Analysis of Customer Data for Retail Surge: Business Statistics

Business statistics
Business analytics and statistics
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Business statistics
Table of Contents
1.0 Introduction...........................................................................................................................................3
2.0 Problem definition.................................................................................................................................3
3.0 Analysis and results...............................................................................................................................5
3.1 Which product categories are making the most profit?....................................................................5
3.2 Which product category costs the most (COGS)?..............................................................................6
3.3 Is there a difference in payments methods?.....................................................................................7
3.4 Are there any differences in the user groups on all of the customer attitudes? (6 outcomes)..........7
3.5 Test for the difference in means of user groups between different customer attitudes.................11
3.6 Are there any differences in gender on all of the customer attitudes? (6 outcomes).....................15
4.0 Discussion and recommendation.........................................................................................................20
Reference...................................................................................................................................................21
Appendix...................................................................................................................................................22
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1.0 Introduction
Technological advancement in the field of business coupled by global inflation has made
business world to be a ground of competition. Many companies in various industries which
have not been able to keep up with the competition in the market have been forced to collapse.
For this reason, majority of businesses have strove to embrace various technological
advancements which have made business operations easier. For example in tours and travel
industry, customers are now able to book their tickets online at the comfort of their couches
instead of appearing physically in the offices. Such kind is what technology can do. It also
enables the company to understand the market better by analysing customer centric data. Retail
Surge, an online company, deals in clothes and shoes for both men and women. It has also
been experiencing a down surge in revenues in due to global dynamics in the market. For this
reason, the business collected customer data to be analysed so as to be able to better understand
the market and their customers.
2.0 Problem definition
 The product category is made the most profit
A graph was used to present the products and their profits. This descriptive was employed since
it is visual thus easy to interpret.
 Product category that cost the most
A graph was used to present the products at Retail Surge and their costs. This descriptive was
employed since it is visual thus easy to interpret.
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 Is there a difference in payment methods?
Independent sample t-test was used in this test because there were only two independent
variables that were being compared (PayPal and credit card).
 Are there any differences in the user groups on all of the customer attitudes? (6
outcomes)
Analysis of variance (ANOVA) was used in this test because there were more than two variables
that were being compared. These were light, medium and heavy users customers at Retail Surge.
 Are there any differences in gender on all of the customer attitudes?
Independent sample t-test was used in this test because there were only two independent
variables that were being compared (males and females).
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3.0 Analysis and results
3.1 Which product categories are making the most profit?
Figure 1
It can be observed from the results in the bar graph above that customised products are doing
well in terms of profit. The mean total profit foe customized products was 25 dollars. The
men’s shoes followed with a mean total profit of 16 dollars while the third product was girls’
shoes that made a mean total profit of 7 dollars.
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3.2 Which product category costs the most (COGS)?
Figure 2
It can be observed from the results in the bar graph above that customised products are doing
well in terms of mean cost of goods. The mean cost of goods for customized products was
about 10 dollars. The girls’ shoes followed with a mean cost of goods of 8 dollars while the
third product was women’s shoes that made a mean cost of goods of 5 dollars.
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