Case 10.2 Hamilton Marketing Services
In the Hamilton Marketing Services case, we have a full-service pet-grooming company that has hired a company called Hamilton Marketing Services (a major marketing consulting firm that helps provide a wide range of marketing and advertising services) to help them with their pet-grooming business. The pet-grooming company called in with an idea to either offer a flat $40.00 per visit price or a $30.00 per visit price if the pet owner signs up for a series of four groomings. The pet-grooming company has hired Hamilton Marketing Service to see which pricing option would be better. The pet-grooming company suggested to send out a two sets of fliers: one with the $40.00 listing price to a sample of 80 customers and another set of fliers with the $30.00 price and requirement for signing up for four visits to a different sample of 80 customers. The pet-grooming company will track the responses, log the data, and the Hamilton Marketing Services will analyze which is a better pricing model.
For this case, I will be figuring out how many total customers responded yes to both sets of fliers for the different pricing options. Then I will construct a 95% confidence interval for the two proportions of responses between the two options. Using the results from these confidence intervals, I will see if there is enough statistical data to determine which pricing model to use.
I have attached the excel sheet with the data analysis.
The conclusion that we came up with is that for the pricing option 1 with the $40.00 flat service rate for grooming, the confidence interval says that we are 95% confident that the proportion of customers who would prefer the $40.00 option would be between 11.2% to 28.7%. For the...