Segment the market for JCPenney and Nordstrom stores
1. Do general customers in the sample prefer more fashionable lifestyle (Life_fsh) than quality of the merchants (One_qual) they buy?
a. Write up your hypothesis for this question,
b. Select a tool to test the hypothesis (you may want to use the Select Case command to select cases for only one store if you want to compare to the population-eg to select JCPenney, use DataàSelect CasesàIf JCPenney > 2. We did not learn Select Case command in class before, so if you use the whole sample, it will be okay.) and,
c. Interpret the findings/output in words, particularly with respect to the null hypothesis and a managerial conclusion.
2. Is the average shopping frequency to Nordstrom about once or twice per year (µ = 2)?
a. Write up your hypothesis for this question,
b. Select a tool to test the hypothesis, and
c. Interpret the findings/output in words, particularly with respect to the null hypothesis and a managerial conclusion.
3. Segment the market for JCPenney and Nordstrom stores by describing either store’s target market respectively (or significant demographic, psychographic, or behavioral features of their frequent shoppers). Try to find as many significant features as possible.
a. Develop null and alternative hypotheses for each of your prediction (such as Null Hypothesis: “Nordstrom customers’ shopping frequency is independent of their hattitude toward quality”; Alternative Hypothesis: “Nordstrom customers’ shopping frequency is dependent of their attitude toward quality”).
b. Select appropriate tools (statistical tests) to test the hypotheses above,
c. Interpret the findings/output in words, particularly with respect to the null hypothesis and a managerial conclusion. (If you have a group of similar tests, you may summarize the overall findings and attach only one complete test result to the write-up).
d. Based on the findings, do you think the two stores are head-on competitors? Explain why.
e. Regarding the managerial implication of these analyses, create a value proposition statement or a tag line for the two stores-JCPenney and Nordstrom (based on your findings regarding customers’ demographic, psychographic, or behavioral features).
