N81

NO. oS

A STUDY OF DENTON 'S SHOPPING GOODS TRADE LOSSES

TO DALLAS AND FORT WORTH

THESIS

Presented to the Graduate Council of the

North Texas State College in Partial

Fulfillment of the Requirements

For the Degree of

MASTER OF BUSINESS ADMINISTRATION

by

223491Roy C. Anderson, B. B. A.

Longview, Texas

August, 1953

TABLE OF CONTENTS

PageLIST OF TABLES . . . . . . . . . . . . . . . . . . iv

ChapterI. INTRODUCTION . . . . . . . . . . . . . . .

Statement of the ProblemElements of the StudyScope of the StudyPurpose of the ProblemSurvey of Related LiteratureDefinitions of Tenms

II. SOURCES OF DATA AND METHODS OF PROCEDURE . 8

Sources of DataMethods of ProcedureProcessing the DataThe Margin of Error

III. FINDINGS OF THE STUD ........... 26

The Primary ClassificationsThe Cross-Tabulations

IV. SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS .56

SummaryConclusionsRecommendations

APPENDIX . . . . . . . . . . . . . . . . . . . . 065BIBLIOGRAPHY . . . . . . . . . . . . . . . . . . . . 70

iii

LIST OF TABLES

Table Page

1. The Number of Respondents in EachIncome Level .9.0. . *. . . . 0. .. . .. . 28

2. Where the Members of the Households Work,The Number, and the Percentage Workingin Each Locationn.. . . .. 0.. . . . . . 29

3. The Number of Newspapers Taken by theRespondents . .. .. . . . . . . . . .. 30

4. Suggested Reasons Why People Go to Dallasand Fort Worth to Shop . . . . . . . . . 31

5. Where the Respondents Prefer to BuyApparel . . . . . . . . . . . . . . . . . 33

6. The Number of Purchases Reported for VariousArticles of Apparel, Where Purchased, andthe Number and Per Cent in Each Location . 34

7. Purchases of Furniture, Where Made, and theNumber and Per Cent in Each Location . . . 36

8. Purchases of Appliances, Where Made, and theNumber and Per Cent in Each Location . . . 37

9. Purchases of Automobiles, Where Made, and theNumber and Per Cent in Each Location . . 38

10. Total Purchases in Each Merchandise Class,the Number, and Per Cent in Each Location. 39

11. Purchases Made in Each Location Combiningthe Four Merchandise Classes, the TotalNumber and the Total Percentage . . . . . . 41

12. Suggested Reasons Why People Go to Dallasand Fort Worth to Shop by Income Groups 43

iv

13. Where Respondents Prefer to Buy ApparelbyIncoe Groups ............. 44

14. The Number and Per Cent of Purchases ofApparel in Each Location by IncomeGroups and the Total Number and Per Centin Each Location . . . . . . . .. *.. * .*.45

15. The Number and Per Cent of Purchases ofFurniture in Each Location by IncomeGroups and the Total Number and Per Centin Each Location . . . . . .. . . . . . . *. 46

16. The Number and Per Cent of Purchases ofAppliances in Each Location by IncomeGroups and the Total Number and Per Centin Each Location . . . . . . .. . *., *.. . 47

17. The Number and Per Cent of Purchases ofAutomobiles in Each Location by IncomeGroups and the Total Number and Per Centin Each Location . . . . . . . .. . . . . . 48

18. Total Per Cent of Purchases Combining theFour Merchandise Classes Made in EachLocation by Income Groups . . . . . . . . . 49

19. The Per Cent of Respondents in Each IncomeLevel Who Preferred to Shop in Dallasand Fort Worth . . . . . . . .. ..9 * * . .0 49

20. The Per Cent of Purchases in Each MerchandiseClass and the Total Per Cent Made inDifferent Locations by Those Who Preferredto Buy Apparel in Denton and Those WhoPreferred Dallas and Fort Worth . .* . . . 51

21. The Per Cent of Purchases by MerchandiseClass and the Total Per Cent of Purchasesin Each Location Made by the RespondentsWho Did and Those Who Did Not Work inDallas or Fort Worth -orth-.*.-.-.- - . . . 52

V

Table Page

Table

22. The Per Cent of Purchases by MerchandiseClass and the Total Per Cent of Purchasesin Each Location by the Households ThatDo and Those That Do Not Take Dallasand/or Fort Worth Newspapers . . . . . ..

vi

Page

CHAPTER I

INTRODUCTION

This study deals with retailing problems characteristic

of small cities located within the trade orbit of large

cities. Denton, Texas, is a small city with a population

of 21,3451 people. The city is in the trade orbit of Dallas,

Texas, which has a population of 432,927,2 and Fort Worth,

Texas, which has a population of 277,047.3 Denton is thirty-

eight miles northwest of Dallas and thirty-five miles north

of Fort Worth.

Large cities have numerous attractions that a small

city cannot offer. For example, Dallas and Fort Worth at-

tract people from Denton for such things as athletic events,

medical attention, shopping accommodations, recreation, pro-

fessional skills, business transactions, and the like. Be-

cause of its size, Denton cannot possibly offer the varied

attractions found in Dallas and Fort Worth.

Dallas and Fort Worth newspapers have wide circulations

in Denton. All Dallas and Fort Worth radio stations are

1Texas Almanac and State Industrial Guide, p. 86.2 1bid* 3lbidtp 87.

1

2

easily in range of Denton, and all television programs

seen and heard locally are televised through Dallas and

Fort Worth channels. Also, Dallas and Fort Worth offer

many more job opportunities than Denton.

All the above factors contribute to influencing the

shopping habits of some Denton residents since people be-

come potential shoppers when attracted to Dallas, Fort

Worth, or other cities for any reason. One can readily

see the difficulty Denton merchants might have in retain-

ing the city's retail trade. This study was designed to

show proportions of the trade losses of selected shopping

goods items and possible reasons for such losses.

Statement of the Problem

The primary objective of this study was to determine

the proportion of shopping goods trade Denton merchants are

losing to other cities. A secondary objective was to find

reasons for the loss of trade. Since Denton is within the

trade orbit of Dallas and Fort Worth, special emphasis was

placed on finding the percentage of trade going to these two

cities. The study deals only with residents dwelling inside

the city limits of Denton, and it is limited to the fields

of apparel, furniture, appliances, and automobiles.

3

Elements of the Study

Several questions will immediately arise in the readers

mind when considering this study. First, the reader will

want to know how much shopping goods trade Denton merchants

are losing to Dallas, Fort Worth, and other cities. Next,

the question will arise as to why Denton residents make

purchases elsewhere. When asking why Denton consumers pur-

chase elsewhere, the reader will be curious about the in-.

fluences and attractions Dallas, Fort Worth, and other

cities have to Denton shoppers. Next, the reader will ask

what products are most commonly bought elsewhere, and

whether or not these purchases are made by distinct groups

of shoppers. Also, the reader will wonder if consumers are

actually dissatisfied with shopping accommodations in Denton,

or if other influences guide their buying habits. Lastly,

the reader will want to know how Denton retail merchants

can combat the loss of trade.

The study makes an attempt to answer these questions

by determining what shoppers have done in the past, and then

conditions that exist which might influence them.

Scope of the Study

The study deals only with shopping goods, since con-

venience goods are usually purchased near the consumer's

place of residence. The nature of convenience goods

4

causes them to have little or no value toward the objectives

of the study.

No consideration was given to purchases made in Denton

by persons living in other towns. This would tend to off-

set the purchases made in other places by Denton residents,

but showing this was not a purpose of the study.

It was assumed that the significant part of the retail

trade being lost by Denton merchants was going to Dallas

and Fort Worth. Therefore, the percentage of the trade

loss was not determined for any particular cities other

than these two.

No pretension was made to state exactly how much trade

Denton is losing, and certainly no dollar volume was esti-

mated. Neither could it be stated definitely that certain

elements are present causing the trade loss, but indications

and influences as to why trade was being lost were derived

from the study.

Purpose of the Problem

This study should be of real interest to Denton retail

merchants since its purpose was to explore the trade losses

sustained by a small city located in the orbit of one or

more much larger cities. After understanding their position,

Denton merchants will be better qualified to decide the

best courses of action that should be taken to reduce trade

losses.

This study should also be of special interest to the

Denton Chamber of Commerce since it affords some classi-

fication data on the residents of the city.

Survey of Related Literature

Very little has been written on the subject of Denton's

retail trade movement. A thesis was written by John Brooks

on the topic of the retail trading area of Denton with the

application of Reilly's Law of Retail Gravitation. The

study determined the breaking points of the Denton retail

trading area and analyzed the characteristics of the area.

Other literature that has had an important bearing on

this study deals with techniques and methods that should be

used in making such an investigation. The books considered

to be exceptionally good by the author and of the most

value were Marketing and Distribution Research by Brown,

Statistical Techniues M in ng Research by Ferber,

Basic Methods of Marketing Research by Lorie and Roberts,

The Technique of Marketing Research prepared by the American

Marketing Association, and A Survey of a Retail Trading

Area by Jones.

Definitions of Terms

In a study of this nature there are always a number of

terms that should be defined to expedite the reader's.

understanding. The following paragraphs are devoted to

6

defining terms and words that have a particular meaning in

the study and which should be clarified.

