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Chestnut Ridge

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Chestnut Ridge Country Club

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The Chestnut Ridge Country Club has long maintained a distinguished reputation as one of the outstanding country clubs in Elma, Tennessee, area. The club’s golf facilities are said by some to be the finest in the state, and its dining and banquet facilities are highly regarded as well . This reputation is due in part to the commitment by the Board of Directors of Chestnut Ridge to offer the finest facilities of any club in the area.
For example , several negative comments by club members regarding the dining facilities prompted the board to survey members to get their feelings and perceptions of the dining facilities and food offerings at the club .Based on the survey findings, the board of directors established a quality control committee to oversee the dining room and a new club manager was hired.

Most recently ,the board became concerned about the number of people seeking membership to Chestnut Ridge. Although no records are kept on the number of membership applications received each year, the board sensed that this figure was declining. They also believed that membership applications at the three competing country clubs in the area – Alden, Chalet and Lancaster … were not experiencing similar declines. Because Chestnut Ridge had other facilities , such as tennis club and a pool ,that were comparable to the facilities at these other clubs , the board was perplexed as to why membership applications would be falling at Chestnut Ridge.

To gain insight into the matter, the board of directors hired an external research team to conduct a study of the country clubs in Elma Tennessee area and assess their market performance. The goals of the research were (1) to determine people’s overall perception of Chestnut Ridge and (2) to provide recommendations for ways to increase membership applications at the club.

Assessing Market Performance

The research team met with the board of directors and key personnel at Chestnut Ridge to gain a better understanding of the goals and directions adopted by the company. A literature search of published research relating to country clubs uncovered no studies. The researchers then decided to interview country club goers in general including people who were enrolled at the other three clubs. This interview would be gain insights regarding the needs and preferences of country club goers which would lead to the development of issues and concerns in designing the questionnaire which would form the research instrument in the subsequent empirical survey research.

The research team thought it would be useful to survey members from Alden, Chalet, and Lancaster in addition to those from Chestnut Ridge for two reasons. One, members of these other clubs would be knowledgeable about the levels and types of services and facilities desired from a country club, and, two, they had at one time represented potential members of Chestnut Ridge. Hence their perceptions of Chestnut Ridge might reveal why they chose to belong to a different country club.

The researchers obtained a consolidated list of members from all four country clubs which became the sampling frame for the research. A review of the lists subsequently obtained showed Alden had 114 members, Chalet had 98 members and Lancaster had 132 members. Thereafter a sample of 348 was obtained across all four country clubs and the questionnaire mailed to each individual in the sample. A final sample of size 120 was obtained with the break up as given in the data sheet.

Questionnaire

questionnaire.

(1) Of which club are you currently a member (2) Alden (3) Chalet (4) Lancaster (1) Chestnut Ridge

Demography :

(2) your age : (a) 60

ordinal

(Not a continuous variable, it is categorical)

(3) sex : Female (0) Male(1)----nominal

(4) Marital Status Married Single widowed divorced---nominal

(5) Number of dependents including yourself: 2 or less (1) 3-4 (2) 5-6 (3) >6 (4)

(6) Distance of residence from your club 0-2 km(1) 2-5 kms(2) 2-10 km(3) >10 km (4)

(7) Monthly income less than $ 20,000 $20,000 - 29,999 $30,000 – 49,999 $ 50,000 – 99,999 $ 100,000 or more

(8) on the whole how satisfied are you with your country club (1) not satisfied (2) neutral (3) somewhat satisfied (4) satisfied (5) very satisfied

(9)The following is a list of factors that are usually important to you in a country club. Please rate the factors according to their importance in country club.
1=not at all important … and 5=extremely important

9.1 golf facilities 1 2 3 4 5
9.2 tennis facility 1 2 3 4 5
9.3 pool facilities 1 2 3 4 5
9.4 dining facilities 1 2 3 4 5
9.5 social events 1 2 3 4 5
9.6 family activities 1 2 3 4 5
9.7 number of friends who are members 1 2 3 4 5
9.8 cordiality of members 1 2 3 4 5
9.9 prestige 1 2 3 4 5
9.10 location 1 2 3 4 5

10)The following is a list of factors that usually influence your satisfaction in a country club. Please rate the factors according to their extent of satisfaction in your country club.
1=not at all satisfied … and 5=very satisfied

9.1 golf facilities 1 2 3 4 5
9.2 tennis facility 1 2 3 4 5
9.3 pool facilities 1 2 3 4 5
9.4 dining facilities 1 2 3 4 5
9.5 social events 1 2 3 4 5
9.6 family activities 1 2 3 4 5
9.7 number of friends who are members 1 2 3 4 5
9.8 cordiality of members 1 2 3 4 5
9.9 prestige 1 2 3 4 5
9.10 location 1 2 3 4 5

Questions:

What kind of research design is being used? Is it a good choice?
Overall how does Chestnut Ridge compare to the other three country clubs
(Alden, Chalet, and Lancaster)?
In what areas might Chestnut Ridge consider making improvements to attract additional members?

