Customers

Customer Profile

Age
14%
25%

20-29
30-39
20%
40-49
50-59
19% 60-69

22%

The largest shopper segment is between the ages of 20-29 and 40-49, with each holding
24.6% and 22.2%, respectively.

Disposable Income
15%
24%
1

16% 3

4
14%
5

19% 6
12%

Histogram

Shoppers are relatively equally spread out in terms of disposable income, with a majority of
shoppers having a disposable income of >$100,000 per year, followed by shoppers with a
disposable income between $40,001-60,000 per year.

Histogram?
Among shoppers with disposable income levels of >$100,000 (6), the majority (6.5%) of
those customers are between the ages of 40-49, indicating that the main customers in the
store are established adults with a high income level.

Years since Last Renovation

80
70
Number of Years

60
50
40
30
20
10
0
0-1 2-3 4-5 6-7 8-9 10-11 12-13 48-49 98-100
Last Renovation (Years)

The majority of customers have recently renovated their houses within one year, as of the
survey. Two outliers exist within the data encapsulating the number of years since the last
renovation of their home: 100 and 48. These two numbers will not be included in further
calculations that take into account the number of years since last renovation.

Customer Spending Habits

 Amount of Furniture Types Bought

45
40
35
30
Amount

25
20
15
10
5
0
1 2 3 4 5 6 7 8 9
Furniture Type

Stores best-selling product is entertainment furniture (Ftype 2), comprising 14.0% of total
sales, followed by storage (Ftype 1), then dining tables (Ftype 4) and desks (Ftype 8).

Among the largest shopper segment, aged 20-29 and 40-49, sofa and deep seaters (Ftype
6) and dining chairs (Ftype 4) were the most popular furniture types, respectively.

Wood products are most popular among younger customers (20-29), followed by customers
in their fifties (50-59) and by middle aged customers (40-49). MDF products are most
popular among middle-aged customers (40-49), followed by younger customers (20-29).
Both products are least popular among customers aged 60-69.

Amount of Furniture (wood or MDF) Bought According to Age

Group
350
303
Amount of Furniture Bought

300
259 258
237 240
250
204 201
200 184
166
149
150 Sum of wood
Sum of MDF
100

50

0
20-29 30-39 40-49 50-59 60-69
Age Group (years)

Overall, people are more likely to purchase wood products (1171 > 1030)
 Amount Spent in Store grouped by Disposable Income
25.0%

20.0%
Spending (%)

15.0%
6
5
10.0%
4
3
5.0% 2
1
0.0%

Amount of Spending ($)

The 21.2% of customers spent between $10,000-11,999, with the majority of them having a
disposable income of >$100,000. The largest proportion of spending amounts to 5.3% by
customers with a disposable income of >$100,000 spending between $14,000-15,999. The
trend for disposable income relative to amount spent in Store is somewhat positive; the
higher the disposable income, the larger the amount spent in Store.
 Disposable Income Relative to Age
35.0%
30.0%
Disposable Income

25.0%
12.5%
20.0%
15.0% 17.0%
6
10.0% 14.3% 8.0% 5
17.0% 10.7%
5.0% 8.0%
3.6% 3.6% 5.4%
0.0%
20-29 30-39 40-49 50-59 60-69
Age Group

The customers that spent the most in store is aged between 20-29. Younger customers are
have a larger disposable income (Dinc 5, 6), taking up 29.5%, followed by the middle aged
group of 40-49, taking up 25%.
Based on survey results, customers budget was between the range of $12,000-15,999 and
$18,000-27,999. More specifically, the majority of customers set a budget of $22,000-
23,999. The four outliers (the bottom four columns on the table) will not be used in further
calculations regarding customers budget.

Marketing Method -- how they found out about the business

Marketing Methods
13.3% 14.0%

1
2
14.7% 3
20.5% 4
5
6
11.3% 7

12.6%
13.7%

The majority of customers heard about the store by visiting the store (Category 2), with the
majority of these customers aged between 20-29 and 40-49. The second most popular
method would be by junk mail (Category 6).
The majority of customers heard about the store via the 2nd method, which is by physically
visiting the store. This makes up a total of 20.5% (60/293) of all customers, amounting to
20.3% ($447,300) of total amount spent at the store by respondents.

