# Supplement to Alfonsos Department Store Harvard Case Solution & Analysis

1). How effective is Alfonso's newspaper advertising?

2). Does it actually increase Sales or does it simply borrow forward?

The newspaper advertising for the department stores does not increase the sales of the stores in actual, but it simply borrows forward. It attracts the customers to purchase items by offering discounts. The increase in sales is achieved by the transfer of sales from one department to another department and the increases were achieved due to the differences of point in time of sales. If we analyze the regression output, it can be seen that the probability of the relationship between the advertising and sales is not significant, as the P-value is greater than the 0.05 threshold. Also the correlation between advertising and sales in a weak positive correlation, which suggests that newspaper advertising, is not the actual reason behind the increase in the sales of the department stores. The sales of the department stores do not increase in a linear fashion with the expenditure incurred on newspaper advertising. Apart from this, it can also be seen from the regression output between Alfonso’s sales and all other department sales that the relationship between the sales of all other stores and Alfonso’s stores is highly positively correlated. As the sales of all other stores increase, the sales of Alfonso’s departmental stores also increase.

3). What do you recommend and why?

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Alfonso Department Store (Ivey, 9A99E002) represents 26 weeks of sales data for the dollar and the dollar Alfonso advertising, along with the sales and advertising of competing stores. In addition, the consultant presents the results of its analysis of the data. Students are asked to critique this analysis and the study of its effects. "Hide
by Phillip E. Pfeifer Source: Darden School of Business 4 pages. Publication Date: February 10, 2004. Prod. #: UV6239-PDF-ENG

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