Rumstad decoration
Management Problem
Jack Rumstad the owner of Rumstad Decorating Centers has been concerned about the amount of losses both his stores have been going through. Compared to the store on the east-side the west-side store had been making a bigger loss. In 1996, the west-side store had experienced a decrease of 21 percent in net sales and a decrease of 31 percent in gross profit. On the other hand, the east-side store had experienced an increase of 25 percent in net sales and an increase of 25 percent in gross profit. Rumstad believes that due to some major organizational changes the east-side store is doing better than the west-side store.
Research Problem & Objectives
Rumstad Decorating Centers hired Sandra Parrett to carry out marketing research to find out the reasons that are leading to the losses in the west-side store. Rumstad needs to know the reasons that are causing this negative impact on his west-side store in order to take the correct actions required to fix it. The market research aims to compare Rumstad to two of its main competitors: Emerson Decorating Center and the Wallpaper Shop. Through the comparison of these shops the target market will not answer the questions with bias, as they will not know which company in particular the questionnaire is for.
Methodology
Research Design: The research design that is being used in this case is descriptive research. Rumstad suspects that certain factors are causing the loss in his west-side outlet but through the marketing research questions such as: who is the target market, what exactly is causing the decline in sales, where do customers hear advertisements and how should we overcome the cause of the decline in sales.
Design of Data Collection: The data that the Parrett collected was primary data through the use of a structured and somewhat disguised questionnaire. The questionnaires were personally distributed to the participants in the study.
Evaluation & Analysis
1. The questionnaire tries to
Jack Rumstad the owner of Rumstad Decorating Centers has been concerned about the amount of losses both his stores have been going through. Compared to the store on the east-side the west-side store had been making a bigger loss. In 1996, the west-side store had experienced a decrease of 21 percent in net sales and a decrease of 31 percent in gross profit. On the other hand, the east-side store had experienced an increase of 25 percent in net sales and an increase of 25 percent in gross profit. Rumstad believes that due to some major organizational changes the east-side store is doing better than the west-side store.
Research Problem & Objectives
Rumstad Decorating Centers hired Sandra Parrett to carry out marketing research to find out the reasons that are leading to the losses in the west-side store. Rumstad needs to know the reasons that are causing this negative impact on his west-side store in order to take the correct actions required to fix it. The market research aims to compare Rumstad to two of its main competitors: Emerson Decorating Center and the Wallpaper Shop. Through the comparison of these shops the target market will not answer the questions with bias, as they will not know which company in particular the questionnaire is for.
Methodology
Research Design: The research design that is being used in this case is descriptive research. Rumstad suspects that certain factors are causing the loss in his west-side outlet but through the marketing research questions such as: who is the target market, what exactly is causing the decline in sales, where do customers hear advertisements and how should we overcome the cause of the decline in sales.
Design of Data Collection: The data that the Parrett collected was primary data through the use of a structured and somewhat disguised questionnaire. The questionnaires were personally distributed to the participants in the study.
Evaluation & Analysis
1. The questionnaire tries to