Mr. Davison has been operating a small bicycle shop at the same location near Aspen, Colorado for 50 years. What type of decisions must he make in operating his business? On what basis would he likely be making these decisions? How do you think Mr. Davison would respond to a suggestion that he hire a quantitative analyst to assist him in his decision-making?
Quantitative Analysis is a financial analysis technique that seeks to understand behavior by using complex mathematical and statistical modeling, measurement and research. By assigning a numerical value to variables, quantitative analysts try to replicate reality mathematically.
The following Quantitative Analysis techniques could be applied to this small shop.
Quantitative Retail Market Analysis Techniques
* Demand Side Analysis
? Define Trade Area
? Determine number of households & Median/Mean Household Income
? Determine aggregate spending potential
? Distribute for different product categories
? Can build more complex spending model tailored to different income and demographic groups
? Adjust for likely ...
Types of decisions (based on Quantitative Analysis) to operate a small bicycle shop are explored.