ANOVA
Source of VariationSSdfMSFP-valueF crit Between Groups1.32825611.3282560.1278950.7211563.907782 Within Groups1474.74814210.38555 Total1476.076143 Interpretation:According to the above, it is interpreted that by applying the anova test in order to determine the interdependencies between two factors, it is analyzed that the significant factor value is 0.72 which means that there is no statistical difference between state and price. It is so because the value is above 0.05 and that is why, it shows no relationship between these. Therefore, it can be stated that price did not depend upon the location for instance when a guest wants to stay in Metropolitan cities or regional cities, then it has to pay the similar amount but itr does depend upon the brand which they prefer. Issue 5