MIDGET EAGLE GROCERY STORES:
THE EFFECT OF NEWSPAPER ADVERTISING ON SALES
Data are available for eleven quarters in four Houston stores: I, II, III, and IV.
X = #ads in local community paper in a given quarter (these ads are at the discretion of the store manager).
Y = monthly sales in $100,000
|
Store I
|
Store II
|
Store III
|
Store IV
|
|
X
|
Y
|
X
|
Y
|
X
|
Y
|
X
|
Y
|
|
10.0
|
8.04
|
10.0
|
9.14
|
10.0
|
7.46
|
8.0
|
6.58
|
|
8.0
|
6.95
|
8.0
|
8.14
|
8.0
|
6.77
|
8.0
|
5.76
|
|
13.0
|
7.58
|
13.0
|
8.74
|
13.0
|
12.74
|
8.0
|
7.71
|
|
9.0
|
8.81
|
9.0
|
8.77
|
9.0
|
7.11
|
8.0
|
8.84
|
|
'11.0
|
8.33
|
11.0
|
9.26
|
11.0
|
7.81
|
8.0
|
8.47
|
|
14.0
|
9.96
|
14.0
|
8.10
|
14.0
|
8.84
|
8.0
|
7.04
|
|
6.0
|
7.24
|
6.0
|
6.13
|
6.0
|
6.08
|
8.0
|
5.25
|
|
4.0
|
4.26
|
4.0
|
3.10
|
4.0
|
5.39
|
19.0
|
12.50
|
|
12.0
|
10.84
|
12.0
|
9.13
|
12.0
|
8.15
|
8.0
|
5.56
|
|
7.0
|
4.82
|
7.0
|
7.26
|
7.0
|
6.42
|
8.0
|
7.91
|
|
5.0
|
5.68
|
5.0
|
4.74
|
5.0
|
5.73
|
8.0
|
6.89
|
Please answer the following questions:
1. What's going on in the stores?
2. What advice do you give the store managers about local newspaper advertising?
3. Is it worth it to advertise? In what stores?