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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.
BIBLIOGRAPHY
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
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