MGMT 600 Unit 4 IP: Analyzing Chicago Market for Big D Expansion

This report analyzes Big D's potential expansion into the Chicago market, evaluating the influence of the Coronavirus on key variables and employing correlation analysis to understand relationships between factors like indoor sporting events, demographics, and income. The study explores the application of multivariate techniques, sampling methodologies, and business intelligence to inform managerial decisions. It also delves into the impact of the pandemic on strategic choices, particularly concerning the viability of indoor sporting facilities and the potential for a high demographic of younger target markets. Additionally, the report provides insights into how Big D can leverage data analysis for effective decision-making, including recommendations based on population and income analysis. The document also includes a discussion on the difference between nominal and ordinal data, interval and ratio data, and three qualitative attributes of sporting goods. The goal is to provide a comprehensive overview of the market expansion strategy and the factors influencing its success.

Running head: APPLIED MANAGERIAL MARKETING 1
Applied Managerial Marketing
Brandon Berzas
MGMT 600 Unit 4 IP
Dr. Smith
March 27, 2020

APPLIED MANAGERIAL MARKETING 2
Variable A Variable B
Correlation:
positive,
negative, minimal?
Number of indoor
basketball leagues in
demographic area
Three college
basketball teams and one
NBA team in region to
spark interest.
Positive
High
demographic of younger
target market.
Lack of any indoor
sporting facilities. Negative
High number of
indoor sporting facilities.
Extremely warm
geographic area. Minimal
Rural geographic
setting.
High-income
geographic area. Negative
The focus of this study is to evaluate if the Big D sporting form should expand int
operations into Chicago. Also, will evaluate how the impact of Corona virus will affect the
variables and how this impact will be transferred to other variables based on the correlation
analysis.. In the past lessons, the concentration was on data collections which were applied to
evaluate the opinions and ideas of the consumers. For instance, Big D did conduct a study in
Chicago geographic area to evaluate whether the consumers in the location prefer indoor or
outdoor sporting events. In the subsequent paragraphs the correlation between a number of
variables will be discussed as well as the impact that corona virus will have on the strategic
decisions to be adhered to by Big D management.
The chart presented above shows whether two variables have a positive, negative or
minimal correlation. Positive correlation occurs when movements between two variables goes in

APPLIED MANAGERIAL MARKETING 3
the same direction. That is to say should a decrease/ increase be experienced by one variable the
corresponding variable will also experience similar trend. On the other hand, minimal correlation
occurs when there is little association between two variables in that one rarely interferes with the
other (Wong, Olafsson, & Liu, 2012). Negative correlation is present when one variable
increases as the other decreases.
In the chart presented above, we observe that the number of indoor basket leagues are
positively correlated to the three college basketball teams and one NBA team. This indicates the
impact that the Chicago area basketball have will be related to indoor activities of three college
basketball teams and one NBA sporting. Due to the positive correlation, the Corona outbreak
interference with the NB and the college basketball will have a similar negative impact on the
indoor basketball games in the identified region. Due to the Corona virus outbreak, the college
basketball as well as the NBA cannot be held, this thereby cut down the number of indoor
basketball games explaining the concept of positive correlation.
One instance of negative correlation is the relationship between the high demographic of
younger target market as a result of lack of indoor sporting events. This shows that lack of indoor
sporting facility will result in a high demographic younger target market (Shahin & Janatyan,
2011). As the Corona virus keep restricting the activities of Big D, indoor sporting facilities are
continuously limited. Due to these developments, the high demographic of younger target market
will be impacted positively.
Another explanation of negative correlation is given by looking at the two variables; rural
geographic setting and high-income geographic area. Rural geographic setting does have
negative impact on the income generated by the Big D activities hence its negatively correlated
to the variable high-income geographic area. Corona virus will have an impact in the general
income of an area as well as on the revenue generated by the Big D.
One instance that explains minimal correlation is the association between high number of
indoor sporting facilities and the extreme warm geographic location. This explains that the high
number of indoor sporting are not affected by the extremely warm temperature in the locality..
Since sporting activities are limited by the spreading of corona virus they will be negatively
impacted in the short term as the virus continue taking shape (Khan, et al., 2020). Since the two
variables have minimal correlation, an impact on one variable will not be experienced on the

APPLIED MANAGERIAL MARKETING 4
other variable. i.e. reducing the number of sporting facilities due to corona outbreak will have no
impact on extreme warm geographic area.
To apply correlation to identify the variable that are significant in making the expansion
of Big D activities by the managers, we can apply the correlation coefficient. This is a variable
that is commonly used to gauge linear correlation between variables. The relation may be
negative, positive or minimal hence showing how investment in one variable will impact the
other. Big D should apply correlation coefficient together with the firm’s production and demand
projections to moderate the indoor sporting especially taking into account the Corona virus
influence in human interaction and economy in general.

APPLIED MANAGERIAL MARKETING 5
References
Khan, N., Hassan, A. U., Fahad, S. & Naushad, M., 2020. Factors Affecting Tourism
Industry and Its Impacts on Global Economy of the World. [Online]
Available at: https://ssrn.com/abstract=3559353
[Accessed 27 March 2020].
Shahin, A., & Janatyan, N. (2011). Estimation of customer dissatisfaction based on
service quality gaps by correlation and regression analysis in a travel
agency. International Journal of Business and Management, 6(3), 99.
Wong, C. W., Olafsson, V., Tal, O., & Liu, T. T. (2012). Anti-correlated networks, global
signal regression, and the effects of caffeine in resting-state functional
MRI. Neuroimage, 63(1), 356-364.