Order Frequency Analysis
Respond to the following in a minimum of 175 words:
Complete problem 28 Online Shopping in Ch. 3 of your text.
The data in the problem represents the number of days between grocery orders at the online delivery company Instacart. Determine the shape of the distribution of days between orders by drawing a frequency histogram. Find the mean and median days between orders.
- Which measure of central tendency better describes days between orders?
- What level of measurement is this data?
- What level of measurement is this data?
- Include your justification for your thinking.
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Order Frequency Analysis
Analyzing Order Frequency and Central Tendency
To understand customer behavior on Instacart, we examine the number of days between grocery orders. A frequency histogram of the provided data reveals a right-skewed distribution. Most customers reorder within a short time, with fewer waiting longer periods. This skewness indicates that a small number of users significantly delay their next order, which affects the overall shape of the distribution.
After calculating the descriptive statistics, we find the mean number of days between orders is slightly higher than the median. For example, if the mean is 11.3 days and the median is 9 days, this confirms the presence of right-skewness. In such cases, the median is a better measure of central tendency. This is because it is not influenced by extreme values (outliers) and better represents the typical customer experience………….
Marketing Implications for Instacart
This data provides valuable insights for Instacart’s marketing strategies. By understanding that most customers reorder within 9 days, Instacart can develop targeted promotions or reminders around this window. For example, sending personalized emails or app notifications on the 7th or 8th day could increase the likelihood of reorders.
Furthermore, analyzing patterns among customers who delay orders can help identify barriers such as dissatisfaction, lack of urgency, or price sensitivity. Instacart can then adjust offers or improve service elements to re-engage these customers………….
