Business report under statistics Essay Example

Contents

1. Introduction

This work presents the analysis of the marketing data for an Australian manufacturing company. It looks at the pricing of the fragrance product and tries to make meaning of the pricing and how it can be used in marketing the products.

The use of perfumes in Middle East and Arab countries is not taken as luxury (Elle.com, 2013). Therefore customers with an average income in this population would prefer a price which is they consider to be fair. In case the majority of the population would be average income earners, the mean price of the perfumes would be taken as the standard price of obtaining a perfume from the same market. High income earner would then prefer the costly high intensity perfumes while low income earners would go for the low cost perfumes.

The deviation or standard deviation is the amount that is varied from the average price of the perfumes. It shows how prices are varied from the average price of the commodities. A big standard deviation shows that in a given set of data, the values are widely spread while a smaller variation implies a lesser difference between the values of the data set (Gordon, 2002). In the case of fragrance, a big value of standard deviation would show a huge variation in the pricing of the fragrance under consideration. The variation is ether positive or to the negative. If the consumers are willing to purchase the same product at the set prices it would reflect huge differences in the population. It would also reveal the difference in the purchasing trends.

A majority of the high cost perfumes are gendered. Most of these perfumes are also gender specific and can only be proffered to be used by a single gender. Such perfumes attract a specific class of consumers. The consumers attracted in this case would be those who have a keen sense of fashion. They would want a specific commodity that is less likely to be found within a market and is in line with their gender. Most of the perfumes with low prices and those close to equaling the mean price are multi-gendered. It would therefore be important for the management of the company to make decisions on right segmentation and marketing of the commodity.

1.1 Aim of the study

This study aims to investigate the market data to determine the influence of various factors such as gender, type of fragrance, country of production and intensity (or strength) of a fragrance on the price of fragrance.

1.2 Hypotheses

The following null hypotheses were tested in this study:

H₁: the average price of female products is greater than $ 140 per 100 ml

H₂: the average prices for female products exceed average prices for male products

H₃: the average prices for perfume exceeds the average price of cologne

H₄: there is a difference in the prices for intensity

H₅: there is a difference for the prices for different countries

1. Methodology

SPSS has been used as the statistical software of choice for analyzing the marketing data.

2.1 Variables

When answering the question about what variables are, the Australian Bureau of Statistics said that a variable is a data item which can be measured. Examples of variables include weight of patients, business expenses, type of car, e.t.c. It is referred to as a variable because it value changes from one data unit to the other within the target population (ABS, 2013).  In this study, various variables such as gender, type of fragrance, country of production and intensity (or strength) of a fragrance were investigated to determine how each of the factors influence the pricing of fragrance.

3. Data Analysis

3.0 Descriptive statistic

Descriptive statistics is very important in summary of data in a comprehensible manner. As such, descriptive statistics has been adopted in this study to help in making conclusions regarding the available marketing data. Descriptive statistics table summarizes the minimum and maximum values, the mean as well as the standard deviation of the variables under consideration (Laerd statistics, 2013). The descriptive statistic was summarized and used to describe the statistics for the marketing data as shown below.

3.1 Description of all the marketing data

The table below shows the description of the data for all the 95 products together.

Descriptive Statistics
					Std. Deviation
				134.7579	79.64251
Valid N (listwise)

The prices of all the fragrance under consideration range from as low as 29 Australian dollars to a maximum of 307 dollars per 100ml bottle depending on different factors such as the targeted gender (male or female), the type of the fragrance (perfume or cologne) the strength or intensity of the perfume (strong, Medium or low), and the country of production (France, USA or other countries). The average price of all the fragrance under consideration was about 135 Australian dollars (134.76 Australian dollars) and the standard deviation of 79.64 Australian dollars indicated a high variation in the prices of the fragrance.

The coefficient of variance is defined as the ratio of the standard deviation to the mean, and usually presented as a percentage. Thus, the coefficient of variation for the prices of all the fragrance combined is:

The coefficient of variation of 57.61% shows huge variation in the prices of fragrance.

1. Prices for each variable

The tables below summarize the
Mean, Median, Mode, Standard Deviation, Coefficient of Variation, 95% confidence interval for means for the prices of fragrance with respect to various variables.

3.2.1 Prices for female products

Descriptive Statistics
					Std. Deviation
				142.3284	87.64000
Valid N (listwise)

The prices for female fragrance range from as low as 34 Australian dollars to a maximum of 307 dollars per 100ml bottle. The average price of the female fragrance under consideration was about 142.32 Australian dollars, which was higher than the mean of the prices of all the fragrance under consideration (134.76 Australian dollars). The standard deviation of the female fragrance of 87.64 Australian dollars (higher than the standard deviation of all the fragrance under consideration of 79.64 Australian dollars) indicated a high variation in the prices of the female fragrance.