One of the first terms used that should be clarified

is "shopping goods," which Maynard and Beckman described

as those goods in which

. . . the consumer desires to compare prices, qualitiesand styles at the time of purchase. The shopper wantsto compare the offerings of a number of stores andmake a decision on the basis of actual comparison ofthe various offerings.4

The term is used in this study to cover the fields of ap-

parel, furniture, appliances, and automobiles.

One should also have a knowledge of how the term

"retail merchants" is used. Maynard and Beckman describe

a retail merchant as "a merchant middleman who sells pri-

marily to the ultimate consumer."5 Their definition covers

the manner in which the term is used in this thesis.

The term "trade loss" is very important since this

study is principally concerned with Denton's trade loss.

The author uses the term in relation to the amount of shop-

ping goods trade done in other cities by Denton consumers.

The word "residence" also has a distinct meaning in

this study. A residence is considered to be the dwelling

place of one or more persons comprising an individual

4H. M. Maynard and T. N. Beckman, Principles of Market-jim, fourth edition, p. 27.

5I~a. p. 115.

7

household. Each separate dwelling unit within the city

limits of Denton is referred to as a residence.

When the word "household" is used, it refers to one

or more persons living in a single dwelling place. It

includes any persons who live together collectively under

one roof.

CHAPTER II

SOURCES OF DATA AND METHODS OF PROCEDURE

Sources of Data

The data used in this study were obtained from members

of the individual households in Denton, using the survey

method.

Methods of Procedure

The, sample ds .-- The methods of procedure used in

this study were designed to obtain information from Denton

residents that would yield a true picture of what their

purchasing habits actually are and possible reasons for

these habits. Every consumer was potentially a source of

valuable information, but because of the limitations of

time and resources, the author chose what appeared to be

the most applicable sample design as a means of obtaining

the necessary facts.

Seldom is it feasible for researchers to use simple

random sampling methods to determine characteristics of a

given population. For this study, the necessary information

was not available from which a simple random sample could

8

9

be taken; therefore, a more complex form known as cluster

sampling was used.

To justify the use of cluster sampling, the reader

should have some understanding of basic random sampling

theory since this theory holds true for both types of

samples. When a survey and a sample of the potential

respondents to determine facts about a population are used,

the respondents interviewed must be representative of the

entire population and every person in the population must

have an equal chance of being chosen. If a researcher was

looking for information on all consumers in the city of

Denton and used the telephone directory to compile the

list of persons to make up his sample, this sample would

not be representative since every person in Denton did

not have an equal chance of being chosen. However, if a

list of all the residents in Denton could be obtained and

the persons used in the sample were chosen at random after

determination of the necessary number in the sample, it

would be representative of the entire population. "When

a certain segment of a population has no chance whatever

of having any of its members included in a random sample,

that sample cannot be representative of the whole popula-

tion." In the first instance, those people who did not

1Robert Ferber, Statistical Techniques in MarketResearch, first edition, p. 70.

10

have telephones had no chance of being chosen, but with a

list of the total residents of the city, every person had

the same chance of being chosen, thus producing true ran-

domness.

One of the basic concepts of sampling found through

statistical investigation is that the characteristics of a

representative segment of a given population will resemble

the characteristics of the whole population with certain

limitations which can be stated as definite numerical values.

Within these limitations, this representative segment will

yield information as accurate as though the whole popula-

tion had been analyzed. This has enabled researchers to

determine characteristics of a Yhole group by analysis of

only a portion of that group. The method is valid since

"sufficient similarity exists among large numbers in any

population to permit the selection of a few as representa-

tive of the entire group," 2 and "although some sample items

will underestimate the true value of their groups, other

sample items will overestimate their respective true

values.3

There are many ways in which cluster sampling may be

applied. This study makes use of the method technically

known as "cluster sampling with subsampling: unequal-sized

2..bid.,p. 65. .3.bid, p. 66.

11

clusters." When using cluster sampling, each element of

the population is not considered as a sampling unit, but

instead, groups of elements are considered. The most

widely known method of cluster sampling is the area sample

where mall compact areas such as city blocks are used as

the sampling units. Either the area as a whole may be used,

or one may choose individual elements in the area to pro-

duce the random sample. No matter what combinations of

sampling procedure are used, each time a sample is taken

it must be done by random methods. When this procedure is

followed, each sampling unit and each subsample has the

same chance of being chosen.

To accomplish the objectives of this study, it was

necessary to measure the purchases and classify the re-

spondents according to households. The interest was not in

data concerning individuals but instead the actions of the

households. The city of Denton was used as the total uni-

verse, and the city blocks were considered as areas for the

sampling units. Within these city blocks, an equal pro-

portion of potential respondents was chosen to be repre-

sented in the sample. Through the use of this design, every

household in Denton had an eqal chance of being chosen.

J. H. Lorie and H. V. Roberts, Basic Methods of Market.ig Research, first edition, p. 128.

12

When following the design previously outlined, the

author found much of the required information at the Denton

City Hall. The first step was to obtain a map of all the

residential blocks inside the city limits. This map was

furnished at the City Hall with the blocks numbered sepa-

rately and the city divided into four major sections. A

list of all these blocks was compiled giving them the same

number that appeared on the map, and then a random sample

was taken. Of the total 426 blocks in the city, 107 were

chosen to be used as clusters by beginning with the second

block and taking every fourth block thereafter. The 426

blocks in the universe did not include those known to be

made up of only business establishments.

The next step was to compile a list of every residence

in the 107 clusters taken from the city map. Here again,

the City Hall furnished the necessary information with a

tax file giving the addresses of every residence and the

vacant lot numbers in each block of the city. One diffi-

culty, that of no distinction between the addresses of

residences and those of business establishments, was en-

countered. These addresses found in the City Hall were

imprinted on Address-o-Graph plates, and the blocks were

numbered exactly as they were on the city map. For example,

if a block was numbered 384 on the city map, one would look

under block 384 in the Address-o-Graph file and find all the

13

addresses of the residences in this particular block im-

printed on the plates. All the plates for each of the

blocks previously chosen to be used as clusters were then

removed, and the address of each building in that block was

stamped consecutively, using separate sheets of paper for

each block. This funished a list of all the addresses in

the chosen 107 clusters, with the list totaling 1,294

addresses. The Address-o-Graph file had recently been

brought up to date so that it was ideal for this use.

The next step was to select those addresses that would

make up the sample. It had been previously decided that the

sample should be composed of approximately 250 households.

This number would provide a fairly reliable sample after

subtracting vacant residences and absent residents from

the list. Actually, 258 addresses were taken by beginning

with the third address on the list and taking every fifth

address thereafter.

Method of collecting data.--It would have been im-

possible for the author to make all the interviews nec-

essary for this study. To overcome this difficulty, the

students in the Business Administration 470 Marketing

Research class at North Texas State College were used as

interviewers. This was satisfactory since they had had

some previous experience in interviewing an d were in the

midst of a course directly related to the methods used.

The 258 addresses representing the sample were written

on index cards and distributed among the twenty-six mem-

bers of the class. The students were given maps of Denton

on which they plotted the approximate locations of the

potential respondents. Then the questionnaires were dis-

tributed among the students, and a class discussion was

held on the contents. The next step was to distribute

instruction sheets describing in detail the information

the interviewers were to obtain. The instruction sheets

were discussed thoroughly with the class, thus avoiding

misunderstandings. These instruction sheets are placed in

the Appendix of this thesis for further reference. Also,

discussion was held and instruction given on methods to

be used in approaching the respondents, the psychology

underlying the ways in which questions should be asked,

plus other pertinent techniques of interviewing. The stu-

dents were allowed two weeks to complete their interviews

and bring the results back to class. They made contact

with each household personally and made call backs when

necessary, which resulted in the completion of 215 question-

naires. - The remainder could not be found, or the addresses

were those of commercial establishments.

The elimination of bias is one of the most important

elements in the collection of data. It results from faulty

interviewing as well as faulty responses. These errors

14

15

should be recognized and eliminated as far as possible

before the collection of data begins. The purpose of the

discussions in class on the techniques of interviewing was

to overcome, as much as possible, any bias induced by the

interviewers. The bias could not be controlled as well

when received through responses; however, the interviewers

were instructed in ways they could get the desired informa-

tion with the least likelihood of biased answers. They

were also instructed to discount any responses that were

obviously biased. For instance, if the respondent stated

he owned a television set, yet no antenna was on the house,

the response was discounted since it is known that televi-

sion sets in this area generally require antennae to be

effective. The techniques of searching for all the types

of information sought for in this study are too extensive

to be discussed here; however, the interviewers had been

subjected to the study of these techniques in the scope of

their marketing research course and were familiar with them.

The estionnaire and its. development.--The question-

naire was the sole method of collecting data, so it was

necessary to give much time and consideration to its de-

velopment. The following paragraphs discuss the procedure

used in concluding mhat should be asked. Also, the four

sections of the questionnaire are discussed, giving the

objectives and value of each question.

16

In deciding what information should be collected to

determine how much shopping goods trade is leaving Denton

and why it is leaving, the first step was to list the in-

formation considered essential. Next, questions were de-

vised that should furnish this essential information.

Questions the author considered relevant to the studra were

brought before the Marketing Research class and fully

analyzed as to their potential value. Then others were

suggested by the class and analyzed in the same manner.

