1

MARKETING RESEARCH DATA ANALYSIS PROBLEMS

AVERAGES & CORELATIONS

1. A company wishing to launch a new brand of digital camera would like to assess if there is a relationship
between manufacturer and camera price, maximum picture capacity and the estimated battery life.
Data collected for 20 digital camera models were used for comparison and the inter-correlation output is
below. Provide a summary analysis with reasons.

Correlations

camera maximum
manufact price in us picture estimated
urer dollars capacity battery life
manufacturer Pearson Correlation 1.000 .119 -.107 .089
Sig. (2-tailed) . .618 .654 .708
N 20 20 20 20
camera price in us dollars Pearson Correlation .119 1.000 .232 -.064
Sig. (2-tailed) .618 . .326 .789
N 20 20 20 20
maximum picture capacity Pearson Correlation -.107 .232 1.000 .106
Sig. (2-tailed) .654 .326 . .656
N 20 20 20 20
estimated battery life Pearson Correlation .089 -.064 .106 1.000
Sig. (2-tailed) .708 .789 .656 .
N 20 20 20 20

2. The data below provides the average rating of a set of consumers on certain brands of Notebooks. 100 is
the highest rating and a rating of 75 is considered average.

Notebook Overall Rating

AMS Tech Roadster 15CTA380 67
Compaq Armada M700 78
Compaq Prosignia Notebook 150 79
Dell Inspiron 3700 C466GT 80
Dell Inspiron 7500 R500VT 84
Dell Latitude Cpi A366XT 76
Enpower ENP-313 Pro 77
Gateway Solo 9300LS 92
HP Pavilion Notebook PC 83
 2

IBM ThinkPad I Series 1480 78

Micro Express NP7400 77
Micron TransPort NX PII-400 78
NEC Versa SX 78
Sceptre Soundx 5200 73
Sony VAIO PCG-F340 77

Using SPSS, answer the following questions appending the data output sheets as appropriate to support your
answers-

1. What is the average rating and deviation of ratings of the notebooks included in the survey?
2. What is the average rating of notebooks of various companies whose notebooks were included in this
survey?
3. Which is the most and least preferred notebook supplier?
4. Is there a relationship between supplier companies and the ratings received?

3. The marketing team of a company has tracked the number of commercials that were released over a 10 week
period with the sales volumes (in units) achieved in each of the respective weeks.

Week No. of Commercials Sales Volume

1 2 50
2 5 57
3 1 41
4 3 54
5 4 54
6 1 38
7 5 63
8 3 48
9 4 59
10 2 46
You are to use an appropriate technique to report on the effectiveness of the TV commercials in generating sales
volumes. Using SPSS, prepare a report and append the data output sheets as appropriate to support your
conclusions.

4. An agribusiness company wishes to determine if its strategies to de-risk its revenues from the rainfalls have
resulted in significant progress over the years. Data on the companys sales revenues and Met department data
on Number of districts receiving normal or excess rain and Percentage of annual rainfall compared to the Long
Period Average is below

Year Sales Revenues % of districts receiving % of rain received compared

Rs in lakhs normal/excess rainfall to Long Period Average

2001-02 2759 67 92
2002-03 1913 39 81
 3

2003-04 2728 77 102

2004-05 3942 56 86
2005-06 5936 72 99
2006-07 7405 60 99
2007-08 10337 72 105
2008-09 11044 76 98
2009-10 13974 41 77
1. Is there a relationship between Number of districts receiving normal or excess rain and Percentage of
annual rainfall compared to the Long Period Average?
2. How would you assess the risk between rainfall and sales? How strong is this relationship?
3. Has the risk between rainfall and sales declined over the years from 2001 to 2010? Present relevant data
output and reasons for your response?
4. On a year-on-year basis, how would you assess the relationship between districts receiving normal rain
and annual sales revenues? Comment on the trend of results.
5. If in 2010-11, the country receives 103% of its long term average rainfall and 80% of the districts record
normal or excess rain, what is your assessment of the companys projected sales revenues?
6. How accurate do you believe your assessment for 2010-11 revenues will be? Why?

5. The owner of a newly set up gymnasium and health spa conducted a study of preferences of target
buyers located midtown/downtown, in the suburbs and in the countryside. He gathered their response
ratings on the importance to them for regular exercise (1 = not at all important, 7 = very important) and
the importance to them for an outdoor lifestyle ((1 = not at all important, 7 = very important). The
following output sheet was generated by the statistical data analysis tool:
outdoor lifestyle Exercising regularly * Location of residence

outdoor Exercising
Location of residence lifestyle regularly
Midtown/Downtown Mean 4.1000 3.3000
N 10 10
Std. Deviation 2.2336 1.7670
Suburbs Mean 4.3000 3.9000
N 10 10
Std. Deviation 2.2136 1.6633
Countryside Mean 3.7000 3.6000
N 10 10
Std. Deviation 1.4944 1.7127
Total Mean 4.0333 3.6000
N 30 30
Std. Deviation 1.9561 1.6733
 4

outdoor lifestyle Exercising regularly * Gender

outdoor Exercising
Gender lifestyle regularly
Females Mean 4.0667 3.2667
N 15 15
Std. Deviation 2.2509 1.7099
Males Mean 4.0000 3.9333
N 15 15
Std. Deviation 1.6903 1.6242
Total Mean 4.0333 3.6000
N 30 30
Std. Deviation 1.9561 1.6733