3.2.2 Prices for male products

Descriptive Statistics
					Std. Deviation
				116.6429	53.15123
Valid N (listwise)

The prices of the male fragrance range from as low as 29 Australian dollars to a maximum of 193 dollars per 100ml (significantly lower than the corresponding maximum price of all the fragrance under consideration of 307 Australian dollars).The average price of the male fragrance was 116.64 Australian dollars (relatively lower than the corresponding average price of all the fragrance under consideration of 134.76 Australian dollars). The price of male fragrance had a standard deviation of 53.15 (again lower than the corresponding standard deviation of all the fragrance of 79.64 Australian dollars) indicated a high variation in the prices of the male fragrance.

3.2.3 Prices for perfume

Descriptive Statistics
					Std. Deviation
				189.2045	73.13943
Valid N (listwise)

The prices of perfume range from as low as 29 Australian dollars to a maximum of 307 dollars per 100ml bottle. This was similar to the corresponding minimum and maximum prices of all the fragrance under consideration. The average price the perfume was 189.20, which was relatively higher than the average prices of all the fragrance under consideration of 134.76 Australian dollars. The standard deviation of the price of perfume was 73.14 was relatively lower than that of all the fragrance under consideration of 79.64 Australian dollars, and it indicated a high variation in the prices of the perfume fragrance.

3.2.4 Prices for Cologne

Descriptive Statistics
					Std. Deviation
					49.64768
Valid N (listwise)

The prices of cologne range from as low as 29 Australian dollars to a maximum of 193 dollars per 100ml bottle. The maximum price of the cologne was significantly lower than that of the corresponding maximum prices of all the fragrance under consideration (307 Australian dollars). The average price the cologne was 87.78, which was significantly lower than the average prices of all the fragrance under consideration of 134.76 Australian dollars. The standard deviation of the price of cologne was 49.64 was significantly lower than that of all the fragrance under consideration of 79.64 Australian dollars, and it indicated a medium variation in the prices of the cologne fragrance.

3.2.5 Prices for strong fragrance

Descriptive Statistics
					Std. Deviation
				224.7879	45.41321
Valid N (listwise)

The price the strong fragrance range from a minimum of 143 Australian dollars to a maximum of 307 dollars per 100ml. the minimum price of the strong fragrance was significantly higher than the corresponding minimum prices of all the fragrance under consideration of 29 Australian dollars .The average price of strong fragrance was 224.79 and was significantly higher than the average price of all the fragrance under consideration of 134.76 Australian dollars. The standard deviation of the strong fragrance was 45.41. This was significantly lower than the standard deviation of all the fragrance under consideration of 79.64 Australian dollars and also indicated a medium variation in the prices of the strong fragrance.

3.2.6 Prices for medium fragrance

Descriptive Statistics
					Std. Deviation
				121.8571	39.05714
Valid N (listwise)

The price the medium fragrance range from a minimum of 39 Australian dollars to a maximum of 188 dollars per 100ml. the maximum price of the medium fragrance was significantly lower than the corresponding maximum prices of all the fragrance under consideration of 307 Australian dollars .The average price of medium fragrance was 121.86 and was relatively lower than the average price of all the fragrance under consideration of 134.76 Australian dollars. The standard deviation of the medium fragrance was 39.06. This was significantly lower than the standard deviation of all the fragrance under consideration of 79.64 Australian dollars and also indicated a low variation in the prices of the medium fragrance.

3.2.7 Prices for mild fragrance

Descriptive Statistics
					Std. Deviation
Valid N (listwise)

The price the mild fragrance range from a minimum of 29 Australian dollars to a maximum of 126 dollars per 100ml. the maximum price of the mild fragrance was significantly lower than the corresponding maximum prices of all the fragrance under consideration of 307 Australian dollars .The average price of mild fragrance was 58.00 and was significantly lower than the average prices of all the fragrance under consideration of 134.76 Australian dollars. The standard deviation of the mild fragrance was 22.42. This was significantly lower than the standard deviation of all the fragrance under consideration of 79.64 Australian dollars and also indicated a low variation in the prices of the mild fragrance.

