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Analysis of Demographic Data to Collapse the Categories

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One of WidgeCorp's regional sales managers contacts you with a request. In preparation for rolling out a new type of snack food, she's been trying to make sense of some demographic data available through the AMA (American Marketing Association) and is overwhelmed. She explains to you that there are two files which contain reports generated from AMA's (American Marketing Association) website. AMA's website provides free demographical services where one can choose from a variety of criteria and generate reports based on the U.S. Census decennial data obtained at the beginning of each decade. These files contain 4 reports: General Summary, Census Trend 1980 to 2000 Summary, Occupation and Employment Summary, and Income Summary. In these demographics reports the data for many of the variables is distributed into many different categories. For example, there are 7 different categories for Educational Attainment in the General Summary Report and 20 categories for Employment by Industry in the Occupation and Employment Summary Report. Help this regional sales manager see a smaller number of comprehensible categories.

Using all four demographic reports: (Overview, Trend, Employment, and Population Detail) for zip code 60614, choose four variables (including at least one from each report) and explain how you would collapse the categories and why.

APA Format, 3 References.

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Solution Preview

To analyze the snack food market the regional sales manager should identify factors which affect consumer's purchasing decisions. Then she can identify which data from AMA report can be useful for her. The main reasons because of which consumers purchase of snack food are:
• On-the-move
• Multitasking
• Leisure
Small snacks are most suited in all the above situations and hence have a high consumer demand. Based on these reasons following are the categories from the AMA report which would be helpful for the manager:
Means of Transportation to work: The data for this category shows that majority of the population either drove alone or took subway. This could be used by the manager to exploit the possibility of marketing the snack food to individuals who form the largest percentage. It is generally observed that while driving to work people pick their coffee which they drink in their cars. They could be ...

Solution Summary

The solution provides and analysis of demographic data to collapse the categories.