avery sporting goods
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Quantitative Research Methods
Study case
Avery sporting goods
Koudjo Debham Johnson
PhD student
No: 99907445916
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Objective of the study ..3
Data description .4
I. comparing the level of customer confidence by product.......5
1. Analysis of the level of confidence in the Athletics clothing quality ..5
2. Analysis of the level of confidence in the Athletic shoes quality............................................6
3. Analysis of the level of confidence in the fishing equipment quality ...7
4. Analysis of the level of confidence in the balls quality 8
5. Analysis of the level of confidence in the Skiing equipment quality...................................9
II. Determinant of customer choice to purchase by catalog10
1. Statistical analysis of the variables and test prior to the PCA..............................................10
a. Descriptive analysis of variables..................................................................................10
b. Correlation Table Analysis...........................................................................................11
c. KMO and Bartlett's Test...............................................................................................11
2. Analysis of the total variance Explained table and choice of main components.................12
3. Results and interpretation of principal component analysis.................................................13
Conclusion...............................................................................................................................1
Annex
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The objective of this work is the study of customer perceptions of buying merchandise, in
Particular sporting equipment, through catalogue. More precisely, and stress the directive, it is
for us to focus on two major problems namely:
1- Do customers-have the same level of general confidence in the quality of sporting goods
you purchased through a catalogue or either a retail store?
2- What are the determinants of customers choice to purchase by catalogue?
The resolution of each of these two problematic facts involves a different method. Thus the
resolution of the first issue needs to use a comparative study of frequencies using a graphic
analysis and the Wilcoxon signed-rank test. Basing on these assumptions;
-H0: 1 - 2 = 0 (there is no difference between the level of customers confidence in the quality of goods purchased by catalogue and quality of goods purchased in in a retail store.
-H1: 1 - 2 0 (there is a difference between the levels of trust in the quality of goods purchased by catalogue and the quality of goods purchased in a retail store.
The choice of the Wilcoxon signed-rank test is not accidental. This test allows comparing two
measures of a qualitative ordinal variable performed on the same subjects. Indeed, our goal
here is to compare the confidence of individuals in the quality of products sold by catalogue
and the confidence that these same individuals have in the quality of goods purchased in a retail
store. We are therefore in the presence of hypothesis testing for a sample in which respondents
were assessed twice from the same measure. Traditionally, the hypothesis test used to this kind
of case is the t test for paired samples. However, the t-test is a parametric test that requires that
certain conditions be required, including a normal distribution of quantitative variables. Our
variables being qualitative ordinal and therefore not respecting the normal condition, the use
of a nonparametric test is required. Hence the use of the Wilcoxon signed-rank test that is the
nonparametric alternative to the t test for paired samples.
The second problematic clinging to the identification of variables that influence the choice of
catalogue shopping, the PCA (Principal Component Analysis) will be the multivariate
statistical approach on which we will build. The fundamental reason for the choice of the PCA
is that it is the most appropriate method that gives us the necessary tools that will allow us to
know how it will combine variables to make them orthogonal that is to say independent to each
other. This independence is important because it provides a unique solution not shared by some
other factor, and so removes the redundancy of information in the results.
Moreover, apart from the fact that it is a technique used to lessen a high number of indicators
without losing much information, it's also the most suitable technique for our data.
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1. Description of data
The data refers to information collected from Avery Sporting Goods customers. It is collected
from old people, new or potential customers that the company has already sent a catalogue in
the past. From the survey, out of 225 individuals that were covered, 125 valid questionnaires
were retained and formed the basis of our analysis. The variables consist of information about
customers and divided into two categories:
Variables on the level of customers confidence:
Confidence in buying athletics clothing through a catalogue
Confidence in buying athletics shoes through a catalogue
Confidence in buying fishing equipment through a catalogue
Confidence in buying balls through a catalogue
Confidence in buying skiing equipment through a catalogue
Confidence in buying athletics clothing through a real store
Confidence in buying athletics shoes through a real store
Confidence in buying fishing equipment through a real store
Confidence in buying balls through a real store
Confidence in buying skiing equipment through a real store.
Variables on the determinants of customers decision to buy through catalogue
Availability of a toll-free number for placing orders
Availability of discounts
Shipping time
The company's policy on returning merchandise
The provision of a trial period
Number of years the company has been in business
Reputation of the company
Guarantees
Company endorsements by celebrities, sports teams, etc.
