Using Probability Distribution in Research Simulation

Running head: Using Probability Distribution

Using Probability Distribution in Research Simulation

Tracey Zenaye

RES/341

May 23, 2011

Jon Webber

DEPARTMENTAL MEMORANDUM

DATE: September 1, 2011

TO: Board of Directors

FROM: Tracey Zenaye, Quality Control Manager

SUBJECT: Sales Research

The purpose of this memorandum is to summarize the completed research of the comprehensive sales of mechanical watches. During our meeting on June 1, 2011, there were two major issues brought up that required our immediate attention. The first issue to address was the significant decline in the sales of mechanical watches. The other issue was the increasing number of watches rejected by the Swiss Official Chronometer Control (SOCC).

The research included in this memorandum was based on the following key quality indicators:

• How potential consumers are responding to the current advertising?

• How do customers view our mechanical watches?

• Quality of our mechanical watches versus other Swiss watches.

• Statistical data from the SOCC tests.

A survey of 500 consumers of mechanical watches was conducted through a simple questionnaire to assess the response to our advertising strategy. Based on the survey, 71% of the consumers were aware of our advertisements. Approximately, 60% of the consumers were in favor of the SOCC certification. Additionally, 70% of those surveyed planned or intended to purchase a mechanical watch and 78% of the consumers were willing to pay premium prices for a chronometer. Similar surveys were dispersed to dealers to determine the impact of the advertising strategy on sales. The response from the dealers was very favorable. Based on this data, consumers and dealers are responding well to the current advertising campaigns, no change in this area is needed. Therefore, the recommendation to focus on water-resistant capabilities and purchasing a deep water simulation unit is not...