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Decision Based on Demand

In: Business and Management

Submitted By oezy
Words 302
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Making Decisions Based on Demand and Forecasting There are several demographic and independent variables which are relevant in completing a demand analysis for pizza in Loudoun County, Virginia. The first variable that I used in completing my demand analysis is the average cost per pizza in the Loudoun County, Virginia area. The average cost of pizza is imperative in completing a demand analysis, because consumers in Loudoun County, Virginia have several choices in pizza companies vying for their attention. The second variable that I used was the sales revenue for Domino’s Pizza domestic stores for the quarters ranging from the first quarter of 2010 to the first quarter of 2013. Once I obtained the sales figures for the quarters ranging from the first quarter of 2010 to the first quarter of 2013, I then divided the sales revenue in order to obtain the average sales revenue for each domestic store. In order to complete a demand analysis, and forecasting income for future periods one must be able to know the relationship between the average sales per store, and the consumers who are demanding the product. The third variable that I used in completing my demand analysis is median income for Loudoun County, Virginia. Median income is significant for two reasons; first one can tell if the median income can afford to purchase pizza if a new restaurant is established, and secondly one can review the trend in median income. Reviewing the median income trend provides significant feedback value by revealing the economic state of the area in which one is considering in opening a restaurant. The last variable that I used in completing my demand analysis is core population of the pizza consumers in Loudoun County, Virginia which is the dependent variable. In reviewing the census information for Loudoun County,…...

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