Proportion of furnishing budget dedicated to the store

Disposable Income as a Proportion of Budget

16.0%
14.0%
Disposable Income (%)

12.0%
10.0%
6
8.0%
5
6.0%
4
4.0%
3
2.0%
2
0.0%
1

Budget ($)

The majority of shoppers have a high disposable income (>$100,000) and a relatively high
budget of $24,000-25,999.
The majority of respondents either had a budget between $22,000-23,999 and spent
between $6,000-7,999 in the store, or had a budget between $26,000-27,999 and spent
between $2,000-3,999 in the store. This amount accounted for 30.4% and 11.1% of their
budget, respectively.
***overall, compare sum of budget in relation to sum of spend?

Methods of Improving the Business and Expansion Opportunities

Customer satisfaction
Overall, the satisfaction levels of customers are relatively even (approximately 20%). Thus,
we need to take a further look at this based on the following features.

Customer Satisfaction Across All Furniture Types

Customer Satisfaction for each Individual Furniture Type

Overall, the products that customers were most satisfied with are entertainment furniture
(Ftype 2) and dining chairs (Ftype 4). The product that customers are least satisfied with is
dining tables (Ftype 3).

When viewed individually, dining tables (Ftype 3) have the highest percentage of very
unhappy customers. Dining chairs (Ftype 4) had the highest percentage of very happy
customers. Occasional tables (Ftype 7) also has a high proportion of very happy customers.
Desks (Ftype 8) have the largest disparity among customer satisfaction, whereas customers
seem to be mostly unhappy with storages (Ftype 1).

The highest proportion of unhappy customers is the youngest age group (20-29 years),
whereas the highest proportion of satisfied customers are customers in their 30s.

There does not seem to be any association between the amount spent by customers and the
satisfaction they felt after making a purchase.
 Customer Satisfaction on Amount of Wood
Products Bought
100%
90%
Customer Satisfaction

80%
70%
5
60%
50% 4
40% 3
30%
20% 2
10% 1
0%
1 2 3 4 5 6 7 8 9 10 11 12 13
Amount of Wood Products Bought

Customer Satisfaction on Amount of MDF

Products Bought
100%
90%
Customer Satisfaction

80%
70%
5
60%
50% 4
40% 3
30%
20% 2
10% 1
0%
1 2 3 4 5 6 7 8 9 10 11 12 13
Amount of MDF Products Bought

Zero purchases is irrelevant to customer satisfaction for each product type, and thus it is
not used. The distribution of customers satisfaction for both product types seems to be
evenly spread. More customers seem to be satisfied with their purchases of wood products
as compared to MDF products (22.9%>21.1%).

Overall satisfaction of wood products is leans more towards the positive side, while MDF
products leans more towards the negative side.

What they wanted to see more of and what

 Overall, customers would like to see more desks (Ftype 8). The largest customer
segment(s), younger customers (20-29) and middle aged customers (40-40) would like to
see more of occasional tables (Ftype 7) and desks (Ftype 8), respectively.

Very unhappy customers wanted to see more of desks (Ftype 8), and sofa and deep
seaters (Ftype 6), while unhappy customers wished to see more of sofa and deep seaters
(Ftype 6). On the other hand, happy customers wanted to see more outdoor sets (Ftype 9).

Customers who bought zero products were not included in calculations for this section.

For wood products, the distribution is mostly even among all satisfaction levels, but most
customers were happy with their purchases. For MDF products, a majority of customers
were very unhappy.
Of the customers who purchased wooden products, do they spend more than those who purchase
MDF products?

We assume that the price for both MDF and wood products are the same. Thus, we need to
determine if the quantity sold for wood is greater than the quantity sold for MDF.

In this context, we define customers that purchase wooden products as customers that only
purchased wooden products. The same applies for customers that purchase MDF products.

To find the majority, we test for the null H0: P = 0.5, with an alternative hypothesis of HA: P > 0.5.

Variables: number of customers (n) = 51 ,

APPENDIX