3.2.8 Prices for fragrance made in France

Descriptive Statistics
					Std. Deviation
				147.6400	87.16215
Valid N (listwise)

The price the fragrance made in France range from a minimum of 29 Australian dollars to a maximum of 279 dollars per 100ml. the maximum price of the fragrance made in France was relatively lower than the corresponding maximum prices of all the fragrance under consideration of 307 Australian dollars .The average price of the fragrance made in France was 147.64 and was relatively higher than the average prices of all the fragrance under consideration of 134.76 Australian dollars. The standard deviation of the fragrance made in France was 87.16. This was relatively higher than the standard deviation of all the fragrance under consideration of 79.64 Australian dollars and also indicated a high variation in the prices of the fragrance made in France.

3.2.9 Prices for fragrance made in USA

Descriptive Statistics
					Std. Deviation
				130.2955	80.85145
Valid N (listwise)

The price the fragrance made in USA range from a minimum of 36 Australian dollars to a maximum of 307 dollars per 100ml. the minimum price of the fragrance made in USA was relatively higher than the corresponding minimum prices of all the fragrance under consideration of 29 Australian dollars .The average price of the fragrance made in USA was 130.30 and was relatively lower than the average prices of all the fragrance under consideration of 134.76 Australian dollars. The standard deviation of the fragrance made in USA was 80.86. This was almost similar to the standard deviation of all the fragrance under consideration of 79.64 Australian dollars and also indicated a high variation in the prices of the fragrance made in USA.

3.2.10 Prices for fragrance made in other countries

Descriptive Statistics
					Std. Deviation
				129.9231	71.32457
Valid N (listwise)

The price the fragrance made in other countries range from a minimum of 34 Australian dollars to a maximum of 252 dollars per 100ml. the minimum price of the fragrance made in other countries was relatively higher than the corresponding minimum of the prices of all the fragrance under consideration of 29 Australian dollars whereas maximum price was significantly lower than the corresponding maximum of the prices of all the fragrance under consideration of 307 Australian dollars. The average price of the fragrance made in other countries was 129.92 and was relatively lower than the average prices of all the fragrance under consideration of 134.76 Australian dollars. The standard deviation of the fragrance made in other countries was 71.32. This was relatively lower than the standard deviation of all the fragrance under consideration of 79.64 Australian dollars and also indicated a high variation in the prices of the fragrance made in USA.

3.3 Hypothesis questions

It is evident from the analysis that the average price for female products is greater than $ 140 per 100 ml. this is because the descriptive statistics revealed that the mean for female products was $ 143.32 per 100 ml. thus, the first hypothesis which stated that the average price of female products is greater than $ 140 per 100 ml should not be reject. Furthermore, the average price for male products was revealed to be $ 116.63 per 100 ml. this was less than average prices for female products. Therefore, the second null hypothesis which states that the average prices for female products exceed average prices for male products should not be rejected.

The prices for perfume were significantly higher than those of the cologne ($ 189.20 and $ 87.78 respectively). The third hypothesis which states that the average prices for perfume exceeds the average price of cologne is not rejected. There was significant difference in the prices for intensity as the average prices for strong, medium and mild fragrances were $ 224.79, $ 121.86 and $ 58 respectively. Thus, the fourth null hypothesis which states that there is difference in the prices for intensity is not rejected. There is no significant difference in the prices of fragrance made in France, USA and other countries ($ 147.64, $ 130.29 and $ 129.92 respectively). The fifth hypothesis which states that there is a difference for the prices for different countries is rejected due to almost similar prices in the Fragrance made in USA and other countries.

Conclusion

The CEO should consider dealing in more female products than male products due to the fact that the female products have higher frequency, albeit with higher average price. Dealing in both perfume and cologne should be considered due to their almost similar frequencies. However, cologne is significantly cheaper than perfume.

All the fragrance of different intensity should be dealt in owing to their almost similar frequencies, the significant differences in their prices not withstanding. Fragrance made in USA should also be dealt in owing to their higher frequencies in comparison to those made in France and other countries.

References

. Retrieved 29 March, 2016, from http://www.elle.com/beauty/makeup-skin-care/tips/a12610/middle-east-fragrances/ELLEEllecom. (2013).

Gordon, E. E. (2002). Rating scales and their uses for measuring and evaluating achievement in music performance. Chicago, Ill: GIA Publ.

ABS (Australian Bureau of Statistics), “Statistical Language — What are Variables?” Available at http://www.abs.gov.au/websitedbs/a3121120.nsf/home/statistical+language+-+what+are+variables [Accessed 04 April 2015]

Laerd Statistics, “Types of Variable”, Available at https://statistics.laerd.com/statistical-guides/types-of-variable.php, [Accessed 04 April 2015]

Laerd Statistics, “Descriptive and Inferential Statistics”, Available at https://statistics.laerd.com/statistical-guides/descriptive-inferential-statistics.php, [Accessed 04 April 2015]