Location of residence and Regular Exercise :

One-Sample Test

Test Value = 0
95% Confidence
Interval of the
Sig. Mean Difference
t df (2-tailed) Difference Lower Upper
Location of residence 13.191 29 .000 2.0000 1.6899 2.3101
Exercising regularly 11.784 29 .000 3.6000 2.9752 4.2248

Correlations

outdoor Location of Exercising

lifestyle residence Gender regularly
outdoor lifestyle Pearson Correlation 1.000 -.085 -.017 .647**
Sig. (2-tailed) . .656 .928 .000
N 30 30 30 30
Location of residence Pearson Correlation -.085 1.000 .816** .074
Sig. (2-tailed) .656 . .000 .696
N 30 30 30 30
Gender Pearson Correlation -.017 .816** 1.000 .203
Sig. (2-tailed) .928 .000 . .283
N 30 30 30 30
Exercising regularly Pearson Correlation .647** .074 .203 1.000
Sig. (2-tailed) .000 .696 .283 .
N 30 30 30 30
**. Correlation is significant at the 0.01 level (2-tailed).

Using the output generated above, answer the following questions :

1. Is there a relationship between location of the residence of a potential gymnasium user and their habit
of wanting to exercise regularly?
2. Are people of a particular gender more likely to want to exercise regularly?
3. Is there a difference in the attitude ratings of people towards regular exercise in different parts of the
city? Explain what testing procedure you used to arrive at this conclusion.
4. Based on the response ratings received, people located in which part of town are having a habit of
exercising regularly? Would this hence be your preferred choice for locating the new gymnasium and
health spa?
 5

5. Who would be a better target for the gymnasium and health spa men or women? Base your opinion
on the ratings received for regular exercise. Explain how you arrived at this decision?

6. The territories in a companys eastern and western regions were rated for sales potential based on the
companys evaluation system. A sales manager wishes to conduct the appropriate statistical test to
determine if there is a difference between the two regions. Relevant data is provided to you on an excel
sheet.

Region Territory Rating

West 1 74
West 2 88
West 3 78
West 4 85
West 5 100
West 6 114
West 7 98
East 1 81
East 2 63
East 3 56
East 4 68
East 5 80
East 6 79
East 7 69

You are required to develop the research hypothesis and follow a step by step procedure to perform this
analysis. Results are required to be submitted in the form of a brief managerial report

7. A Sales Manager is analyzing the performance of 17 territories that come under his jurisdiction. Using
SPSS/EXCEL, analyse the data below and answer the questions that follow
All figures are Rupees in lakhs

Sept Sept Aug Annual

Territory Plans Sales Sales Aug Plan Target Oct Plan Nov Plan Dec Plan
60.0 46.8 15.0 20.0 596.0
1 0 3 0 0 0 55.00 45.00 55.00
50.0 28.8 25.2 20.0 341.0
2 0 9 0 0 0 30.00 35.00 35.00
40.0 34.0 11.1 11.1 381.0
3 0 8 1 1 0 35.00 45.00 55.00
70.0 40.7 36.5 36.5 431.0
4 0 1 6 6 0 20.00 40.00 63.00
55.0 18.7 36.2 25.0 291.0
5 0 8 2 0 0 20.00 24.00 52.00
70.0 25.5 46.3 35.0 361.0
6 0 6 5 0 0 40.00 45.00 60.00
 6

20.0 25.9 5.7 10.0 220.0

7 0 3 3 0 0 7.00 20.00 40.00
40.0 16.9 24.5 15.0 345.0
8 0 6 6 0 0 35.00 25.00 50.00
30.0 8.4 23.7 12.0 153.0
9 0 1 4 0 0 10.00 10.00 42.00
40.0 2.1 47.8 16.0 201.0
10 0 2 8 0 0 40.00 45.00 42.00
25.0 5.7 25.7 15.0 115.0
11 0 7 9 0 0 10.00 10.00 15.00
63.0 42.2 20.7 17.0
12 0 1 9 0 431.00 40.00 30.00 50.00
70.0 57.9 12.0 12.0
13 0 3 0 7 626.00 30.00 50.00 100.00
51.0 23.1 30.2 15.0
14 0 2 4 0 251.00 25.00 30.00 40.00
50.0 27.3 27.1 16.0
15 0 2 7 0 266.00 40.00 40.00 31.00
55.0 16.3 43.2 15.0
16 0 0 5 0 351.00 45.00 45.00 50.00
30.0 2.3 29.7 10.0
17 0 5 3 0 240.00 50.00 40.00 50.00

