(1) With a desired final sample size of 250 for each region, what is the lowest total number of telephone numbers that should be purchased for each region? (2) With a desired final sample size of 250 for each region, what is the highest total number of telephone numbers that should be purchased for each region? (3) What is the lowest and highest t
Target is a major retail store chain specializing in good quality merchandise and good values for
its customers. Currently, Target operates about 1,700 stores, including more than 200 “Super
Targets” in major metropolitan areas in 48 states. One of the core marketing strategies employed
by Target is to ensure that shoppers have a special experience every time they shop at Target. This
special shopping experience is enhanced by Target’s “intuitive” department arrangements. For
example, toys are next to sporting goods. Another shopping experience feature is the “racetrack”
or extra wide centre aisle that helps shoppers navigate the store easily and quickly. A third feature
is the aesthetic appearance of its shelves, product displays, and seasonal specials. Naturally, Target
continuously monitors the opinions and satisfaction levels of its customers, because competitors
are constantly trying to outperform Target and customer preferences can change.
Target management has committed to an annual survey of 1,000 customers to provide a constant
tracking and forecasting system of customers’ opinions. The survey will include customers of
Target’s competitors such as Walmart, Kmart, and Sears. In other words, the population under
study is made up of consumers who shop in mass merchandise stores in Target’s geographic
markets. The
by a national data collection company, and he is currently working with Survey Sampling, Inc.
(SSI) to purchase the telephone numbers of consumers residing in Target’s metropolitan target
markets. SSI personnel have informed him of the basic formula they use to determine the number
of telephone numbers needed. The formula is as follows:
Telephone numbers needed = completed interviews/ (working phone rate x incidence x
completion rate)
where
working phone rate = per cent of telephone numbers that are “live”
incidence = percentage of those reached that will take part in the survey
completion rate = percentage of those willing to take part in the survey that will actually
complete the survey
-
As a matter of convenience, Target identifies four different regions that are roughly equal in sales
volume: North, South, East, and West.
Questions
(1) With a desired final sample size of 250 for each region, what is the lowest total number of
telephone numbers that should be purchased for each region?
(2) With a desired final sample size of 250 for each region, what is the highest total number
of telephone numbers that should be purchased for each region?
(3) What is the lowest and highest t
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
