Statistical Report 1

Statistical Report

Name

School

Date

Professor
Statistical Report 2

Statistical Report

Scope

This study focuses on the evaluation of the impact of giving loyalty cards on sales. The

loyalty card program enables the customers to present their loyalty cards in every purchase they

have in exchange for points that can be used to redeem free food after 10 purchases have been

made. This study will cover all the 74 restaurants of Pizza R Us and descriptive analysis will be

conducted to analyze the status of the company relative to this concern. The study is limited to

the impacts of loyalty cards on sales and the assumption is that all the factors are ideal.

Descriptive statistics

Descriptive statistics are applied to measure the frequency and the central tendencies.

Median Income

The median income for Pizza R Us ranges from $$32929 to $114353, with an

average of $62808, and a standard deviation of $17904. This median is $62707 which

means that 50% of the scores are above the median and the other 50% are below it.

Likewise, the 1st quartile is $46953 which means that 25% of the score is below it while

the 3rd quartile is $76194, which means that 25% of the scores is above it. The difference

between the 1st and 3rd quartile is $29241 which is where the location of the remaining

50%. With this, it can be concluded that distribution is symmetrical with only a few

concentrated on the left of the average median score.

Median Age

The median age for the customers of Pizza R Us ranges from 24.70 years to 43.50

years, with an average of 35.20 years, and a standard deviation of 3.65 years. The median
Statistical Report 3

age is 26.50% which means that 50% of the customers are above the median age and the

other 50% are below it. Likewise, the 1st quartile is 32.53 years which means 25% are

below this age while the 3rd quartile is 37.53, which means that 25% of the age of the

customers are above it. The difference between the 1st and 3rd quartile is 5 years which is

where the location of the remaining 50%. With this, it can be concluded that distribution

is symmetrical with only a few customer’s ages concentrated on the right of the median

age.

Bachelor's Degree %

The percentage of bachelors ranges from 14% to 4% with an average percentage

of 26.31 and a standard deviation of 7%. The median percentage is 26.50% while the 1st

quartile is 20.25% and the 3rd quartile is 30.75% The spread symmetrical with only a few

values located on the left side of the average percentage.

Annual Sales

The range of the Annual Sales is $499968 to $1746660, with an average of

$1059381 and a standard deviation of $280423. The median sales are $1035749 which

means that 50% of the sales are below this value and the other 50% are above this value.

The 1st quartile value is $877478 and the 3rd quartile value is $1228867 giving a

difference of $351389. The distribution can be considered as symmetrical with a few

concentrations on the left of the average annual sales.

Statistical Report 4

Scatter Plots and Regressuin Equations

BachDeg% vs Sales/Sqft

Scatter Plot
(SqFt vs BachDeg)
45
40
35 f(x) = 0.01 x
R² = 0.9
30
BachDeg%

25
20
15
10
5
0
1000 1500 2000 2500 3000 3500 4000
SqFt

The general behavior of the relationship between the two variables (SqFt and BachDeg)

is increasing positive. The BachDeg is affected by the SqFt by 0.0099. BachDeg can be predicted

using the equation 0.0099(SqFt).

Statistical Report 5

MedIncome vs Sales/SqFt

SgFt vs MedIncome
140000
120000
100000
MedIncome

80000 f(x) = 23.78 x

R² = 0.9
60000
40000
20000
0
1000 1500 2000 2500 3000 3500 4000
SqFt

The general behavior of the relationship between the two variables (SqFt and

MedIncome) is increasing positive. The MedIncome is affected by the SqFt by 23.784.

MedIncome can be predicted using the equation y = 23.784 (MedIncome).

MedAge vs Sales/SgFt

Sales/SqFt vs MedAge
50.0
45.0 f(x) = 0.08 x
R² = 0.89
40.0
35.0
30.0
25.0
MedAge

20.0
15.0
10.0
5.0
0.0
00 00 00 00 00 00 00 00 00 0 0
0. 0. 0. 0. 0. 0. 0. 0. 0. .0 .0
10 20 30 40 50 60 70 80 90 000 100
1, 1,

Sales/SqFt

The general behavior of the relationship between the two variables (SqFt and MedAge) is

increasing positive. The MedAge is affected by the SqFt by 0.0756. MedAge can be predicted

using the equation y = 0.0756 (MedAge).

Statistical Report 6

LoyaltyCard(%) vs Sales SalesGrowth(%)

Sales Growth vs LoyaltyCard%

4.00
f(x) = 0.14 x
3.50 R² = 0.45
3.00
Sales Growth

2.50
2.00
1.50
1.00
0.50
-
-15.00 -10.00 -5.00 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00
Loyalty Card %

The general behavior of the relationship between the two variables (Sales Growth vs

LOcalCard) is increasing positive. The Sales Growth is affected by the Loyalty Card by 0.142.

Sales Growth can be predicted using the equation y = 0.142 (Sales Growth).

Analysis

Based on the analysis conducted, we can say that the utilization of loyalty cards is quite

low. Approximately, only 2% of the total customers are utilizing their loyalty cards in all the 74

branches. This just shows that the loyalty cards have no big effect on the sales of the restaurant.

There are some branches where the loyalty usage rate was as low as 0.29%.

Recommendations

It is recommended to look for other variables that may influence the growth of sales such

as the quality of food and services given in future researches. Likewise, in the heart of the

company, they should think of other ways of encouraging the customers to use the loyalty card
Statistical Report 7

usage as well as improve both the quality of food and services to encourage returning customers

to returns and make use of their cards.

There us a need to come up with a technique in rotating their menu board. In able to

attract more clients, there is an urgent need of coming with menu improvement however, the bics

should stay there to have the sense if having a culture in the menu.

Loyalty cards seems to have a positive correlation with the sales, however, the effect is

not that big. There is a need to come up with other marketing strategies in tamdem with the

loyalty cards to increase sales.

Based on the data, it seems that the people who are a bit older are the common clients of

the Pasta R Us, thus the need to improve the recipies of add menu that twicks the menu to

something that is more appealable to the younger generation.

Statistical Report 8

References

Frost, Jim (n.a). “Measures of Central Tendency: Mean, Median, and Mode.” Retrieved from

https://statisticsbyjim.com/basics/measures-central-tendency-mean-median-mode/

Graphpad Software (2020). “Understanding Descriptive Statistics.” Retrieved from

https://www.youtube.com/watch?v=RYTeWS9B8BA

Hall, Brody (2020). “Customer Loyalty Card: What are They and What Are and Why Do They

Work?” Retrieved from https://www.candybar.co/blog/customer-loyalty-cards-why-they-

work/

Magatef, Sima and Tomalieh, Elham (2015). “The Impact of Customer Loyalty Programs on

Customer Retention.” Retrieved from

https://ijbssnet.com/journals/Vol_6_No_8_1_August_2015/8.pdf

Narkhede, Sarang (2018). “Understanding Decsriptive Statistics.” Retrieved from

https://towardsdatascience.com/understanding-descriptive-statistics-c9c2b0641291

Smith, Alan and Potter, Jodi (2010). “Loyalty Card Programs, customer relationship and

information technology: An Exploratory approach.” Retrieved from

https://www.researchgate.net/publication/247835136_Loyalty_card_programs_customer_r

elationship_and_information_technology_An_exploratory_approach