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QUANTITATIVE TECHNIQUES IN ANALYSIS

(Analysis of consumer buying behaviors by applying MDS Proxcol technique using soap data)

Submitted to:
MR. ALI RAZA NAQVI

By:

SAIFULLAH BABAR (2048)

Dated: 13 August 2011 (MBA/IUGC-SATURDAY-6:30PM to 9:30PM)
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REPORT CONTENTS

1. Objective 2. Introduction

1 1 2 3 5

3. Questionnaire 4. Analysis & Interpretation of data 5. Conclusion

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1. Objective:
A leading soap manufacturing company in Karachi wants to test the hypothesis that purchasing decision of the end consumer is significantly dependent on the perfume impact of the soap rather than other factors like price, washing action, advertisement, colour, size, weight, packaging, availability and germicidal ability. H (Null hypothesis): Purchasing decision of soap buyer depends significantly upon the fragrance of the soap. H1 (Alternative hypothesis): Purchasing decision of the soap does not significantly depend upon the fragrance (perfume impact).

2. Introduction:
Soap has a long history of manufacture from tallow and wood ashes 2000 years ago to the present methods of using oils and fatty acids and caustic soda. Soaps today are far too sophisticated and are available in a wide variety of forms for end user. The twentieth century has seen transformation of soap manufacture from the conventional batch process of boiling oils with caustic soda in kettles to continuous automated `process involving the less steam and also higher recovery of glycerine as a by-product. Similarly processes of conversion of soap base to end products such as washing or toilet soaps have undergone a complete transformation. To test the hypothesis we applied multidimensional scaling (MDS) Proxcal technique. Multidimensional scaling (MDS) is a mathematical technique that helps implement this analysis of similarity perceptions with minimum information loss. For this purpose we designed a questionnaire and conducted a survey for getting the linkered data about the soap buying. There are ten variables (factors) added into the questionnaire those are supposed to be preferable for consumers at the time of soap purchasing, these includes; 1. Advertisement 2. Colour 3. Perfume impact 4. Price 5. Packaging 6. Leather effect 7. Size 8. Weight 9. Dissolving ability 10. Germicidal ability

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3. QUESTIONNAIRE ON SOAP DATA Name:

1. Do you agree that most of the people purchase soap after watching TV advertisement?

Strongly disagreed

Disagreed

Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral

Agreed Agreed Agreed Agreed Agreed Agreed Agreed Agreed

Strongly agreed Strongly agreed Strongly agreed Strongly agreed Strongly agreed Strongly agreed Strongly agreed Strongly agreed

2. Do you agree that colour plays important role for the sale of bath soap? Strongly disagreed Disagreed

3. Do you agree that price is the main factor which you consider at the time of purchasing bath soap? Strongly disagreed Disagreed

4. Do you prefer to buy the soap with your favourite fragrance or odour (perfume impact)? Strongly disagreed Disagreed

5. Is it true that attractive packaging is also the important contributor in soap selling? Strongly disagreed Disagreed

6. Most of the people like to buy the soap which has low water uptake (dissolving ability)? Strongly disagreed Disagreed

7. Most of the people like to buy the soap brand which has the strong lathering effect Strongly disagreed Disagreed

8. Do you think consumers have any interest in the size of soap? Strongly disagreed Disagreed

9. Do you agree that free availability / easy access of any soap to the consumer is very essential n good sale of any soap?

Strongly disagreed

Disagreed

Neutral Neutral
THANK YOU

Agreed Agreed

Strongly agreed Strongly agreed

10. Do you think that germicidal ability of soap can be influence buying decision of the consumer? Strongly disagreed Disagreed

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MDS (Proxscal) Analysis & Interpretation of Data

Goodness of Fit
Stress and Fit Measures Normalized Raw Stress Stress-I Stress-II S-Stress Dispersion Accounted For (D.A.F.) Tucker's Coefficient of Congruence PROXSCAL minimizes Normalized Raw Stress. a. Optimal scaling factor = 1.055. b. Optimal scaling factor = .924.
INTERPERTATION; The value of Normalized Raw stress is 0.05195 shows that the stress value is approaching to the standard value of Normalized raw stress

0.05195 0.22792 (a) 0.64199 (a) 0.12809 (b) 0.94805 0.97368

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Common Space
FINAL COORDINATES:
Dimension x Advertisement Colour Price Fragrance Packaging Water uptake Lathering effect Size Availability Germicidal ability .306 .700 -.175 .449 .605 -.197 -.677 .104 -.564 -.553 y

IU

-.262 .539 -.543 -.545 .026 .773 .437 .069 -.455 -.038

OBJECT POINTS:

INTERPERTATION:
The above plot common space is showing that colour is the factor that has highest distance from the point of origin in positive quadrant which shows that colour has strong positive impact on consumer purchasing decision of soap .

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RESIDUAL POINTS:

INTERPERTATION;
In the light of the above graph we can conclude that analysis is approaching to the acceptable range of of accuracy so we can say that analysis is fifty percent accurate. If we found a graph like the straight line it will show that analysis is 100% accurate therefore we compared and concluded that our analysis is accurate.

CONCLUSION: In the light of analysis result based on survey data we can conclude that perfume impact of the soap is not the preference of consumer buying decision where as colour is the most important variable which has the strong positive impact on the consumer buying decision therefore H has been rejected where as H1 (alternative hypothesis) has been accepted.