Again the class was helpful by aiding in the determination

of the final questions. After several periods were spent

in discussing what the questionnaire should include, the

final arrangement of each question was written on the black-

board and tested for ambiguities and other flaws. Next

the questions were copied in logical sequence, then mime-

ographed on 8*-by-l34-inch paper. The sequence of the ques-

tions ranged from the general to the specific so as to

focus properly the attention of the respondent on the sub-

ject. A copy of the final questionnaire has been placed

in the Appendix of this thesis.

The first section of the questionnaire was concerned

principally with classification data. The "a" part asked

for the race of the respondent, which was to be answered

through observation by the interviewer. Only two races

were considered, white and colored. The "b" part was

17

concerned with the approximate income level of the re-

spondents, and here again the interviewer supplied the

answer through observation. The remaining parts inquired

as to the size of the household, the composition of the

household including the ages of the daughters and sons,

the family position of the respondent, the occupation of

each person employed, and the city where each worked. All

these data were necessary to determine characteristics of

different groups and to test the influence certain factors

might have on where the respondents made their purchases.

Section II of the questionnaire had only one portion

which asked what newspaper or newspapers were taken by the

respondent. In the original design of the questionnaire,

it was thought that there might be a close relationship

between the newspapers taken and the cities in which the

respondents made their purchases.

The "a" portion of Section III stated as a fact that

many Denton residents do much of their shopping in Dallas

and Fort Worth, and then asked the respondents why they

supposed these people went so far to shop. No definite

value can be placed on this question, but it was hoped

that indications would be made as to why people shopped

in Dallas and Fort Worth rather than Denton. Even though

the respondent did very little of his or her shopping out-

side of Denton, if his answer stated that goods were cheaper,

18

it would indicate his probable attitude. If it was found

that this attitude was prevalent, the Denton retail mer-

chants would be supplied with an indication of possible

reasons for trade losses. If the answers indicated that

people had no reason to go so far to shop, it would sug-

gest that the respondents were satisfied with Denton re-

tail merchants. No exact conclusions can be drawn from

this question, but if one or more answers were given a

number of time, it would likely indicate the attitude of

a large portion of the residents of the city.

The second question in Section III asked if the re-

spondent preferred to buy clothing in Dallas, Fort Worth,

or Denton. This question was specific and some indications

could be deducted from it. However, the possibility of

bias was recognized since there is a tendency to feel an

obligation toward trading in the town in which one lives,

and since some people would say they preferred to shop in

Dallas or Fort Worth even though they never did.

The next portion of the questionnaire was one of the

most important parts. It asked in what town the last pur-

chase of a number of articles was made. These articles

included men's suits, hats, and shoes; women's dresses,

hats, coats, and shoes; children's shoes, and clothing;

plus furniture and rugs. Valuable information was obtained

19

from this question since it probably referred to some re-

cent event, and it required the recollection of a concrete

experience. This was designed to show where the respondents

actually made their last purchases no matter what town they

stated as their preference. After applying the theory

that true values will sometimes be overstated and others

understated, which results in offsetting the incorrect

values, valid conclusions can be drawn from these answers.

Section IV of the questionnaire required the listing

of the appliances owned by the respondents. The appliances

listed were an electric mixer, radio, television set, gas

or electric range, sewing machine, vacuum cleaner, washer,

home freezing unit, gas or electric refrigerator, ice box,

and a hot water heater. The interviewer was to ask in

what town the purchase of each appliance was made if the

appliance was bought since the respondent had been living

in Denton. This also was an important part of the survey

since it solicited concrete information that could easily

be remembered by the respondents. Places of actual pur-

chases were shown, providing valuable information from

which conclusions could be drawn. The latter portion ofSection IV, and the last question on the survey, asked

whether or not the household owned a car or cars, the make,the model, and where bought if purchased since the respondent

had been living in Denton.

20

Processing the Data

The processing of data involves summarizing and pre-

paring the facts found in the survey for presentation.

Lorie and Roberts describe it as an operation "designed to

convert raw data into a form more suitable for analysis and

presentation."5 Editing the surveys for the purpose of

correcting obvious errors is the first stage of processing.

Next, the answers must be classified or coded and a tabu-

lation made of all the answers falling into the different

classes. Then the relationships between the primary classi-

fications must be found through cross-tabulations. The

last step in processing the data is to present an over-all

picture found from the facts in a logical and organized

manner. This should be done through the use of charts,

tables, illustrations, and the like so as to facilitate the

preparation of the final report.

In applying the above procedure to this study, the

surveys were edited as they were returned by the inter-

viewers, and a running tabulation of the results was kept

on large accounting worksheets. In making the primary

classifications, categories were set up for each question

and tabulations made accordingly.

The next major step in processing of data was to find

the relationships between the primary classifications

5 i., p. 22.

21

through cross-tabulations. Four separate sets of cross-

tabulations were considered necessary to aid in determining

the findings of the study. These four sets included tabu-

lations for the different income levels; for those who said

they preferred to shop in Dallas or Fort Worth; for those

who work in Dallas, Fort Worth, or their immediate areas;

and for those who take Dallas and Fort Worth newspapers.

In making all the cross-tabulations, the same categories

were used as those for the primary classifications; however,

some of the questions were not taken into account, depend-

ing on whether or not they had any value toward the ob-

jectives of the cross-tabulation. The method of cross-

tabulation was simply to remove the sets to be cross-tabulated

from the total group of questionnaires, and tabulate them

separately. For example, all the questionnaires that stated

the respondent took a Dallas or Fort Worth paper were re-

moved and tabulated individually from the total group.

Actually, the sets had to be broken down again so that

separate tabulations could be made depending on the char-

acteristics in question of the particular set. As in making

the cross-tabulation for those who took Dallas or Fort Worth

papers, it was necessary to tabulate those who took a

Dallas paper separately from those who took a Fort Worth

paper.

22

The final step in processing the data was to present

an over-all picture found fram the survey in a logical and

organized manner. The best method of doing this was to

compare the results percentage-wise and set the percentages

up in tabular fonm. In placing the data concerned with

primary classifications in final form, the results were

given percentage-wise for all the significant factors that

were found. Comparisons can be made from these percentages.

Placing the data in final form for the cross-tabulations

was done in a manner similar to that for the primary classi-

fications. The same categories were used, but the percent-

ages were broken down further depending on the objective

of the cross-tabulation. For example, in making the cross-

tabulation for the different income levels, the same cate-

gories were used as in the primary classifications, but

percentages were figured according to income levels.

The Margin of Error

In the previous discussions reference was made to the

statistical evaluation of the possible error or tolerance

of a sample, but there has been no explanation of its use.

The purpose of calculating tolerance is to determine sta-

tistically the number of interviews necessary in the sample

to produce reliable results. There must be enough interviews

23

so that the margin of error will not be large enough to

cause the findings of the survey to be invalid.

The following formula has been devised to show the

necessary number of cases required in the sample if it

is to be within 90 per cent of certainty:

N .2.71(pq)E2

Explanation of symbols:

N is the number of cases required in the sample

p is frequency of occurrence of phenomenonmeasured (successes)

q is 1-p (failures)

E is maximum allowable error either way in per-centage points (tolerance)

Two phenomena were being measured in this study; first,

the portion of shopping goods trade Denton retail merchants

were retaining; and, second, the portion of shopping goods

trade the merchants lose to other cities. It was necessary

to estimate percentages representing the frequency of oc-

currence of these two phenomena. This estimation was set

at 80 per cent and 20 per cent respectively. Also, it was

desired that the maximum allowable error either way be no

more than 5 per cent.

Lyndon 0. Brown, Marketing and Distribution Research,P. 475.

214

After deciding on the allowable tolerance and esti-

mating how frequently the phenomena being measured occur,

one can then substitute the figures into the formuLa to

find the number of interviews necessary to produce a sample

within 90 per cent of certainty. Substituting the figures

into the formula, the following was found:

N : Number of cases required in the sample

p z 80 per cent or the portion of trade retainedin Denton

q- 20 per cent or the portion of trade leavingDenton

E::5 per cent or the maximum allowable erroreither way

N 2.71(80x20)25

~o 2 5

No: 174

To have the sample within 90 per cent of certainty, it

was necessary to take at least 174 interviews. Actually,

215 interviews were taken and the respective phenomena oc-

curred 81 per cent and 19 per cent of the time. This caused

the sample to have a tolerance of 4.4 per cent rather than

5 per cent. It proves that nine times out of ten, the

sampling error will be 4.4 per cent or less. Seldom is it

necessary to have a sampling error smaller than this.

When using the previous formula, the same margin of

error computed for the primary classifications cannot be

applied to the cross-tabulations. In either case the in-

dividual cross-tabulations must stand alone. It was not

necessary to determine the sampling error for the cross-

tabulations in this study since the results were referred

to only as indications or influences and not as precise

facts.

CHAPTER III

FINDINGS OF THE STUDY

The results of this survey are presented in tabular

fom so that comparisons can easily be made and signifi-

cant facts recognized. Throughout the tabulations, cate-

gories were established to record the individual responses

which allowed each answer to fit into at least one cate-

gory. These categories can be seen in the tables present-

ing the findings of the study. The tables have been

analyzed pointing out the significant results and explain-

ing the possible meanings of the results.

