Quantative Methods Or Business-Linear Programming - Math Problem Example

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Executive summary

Generation X and baby boomers love nature activities and are more likely to book through the internet and using agents. During advertising television and newspaper adverts will give better results at minimal costs as many books are from generation X and baby boomers age groups who are easily accessible to newspapers and television.

• Introduction
• The purpose of this report is to identify the group of people who love nature activities and the mode of bookings which will be used for booking from a potential customer to the Treetop Retreat.
• The report indicates that probability of 0.4771 used the internet to make reservations for and a higher percentage of these people came from generation X another 0.635 used the internet and other means which most probably be use of agents.

1. Who books online?

Discussion in the report (12 marks):

The aim of this section is to highlight the members who may be booking online, those interested in nature based activities adventures and their age groups.

A good number of the bookings were done online and by a majority of generation X which constists age groups of between 35-49. These individuals group have a high probality of loving nature based activities and may be frrequent users of online content.

Generation X and generation Y seems to be conversant with using the online content while baby boomers and seniours seem to like using agents and making phone calls. When it comes to who loves nature adventures genreation X and baby boomers love it and hence are the majority making bookings.

George and Jane should go ahead and allow guests to book online but also not discard using agents and phone calls because the baby boomers group are conversant with that method of booking. Use the both menthods to maximize profits.

2. Offering an incentive for early bookings

Analyzing the impact on the number of days in advance that bookings are made if an incentive is offered

If incentives are introduced, the baby boomers and generation X will make more reservations compared to seniors and generation Y.

3. Advertising the Treetop Retreat

This section will focus on effective advertising media with minimal costs.

To conduct an effective marketing campaign while minimizing costs, The Treetop Retreat should purchase 4 minutes of TV advertising, a quarter page of newspaper advertising for three days of a week and 3 minutes of radio advertisements.

Nature of work

Age group

Personal preferences

Flora and fauna

Cost

Constrains that are not binding are cost and nature of work, people prefere to be adventurous and have a break and nature of work cannot be a constrain. The cost on the other hand cannot constrain many people as someone would have made savings for the holiday.

George and Jane will not benefit to maximum if they get additional advertising on the radio since the audience is not promising for making reservations.

If additional block of newspaper advert will be awarded, George and Jane will benefit more because the groups of people who make many reservations do read newspapers. I will recommend George and Jane to take up block.