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Week 1 Theory Development
R. Claire Salinas
Online MBA Program, Point University
MKTG 515: Business Intelligence
Dr. Thomas Javarinis
October 29, 2023
Theory Development Exercise
Within the business of Chick-fil-A, an identifiable pattern is the inverse correlation between speed of service and total sales. This pattern has been identified through deductive reasoning. Chick-fil-A can serve more guests in a given time frame if their speed of service is lesser. Because of a reduction in wait time, guests are more likely to return for future sales as well, assuming guest experience is not compromised due to an increased speed of service.
The constructs present in this theory are identified as Chick-fil-A’s speed of service, the time in which it takes a guest’s order to be taken, prepared, assembled, and served, and sales, total revenue reported by the store, measured on an hourly, daypart, daily, weekly, and monthly basis. Based on the theory presented, we expect to see an inverse relationship between the two constructs, with sales increasing as the speed of service decreases.
The flow of influence between these two constructs is one-way and begins with speed of service. As speed of service decreases, sales are expected to increase. However, as sales increase, speed of service
is not guaranteed to decrease.
A testable hypothesis that could be derived from this theory is as follows: If the average hourly speed of service and total hourly sales are measured over an extended period of time, then an analysis will
indicate a trend present where, as speed of service decreases, total sales increases.
Because Chick-fil-A uses analytics software to maintain and track its data, business research can be conducted to analyze trends in average speed of service and total sales over a defined period. This data
would allow us to test the hypothesis that, if the average hourly speed of service and total hourly sales are measured over an extended period of time, then an analysis will indicate a trend present where, as speed of service decreases, total sales increases.
If this theory were to be supported by business research, it would aid us in understanding the forces impacting the sales of our store and allow us to strategize methods to increase sales, thus increasing net revenue and, hopefully, increasing net profit.
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