The Primary Classifications

Section I of the questionnaire dealt only with classi-

fication data. Before taking this survey, it was impossible

to tell exactly what classification data would be necessary

to produce significant findings. Some of the questions in

Section I were not essential and were designed partly to

provide a conversational starting point between the inter-

viewer and the respondent and to focus the respondent's

attention on the subject. However, some of the data were

pertinent and were necessary to find the relationships

between the primary classifications. Only the data which

26

27

resulted in significant findings and the data that might be

of interest to Denton merchants or the Chamber of Commerce

are presented and discussed.

The tabulation f or the "a" part of Section I concern-

ing the race of the respondents shows that 181, or 89.8 per

cent, were white, and 22, or 10.2 per cent, were colored.

The exact proportions of colored and Yhite people in Denton

could not be found, but the cluster sample used for the

study should have picked up a reasonably proportionate

number of both races.

The categories used to tabulate the different income

levels of the households can be seen in Table 1. The inter-

viewers were directed to give close consideration in es-

timating the income level in which the households should

fall. The interviewers were to answer the question last

after evaluation of such factors as the principal sources

of income for the household, the size and condition of

the home, the appliances owned, the make and model of their

car, plus any other contributing factors. The households

classified in the upper level should have had an income

of approximately $20,00o or more a year. Those in the

upper-middle bracket should have had an income between

6,ooo and $10,000 a year. The middle level consisted

of households with a yearly income of about $14,000 to

$6,000. Those in the lower-middle bracket should have

28

had an income of approximately $2,000 to $4,000 yearly, and

any households that appeared to have an income smaller than

this should have been included in the lower bracket. The

number of households classified in each of these categories

can be seen in Table 1. Here again the exact proportions

of respondents that should have been included in the cate-

gories were not known. However, it appears that the sample

picked up a fairly good representation of various income

levels.

TABLE 1

THE NUMBER OF RESPONDENTS IN EACHINCOME LEVEL

Income Level Number

Upper . . . . . . . . . . . 1Upper-middle . - . . . . . 23Middle . . . . . . . . 83Lower-middle * -0 . . . . 62Lower . . . . . . . . . ..

Total . . . . . . . . 215

The results of the tabulation concerning the size of

the household reveals that the average size in Denton is

approximately 3.08 persons.

Separate tabulations were kept for each member of thehousehold who held a job. Table 2 shows the number of per-

sons who held jobs, and the places they worked. It also

29

shows the percentage representing the total number working

in the different locations.

TABLE 2

WHERE THE M3IBERS OF THE HOUSEHOLDS WORK, THE NUMBER, ANDTHE PERCENTAGE WORKING IN EACH LOCATION

Nunber of Persons

Place Total Per CentNumber in Each

6 _ in Each Location441 * Location

@0 0Q )0

Denton 130 33 8 11 2 184 81

Dallas 14 1 1 1 0 17 8

Ft. Worth 8 0 1 1 1 11 5

Others 10 5 0 0 0 15 6

T otals 162 13q 10 1 ,3_3 227 100

Fram this table one can see that approximately 81 per

cent of the respondents who held jobs worked in Denton.

Thirteen per cent worked in Dallas and Fort Worth, and

the remaining six per cent worked in other cities. When

residents commute fran Denton to work in Dallas or Fort

Worth, a source of trade loss possibly exists. A later

cross-tabulation investigates the effect this has on

Denton' s trade.

30

Table 3 shows the number of subscriptions to Denton,

Dallas, and Fort Worth newspapers, and the number of house-

holds that did not take a newspaper.

TABLE 3

THE NUMBER OF NEWSPAPERS TAKEN BY THE RESPONDENTS

Newspapers Number

The Denton Record Chronicle . . . . . . . . . . . . 178The Dallas Morning News or Times Herald . . . . . . 38The Fort Worth Press or Star Telegram . . . . . . .55No newspaper taken.. . .. *... . . . a. . .. . 22

The exact amount of influence taking a Dallas or Fort

Worth paper has on the shopping habits of Denton consumers

cannot be determined. However, it is only logical that

taking an outside paper probably is one of the several

factors that contribute to influencing *iere purchases are

made. This possibility will be examined later. As the

tabulation stands, the value is simply knowing that 66 per

cent of the subscriptions to newspapers were for the Denton

Record Chronicle and 34 per cent were for a Dallas or

Fort Worth paper.

In numerous instances, multiple answers were given by

the respondents when asked why they thought Denton residents

went to Dallas and Fort Worth to shop. Each answer was

considered aa an individual response and was tabulated as

such. The categories used to tabulate the responses can

31

be seen in Table 4; however, the nature of responses in-

cluded in the categories should be clarified. Answers that

stated prices were lower as the reason for going to Dallas

and Fort Worth to shop were placed in the cheaper category.

TABLE 4

SUGGESTED REASONS WHY PEOPLE GO TO DALLASAND FORT WORTH TO SHOP

Number of Per Cent ofReason Times Suggested Times Suggested

Cheaper 77Selection 10Habits and social 31Better merchandise and

ease 17 7

Total 26 100

The answers stating there was more of a variety from which

to choose were tabulated in the selection category. The

type of reasons included in the habits and social category

were such as those stating people shopped in Dallas and

Fort Worth because they had friends or relatives there, be-

cause they had lived there, or just because they enjoyed

going to larger cities and larger stores. The responses

included in the better merchandise and ease category were

such reasons as those stating people shopped in Dallas and

Fort Worth because the quality of the merchandise was

32

better, or shopping was easier since one could readily find

what he wanted.

Table 4 shows the results of the tabulation. In de-

termining the percentages, the total number of reasons sug-

gested by the respondents was used as the base. Then

percentages were found representing the proportion of

times each reason was suggested. The reasons that respond-

ents assigned to others for going to Dallas and Fort Worth

to shop are likely to be the reasons that they themselves

would shop in the two cities. With 77 per cent of the

reasons suggested being that goods were cheaper or that

there was a wider selection, one can safely say that this

indicates the probable attitude of a larger number of Denton

residents.

Table 5 shows where the respondents stated they pre-

ferred to buy apparel. It is interesting to note that

approximately one out of every five chose to buy apparel

in Dallas or Fort Worth rather than in Denton. Slightly

over half of these respondents stated they had rather shop

in Fort Worth, and the remainder preferred Dallas.

Two assumptions have been made concerning this tabu-

lation. First, people who prefer to shop for apparel in

Dallas and Fort Worth are likely to prefer to shop for

furniture, appliances, and automobiles in the two cities

as well. Second, these people actually do make a larger

33

portion of all their purchases in Dallas and Fort Worth.

Whether or not these assumptions are valid is shown in

a later cross-tabulation.

TABLE 5

WHERE THE RESPONDENTS PREFER TO BUY APPAREL

Preference Number Per Cent

Dent on 170 79Dallas 22 10

Fort Worth 23 11

Total 215 100

Precise conclusions can be drawn from the question

asking where the respondents made their last purchase of a

number of articles of apparel and furniture and rugs. The

categories used to tabulate these responses are self explana-

tory. However, it should be mentioned that the answers

stating the respondent did not know where the purchases

had been made or had not bought the article in question

are not given, since they are of no vital importance to

the findings.

Table 6 has been prepared to show where the respondents

made their last purchases of several articles of apparel.

Based on a total of 1,566 purchases, approximately one

34

TABLE 6

THE NUMBER OF PURCHASES REPORTED FOR VARIOUS ARTICLES OFAPPAREL, WHERE PURCHASED, AND THE NUMBER AND PER

CENT IN EACH LOCATION

Articleof

Apparel

Men' ssuits

Ment shats

Men' sshoes

Women'sdresses

Women'shats

Women'scoats

Women'sshoes

Children' sshoes

Children'sclothing

Total

0-

0

r-4

004.,E

169

160

185

202

200

197

204

127

122

04.,

115

120

148

174

Where Purchased

number Per Cent

0

H

26

19

13

1621 23

137

163

112

1081~-

1. 2301fS6i

30

"40

0

22

14

10

10

131

22

22 15

10 41

6 7I

1171

0)

V.40

6

10

8

5

2

8

4

1

I

0

0

68 15

U)a

a

10

80 10

86

81

6

12

70 15

80 11

88

89

70

8

5

11. M -. . . .. . ..I ... .. . . -~M2

$4.0

4.,$.40

13

9

5

7

11

7

3

6

g43

00 v

4

6

4

3

1

4

2

1

1

'7

I

_ --. - -- - - I

I

l1a566 1 34

fifth of Denton's apparel trade is being done in other cities,

with the larger portion going to Dallas and Fort Worth.

Ments suits and women's coats were the articles most com-

monly purchased outside of Denton. People probably gave

more consideration to the purchase of these items than

other articles of apparel. One might have expected these

items to lead in the amount of purchases outside of Denton

in view of the fact that such a large number of respondents

stated people shopped in Dallas and Fort Worth because of

selectivity and prices. It is interesting to note that

while Table 5 indicates that more respondents thought they

preferred Fort Worth to Dallas, Table 6 indicates that they

actually bought considerably more apparel in Dallas than in

Fort Worth.

Table 7 shows where the last purchases of furniture

and rugs were made by the respondents, giving the number

and percentage in the different locations. Based on a

total of 350 purchases, one can see that approximately 77

per cent of the purchases were made in Denton. Seventeen

per cent were made in Dallas and Fort Worth, and the re-

maining 6 per cent were made in other cities.

