CASE 3.4
Rumstad Decorating Centers (B)
Rumstad Decorating Centers was an old-line Rockford, Illinois, business. The company was originally founded as a small paint and wallpaper supply store in 1929 by Joseph Rumstad, who managed the store until his retirement in 1970, at which time Jack Rumstad, his son, took over. In
1974, the original downtown store was closed and a new outlet was opened on the city’s rapidly expanding west side. In 1996, a second store was opened on the east side of the city and the name of the business was changed to Rumstad Decorating Centers.
Jack Rumstad’s review of 1997 operations proved disconcerting. Both stores had suffered losses for the rear (see Case 2.1, Rumstad Decorating Centers [A]). The …show more content…

The Wallpaper Shop also advertised regularly in the Shopper’s World but ran small ads daily in the Morning Star and had daily radio commercials as well. Rumstad had formerly advertised in the Morning Star but now relied exclusively on the
Shopper’s World

Sample
Because of the financial constraints imposed on the study by Jack Rumstad, it was decided to limit the study to households within a two-mile radius of Rumstad, Emerson, and the Wallpaper
Shop. Aldermanic districts within the two-mile radius were identified; there were four in all, and the wards within each district were listed. Two of the 12 wards were then excluded because they were outside the specified area. Blocks within each of the 10 remaining wards were enumerated, and five blocks were randomly selected from each ward. An initial starting point for each block was determined, and the questionnaires were then administered by the Parrett field staff at every sixth house on the block. All interviews were conducted on Saturday and Sunday. If no one was at home or if the respondent refused to cooperate, the next house on the block was substituted; no one was at home at 39 households, and 18 others refused to participate. The field work was completed within one weekend and produced a total sample of 123 responses.

Questions
1. Evaluate