1. Are the Sales officers in the 16 territories providing accurate projections compared to actual sales in the
months of August and September?
2. If territories 1 to 7 are in the Northern Region, 8 to 12 are in Central Region and the rest are in the
Southern Region, which area has performed better in terms of aggregate sales in each of the past two
months?
3. Which Region (North, Central or South) has higher average third quarter (Oct to Dec) monthly sales?
4. Which of the months in the third quarter has the highest sales plan?
5. Is there a relationship between the projections of October and December? Explain in detail.
6. Based on the annual target, October projections and sales of September and August, is it possible to
predict October sales for each territory? Present a step-by-step process.
7. Based on the annual target, and projections of September and August, is it possible to predict August sales
for a new territory? Present a step-by-step process.
 7

Forecasting with Regression Analysis

1. A group of 20 customers of sneakers were interviewed in order to ascertain their preference for the
product and their assessment of the sneakers comfort, styling and durability. Their responses are
presented below and also provided to you on an excel sheet-

Customer # Preference rating Comfort Style Durability

1 no preferred,
7 greatly preferred 1 poor, 7 excellent
1 6 6 3 5
2 2 3 2 4
3 7 5 6 7
4 4 6 4 5
5 1 3 2 2
6 6 5 6 7
7 5 6 7 5
8 7 3 5 4
9 2 4 6 3
10 3 5 3 6
11 1 3 2 3
12 5 4 5 4
13 2 2 1 5
14 4 5 4 6
15 6 5 4 7
16 3 3 4 2
17 4 4 3 2
18 3 4 3 2
19 4 4 3 2
20 2 3 2 4

Using SPSS, generate the required output and answer the questions below

1. Can you develop a model to predict a customers preference rating for your brand of sneakers based on
the three attributes of styling, comfort and durability? How accurate is your model in making this
prediction?
2. Which is the most important attribute that decides a customers preference for the brand of sneakers?
3. Is there a relationship between the customers ranking for styling and comfort?

2. A consumer products company wishes to identify the key reasons why people prefer certain brands of
toothpaste. A survey of 30 consumers was conducted and responses to 6 statements were gathered. These are
summarized below and on an excel sheet

The questionnaire used was as follows :

Statement Rating scale (tick response)

1 completely disagree
7 completely agree
1 2 3 4 5 6 7
 8

It is important to buy toothpaste that prevents cavities

I like a toothpaste that gives shiny teeth
A toothpaste should strengthen your gums
I prefer a toothpaste that freshens breath
Prevetion of tooth decay is not an important benefit offered
by a tooth paste
The most important consideration in buying a toothpaste is
attractive teeth

responde Strengthe freshen Attractiv

nt cavity Shiny n s Tooth e
preventio
number n Teeth Gums breath Decay Teeth
1 7 3 6 4 2 4
2 1 3 2 4 5 4
3 6 2 7 4 1 3
4 4 5 4 6 2 5
5 1 2 2 3 6 2
6 6 3 6 4 2 4
7 5 3 6 3 4 3
8 6 4 7 4 1 4
9 3 4 2 3 6 3
10 2 6 2 6 7 6
11 6 4 7 3 2 3
12 2 3 1 4 5 4
13 7 2 6 4 1 3
14 4 6 4 5 3 6
15 1 3 2 2 6 4
16 6 4 6 3 3 4
17 5 3 6 3 3 4
18 7 3 7 4 1 4
19 2 4 3 3 6 3
20 3 5 3 6 4 6
21 1 3 2 3 5 3
22 5 4 5 4 2 4
23 2 2 1 5 4 4
24 4 6 4 6 4 7
25 6 5 4 2 1 4
26 3 5 4 6 4 7
27 4 4 7 2 2 5
28 3 7 2 6 4 3
29 4 6 3 7 2 7
30 2 3 2 4 7 2
1. Using SPSS, can you use a statistical technique to identify the key reasons why people prefer certain
brands of toothpaste? Why do you believe that the technique used is appropriate? Present a step by step
procedure.
2. Rank the purchase criteria for toothpaste in order of priority.
3. Are any of the criteria eliminated from the final factors? Explain why.
 9

Predictive Techniques : Discriminant Analysis

1. A bank has decided to use an appropriate statistical technique to study expenditure patterns of its
customers.

Past research has led to the selection of four criteria, namely, age, monthly income and years after
education and number of weekly transactions as assessment parameters for credit card users. The bank
has mined data for a sample of 25 credit card customers on the basis of these criteria. Past records have
also led to the classification of these25 customers as having proven to be high spenders (1) or mid-level
spenders (2) and low spenders (3).