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I. comparing the level of customer confidence by product
Do customers have the same level of general confidence in the quality of sporting goods
purchased either through a catalogue or a retail store?
Analysis comparing the level of confidence in the quality of sporting goods purchased either
through a catalogue or a retail store was done from the various customers on five products:
Athletic clothing, Athletic shoes, Fishing equipment, Balls and Skiing equipment.
1. Analysis of the level of confidence in the Athletic clothing s quality.
Analysis of the results for customer perception
on the quality of Athletic clothing purchased by
catalogue reveals a divided position on the
subject. Indeed, the study reveals that 16, 1% of
customers are not confident, 24% of clients are
slightly and 10.5% slightly confident, a total of
50.8% of customers less or not satisfied. This
brings to 49.1% the percentage of confident
customers (16.9%) and 27.4% very confident.
When purchasing the same product is
envisaged in a retail store, only 4.8% of these
customers report being "not at all satisfied",
21.8% responded being slightly confident and 16,1% "somehow confident". Conversely
customers who are "confident" (14,5%) and
"very confident" (37,9%) represent 52.4% of
the total.
The Wilcoxon signed-rank was used to
ascertain whether the level of confidence was
the same.
The Wilcoxon signed-rank
Reading the table, we notice that the p-value of the test is greater than the significance level
(0.703> 0.05), and Z=-1,793. We do not reject the null hypothesis H0 and conclude that there
is no statistically significant difference between the level of confidence customers have in the
quality of clothing purchased through catalogue and clothing purchased through retail stores.
Test Statistics
rqclothing cqclothing
Z -1,793b
Asymp. Sig. (2-tailed) ,073
Ranks
N Mean Rank Sum of Ranks
Rq clothing cq clothing
Negative Ranks 45a 47,52 2138,50
Positive Ranks 58b 55,47 3217,50
Ties 21c
Total 124
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2. Analysis of the level of confidence in the Athletic shoes quality.
On the question of what is their perception of
the quality of shoes purchased by catalog,
17.7% of respondents were reported being
"not at all confident", 20.2% answered "less
confident" and 12 9% said they were
"somehow confident", a total of 50.8%. The
category of respondents more confident in
turn consists of 24.2% of clients "confident"
and 25% of clients who claim to have perfect
confidence in the quality of this article. A total
of 49.2%.
These proportions change radically when
buying the same property is envisaged in a
store. Indeed, 4.8% said not confident at all,
8.1were slightly confident and 13.7 have
declared to be less confident. Customers who
are confident (29.8) and very confident (43.5),
their part represents a total of 73.3.
The Wilcoxon signed-rank was used to ascertain whether the level of confidence was the same
in the quality of shoes purchased either through a catalogue or a retail store
Wilcoxon Signed Ranks Test
Ranks
N Mean
Rank
Sum of
Ranks
rqshoes cqshoes
Negative
Ranks 35a 42,66 1493,00
Positive
Ranks 70b 58,17 4072,00
Ties 19c
Total 124
The Wilcoxon signed-Ranks Test indicate that the mean rank of confidence in the quality of
shoes purchased through retail store is statistically significantly higher than the mean rank of
confidence in the quality of shoes purchased through catalogue. (Z = -4,190, p = 0.00).
We can conclude that customers do not have the same level of confidence in the quality of
sporting goods purchased either through a catalogue or a retail store. They have more
confidence in the quality of retail stores shoes
Test Statisticsa
rqshoes cqshoes
Z -4,170b
Asymp. Sig. (2-tailed) ,000
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3. Analysis of the level of confidence in the Balls quality
In terms of quality of balls purchased by
catalog, collected results show that customers
have a poor perception of these products.
Thus, 1/4 of respondents claim to be "not to
be confident at all" in the quality of these balls
purchased by catalogue, 23% report being "
slightly confident" and 8.1% said to be
"somehow confident" a total 57.3% of
customers who are little or not at all confident.
Only 16.1% said to be "confident" while 26%
said they were "highly confident".
These results are in contrast to the perception
of these same clients on the quality of store-
bought balls.
While it is true that less than 4% of
customers surveyed manifested their doubt,
the fact remains that 21% said they were
confident, and 47.6% respondents have
complete confidence, a total of 69.4% of
respondents had a good perception in the
quality of balls from retail stores.