Chestnut Ridge Country Club (B)

For many years Chestnut Ridge Country Club has been one of the most well-respected country clubs in the Elma, Tennessee area. It has one of the finest golf courses in the state and its dining and banquet facilities are highly regarded.
In addition, the club provides its members with outdoor tennis courts and a swimming pool. The country club’s outstanding reputation is due in part to the commitment by Chestnut Ridge’s Board of Directors to keep attuned to the needs of current and potential club members. Recently, the board was concerned that applications for membership to Chestnut Ridge were declining. The board members believed that a similar decline in applications was not occurring at the other country clubs in the area – Alden, Chalet and Lancaster. As a result, the board contracted an outside research team to survey members of the various clubs to see how Chestnut Ridge was perceived in comparison to others.

Currently the board is interested in determining what personal characteristics differentiate the members of Alden, Chalet, Lancaster and Chestnut Ridge. The board wants to know if demographic features such as age, sex, income and so on, or club features themselves, bear any relation to the extent of satisfaction in the country clubs.

Question :

Are there any demographic factors or club features deemed influential in the extent of satisfaction in a country club.

Chestnut Ridge Country club (C )

Studying competition. Exercise in Perceptual Mapping

Chestnutmds=with=Newtown

Few years have passed. Chestnut Ridge have carried out many improvements in its operations. The Board has been satisfied too regarding the improvements. Now they feel it is time to take a relook at Chestnut Ridge customer perceptions with respect to its competition. In order to study competition in the form of a spatial perceptual map once again a research team was called upon to construct a perceptual map giving competition. The researchers considered the Multidimensional Scaling approach and decided to collect data on consumer perceptions on 10 attributes for the all the country clubs in the region.
Taking a relook at the country clubs after the previous exercise carried out earlier, the research team observed that there has been a new entry in the industry… a new country club called New Town country club has started operating and has already captured some market share.

They took another survey, specialized for setting up the perceptual map, collecting ratings on the 10 attributes for the five country clubs.

| |alden |chalet |chestnut |lancaster |newtown |
|golf |6.28 |4.65 |6.48 |5.97 |4.65 |
|tennis |5.37 |4.67 |6.03 |5.51 |4.67 |
|pool |4.99 |4.79 |5.36 |4.14 |5.79 |
|dining |5.38 |4.35 |5 |5.23 |7.35 |
|social |5.91 |4.1 |5.66 |5.48 |5.1 |
|family |5.42 |4.78 |4.46 |4.79 |4.78 |
|friends |6.17 |5.01 |6.43 |5.89 |6.01 |
|cordiality |6.45 |4.89 |5.28 |5.28 |5.89 |
|prestige |4.89 |6.35 |4.68 |5.49 |6.01 |
|location |5.12 |5.48 |5.21 |4.39 |5.48 |

The survey was administered over a target population of individuals not necessarily belonging to any specific country club. The map was to depict the general perception regarding the five country clubs.

[pic] Dining high

Dimension 1 Dining Dimension2 Prestige.

Perceptual Mapping by Correspondence Analysis

To construct a perceptual map the researchers considered the correspondence analysis approach and the optimal scaling approach.

They took another survey, specialized for setting up the perceptual map, with the following question:

Given a choice which country club would you choose and for what single feature ?
Golf, Tennis, Pool, Dining, or family activities organized, choose only one.

They also considered a third variable ,income having five labels, very high, high, medium high, medium and low.

Chestnut : club label 1
Chalet : club label 2
Lancaster : club label 3
Alden : club label 4
New Town : club label 5

Features:

Golf =1
Tennis = 2
Pool = 3
Dining=4
Family activities organized = 5

Income level:

Very High= 1
High= 2
HighMedium=3
Medium= 4
Low= 5

The survey was administered over a target population of individuals not necessarily belonging to any country club. The map was to depict the general perception regarding the four country clubs.

[pic] Chestnut Ridge (D): Assessing risk of a new project by Monte Carlo Simulation

The management of Chestnut Ridge decided to adopt an environmental dimension for their establishment by setting up an in-house bio-gas power generation outfit. They would collect their kitchen waste and feed it as input material to the bio-gas plant which will thereby generate methane. The methane can subsequently be used to generate power to be used in the country club facility.

The Plant would require a total initial cost of $100,000 , would have an estimated economic life of about 8 years and would give a significant cost saving. All the same the management wanted to get an estimate of the risk associated with the cost saving to be accrued in the facility.

To estimate the risk, the country club obtained the following probability distributions.

Initial cost in dollars :

Cost probability estimate cumulative probability random numbers 8,000 .05 .05 00-04 10,000 .80 .85 05-84 12,000 .15 1.00 85-99

Economic life:

Economic life probability cumulative random numbers (in years) 5 .10 .10 00-09 6 .20 .30 10-29 7 .40 .70 30-69 8 .20 .90 70-89 9 .10 1.00 90-99

Cost saving per year prob cumulative random numbers

2000 .20 .20 00-19 3000 .40 .60 20-59 5000 .40 1.00 60-99

===============================================================

Risk assessment under the assumption of uniform distribution

Initial cost has Uniform Distribution on the range 8000 to 12,000
Cost Saving has Uniform distribution on 2000 to 5000.

Risk assessment under the assumption of Normality

Chestnut Ridge Management also wanted to conduct the risk assessment as per another set of probability distributions, as determined by an external consultant, as follows:

Initial cost having a Normal distribution with mean $ 10,000 and
Standard deviation, sigma = $2000 Economic Life having the same discrete distribution Cost saving having a Normal distribution having mean $ 3000 and standard deviation= $ 500.

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