This sample information is presented below :

Customer # Number of weekly

Expense Monthly Years after credit card
Category Age income education transactions
1
Low 23 100000 6 16
2 Medium 22 112500 5 12
3 High 19 90000 4 10
4 High 15 80000 4 6
5 High 17 75000 1 2
6 Medium 19 87500 5 12
7 Medium 20 77500 6 14
8 Medium 15 67500 2 4
9 Low 21 120000 5 12
10 Low 16 30000 3 8
11 Low 17 37500 2 6
12 Medium 25 62500 6 14
13 High 27 50000 4 10
14 Low 21 45000 3 8
15 High 24 60000 2 6
16 High 21 42500 4 10
17 Medium 19 35000 2 6
18 Low 22 45000 5 12
19 Low 19 30000 4 13
20 Low 14 50000 6 11
21 High 15 10000 8 4
22 High 22 100000 9 14
23 High 24 50000 8 12
24 Medium 19 110000 3 10
25 Medium 21 20000 2 7

Using SPSS and the data provided, answer the following questions :
 10

1. What is the age and income profile of the banks customers?

2. Is there a relationship between number of weekly transactions and income level?

3. Are older credit card users richer?

4. Based on age and monthly income, can you predict number of weekly transactions that a customer is likely
to make using the credit card? Explain how.

Using the above information, advise the bank on the following:

(i) What would be the most appropriate statistical technique to be used for assessing expenditure
patterns of future card applicants? Why do you believe this technique is appropriate?

(ii) Using the SPSS output, prepare the predictive model for the bank and interpret all relevant
information contained within it using a step by step procedure.
(iii) Develop the decision making criteria for the banks customer assessment team.
(iv) How would you judge the predictive accuracy of your framework? Give details based on the relevant
SPSS output.

2. A credit card issuing bank has decided to use an appropriate statistical technique to screen applications.
Past research has led to the selection of three criteria, namely, age, income and years since marriage, as
crucial risk assessment parameters for credit card users. The bank has mined data for a sample of 18 credit
card customers on the basis of these three criteria. Past payment records have also led to the classification
of these 18 customers as having proven to be high risk (1) or low risk (2).
This sample information is presented below :

Customer # Risk level Age in years Monthly Income in Years since

assessed Rupees marriage
RISKL AGE INC YRSM
1 1 35 40000 8
2 1 33 45000 6
3 1 29 36000 5
4 2 22 32000 0
5 2 26 30000 1
6 1 28 35000 6
7 2 30 31000 7
8 2 23 27000 2
9 1 32 48000 6
10 2 24 12000 4
11 2 26 15000 3
12 1 38 25000 7
13 1 40 20000 5
14 2 32 18000 4
15 1 36 24000 3
16 2 31 17000 5
17 2 28 14000 3
18 1 33 18000 6

Using the above information, advise the bank on the following:

 11

(i) What would be the most appropriate statistical technique to be used for assessing risk levels of future
card applicants? Why do you believe this technique is appropriate?
(ii) Using the SPSS output, prepare the predictive model for the bank and interpret all
relevant information contained within it using a step by step procedure.

(iii) Develop the decision making criteria for the banks risk assessment team.
(iv) How would you judge the predictive accuracy of your framework? Give details based on the relevant
SPSS output.

3. The data below is drawn from a selection of Nike shoes users. The survey had 20 users (mix of males and
females) who were asked how often they use their Nike shoes and then classified as Heavy, Medium and Light
users of the product. They were also asked to rate on a scale of 1 to 7, certain parameters with respect to the
Nike brand.
No Usage Gender Awareness Attitude Preference Intent to buy Brand Loyalty
(Rating scale - 7 : Very Favourable to Nike ; 1 : Very unfavourable to Nike)

1 Heavy users Males 7 6 5 5 6

2 Light Users Females 2 2 4 6 5
3 Light Users Females 3 3 6 7 6
4 Heavy users Males 6 5 5 3 2
5 Heavy users Males 5 4 7 4 3
6 Medium Users Males 4 3 5 2 3
7 Medium Users Females 5 4 4 3 2
8 Light Users Females 2 1 3 4 5
9 Medium Users Males 4 4 3 6 5
10 Light Users Females 3 1 2 4 5
11 Heavy users Males 6 7 6 4 5
12 Heavy users Males 6 5 6 4 4
13 Light Users Females 4 3 3 1 1
14 Heavy users Males 6 4 5 3 2
15 Light Users Males 4 3 4 5 6
16 Light Users Males 3 4 2 4 2
17 Heavy users Females 7 6 4 5 3
18 Medium Users Females 6 5 4 3 2
19 Light Users Females 1 1 3 4 5
20 Heavy users Females 5 7 4 1 2

