Measuring Marketing

Chapter 77 Transactions Per Hour

Measurement Need

Retailers need to know the transaction pattern to determine the best possible combination of these activities.

Solutioni

Transactions per hour (TPH), or any chosen period of time, calculates the number of transactions that occur during that time, and is represented by:

$TPH=\frac{T_{transt}}{T_{ht}}$

Where

TPH = transactions per hour

Ttranst = total transactions in time period t

Tht = total hours in time period t

Let’s assume a store sells books and the owners wish to measure TPH. The store is open from 8 a.m. to 9 p.m. every day. Ownership decides to review an entire week’s activity to determine TPH. During the week being reviewed, 1,600 transactions occur. We can now calculate TPH:

$$