Table 8 shows where the respondents brought the ap-

pliances listed if they had purchased them since living in

Denton. The methods of tabulation were the same as those

36

TABLE 7

PURCHASES OF FURNITURE, WHERE MADE, AND THE NUMBER ANDPER CENT IN EACH LOCATION

Where Purchased

Number Per Cent

Type of ,Furniture

0 0 0

Rugs~~~~- 16 1 2 1 74 1

T 3 .9 0e Od0 ur it The- 0 H _ f u 4-

Hk the C oH h HF nu $ no0 F0 01 0 0 0 i 0 .r

E4 ah00o n ,A Pra 0

Furniture 190 .3 16 13 8 80 9 7 4Rugs 160 118 2y 6 11 74 l 4 7

Total 350 271 77 12 6

used for apparel and furniture. The total number of pur-

chases is broken down in the table to show the number and

per cent made in each location* Using l1OOS purchases as

the base, one can see that 87 per cent were made in Denton

while 13 per cent were made elsewhere, It appears that

radios and electric mixers were most commonly bought out-

side of Denton* Probably this was caused by the portability

of the two items.

The results of the question concerning ownership of an

automobile are shown in Table 9. There was a total of 151

purchases of automobiles, and, based on this number, the

37

TABLE 8

PURCHASES OF APPLIANCES, WHERE MADE, AND THE NUMBER ANDPER CENT IN EACH LOCATION

Type of

Appliance

Radio

Electricmixer

Televi-sionset

Gas orelectricrange

Sewingmachine

Vacuumcleaner

Washer

Freezingunit

Refrig-erator

Ice box

Total li

$4,)00

43

E4

160

77

119

91

94

114

21

157

9

128

59

104

146

78

78

106

20

141

9

8721

12

8

6

7

12

6

1

8

0

Where Purchased

Number Per.Cent- - -- I- .. 4 - p-. m

04)3

03I-IHi

0

43P40

ou

0

0

VI

r4Iri

43$40

43;40

$400.d

4

4

3

1

2

0

40

k

13

7

2

3

3

3

0,

0

1

0

7

3

4

7

1

2

0

7

0'

36

80

77

90

90

86

83

93

90

100

87

8

10

5

4

6

13

5

5

0

6

8

9

2

2

3

3

0

0

1

0

- - -U I6I I I d,1+

.. - --- .0 -- z-

-I---

- -

-* - -

38

TABLE 9

PURCHASES OF AUTOMOBILES, WHERE MADE, AND THE NUMBER ANDPER CENT IN EACH LOCATION

Where Purchased

0 Number Per CentMake of

00

,00

Automobile

E-420Pi0 0

Chevrolet 45 26 4 0 15 58 9 0 33

Ford 28 21 1 1 5 75 4 3 18

Oldsmobile 17 10 4 2 1 59 23 12 6

Plymouth 14 7 3 1 3 50 21 7 62

Buick 11 10 1 0 0 91 9 0 0

Dodge 9 6 1 2 o 67 11 22 0

Studebaker 2 1 0 1 0 50 0 50 0

Chrysler 6 6 0 0 0 100 0 0 0

Pontiac 6 6 0 0 100 0 0 0

Nash 6 6 0 0 100 0 0 0

Mercury 3 3 0 0 0,100 0 0 0

Lincoln 2 2 0 0 0 100 0 0 0

Cadillac 1 1 0 0 0 100 0 0 0

Willys 1 1 0 0 0 100 0 0 0

Total 151 1106 141 7 2L 70 0 5 16- -.------- 4-------, ---- -&---_ 4 __._t_.- - '

-dPl -1 -- rI I w

Iadow

39

results indicate that seven out of ten purchases were made

in Denton while three out of ten were made elsewhere.

Table 10 has been prepared to give the reader a more

compact picture of where the respondents purchased all the

items asked about in the questionnaire. The total number

and the total percentage of purchases made in the different

locations is shown for each merchandise class.

TABLE 10

TOTAL PURCHASES IN EACH MERCHANDISE CLASS, THE NUMBER, ANDPER CENT IN EACH LOCATION

Place of Apparel Furniture AppliancesIAut sPurchase

No. % No. % I No. j No. (

Denton 1,239 79 271 77 872 87 106 70

Dallas 165 11 41 12 65 6 14 9Fort Worth 117 7 19 5 32 3 7 5

Others 45 3 19 6 36 4 24 16

Total 1,566 100 350 100 L005 100 151 100

One can see that, percentagewise, respondents bought

more automobiles elsewhere than any other type of merchan-w

dise. One can also see that Dallas and Fort Worth did not

obtain the larger portion of the trade as was the case for

the other merchandise classes. This may indicate that

14.0

residents of Denton do not think dealers in Dallas and Fort

Worth offer better values on automobiles than can be found

in other cities.

Furniture is second, percentagewise, in the purchases

made outside of Denton, and apparel runs a close third.

In both instances, Dallas and Fort Worth obtained a

noticeably larger portion of the trade than other cities.

A smaller proportion of appliances were bought outside of

Denton than any other merchandise class. This could be

expected, since practically every make of appliance found

in other cities can also be found in Denton, and the prices

are fairly stable. Too, those vho purchased in Denton can

obtain service on the appliances more easily and do not

have the problem of shipping them frcm other cities to

Denton.

It appears that the order in which the merchandise

classes were purchased outside of Denton is logical and

follows a definite pattern. Selectivity and prices seem

to have been the guiding influences, as was found in the

tabulation concerning why people go to Dallas and Fort

Worth to shop.

A main objective of the study was attained by finding

the proportion of purchases made in each location by ccmbin.

ing the four merchandise classes. This is shown in Table 11.

TABLE 11

PURCHASES MADE IN EACH LOCATION COMBINING THE FOUR MER-CHANDISE CLASSES, THE TOTAL NUMBER AND THE TOTAL

PERCENTAGE

Place Number of PurchasesOf Total TotalPurchase Ap- Furni- Appli- Auto- Number Per Cent

parel ture ances mobiles

Denton 1,239 271 872 106 2,488 81

Dallas 165 41 65 14 285 9Ft. Worth 117 19 32 7 175 6

Others 45 19 36 24 124 4

Total 1.566 350 1,005 151 31-072 100

One can see from this table that, by using 3,072 in-

dividual purchases of shopping goods as the base, approxi-

mately 81 per cent of the purchases were made in Denton

and 19 per cent elsewhere. The 19 per cent of purchases

outside of Denton were distributed in such a way that

Dallas obtained 9 per cent of the trade, Fort Worth obtained

6 per cent, and other cities obtained 4 per cent.

The Cross-Tabulations

It was previously stated that four sets of cross-

tabulations were necessary to make the study meaningful.

This part of the study gives the purpose of each cross-

tabulation, and results are shown that have an important

41

42

bearing on the purpose. The results have been placed in

tabular f orm and analyzed to determine the si gnificant

facts they contain.

The cross-tabulation concern respondents in di f-

ferent income levels.--The methods used in processing the

data have already been outlined, but there was an important

variation in the procedure when determining the actions

of the different income levels. This variation consisted

of using only three categories for the different income

levels, rather than the five used in the primary tabula-

tion. These three levels were made up of the lower, a

combination of the lower-middle and middle, and a ccmbina-

tion of the upper-middle and upper. To find the actions

of these groups, it was necessary to tabulate only the

responses for the lower End the combination of the upper-

middle and upper, then subtract these totals from the totals

in the primary tabulation. This resulted in the count for

the combination of the lower-middle End middle. To eliminate

the need of using long titles to describe these income

levels, the following discussion refers to the titles simply

as the upperrmiddle, and lower income levels.

The purpose of this cross-tabulation was to see if

there was any noticeable variation in the actions of thedifferent income groups. Table 12 shows the results by

43

income levels in the attempt to determine Yiy people go to

Dallas and Fort Worth to shop.

TABLE 12

SUGGESTED REASONS WHY PEOPLE GO TO DALLAS AND FORT WORTHTO SHOP BY INCOME GROUPS

Number and Per Cent of Times......eSugg sted by Income Groups

ReasonUpp r Middle Lower

No. L No. % No.

Cheaper 4 13 53 32 20 50

Selection 14 47 77 46 13 33

Habits and social 8 27 26 16 4 10

Better merchandiseand ease 4 13 10 6 3 7

Total loot166 100j40 100

When given by income groups, the reasons suggested

for going to Dallas and Fort Worth to shop vary in im-

portance from the results of the primary classifications.

Few of the respondents in the upper level thought that

people went to Dallas and Fort Worth to shop because goods

were cheaper. They thought that the wider selection and

habits and social reasons were the principal attractions

to shoppers. However, respondents in the lower level

thought that the price of goods was the most important

factor and selection was second.

Table 13 shows that people in the upper income level

most often preferred to buy outside of Denton while persons

in the lower level most often preferred to shop in the

city.

TABLE 13

WHERE RESPONDENTS PREFER TO BUY APPAREL BY INCOME GROUPS

Income Level

PreferenceUpper Middle Lower

No. No. No.

Denton 14 58 117 81 39 85Dallas 4 17 15 10 3 7

Ft. Worth 6 25 13 9 4 8

Total 210. l10001451 46 100

The remainder of this cross-tabulation was designed

to show where the respondents in the different income

levels actually have been making some of their shopping

goods purchases. The tables show proportions representing

the amount of purchases in Denton, Dallas, Fort Worth,

and other cities, based on the total number of purchases

made by each income group. Conclusions were drawn from a

comparison of these proportions. Also, a comparison was

made to the total amount of purchases in each location as

shown in the primary classifications. However, the real

value lies in the differences of the two extremes, the

lower income level and the upper income level.

