`CORTEZ, MARICAR T.

BS AIS 4A
BUSINESS ANALYTICS
ASSIGNMENT #2

Number 2. A multinational hotel chain has been implementing analytics digital marketing to its
customers. However, the responses to the digital campaigns have not been favorable, and the
revenue generation has not been expected. Currently, they are trying to solve this problem by
focusing on similar campaigns that use the same promotional content, and changing these
campaigns to suit the specific tastes of the consumers in each nation. Discuss how business
analytics can be utilized by the hotel management in this scenario. What is the data required to
facilitate good decisions?

If the company’s digital marketing didn’t work out try to improve the marketing strategy and
business analytics through predictive analytics. They can use the customer’s data to create a
promo package or adjust the prices that the hotel offers and gave discounts. In marketing strategy
try to improve graphic design and think of a promotional content that will catch the attention of
your audience. Through this, it will help somehow the company to advertise and promote the
services they offered.

Number 8. A survey handed out to individuals at a major shopping mall in a small Florida city in
July asked the following: What types of data (categorical, ordinal, interval or ratio) would each
of the survey items represent and why?

Gender – Categorical, this identifies the characteristic of the customer

Age – Ratio, this is identified by numerical symbol

Ethnicity – Categorical, this also identifies the characteristic of the customer where he or she
came from

Length of residency – Ratio, this identifies by numerical symbol of how long does a customer
stayed for residency

Overall satisfaction with city services ( scale of 1-5, going from poor to excellent) – Interval data
since this specify comparison from poor to excellent with a numerical scale.

Quality of schools (using a scale of 1-5, going from poor to excellent) – Interval data since this
measure how good the quality of school with a numerical scale.
Number 16-A. The demand for airline travel is quite sensitive to price. Typically, there is an
inverse relationship between demand and price; when price decreases, demand increases and
vice versa. One major airline had found that when the price (P) for a round trip between Chicago
and Los Angeles is $600, the demand (D) is 500 passengers per day. When the price is reduced
to $400, demand is 1,200 passengers per day.

A. Plot these points on a coordinate system and develop a linear model that relates demand
to price.
Passengers
1,200
700
500
300
$200 $400 $600 $800
Price

B. Develop a prescriptive model that will determine what price to charge to maximize the
total revenue.
Total Revenue = Price x Sales
= $400 x (-2.9485 x $400 + 3240.9)
= $400 x 2,061.5
Total Revenue = $824,600

C. By trial and error, can you find the optimal solution that maximizes total revenue?

Here are the prices with corresponding total revenue through prescriptive model

Prices Total Revenue

$600 $883,080
$500 $883,325
$400 $824,600
$300 $706,905
$200 $530,240
$100 $294,605

As shown in the table above, we can see the difference of total revenue according to its
prices. We can see small difference of total revenue in the price of $600 and $500. The
optimal solution that would help best the company in maximizing its total revenue is by
setting the price at $500.