Essays on Monthly Expenditure in Restaurants Case Study

Tags: Hypothesis
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The paper "Monthly Expenditure in Restaurants" is an outstanding example of a marketing case study. This business report is prepared for the client who would like to establish a fine, upscale restaurant with fine entré es, drinks, and desserts in an elegant atmosphere. The client has knowledge in restaurant operations and some knowledge in upscale restaurants but lacks surety that the city may be in need of such a restaurant. The client's interest is to establish if there is a demand for the restaurant and the appropriate pricing. In any market, there will be a big difference in markets as far as consumer preferences and income level.

In this study, the following have been investigated. Design and operating characteristics The appropriate location of the restaurant The appropriate way of restaurant promotion 2.1Monthly expenditure in restaurants A t-test was used to find out if the patrons are able to spend an average of $200 per month. The hypotheses for the test were HO An average of $200 per month on food is not different from the respondents’ expenditure H1 An average of $200 per month on food is significantly different from the respondents’ expenditure Figure 1: Frequency distribution of amount spent per month The results revealed that the sample mean is $ 150.0525 (SD = $ 92.706) as seen from figure 1 is significantly different from the hypothesized mean, t (399) = -10.775, p< 0.001 as shown in table 1.

From these results, the null hypothesis is rejected as it is clear that not all patrons are likely to spend $200 on restaurant meals per month. Table 1: One-Sample Test   Test Value = 200     t df Sig. (2-tailed) Mean Difference 95% Confidence Interval of the Difference Lower How many total dollars do you spend per month in restaurants (for your meals only)? -10.775 399 . 000 $-49.94750 $-59.0602 2.2 Average meal expenditure A t-test was used to find out if the patrons are able to spend an average of $18 per meal.

The hypotheses for the test were HO An average of $18 is not significantly different from what patrons will be willing to pay for the entré es H1 An average of $18 is significantly different from what patrons will be willing to pay for the entré es.

Reference

Malhotra, N.K. & Birks, D.F. (2007). Marketing Research: An Applied Approach. (3rded). Harlow: Financial Times, Prentice Hall.
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