Using SPSS, answer the following questions appending the data output sheets as appropriate to support your
answers-

1. Is there a higher preference amongst males for Nike shoes ?

2. Are female users more loyal to the Nike brand?
3. Can you develop a model to predict on the basis of gender and the ratings assigned for various brand
parameters like awareness, attitude, preference, intent to buy and brand loyalty, whether the buyer will be
likely to be high, medium or light user of the product purchased?
4. Are heavy users having a higher preference for Nike and hence a higher intent to buy the Nike branded
products in the future?
 12

5. What is the usage level likely to be of a male buyer who assigns a 6 rating to awareness of the Nike brand,
a 7 on attitude towards Nike brand, a 5 rating on brand preference, 4 on intent to buy and 5 on loyalty to
Nike?
6. Is there a relationship between brand loyalty and the customers intention to buy?

4. Your company wishes to develop a model that is able to classify whether a consumer is likely to use the internet
for two specific services : shopping & banking. For this, a set of 30 persons was profiled on 5 criteria sex,
familiarity with the internet, number of hours of usage of the internet per week, attitude towards the internet and
attitude towards technology. Their existing usage of the internet services for shopping and banking was also
tracked. The data collected is below and also provided to you on an excel sheet -

Respondent Internet Attitude Attitude Usage of Usage of

# Sex Internet usage towards towards internet internet
Familiarity hours/week internet technology for shopping for banking
1 Unfamiliar
1 Male 7 Very 1 very unfavourable 1 Yes 1 Yes
2-Female familiar 7 very favourable 2 No 2 No

1 1 7 14 7 6 1 1
2 2 2 2 3 3 2 2
3 2 3 3 4 3 1 2
4 2 3 3 7 5 1 2
5 1 7 13 7 7 1 1
6 2 4 6 5 4 1 2
7 2 2 2 4 5 2 2
8 2 3 6 5 4 2 2
9 2 3 6 6 4 1 2
10 1 9 15 7 6 1 2
11 2 4 3 4 3 2 2
12 2 5 4 6 4 2 2
13 1 6 9 6 5 2 1
14 1 6 8 3 2 2 2
15 1 6 5 5 4 1 2
16 2 4 3 4 3 2 2
17 1 6 9 5 3 1 1
18 1 4 4 5 4 1 2
19 1 7 14 6 6 1 1
20 2 6 6 6 4 2 2
21 1 6 9 4 2 2 2
22 1 5 5 5 4 2 1
23 2 3 2 4 2 2 2
24 1 7 15 6 6 1 1
25 2 6 6 5 3 1 2
26 1 6 13 6 6 1 1
27 2 5 4 5 5 1 1
28 2 4 2 3 2 2 2
29 1 4 4 5 3 1 2
 13

30 1 3 3 7 5 1 2

1. Using SPSS, use the appropriate statistical technique to predict whether a consumer is likely to use the
internet for banking based on the classification criteria of sex, internet familiarity, internet usage and the
attitude ratings towards technology and the internet. Why do you believe that this model is appropriate
for use? How accurate is the predictive model expected to be?
2. When doing a similar study for predicting use of the internet for online shopping, which is the most
important criteria that decides whether a consumer is likely to be a user/non-user of internet shopping
services?
3. Are consumers using the internet for shopping more likely to be users of the internet for banking services
as well?
4. Do women users as a group seem to have a higher usage of the internet?
5. Are male users more familiar with the internet?

5.A restaurant owner has just received an Excellent rating. He wishes to assess what a consumer is willing to
pay for a meal at a restaurant with a similar Excellent rating. The data from 300 restaurants in the city was used
to help arrive at this decision. Output generated by SPSS is below.

(i) What would be the appropriate technique to develop this model?

(ii) What would be the price that consumers would be willing to pay for a meal at an Excellent rated
restaurant?
(iii) What is the error estimated for this predicted value? Interpret this value.

Model Summary

Std. Error
Adjusted of the
Model R R Square R Square Estimate
1 .547a .299 .297 7.7882
a. Predictors: (Constant), Quality of meal

ANOVAb

Sum of Mean
Model Squares df Square F Sig.
1 Regression 7716.294 1 7716.294 127.214 .000a
Residual 18075.502 298 60.656
Total 25791.797 299
a. Predictors: (Constant), Quality of meal
b. Dependent Variable: MEALCOST
 14

Coefficientsa

Standardi
zed
Unstandardized Coefficien
Coefficients ts
Model B Std. Error Beta t Sig.
1 (Constant) 12.025 1.310 9.183 .000
Quality of meal 7.150 .634 .547 11.279 .000
a. Dependent Variable: MEALCOST

