Given Values: Average unit consumption of detergents = 4 Ans.18) Usage index is
ID: 373557 • Letter: G
Question
Given Values:
Average unit consumption of detergents = 4
Ans.18) Usage index is calculated as;
Usage Index = Average total purchases in category by brand customers / Average total purchase in category by all customers for that category
Average total purchases of Panel ID 9 of A&H brand = (1 + 4 + 3 + 1 + 2) / 5 = (11/5) = 2.2 units
Average total purchase of all the customers in detergent category = 4 units
Usage index for Panel ID 9 of A&H brand = (2.2 / 4) = 0.55
Usage index for Panel ID 9 of A&H brand is 0.55
Ans.19) If Usage Index is greater than 1, the usage is categorised as Heavy User
and, if the Usage Index is less than 1, the usage is categorised as Light User
Since, the Usage Index for Panel ID 9 is 0.55 i.e. less than 1, it is a light user.
Ans.20) Share of requirements is calculated as;
Share of requirements = Total unit purchases of the brand / Total unit purchase of the whole category
Total unit purchase of Panel id 9 = (1 + 4 + 3 + 1 + 2) = 11 units
Total unit purchase of detergents = 27 units
Share of requirements of panel id 9 = (11 / 27) x 100
Share of requirements of panel id 9 is 40.74%
Ans.21) Usage index is calculated as;
Usage Index = Average total purchases in category by brand customers / Average total purchase in category by all customers for that category
Average total purchases of Panel ID 10 of Ivory Snow brand = (1 + 1 + 1) / 3 = (3 / 3) = 1 unit
Average total purchase of all the customers in detergent category = 4 units
Usage index for Panel ID 10 of Ivory Snow brand = (1 / 4) = 0.25
Usage index for Panel ID 10 of Ivory Snow brand is 0.25
Ans.22) If Usage Index is greater than 1, the usage is categorised as Heavy User and, if the Usage Index is less than 1, the usage is categorised as Light User.
Since, the Usage Index for Panel ID 10 of Ivory Snow brand is 0.25 i.e. less than 1, it is a light user.
Ans.23) Share of requirements is calculated as;
Share of requirements = Total unit purchases of the brand / Total unit purchase of the whole category
Total unit purchase of Panel id 10 = (1 + 1 + 1) = 3 units
Total unit purchase of detergents = 27 units
Share of requirements of panel id 10 = (3 / 27) x 100
Share of requirements of panel id 10 is 11.11%
Explanation / Answer
The followings are part of panel data in the detergent category. The average unit consumption of detergents is 4. Based on the following data, answer the questions.
Q18. Calculate the usage index of panel ID 9 of A&H brand:
Q19. Is the panel ID 9 a heavy user or a light user? Heavy/Light
Q 20. Calculate the share of wallet (=share of requirement) of the panel ID 9:
Q21. Calculate the usage index of panel ID 10 of Ivory Snow brand:
Q22. Is the panel ID 10 a heavy user or a light user? Heavy/Light
Q23. Calculate the share of wallet (=share of requirement) of the panel ID 10:
ID WEEK UNITS DOLLARS brand 1 12 2 10.98 ARM & HAMMER 2 8 1 9.98 TIDE 3 5 1 5.94 TIDE 4 2 1 9.88 TIDE 5 11 2 6 ARM & HAMMER 5 13 2 3.98 ARM & HAMMER 6 2 1 2 ARM & HAMMER 6 2 1 2 ARM & HAMMER 7 9 1 4.99 ARM & HAMMER 8 4 1 15.29 TIDE 9 2 1 2 ARM & HAMMER 9 2 4 8 ARM & HAMMER 9 2 3 6 ARM & HAMMER 9 7 1 2.49 ARM & HAMMER 9 10 2 4 ARM & HAMMER 10 1 1 4.99 IVORY SNOW 10 3 1 4.99 IVORY SNOW 10 6 1 4.99 IVORY SNOWRelated Questions
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