Email From Statistical Consulting Firm to Calvin’s Family Restaurant Owner
With regards to our test on levels of customer interest on the proposed grilled steak sandwich with guacamole and
chipotle salsa, we have found that 42% of customers indicated on their surveys that they would order the new grilled
steak sandwich if it were offered on the menu. The average price those customers would pay was calculated to
Our fee for consulting services includes $11,625 for preparing promotional codes on receipts printed for meals of
current customers at your 20 franchise locations, and $2,487 for the back-end data analysis of the results of the online
survey. We also require reimbursement, as agreed, for $5 coupons given to each customer who completed the survey.
This charge is $4,865.
Memo from Calvin’s Family Restaurant Owner to Advertising Consulting Firm
We have two ideas for advertising the new grilled steak sandwich on our printed menus. Please submit graphics ideas as soon
as possible to us for feedback. Each of these two ideas will be tested at ten of our franchise locations.
1. “Sizzling flavor this intense is no mis-steak!” (emphasis on taste)
2. “More meat, less dough!” (emphasis on low price)
Data from Restaurant Chain
During one trial month, each restaurant recorded what percentage of its customers ordered the new steak sandwich. The
twenty franchises are described as being attached to a shopping mall or in a free-standing building.
Franchise No. Location Type of Menu Percentage Ordering New Sandwich 1 Mall Taste 12 2 Mall Taste 11 3 Free-standing Taste 15 4 Free-standing Taste 9 5 Mall Taste 6 6 Mall Taste 11 7 Free-standing Taste 10 8 Mall Taste 16 9 Mall Taste 10 10 Mall Taste 13 11 Free-standing Price 7 12 Free-standing Price 21 13 Free-standing Price 8 14 Mall Price 9 15 Free-standing Price 13 16 Free-standing Price 14 17 Free-standing Price 18 18 Free-standing Price 17 19 Mall Price 6 20 Free-standing Price 12
Consider each of the following statements. Does the information in the three sources support the inference as stated?
A weakness of the statistical consulting firm’s initial survey is that only current customers of the restaurant have a chance for feedback about the new steak sandwich proposal, not any potential customers.
The percentage of customers who ordered the new sandwich during the trial month tended to be higher when presented with a menu emphasizing taste.
A weakness in the data gathered during the trial month is that the taste-emphasizing menus were mostly sent to franchises located in shopping malls.