From Table 14, one can see that the respondents fall-

ing in the lower income bracket made about nine out of ten

of their purchases of apparel in Denton, while those in

the upper income bracket made less than seven out of ten.

Considering all the respondents, approximately eight out

of ten purchases were made in Denton.

TABLE 14

THE NUMBER AND PER CENT OF PURCHASES OF APPAREL INEACH LOCATION BY INCOME GROUPS AND THE TOTAL

NUMBER AND PER CENT IN EACH LOCATION

Place of Number of Purchases Per Cent of Purchases

Purchases Income Status Total Income Status TotalMid- Num- Mid- Per

Upper de Lower ber Upper dle Lower Cent

Denton 120 856 263 1,293 67 79 89 79Dallas 29 124 12 165 16 11 4 11

Ft. Worth 21 86 10 117 12 8 3 7Others 10 24 11 45 5 2 4 3

Total 180 1,090296 1,566 Jlo oJQ 100100

Table 15 shows that the lower income level made more

of their purchases in Denton of furniture than were made

by any other income group. In this instance, the middle

46

income level made the largest portion of purchases outside

of Denton.

TABLE 15

THE NUMBER AND PER CENT OF PURCHASES OF FURNITURE INEACH LOCATION BY INCOME GROUPS AND THE TOTAL

NUMBER AND PER CENT IN EACH LOCATION

Number of Purchases Per Cent of PurchasesPlace ofPurchases Income Status Total Incme Status Total

Mid- Num- Mid- PerUpper dle Lower ber Upper dle Lower Cent

Denton 27 187 57 271 77 74 90 77

Dallas 5 33 3 41 14 13 5 12

Ft. Worth 1 17 1 19 3 7 2 5

Others 2 15 2 19 6 6 3 6

Total 351_ 2521 6 35I 100 110 0 1 .0100

One can see in Table 16 that again the respondents in

the lower level made the largest portion of purchases in

Denton while the upper level made the smallest portion.

The amount that these two levels vary from the average

proportion of purchases made in Denton is significant.

Table 17 shows that again respondents falling in the

upper income level made the most purchases in cities

other than Denton. The actions of the lower income level

varied from what was generally found in the previous

tables, since they were second in the percentages of

47

TABLE 16

THE NUMBER AND PER CENT OF PURCHASES OF APPLIANCES INEACH LOCATION BY INCOME GROUPS AND THE TOTAL

NUMBER AND PER CENT IN EACH LOCATION

Number of Purchases Per Cent of PurchasesPlace of IPurchases Income Status Total Income Status Total

Mid- Num- Mid- PerUpper dle Lower ber Upper dle Lower Cent

Denton 98 632 142 872 74 88 94 87

Dallas 19 43 3 65 14 6 2 6

Ft. Worth 14 15 3 32 11 2 2 3

Others 1 32 3 36 1 4 2 41 - I

Total 132 722 15111, 00 J100 100 100 1100

purchases made outside of Denton. This appears to have

little validity because the lower income group in the

sample had purchased only twelve automobiles.

A suimary of the four preceding tables has been given

in Table 18. This table combines all the purchases in

the four merchandise classes and then gives the percentages

made in each location by the respondents in the different

income levels. After comparing these percentages an over-

all picture of the variations in the purchasing habits

of the respondents in the three income levels can be seen.

48

TABLE 17

THE NUMBER AND PER CENT OF PURCHASES OF AUTOMOBILES INEACH LOCATION BY INCOME GROUPS AND THE TOTAL

NUMBER AND PER CENT IN EACH LOCATICK

Number of Purchases Per Cent of PurchasesPlace ofPurchases Income Status Total Inccze Status Total

Mid- Num- Mid- PerUpper dle Lower ber UPper dle Lower Cent

Denton 14 84 8 lO6 58 73 67 79

Dallas 3 12 0 15 13 10 0 9Ft. Worth 2 4 0 6 8 4 0 5

Others 5 15 4 24 21 13 33 16

Total 24 115 12 JL1 100 100 100 100

The summary of the whole cross-tabulation indicates

that the amount of shopping done outside of Denton is

closely related to the income level of the consumers. It

appears that those in the upper level tend to shop out-

side the most, the middle income level is second, and the

lower level is last. The most significant variation is

found in the comparison of the upper level and the lower

level.

The cross-tabulation concerning respondents who pre-

ferred to buy apparel in Dallas and Fort Worth..-Table 19

gives an interesting finding that does not directly per-

tain to the primary objectives of this cross-tabulation.

49

TABLE 18

TOTAL PER CENT OF PURCHASES COMBINING THE FOUR MERCHANDISECLASSES MADE IN EACH LOCATION BY INCOME GROUPS

Per Cent of Total PurchasesPlace of TotalPurchases Income Status Per Cent

Upper Middle Lower

Denton 70 81 90 81

Dallas 15 10 3 9Ft. Worth 10 5 3 6

Others 5 4 4 4

Total 100 100 100 100

The table shows that the higher the income bracket the

more likely the respondents preferred to shop in cities

other than Denton. This agrees with the previous tabula-

tion concerning the different income levels since purchases

TABLE 19

THE PER CENT OF RESPONDENTS IN EACH INCOME IEVEL MIOPREFERRED TO SHOP IN DALLAS AND FORT WORTH

Per Cent PreferringIncome Levels to Shop in Dallas

and Fort Worth

Upper-middle..... @0. . 43Middle * - - - - . . . . . . 2Lower-middle...... .... lbLower . . . . . . . . . . . . 11

were made outside of Denton depending on the income level.

The upper income level was not considered in the table

since only one household was classified in the bracket.

In presenting the findings of the primary classifi-

cations, the assumption was made that the 21 per cent of

the respondents who preferred to buy apparel in Dallas and

Fort Worth probably preferred to shop generally in the two

cities. The purpose of this cross-tabulation is to as-

certain whether or not the statement is true. If it is

true, then it will be pertinent to find the extent to which

these respondents actually made their purchases in Dallas

and Fort Worth.

Table 20 gives the proportion of purchases made in

Denton, Dallas, Folrt Worth, and other cities for each

merchandise class by the respondents who preferred to buy

apparel in Denton, and those who preferred Dallas and Fort

Worth. Also, percentages are given representing the total

number of purchases in each location for the two groups.

Results shown in the table are evidence that those

respondents who said they preferred to buy apparel in

Dallas and Fort Worth actually did more of all their shop-

ping there than the other respondents. They made approxi-

mately 28 per cent more of their purchases in Dallas and

Fort Worth than those who preferred to shop in Denton.

Therefore, the assmuptions made in the primary classifica-

tions concerning this question appear to be true.

TABLE 20

THE PER CENT OF PURCHASES IN EACH MERCHANDISE CLASS ANDTHE TOTAL PER CENT MADE IN DIFFERENT LOCATIONS BY

THOSE WHO PREFERRED TO BUY APPAREL IN DENTONAND THOSE WHO PREFERRED DALLAS

AND FORT WORTH

Respondents Who Pre-ferred to Buy Apparelin Denton

Per Cent ofchases

H

P44

Pur-

----. ,-

0 00)0S

r1i

D)

,0

0

Total

Per

Cent

Respondents Who Pre-ferred to Buy Apparelin Dallas & Ft. Worth

Per Cent of Pur-chases

0

p4

4)

0)0C)

r1i

A20

43

Total

Per

Cent

Denton 87 82 91 73 87 51 60 72 59 59

Dallas 6 10 4 6 6 26 19 15 22 22

Ft. Worth 4 2 2 1 3 19 17 8 19 15

Others 3 6 3 20 4 4 4 5 0 41 .flei f--- - - ---- -t

Total 100 100 100 1QQ 100 100 1001100 100 100

The cross-tabulation concerning tte respondents who

work in Dallas or Fort Worth.--The reason for this cross-

tabulation was to see if there was some relationship be-

tween where respondents worked and where they shopped. To

find whether or not there was a relationship, the proportion

Place ofpurchases

-iI

of purchases made by respondents who worked in Dallas or

Ft. Worth in the different locations was found and compared

to the purchases of respondents who did not work in either

of the two cities. This comparison can be seen in Table 21.

TABLE 21

THE PER CENT OF PURCHASES BY MERCHANDISE CLASS AND THE TOTALPER CENT OF PURCHASES IN EACH LOCATION MADE BY THE

RESPONDENTS WHO DID AND THOSE WHO DID NOTWORK IN DALLAS OR FORT WORTH

Households with NoMembers Working inDallas or Ft. Worth

Per Cent of Pur-chases by Merchan-dise Class

4P44

0)

P44

0)H)

Households with Mem-bers Working inDallas or Ft. Worth

I - 4. ~

TotalPerCent

Per Cent of Pur-chases by Merchan-di-se Class

4P44

0

I.IaHP4P,

U)0

H3

TotalPerCent

Dent on80 78 87 72 82 76 74 84 62 77Dallas 11 12 7 9 10 7 12 5 15 7Ft.Worth 7 5 3 3 5 12 5 6 12 10

Others 2 5 3 16 3 5 9 511 6

Total 100 100,1001100 100 100,100100 100

One can see from the table that there is very little

difference in where the two groups of respondents made

Placeof

Purchase

their purchases, since there is a margin of only 5 per cent.