The Wilcoxon signed-rank was used to ascertain whether the level of confidence was the
same in the quality of balls purchased either through a catalogue or a retail store
Wilcoxon Signed Ranks Test
Test Statistics
rqballs - cqballs
Z -4,890b Asymp. Sig. (2-tailed) ,000
The Wilcoxon signed-Ranks Test shows that there is a statistically significant increase from
the mean rank of confidence in the quality of balls purchased through catalogue to the mean
rank of confidence in the quality of shoes purchased via catalogue (Z = -4,890, p = 0.00).
We reject null hypothesis and conclude that customers do not have the same level of
confidence in the quality of balls purchased either through a catalogue or a retail store. They
have more confidence in the quality of retail stores balls.
Ranks
N Mean Rank Sum of Ranks
rqballs - cqballs
Negative Ranks 26a 36,44 947,50
Positive Ranks 68b 51,73 3517,50
Ties 30c
Total 124
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4- Analysis of the level of confidence in the Fishing equipment quality
Confidence in the quality of fishing
equipment purchased by catalog remains
relatively low among customers since only
25% of respondents are "very confident" and
20% "confident" a total of 45%.
For the major part of them, the fishing
equipment purchased by catalog inspires
very less confidence (6.9%), less confident
(17.7%) or not confident at all (19.4%).
It must be said that direct contact with the
product before purchasing it is very
important for consumers. Indeed, 68.5% of
them reported being very confident or confident against only 7.3% who reported being not at all confident in the quality
fishing equipment purchased through retail
stores. Finally, 3.2% of respondents claim
to be somehow confident and 21% say they
are "somehow confident".
The Wilcoxon signed-rank was used to ascertain whether the level of confidence was the same.
In the quality of fishing equipment purchased either through a catalogue or a retail store
Wilcoxon Signed Ranks Test Rank
The Wilcoxon signed-Ranks Test indicate that the mean rank of confidence in the quality of
Fishing equipment purchased through retail store is statistically significantly higher than the
mean rank of confidence in the quality of Fishing equipment purchased through catalog. (Z =
-1,793, p = 0.00).We can conclude that customers do not have the same level of confidence in
the quality of Fishing equipment purchased either through a catalogue or a retail store.
Test Statisticsa
rqclothing cqclothing
Z -1,793b
Asymp. Sig. (2-tailed) ,073
N Mean Rank Sum of Ranks
rqclothing - cqclothing
Negative Ranks 45a 47,52 2138,50
Positive Ranks 58b 55,47 3217,50
Ties 21c
Total 124
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5- Analysis of the level of confidence in the Skiing equipment quality
Analysis of the survey results on the level of
confidence in the skiing equipment
purchased through catalog reveals that
24.2% of customers are not at all confident,
16.9% of clients are slightly and 14.5%
somehow confident, a total of 55.6% of
customers little or not confident at all. This
brings to 44.4% the percentage of confident
customers (16.9%) or very confident
(27.4%).
These proportions change radically when
buying the same property envisaged in a
retail store. When asked about their degree
of confidence in the quality of the skiing
equipment purchased in a retail store, 8.1%
of the surveyed have responded not
confident at all, 3.2% have responded be
slightly confident, and 16 1% have
responded somehow confident. The vast
majority, 72.6% have declared themselves
confident or very confident.
The Wilcoxon signed-rank was used to ascertain whether the level of confidence was the same.
in the quality of skiing equipment purchased either through a catalogue or a retail store
Wilcoxon Signed Ranks Test
Ranks
N Mean Rank Sum of Ranks
rqshoes - cqshoes
Negative Ranks 35a 42,66 1493,00
Positive Ranks 70b 58,17 4072,00
Ties 19c
Total 124
The Wilcoxon signed-Ranks Test indicate that the median rank of confidence in the quality of
skiing equipment purchased through catalog is statistically significantly different from the
median rank of confidence in the quality of skiing equipment purchased through retail store.
(Z = -4,170, p = 0.00). We can conclude that customers have more confidence in the quality of
skiing equipment purchased through retail store than those purchased through catalog.
Test Statisticsa
rqshoes - cqshoes
Z -4,170b
Asymp. Sig. (2-tailed) ,000
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Part II: Study of the determinants of customers decision to buy through catalogue
- What are the determinants of customers choice for purchase through catalogue?
The goal through this issue is to highlight the determinants of consumer decision to purchase
by catalogue. To do so, we will initially has a descriptive study of variables, then first of all
study the correlations between variables to achieve the study of individuals in the first factorial
designs from the principal component analysis. As such we will restrict the study to the
variables concerned by this problem.
