Managerial Economics and Globalization Eco 550
Making Decisions Based on Demand and Forecasting
Week 3 Assignment
Managerial Economics and Globalization ECO 550
May 9, 2013
Making Decisions Based on Demand and Forecasting
Report the demographic and independent variables that are relevant to complete a demand analysis providing a rationale for the selection of the variables.
As the Marketing and Public Relations Manager for my community, I am conducting research about the demographics of our community. My research will be based on demand and forecasting about the demographics of Darlington, SC. This research is the direct result of Domino Pizza’s’ interest in entering the marketplace in our community. Conducting this demand analysis and forecast for pizza will aid in the decision as to whether or not Domino’s should establish a presence in our community.
There are many variables relevant to a company’s major business decisions and success. Independent variables or experimental variables as they are sometimes called is the variable being manipulated in the experiment to show the effect on the dependent variable. The dependent variable also known as the response variable is the variable being observed in the experiment. A change in the independent variable is what causes the change if any in the dependent variable, which is the purpose of the experiment. Marketing departments use demographic variables like income level, gender, location, race, and family size, as an important input when formulating target customer profiles.
Research for the demographics in this report were taken from the 2012 United States Census Bureau for Darlington, South Carolina and include average yearly income, total population and number of people per household. The remaining variables for this report include pizza and soda costs. The data for this report is as follows; population: 68,139, number of people per household: 2.56, average income per household: $38,567, price large meat lovers pizza -feeds approx. 3-4 people:
Week 3 Assignment
Managerial Economics and Globalization ECO 550
May 9, 2013
Making Decisions Based on Demand and Forecasting
Report the demographic and independent variables that are relevant to complete a demand analysis providing a rationale for the selection of the variables.
As the Marketing and Public Relations Manager for my community, I am conducting research about the demographics of our community. My research will be based on demand and forecasting about the demographics of Darlington, SC. This research is the direct result of Domino Pizza’s’ interest in entering the marketplace in our community. Conducting this demand analysis and forecast for pizza will aid in the decision as to whether or not Domino’s should establish a presence in our community.
There are many variables relevant to a company’s major business decisions and success. Independent variables or experimental variables as they are sometimes called is the variable being manipulated in the experiment to show the effect on the dependent variable. The dependent variable also known as the response variable is the variable being observed in the experiment. A change in the independent variable is what causes the change if any in the dependent variable, which is the purpose of the experiment. Marketing departments use demographic variables like income level, gender, location, race, and family size, as an important input when formulating target customer profiles.
Research for the demographics in this report were taken from the 2012 United States Census Bureau for Darlington, South Carolina and include average yearly income, total population and number of people per household. The remaining variables for this report include pizza and soda costs. The data for this report is as follows; population: 68,139, number of people per household: 2.56, average income per household: $38,567, price large meat lovers pizza -feeds approx. 3-4 people:
References: (2013, May 1). Retrieved from Pizza Hut: http://www.pizzahut.com/ Henderson, b. D. (2008). Demand. Retrieved from Library of Economics & Liberty: http://www.econlib.org/library/Enc/Demand.html Mahvish Zehra, e. C. (n.d.). How to Calculate Coefficient of Determination. Retrieved from eHow mom: http://www.ehow.com/how_6399202_calculate-coefficient-determination.html United States Cesu Bureau. (2012). Retrieved from U.S. Department of Commerce: http://quickfacts.census.gov/qfd/states/45/45031.html