With a margin this auall, it cannot be stated as a fact

that persons working in Dallas or Fort Worth do more of

their shopping in the two cities than other people. It

appears that most of the Denton residents working in

Dallas and Fort Worth are in the middle income group and

below. This would have a tendency to reduce the percent-

age of purchases in the two cities, since people in the

upper income level made the largest portion of purchases

outside of Denton.

The cross-tabulation concerning the respondents who

take Dallas and Fort Worth neK papers.--The purpose of

this cross-tabulation was to see if there was any relation-

ship between the newspapers taken and where purchases were

made. Percentages are given in Table 22 representing the

actions of those who did and those who did not take Dallas

or Fort Worth papers.

The percentages show there is a sizeable variation in

places of purchases between the two groups of respondents.

Those who took a Dallas or Fort Worth paper made approxi-

mately 10 per cent more of their purchases outside of Denton

than those who did not take either of the papers.

It was previously found that the higher the income

bracket the more likely it would be for the respondents to

make purchases outside of Denton. Also, it is logical

that the higher the income bracket the more likely the

respondent is to subscribe to a Dallas or Fort Worth paper.

These two factors go hand in hand and possibly cause the

pr oportion of purchases in cities other than Denton to be

TABLE 22

THE PER CENT OF PURCHASES BY MERCHANDISE CLASS AND THE TOTALPER CENT OF PURCHASES IN EACH LOCATION BY THE HOUSEHOLDS

THAT DO AND THOSE THAT DO NOT TAKE DALLAS AND/ORFORT WORTH NEWSPAPERS

Households That Do NotTake Dallas or Ft.Worth PapersPer Cent of Pur-chases by Merchandisc Class I

H

P4<4

- q~-

0

4-) 04

P4

A0H

0

44

TotalPerCent

Households That Do TakeDallas or Ft. WorthPaers-Per Cent of Pur-chases by Merchandise Class

H-0

F4

04P4

e

P4p.4

00

OHto0

45

rotalPerCent

Denton 84 83 91 71 85 72 70 81 69 75

Dallas 8 7 5 10 7 14 17 9 7 12

Ft. Worth 5 4 2 2 4 11 8 5 9 8

Others 3 6 2 17 4 3 5 5 15 5

Total 100 00 .100100O-100 100 100 100 100 100

higher for those who take outside papers. It cannot be

stated that taking a Dallas or Fort Worth paper definitely

Placeof

Purchases

causes any trade loss; however, this cross-tabulation in-

dicates that it likely contributes to influencing the

shopping habits of Denton consumers.

CHAPTER IV

SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS

Summary

The respondents in this survey suggested that se-

lectivity and lower prices were the principal reasons

residents of Denton went to Dallas and Fort Worth to shop.

They also suggested that people shopped in the larger

cities because of habits and social reasons, for better

merchandise, and for ease of shopping. Twenty-one per

cent of the respondents stated that they preferred to

buy apparel in Dallas and Fort Worth rather than Denton.

Probably these same respondents preferred to shop gen-

erally in the two cities. Also, the study indicated

that approximately 19 per cent of the residents hold jobs

in cities other than Denton.

A larger portion of automobiles were bought outside

of Denton by residents of the city than any other mer-

chandise class. Furniture was second, apparel third,

and appliances fourth. Combining the purchases in the

four merchandise classes, it was found that Denton re-

tained approximately 81 per cent of the trade, Dallas and

Fort Worth obtained 15 per cent, and other cities obtained

4 per cent.

The cross-tabulation concerning where purchases were

made by different income groups indicated that there was a

definite relationship between the income level of resi-

dents and where they did their shopping. People in the

upper income bracket did more of their shopping outside of

Denton than did any other income group. Combining the

purchases of all four merchandise classes, the people in

the upper level made only about 70 per cent of their pur-

chases in Denton, whereas the middle level made 81 per

cent, and the lower level made 90 per cent. It appears

that as the income level of residents increases, there is

more of a tendency to shop outside of Denton.

One significant result of the cross-tabulation con-

cerning respondents who preferred to buy apparel in Dallas

and Fort Worth was the finding that the proportion of

people who preferred to shop in the two cities increased

as the income level went from the lower to the upper-middle.

The cross-tabulation also pointed out that the people who

preferred to buy apparel in Dallas and Fort Worth actually

made more of their other purchases in these two cities.

The respondents who work in Dallas and Fort Worth

appear to do about 5 per cent more of their shopping outside

of Denton than those who do not work in the two cities.

58

Results of the study also showed that people taking Dallas

and Fort Worth newspapers made about 10 per cent more of

their purchases outside of Denton than those who did not

take papers from either of these cities. These two fac-

tors probably have some influence on where Denton con-

sumers make their purchases. It may also be assumed that

there are a number of things influencing where purchases

are made that were not found by this study.

Conclusions

The major finding of this study is the indication

that approximately 81 per cent of Denton's retail shopping

goods trade is actually done in Denton. Since there is no

standard against which this finding can be evaluated, it

is not possible to state categorically that it is good or

bad. However, it does appear that inevitable trade losses

do occur from any city, and that relatively large trade

losses might be expected in a small city which lies within

the retail trade orbits of two much larger cities.

To estimate whether or not Denton merchants are losing

any trade in excess of the amount that would be profitable

for them to retain and the amount that will inevitably be

lost, it will be necessary to make a thorough analysis of

the findings of this study and other factors that are known

to exist. The study shows that only a small portion of

Denton's trade is being lost to cities other than Dallas

and Fort Worth. Any substantial reduction of trade loss

will require that Denton merchants concentrate their

efforts on reducing the amount going to these two cities.

Therefore, the analysis is principally concerned with

the trade being lost to Dallas and Fort Worth.

First, we will consider some of the general problems

Denton retailers have in retaining trade when competing

with Dallas and Fort Worth merchants. If a resident of

Denton intended to buy an automobile and decided on a

Chevrolet, he would have only one dealer in Denton from

which to get an offering. When considering the purchase

of an automobile, many consumers want to get the offerings

of several dealers before deciding on the actual purchase.

To do this, they must go outside of Denton, thus increas-

ing the possibility of their buying elsewhere. When buy-

ing furniture, many consumers want a large variety from

which to choose. The size of Denton limits the number of

furniture stores it can support and the inventories they

can afford to carry. This, too, increases the possibility

of consumers going outside of Denton to find the desired

variety in selection and prices. Many consumers are dis-

criminating when considering the purchase of certain

articles of apparel. Large and numerous stores can offer

6o

the necessary variety to satisfy these consumers' wants,

where stores with a relatively small volume cannot.

The study shows that consumers are less likely to

buy appliances outside of Denton than any other merchandise

class. Still, some of the trade is lost and Denton mer-

chants are limited in ways to combat this loss. For in-

stance, more special sales may be offered in Dallas and

Fort Worth than Denton merchants could possibly afford,

thus sometimes causing appliances to be cheaper in the two

cities. These problems and limitations are difficulties

about which Denton merchants can do little, and because

of them it is inevitable that some trade will be lost to

Dallas and Fort Worth.

A variety of suggestions was made as possible reasons

why Denton residents went to Dallas and Fort Worth to

shop, but the two prevalent suggestions were that there

was a wider selection of merchandise and that goods were

cheaper. It is likely that these two factors are guiding

influences in determining where many consumers make their

purchases, and are responsible for some of the trade loss.

Therefore, the two influences must be at least partially

overcome if trade losses are to be reduced appreciably.

However, the question arises as to whether this would be

possible or profitable.

The volume of business done in Dallas and Fort Worth

enables the retailers to carry a wide selection of mer-

chandise. To minimize the influence this has on where

Denton residents shop, it would be necessary for the mer-

chants of this city to increase their inventories in order

to provide wider selection. If inventories were increased

enough to even approach the variety of merchandise found

in Dallas and Fort Worth, there probably would not be

enough demand for some of the products to make it profit-

able for them to be carried.

It is problematical as to whether shopping goods are

actually cheaper in Dallas and Fort Worth than in Denton.

However, the mere fact that many Denton residents appear

to believe that this is true makes it a serious problem.

If prices actually are higher in Denton, sane price re-

ductions might retain part of the trade which is now being

lost. If prices are not higher in Denton, local merchants

seem to need to get this idea across to the people who now

believe otherwise.

The study distinctly points out that consumers above

the middle income level are most prone to make purchases

outside of Denton. If merchants are going to reduce the

trade loss, this is the group on which their efforts should

be concentrated. The principal reasons found in the study

as to why consumers above the middle income level shopped

61

62

in Dallas and Fort Worth were the wider selection, habits,

and social reasons. Still, these answers do not cover

all the probable causes for their shopping in the larger

cities. Possibly, one reason just as important is con-

sumers above the middle income level shop in the two

cities because they have the time and money to go there.

Also, they are attracted to the two cities for a number

of reasons other than for shopping, but they buy things

while they are there.

Another study could be made to find that action on

the part of Denton merchants would be necessary to retain

part of this trade. However, it can be seen without the

study that retaining the trade would be quite expensive.

This study shows that approximately 30 per cent of the

purchases by consumers above the middle income level are

not made in Denton. It is inevitable that some of the

trade will leave Denton, and that some consumers would

shop in Dallas and Fort Worth no matter what action Denton

merchants took. Therefore, it is doubtful that the action

required to reduce the amount of outside shopping appreci-

ably would be justified in view of the limited amount of

trade that could possibly be retained. If Denton merchants

offered a wider selection and became more competitive in

63

prices with Dallas and Fort Worth, it is doubtful that in-

creased sales would more than offset increased expenses

and price reductions.