NOTE :Quality of Meal Ratings 1 for Good, 2 for Very Good, 3 for Excellent,

MEALCOST = Price of meal in Hundred Rupees

 15

Predictive Techniques : Factor Analysis

1. In a large scale customer survey by Jet Airways, passengers were asked to indicate on a seven-point
scale (1 = completely agree, 7 = completely disagree), their agreement or disagreement with the set of
10 statements relating to their perceptions and attributes of the airline. The 10 statements were as
follows :

They (Jet airways) are always on time. ONTIME

The seats are very comfortable. COMFORT
I love the food they provide. FOOD
Their air hostesses are very pretty. HOSTESS
My boss/friend flied with the same airline. BOSS
The airline has brand new aircraft. AIRYOUNG
I get the advantage of the Jet Privilege Frequent flyer programme. FREQFLY
It (the flight timings) suits my schedule. SCHEDULE
My mom feels safe when I fly Jet Airways. MOM
Flying Jet compliments my lifestyle and social standing. LIFESTYL

The SPSS Output is provided below:

Table 1 Initial Statistics

Analysis number 1 Listwise deletion of cases with missing values

Extraction 1 for Analysis 1, Principal Components Analysis (PC)

Variable Communality . Factor Eigen value Pct of Var Cum Pct

AIRYOUNG 1.00000 . 1 3.17748 31.8 31.8
BOSS 1.00000 . 2 3.04991 30.5 62.3
COMFORT 1.00000 . 3 1.84465 18.4 80.7
FOOD 1.00000 . 4 .90728 9.1 89.8
FREQLY 1.00000 . 5 .66616 6.7 96.5
HOSTESS 1.00000 . 6 .13481 1.3 97.8
LIFESTYL 1.00000 . 7 .11183 1.1 98.3
MOM 1.00000 . 8 .05619 .6 99.5
ONTIME 1.00000 . 9 .04697 .5 100.0
SCHEDULE 1.00000 . 10 .00470 .0 100.0
 16

Table 2 - Factor Matrix

Factor 1 Factor 2 Factor 3

AIRYOUNG .95311 - .01970 .11627
BOSS .60655 .03874 - .30474
COMFORT - .04379 .40603 .87620
FOOD .91327 .02804 .01589
FREQLY - .00961 .92653 - .33551
HOSTESS - .05238 .94071 - .23625
LIFESTYL - .00669 .93326 - .22845
MOM - .18286 - .39749 .03273
ONTIME .93655 .05809 .22847
SCHEDULE - .15542 .48397 .83448

Table 3 Final Statistics

Variable Communality . Factor Eigen value Pct of Var Cum Pct

AIRYOUNG .92233 . 1 3.17748 31.8 31.8
BOSS .46227 . 2 3.04991 30.5 62.3
COMFORT .93450 . 3 1.84465 18.4 80.7
FOOD .83519 .
FREQLY .97111 .
HOSTESS .94349 .
LIFESTYL .92321 .
MOM .19251 .
ONTIME .93271 .
SCHEDULE .95474 .

Table 4 Rotated Factor Matrix

Factor 1 Factor 2 Factor 3

AIRYOUNG .95933 -.03985 .02061
BOSS .57807 .14912 -.32537
COMFORT .03743 .09013 .96175
FOOD .91167 .03695 -.05175
FREQLY -.02620 .98503 -.00529
HOSTESS -.06199 .96456 .09631
LIFESTYL -.01589 .95577 .09722
MOM -.18386 -.38898 -.08606
ONTIME .95351 -.00419 .15331
SCHEDULE -.07652 .17546 .95817
 17

On the basis of the SPSS Output, answer the following questions:

a. Which data analysis technique has been used by Jet Airways? Do you think the technique used is
appropriate? Why?
b. Are there any dependent and independent variables?
c. Determine how many factors can be extracted? What criterion is used to decide on which
variables are associated with which factor? Explain.
d. Interpret and name the factors after you determine the variables associated with each factor?

e. How can Jet Airways use the results of this analysis?

2. A researcher gathered data from a sample of 25 respondents. The data collected pertained to the level
of agreement that the individual had on seven lifestyle statements. Respondents had to rate their
agreement with each statement on a scale of 1 to 7 (1 signifying complete Disagreement with the
statement and 7 indicating complete agreement). The lifestyle statements were constructed with a
view to ascertain the core personality traits of people being surveyed. The SPSS output gathered during
the analysis is presented below.

a. What is the research technique being used?

b. Using a step by step procedure, interpret the SPSS output below.
c. Present a summary of the research findings.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling
Adequacy. .550

Bartlett's Test of Approx. Chi-Square 57.994

Sphericity df 21
Sig. .000
 18

Communalities

Initial Extraction
I would rather spend a
quiet evening at home 1.000 .818
rather than go out to party
I always check prices,
1.000 .796
even on small items
Magazines are more
1.000 .790
interesting than movies
I would not buy products
1.000 .800
advertised on billboards
I am a homebody 1.000 .805
I save and use cash
1.000 .841
coupons
Companies waste a lot of
1.000 .796
money advertising
Extraction Method: Principal Component Analysis.

