Case Study – BLITZ Department Store
Scenario
BLITZ is an Australian based department store operating since 1983. The very first BLITZ store was started in Melbourne and later the operation has been expanded to Sydney and Perth. Also BLITZ started a new online store in 2012 to serve all around Australia and overseas customers. Currently the BLITZ active customer base is approximately 50,000 local customers excluding those that shop online.
BLITZ has a loyalty program started on their tenth anniversary. There are three different tiers of membership namely Blue tier, Silver tier and Platinum tier.
BLITZ has concerns over the popularity of its loyalty program, particularly with younger customers. They have conducted a survey of 300 customers randomly selected. From the sample data you have been asked to provide the following:
1) Summary of loyalty program levels and awareness
2) Summary of age profile of BLITZ customers. In particular, the company is
interested in running a promotional or advertising campaign aimed at its youngest
10% of customers.
3) Identify if awareness of the loyalty program varies according to age.
4) Provide an accurate estimate of the proportion of customers who are loyalty
members.
5) Provide an accurate estimate of the average age of their customers.
6) Calculate what sample size should be taken in next year’s survey.