0% found this document useful (0 votes)
14 views8 pages

Consumer Spending Habits Analysis-2313049-ASSIGNMENT1

Uploaded by

immaculate janet
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
14 views8 pages

Consumer Spending Habits Analysis-2313049-ASSIGNMENT1

Uploaded by

immaculate janet
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 8

Customer Demographics:

 The analysis revealed that majority of the customers are from the United
States, with significant numbers from California.
 Most customers are aged between 26-40 years, with a nearly equal gender
distribution.

Accessory category has the most stable revenue throughout the year with
minimal fluctuations. Bike sales seem to peak in the later part of the year,
possibly due to holiday seasons or favourable weather conditions. Clothing
sales show a noticeable increase in the later part of the year, suggesting a
strong correlation with seasonal changes.
The company could potentially capitalize on seasonal trends by adjusting
inventory levels, marketing campaigns, and promotions for each product
category.
While Accessories provide a steady revenue stream, the company might
consider expanding or diversifying the product range within this category
to increase overall sales. Targeted promotional activities during peak sales
periods for Bikes and Clothing could boost revenue. Effective inventory
management is crucial to avoid stockouts or overstocking, especially for
products with seasonal demand like Bikes and Clothing.
 Accessories are the most popular product category. This is evident
from the fact that the Accessories category has the highest number of
units sold (22534) and the highest revenue (329.31).
 Bikes are the second most popular product category. This is evident
from the fact that the Bikes category has the second highest number of
units sold (7093) and the second highest revenue (1619.39).
 Clothing is the least popular product category. This is evident from
the fact that the Clothing category has the lowest number of units sold
(5239) and the lowest revenue (656.15).
 The average revenue per unit for Accessories is the lowest. This is
evident from the fact that the Accessories category has the lowest mean
revenue per unit (329.31).
 The average revenue per unit for Bikes is the highest. This is
evident from the fact that the Bikes category has the highest mean
revenue per unit (1619.39).
 The average revenue per unit for Clothing is in between the other
two categories. This is evident from the fact that the Clothing category
has a mean revenue per unit (656.15) that is between the mean revenue
per unit for Accessories and Bikes.
Overall, the image provides a snapshot of the company's sales
performance for the different product categories.
For example, the company may want to focus on promoting Accessories
and Bikes, as these are the most popular and profitable product
categories. They may also want to investigate why Clothing is not as
popular, and see if there are ways to improve its sales performance.
 R-squared: This value indicates the proportion of variance in the
dependent variable explained by the independent variables in the model.
o Model 1 explains 13.9% of the variance.

o Model 2 explains 14% of the variance.

o This suggests that both models have relatively low explanatory


power.
 Adjusted R-squared: This value adjusts R-squared for the number of
predictors in the model.
o Both models have similar adjusted R-squared values, indicating that
adding CustomerAge to the model did not significantly improve its
explanatory power.
 Standard Error of the Estimate: This measures the average deviation
of the predicted values from the actual values.
o The standard error decreased slightly from Model 1 to Model 2,
indicating potentially better prediction accuracy in Model 2.
 F Change and Significance: This tests whether the added variable
(CustomerAge) significantly improves the model.
o The F Change is significant (p < .001), suggesting that adding
CustomerAge does significantly improve the model's predictive
power.
Potential Business Insights
Assuming PC_RECODED is a predictor related to a marketing campaign or
product category and CustomerAge is a demographic variable, we can
infer the following:
 Marketing Campaign or Product Category (PC_RECODED) has a
significant impact on the dependent variable.
 Incorporating CustomerAge into the model provides additional
insights. This suggests that targeting specific age groups might be
beneficial for the business.
1. Significant Differences Between Groups: The extremely low p-value
(Sig. = 0.000) indicates that there are statistically significant differences in
the mean revenue among the groups being compared.
2. Large Effect Size: The high F-value (10499.468) suggests a large effect
size, meaning the differences between group means are substantial.
Potential Business Implications
Without knowing the specific groups being compared, we can only speculate on
potential business implications:
 Product Categories: If the groups represent different product categories,
the results suggest that at least one product category generates
significantly different revenue compared to the others. This could inform
product prioritization, marketing strategies, and resource allocation.
 Sales Regions: If the groups represent different sales regions, the
findings indicate that sales performance varies significantly across
regions. This could guide regional sales strategies, marketing campaigns,
and territory adjustments.
 Customer Segments: If the groups represent different customer
segments, the results suggest that revenue differs significantly among
customer groups. This could inform targeted marketing efforts, product
development, and customer retention strategies.

You might also like