Total Variance Explained

Extraction Sums of Squared

Initial Eigenvalues Loadings Rotation Sums of Squared Loadings
% of Cumulativ % of Cumulativ % of Cumulativ
Component Total Variance e% Total Variance e% Total Variance e%
1 2.485 35.505 35.505 2.485 35.505 35.505 2.315 33.076 33.076
2 1.821 26.013 61.518 1.821 26.013 61.518 1.731 24.729 57.805
3 1.339 19.131 80.649 1.339 19.131 80.649 1.599 22.844 80.649
4 .508 7.258 87.907
5 .376 5.373 93.280
6 .279 3.990 97.270
7 .191 2.730 100.000
Extraction Method: Principal Component Analysis.
 19

Component Matrixa

Component
1 2 3
I would rather spend a
quiet evening at home .817 .378 8.694E-02
rather than go out to party
I always check prices,
.279 -.714 .457
even on small items
Magazines are more
.887 -2.70E-02 -4.34E-02
interesting than movies
I would not buy products
-.204 .634 .597
advertised on billboards
I am a homebody .664 .505 .329
I save and use cash
5.012E-02 -.604 .689
coupons
Companies waste a lot of
-.684 .383 .426
money advertising
Extraction Method: Principal Component Analysis.
a. 3 components extracted.

a
Rotated Component Matrix

Component
1 2 3
I would rather spend a
quiet evening at home .897 -8.25E-02 -7.57E-02
rather than go out to party
I always check prices,
4.855E-02 -.232 .860
even on small items
Magazines are more
.762 -.440 .125
interesting than movies
I would not buy products
.214 .867 -5.25E-02
advertised on billboards
I am a homebody .868 .224 -1.74E-02
I save and use cash
-5.69E-02 9.057E-02 .911
coupons
Companies waste a lot of
-.351 .817 -7.28E-02
money advertising
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 4 iterations.
 20

Component Transformation Matrix

Component 1 2 3
1 .882 -.444 .154
2 .417 .586 -.695
3 .218 .678 .702
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.

3 . A group of potential buyers of Refrigerators were polled to ascertain their attitudes in order to decide on the
companys forthcoming ad campaign and target markets. 25 Respondents were polled using the following brief
questionnaire administered at the exit point of a popular mall.

Variable# Lifestyle Statement Rating scale (tick response)

1 completely disagree
7 completely agree
1 2 3 4 5 6 7
1 I would rather spend a quiet evening at home rather than go
out to party
2 I always check prices, even on small items
3 Magazines are more interesting than movies
4 I would not buy products advertised on billboards
5 I am a homebody
6 I save and use cash coupons
7 Companies waste a lot of money on advertising
The responses received are below

Resp # v1 v2 v3 v4 v5 v6 v7
1 6 2 7 6 5 3 5
2 5 7 5 6 6 6 4
3 5 3 4 5 6 6 7
4 3 2 2 5 1 3 2
5 4 2 3 2 2 1 3
6 2 6 2 4 3 7 5
7 1 3 3 6 2 5 7
8 3 5 1 4 2 5 6
9 7 3 6 3 5 2 4
10 6 3 3 4 4 6 5
11 6 6 2 6 4 4 7
12 3 2 2 7 6 1 6
13 5 7 6 2 2 6 1
14 6 3 5 5 7 2 3
15 3 2 4 3 2 6 5
16 2 7 5 1 4 5 2
17 3 2 2 7 2 4 6
18 6 4 5 4 7 3 3
19 7 2 6 2 5 2 1
20 5 6 6 3 4 5 3
21 2 3 3 2 1 2 6
22 3 4 2 1 4 3 6
 21

23 2 6 3 2 1 5 3
24 6 5 7 4 5 7 2
25 7 6 5 4 6 5 3

Using an appropriate statistical technique, can you identify the key factors that the company must bear in mind
based on the buyer profiling generated with the responses received. State a step by step procedure used by you to
make these conclusions.

4..A manufacturer of two wheelers is attempting to analyse the factors affecting demand for his brand. Look at
the analytical output below and by interpreting the data, answer the questions that follow :

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .565
Approx. Chi-Square 109.882
Bartlett's Test of Sphericity Df 45
Sig. .000
Communalities
Initial Extraction
I choose to buy a two wheeler because it is affordable 1.000 .723
I feel a sense of freedom to own a two wheeler 1.000 .815
Two wheelers have low maintenance costs 1.000 .621
It is essentially a man's vehicle 1.000 .809
I feel powerful 1.000 .882
Owning a two wheeler is a matter of pride 1.000 .437
I feel good owning a two wheeler 1.000 .828
The vehicle is comfortable 1.000 .847
Two wheeler is safer to travel 1.000 .851
Three people can travel on it 1.000 .764
Extraction Method: Principal Component Analysis.