There are many factors over which Denton merchants

have little control that undoubtedly are responsible for

influencing the purchasing habits of some consumers. For

example, the study indicated that taking Dallas and Fort

Worth newspapers probably contributed to influencing where

purchases are made. The fact that some residents of Denton

work in the two cities possibly causes trade loss. The

attractions held by Dallas and Fort Worth such as athletic

events, professional skills, recreation, and specialized

medical care cause trade loss. These factors appear to

be inherent in the problem of a small city competing with

a large one.

From the findings of the study, it appears that Denton

retailers may be doing a good job of satisfying the demands

of consumers in view of the limitations with which they

are confronted. Also, it does not seem that merchants are

losing much trade in excess of the amount that would be

profitable for them to make efforts to retain. It appears

that the 19 per cent of the shopping goods trade being

lost by Denton merchants is not unduly large.

64

Recommendations

The author suggests that the possibility of retaining

trade that is being lost by Denton retailers be investigated

further. Additional investigation might reveal some areas

in which profitable action could be taken. For example,

the investigation might show what would be profitable for

Denton merchants to do in order to retain a larger por-

tion of the trade done by consumers above the middle income

group. It might be found that it would be profitable to

handle a wider selection of certain articles of merchandise

or become more competitive in prices with Dallas and Fort

Worth on some articles. However, until further study has

been made and it is known what action would produce profit-

able results, it would not be wise for Denton merchants to

begin blindly making efforts to reduce the trade losses

without regard to the costs.

APPENDIX

Instruction Sheet

The first thing you should do is make an alternate copyof the addresses to be surveyed by you. Do it now andput it some place where it will not be lost.

Address.,--Use the address of the residence inter-viewed, apartment, et cetera.

I. (a) Race.--We are using only white and colored. Ifnot colored, consider the respondent as white. Circlethe "W" for hite and "C" for colored, depending on thecategory in which the respondent should fall.

(b) Income status.--Give this close consideration. Fillit in last. Five categories have been provided so as tohave more distinction. Be careful not to show any biasthrough central tendencies of rating everyone too highor too low. Very few people should fall in the high in-come bracket. If they do, they should have incomes ofapproximately $20,000 or more a year. Even upper middleincome classes should be what the average person considersfairly well off, and there will not be very many of these.Probably most of the people here in Denton will fall inthe middle and lower middle brackets and probably morewill fall in the lower bracket than most people realize.Many interviewers have a tendency to place respondents ina category higher than they belong. Do not let this biasenter into your choice.

In determining the income status, the purpose ofdoing it last is to give the interviewer a chance tobring into consideration such important factors as thenumber of people in the household, the number employed,the type of jobs held, the size and condition of thehouse, the make and model of their car, and appliancesthey own. After considering these factors, simply circlethe "H" for high income, "UM" for upper middle, "M" formiddle, "LM" for lower middle, and "L"' for low , depend-ing on the category in which they should fall in youropinion.

66

(c) Year moved to Denton.--If they have been liv-ing here all their lives, put down the approximate numberof years. If they lived here, moved away, then moved back,put down when they moved back.

(d) Size of family.--This is not the number in thefamily but the number of people living in the residenceat this particular time. Visitors should not be includedbut instead more or less permanent parties. The totalnumber of this should equal the number in "C" or the com-position of the family.

(e) Composition.--This refers to the compositionof the household. Place a check mark in the blank if thefather and mother live in this residence. For thedaughters and sons presently living in the residence,place their age in the blanks. "Others" would be suchpersons as the grandfather or son-in-law who lives inthe residence and is considered as part of the family unit.You should write in the relationship that the "others"have to the family. This may require some questioningand interpretation on the part of the interviewer, butbe especially careful that you have it correct.

(f) F . .pos. of resp., _or family position ofrespondent.--A check mark should be placed in theseblanks next to the family position of whoever is inter-viewed. For instance, if the mother is interviewed acheck mark should be placed in the blank provided inline with the word "mother." In case there is more thanone daughter or son, and either one is the respondent,then place a check mark in the blank provided in linewith the word "daughters" or "sons" as the case may be,then circle the age of the daughter or son that was therespondent. Do not interview any person who you thingsis incapable of answering the questionnaire effectively.

Under "occupation" give the work of any person inthe household that holds a full time or part time job,whether it be the manager of a department store or carry-ing a paper route. However, be sure to identify the workif it is only part-time by placing "part-time" after thedescription.

Under "city" where employed, we want to find thenumber of co mmuters and the number who work here inDenton. Give the town of employment for everyone in thehousehold who holds a job.

67

II. What newspapersdo you take means at the present timeand only major city publications such as the Denton RecordChronical or the Dallas Morning News..

III. (a) This question should be carefully read by theinterviewer to the extent that he is positive the respon-dent understands what he wants. However, do this withoutsuggesting any possible answer that the respondent mightuse. It is very important that the respondent makes uphis own mind and answers this question individually. Ifthis is not done, the answers will be worthless in computa-tion.

(b) This question is self-explanatory, but theinterviewer should again caution that he does not giveany assistance in obtaining an answer. When reading thequestion do not weight the possible answers with changesin vocal tones but instead read it in one phrase, "Doyou prefer to shop in Dallas, Fort Worth, or Denton,"and then let the respondent determine his preference.Place a check mark in the blank of their choice.

(c) This question will probably require a greatdeal of explanation on the part of the interviewer. Itis one of the most important and should be clearly under-stood by the respondent. In asking this question, donot necessarily read it with the exact wording on thequestionnaire. One might put it in his own words byasking, "Do you know where your husband bought his lastsuit?" or "Can you tell me where you purchased your lastdress?" Make it clear that this means the town of thevery last purchase of the listed items, and take care notto influence the respondent in any way.

IV. In question IV simply check those appliances therespondent owns and the town in which they were boughtin the blank to the right. Put a check mark in the blankprovided for every appliance they own that is listed, butplace the town in which the appliance was bought onlyif purchased since the household has been living in Denton.If they own more than one of a j rticular appliance, placethe number in the blank to the left and the towns in whichthey were purchased to the right. If they do not knowwhere the appliance was bought, put "don't know" in theblank provided for the town.

68

In answering the question concerning ownership of anautomobile, do not consider any business car unless itis actually the method of transportation used by thehousehold. Also, trucks should be considered only ifthey are the means of transportation for the household.In the blanks to the right, place the town in which thecar or truck was bought if purchased since the householdhas been living in Denton.

Questionnaire

Address

I. (a) Race W C (c) Year moved to DentonHUm

(b) Income status MLML

(d) Size of family Fam. pos. Occupation Cityof resp. where

employed

Father

Mother(e) Comp. Daughters

(age)Sons

(age)

Others

II. What newspaper (papers) do you take?

III. (a) A great many people do a lot of their shoppingin Dallas or Fort Worth. Why do you supposethey go so far to shop?

(b) When you are buying clothing for yourself or yourfamily, do you prefer to shop in Dallas ?Fort Worth ? Denton ?

(c) In what town was the last purchase of the follow.ing articles made?1. Man's suit2. Man's hat3. Man's shoes

69

Woman's dressWoman's hatWoman's coatWoman's shoesChildren' s shoesChildren's clothingFurniture ( *hat)Rug

IV. Check appliances respondent owns:

Electric mixerRadioTelevisionGas or electric rangeSewing machineVacuum cleanerWasher (auto. or agitator type)Home freezing unit (deep freeze)Gas or electric refrigeratorIce boxHot water heater

If bought sinceliving in Den-ton, where? (town)

Own a family car (cars)?MakeMod

Interviewer

6.7.8.9.

10.11.

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American Marketing Association, The Techniques of MarketingResearch, A Report Prepared by the Cammittee on Mar-keting Research Technique of the American MarketingSociety, Ferdinand C. Wheeler, chairman, New York,McGraw-Hill Book Company, 1937.

Beckman, Theodore N., and Maynard, Harold H., Principlesof Marketing, fourth edition, New York, The RonaldPress Company, 1946.

Blankenship, Albert B., editor, How to Conduct Consumerand Opinion Research, New YorksHarper and Brothers,1946.

Blankenship, Albert B., and Heidingsfield, Myron S.,Market and Marketing Anallsis, New York, Henry Holtand Company, 1947.

Bradford, Ernest S., Marketing Research, New York, McGraw-Hill Book Company, Inc., 19TT

Brown, Lyndon 0., Marken and Distribution Research,New York, The Ronald Press Company, 1949.

Brown, Theodore H., The oUseof Statistical Techniques inCertain Problemsof Marketing Researc Boston,Harvard University, Graduate School of Business Ad-ministration, Bureau of Business Research, 1935.

Ferber, Robert, Statistical Techniques in Market Research,New York, The McGraw-Hill Book Company, Inc.,T1.

Jones, Fred M. A Survey of a Retail Trading Area, Bulle-tin No. 4, Urbana, University of Illinois, Bureauof Business Research, 1932.

Lorie, James H., and Roberts, Harry V., Basic Methods ofMarketing Research, New York, McGraw-Hill BookCompany, Inc., 1951.

Luck, David J., and Wales, Hugh G., Marketing Research,New York, Prentice-Hall, Inc., 192,

70