Neck & Neck: Leveraging the Club Neck Information

Posted: 18 Apr 2012

See all articles by Francisco de Asis Martinez-Jerez

Francisco de Asis Martinez-Jerez

University of Notre Dame - Department of Accountancy

Katherine Miller

Harvard University - Accounting & Control Unit

Christopher D. Ittner

University of Pennsylvania - Accounting Department

Jasmijn C. Bol

affiliation not provided to SSRN

Date Written: June 17, 2010

Abstract

Commercial Director Prado wonders how to leverage the loyalty card information to prepare the Fall 2008 budget. The case discusses the value of subjective and objective information for profit planning purposes. Spanish children's apparel retailer Neck & Neck uses loyalty card information for tactical purposes, such as promotional campaigns. Its management team is thinking about how to incorporate that information to the budgeting (profit planning) process. From an analytical standpoint the case looks at the surprising results of a mailing campaign that reveals the consequences of inadequate updating of the customer database. Also, the budgeting data in the case may be used to teach regression model selection and R-squared.

Learning Objective: The use of loyalty card information, subjective information and forecast models for planning purposes.

Suggested Citation

Martinez-Jerez, Francisco de Asis and Miller, Katherine and Ittner, Christopher D. and Bol, Jasmijn C., Neck & Neck: Leveraging the Club Neck Information (June 17, 2010). Harvard Business School Accounting & Management Unit Case No. 109-070. Available at SSRN: https://ssrn.com/abstract=2042099

Francisco de Asis Martinez-Jerez (Contact Author)

University of Notre Dame - Department of Accountancy ( email )

Mendoza College of Business
Notre Dame, IN 46556-5646
United States

Katherine Miller

Harvard University - Accounting & Control Unit ( email )

Soldiers Field
Boston, MA 02163
United States

Christopher D. Ittner

University of Pennsylvania - Accounting Department ( email )

3641 Locust Walk
Philadelphia, PA 19104-6365
United States
215-898-7786 (Phone)
215-573-2054 (Fax)

Jasmijn C. Bol

affiliation not provided to SSRN

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