Component Initial Eigenvalues Rotation Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative %
1 4.541 45.410 45.410 3.058 30.577 30.577
2 1.936 19.361 64.771 2.575 25.749 56.326
3 1.100 10.999 75.770 1.944 19.444 75.770
4 .852 8.515 84.285
5 .670 6.705 90.990
6 .396 3.964 94.954
7 .286 2.855 97.809
 22

8 .102 1.022 98.830

9 .079 .791 99.621
10 .038 .379 100.000

Rotated Component Matrixa

Component
1 2 3
I choose to buy a two wheeler because it is affordable .803 .215 .179
I feel a sense of freedom to own a two wheeler .131 .292 -.844
Two wheelers have low maintenance costs .611 .251 -.430
It is essentially a man's vehicle -.064 .346 .828
I feel powerful .135 .923 .104
Owning a two wheeler is a matter of pride .409 .034 .518
I feel good owning a two wheeler .690 .590 .060
The vehicle is comfortable .694 .574 -.188
Two wheeler is safer to travel .356 .846 -.092
Three people can travel on it -.864 -.117 .055
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 5 iterations.

1. What is the analytical method being used and why do you believe it is appropriate?
2. How many variables are being studied? Which are the dependent and independent variables?
3. Explain using a step by step procedure, how the Marketing Manager can arrive at the specific reasons why
people in this target market prefer to buy two wheelers?

Using this analysis, what in your view, would be the next steps that the marketing team of this two wheeler
company should take? Why
 23

PRIOR EXAM QUESTIONS

1. You are the sales manager for a consumer products company. You are keen to understand
whether the sales projections submitted by your team are accurate. To analyse this, you have
drawn up the following data based on the targets and sales achievement for July and August
2015. What would be your conclusions on the accuracy of the sales forecasts of your teams?
Give reasons to support your views. (5 marks)

Correlations
july sales july sales august sales august sales
plan actuals plan actuals
**
Pearson Correlation 1 .687 .276 .660**
july sales plan Sig. (2-tailed) .002 .283 .004
N 17 17 17 17
** *
Pearson Correlation .687 1 -.486 .231
july sales actuals Sig. (2-tailed) .002 .048 .373
N 17 17 17 17
Pearson Correlation .276 -.486* 1 .539*
august sales plan Sig. (2-tailed) .283 .048 .026
N 17 17 17 17
** *
Pearson Correlation .660 .231 .539 1
august sales actuals Sig. (2-tailed) .004 .373 .026
N 17 17 17 17
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
 24

2. Based on your experience, you have identified three predictors for a consumers purchase
patterns at your mall. You have observed that the value of purchase (in rupees) of a family
depends on the monthly income of the head of the household and the spouse as well as the
age of their children. You have collected this information from a sample of 48 customers and
based on this you wish to prepare a model to predict potential future customer purchase (in
rupees).

Variables Entered/Removeda

Model Variables Entered Variables Removed Method

Age of child, Monthly income of

1 spouse, Monthly income of head of . Enter
household b

a. Dependent Variable: Value of Purchase in rupees

b. All requested variables entered.
Model Summary

Model R R Square Adjusted R Std. Error of the Estimate

Square

1 .939a .882 .874 5359.064

a. Predictors: (Constant), Age of child, Monthly income of spouse, Monthly income of head of household

ANOVAa

Model Sum of Squares df Mean Square F Sig.

Regression 9407735071.998 3 3135911690.666 109.191 .000b

Residual 1263661016.481 44 28719568.556

1
10671396088.47
Total 47
9

a. Dependent Variable: Value of Purchase in rupees

b. Predictors: (Constant), Age of child, Monthly income of spouse, Monthly income of head of household

Coefficientsa
Model Unstandardized Coefficients Standardized t Sig.
Coefficients
B Std. Error Beta
(Constant) 3067.122 2201.388 1.393 .171
Monthly income of head of
.174 .081 .455 2.146 .037
1 household
Monthly income of spouse .279 .119 .494 2.348 .023
Age of child -314.571 179.301 -.101 -1.754 .086
 25

a. Dependent Variable: Value of Purchase in rupees

Using the output generated above by SPSS, answer the following questions :

1. For a consumer household where the head of the household earns Rs 100000 per month and
their spouse earns Rs 50000 per month having a child aged 12 years old, what would you predict
as the likely value of purchase at the mall?

Present a step by step process to justify your response. (8 marks)

2. What would be the predictive accuracy of your projection? Why? (2 marks)

3. If past data was unavailable or unreliable, do you have any other alternative methodology to
make such a forecast? Explain briefly how or why not? (5 marks)