1. Statistical analysis of the variables and test prior to the PCA
a. Descriptive Study of variables
Table A shows descriptive statistics. The highest average (4.06) goes to the variable "The
Companys policy is returning Goods" and the lowest average goes to the "Company endorsements" variable. The standard deviations of the variables "reputation of the company,"
"The provision of a trial period" and "Shipping time" is relatively high, which can be interpreted
as a strong dispersion of individuals within each of these variables. There is also a high number
of missing data.
Table A: Descriptive Statistics
Mean Std. Deviation Analysis N Missing N
Availability of a toll-free number for
placing orders 3,52 ,999 119 3
Availability of quantity discounts 3,83 ,893 111 11
Shipping time 3,61 1,021 118 4
The company's policy on returning
merchandise 4,06 ,797 109 13
The provision of a trial period 3,95 1,076 120 2
Number of years the company has been
in business 3,91 ,916 112 10
Reputation of the company 3,50 1,171 119 3
Guarantees 3,90 ,904 111 11
Company endorsements 1,96 ,931 115 7
b. Analysis of correlation and
The correlation matrix gives us an idea about the strength of relationships between variables.
The overall variables are weakly correlated thus noted that the variables Availability of a toll-
free number for Placing orders and Reputation of the company, and the variables Shipping time
and Reputation of the company are correlated respectively with correlation coefficients of 0.641
and 0.604. It should be noted there is the presence of many negative correlation, although very
few.
On the other hand, we see that the determinant of the correlation matrix is small without being
equal to 0 (0.072) .The factorial structure presented in Table 3 thus passes the first test.
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,
c. KMO and Bartlett's Test
We note in passing that the test Kayser-Meyer-Olkin is equal to 0.873, which indicates a high
validity. Finally, Bartlett's test indicates that the hypothesis Ho must be dismissed since the test
result lowered to 0.05. The research component is therefore justified.
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. ,729
Bartlett's Test of Sphericity
Approx. Chi-Square 257,802
Df 36
Sig. ,000
4. Analysis of the total variance explained table and choice of principal components
According to the table of the total variance explained we can identify two main components
restoring the details. These are the components 1 and 2. These two factors help to restore 58%
of the total information of the variables analyzed, the first factor giving 30.9% of information,
and the second provided 25.15%, which is deemed sufficient enough for our study to draw
explanations.
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Table: Total Variance Explained
We also note that these two factors are the
factors that have a total inertia greater than
1, the first presenting inertia 2.78 and the
second 2.58. The inertia shown by the others
being lower than 1, with a rate which is a
very limited amount of information, there is
no risk if we consider only the first two
factors. Examination of the graph of
eigenvalues confirms the result of the table
that shows that the first two factors exceed
more than 1 of total inertia. All these facts
confirm that the choice of these two factors
is correct and they allow reliable conclusions
5. Results and interpretation of principal component analysis
Table 4: Correlation between baseline variables and the main components
Component
1 2
Reputation of the company ,883 ,036
Availability of a toll-free number for placing orders ,774 ,046
The provision of a trial period ,750 -,038
Shipping time ,715 ,206
Company endorsements -,563 ,295
Guarantees ,056 ,804
Availability of quantity discounts -,040 ,773
The company's policy on returning merchandise ,059 ,720
Number of years the company has been in business -,035 ,607
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 3 iterations.
Component Initial Eigenvalues Extraction Sums of Squared
Loadings
1 2,784 30,937 30,937 2,784 30,937 30,937
2 2,258 25,094 56,030 2,258 25,094 56,030
3 ,829 9,210 65,240
4 ,759 8,437 73,677
5 ,695 7,719 81,395
6 ,542 6,018 87,414
7 ,512 5,692 93,105
8 ,348 3,864 96,969
9 ,273 3,031 100,000 Extraction Method: Principal Component Analysis.
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The component matrix gives an overview of the share of each variable in a factor. This
approach allows us to identify which are the most represented variables in each component or
factor. Based on these data we can identify a nomination for each factor. In our case we
observe that the variables Reputation of the company, Availability of a toll-free number for, The provision of a trial period and Shipping time are highly correlated with the first component. The first axis seems to be interpreted as a factor representing the reputation and delivery policy or the company. The more a company has a high score on the first component, the more customers will opt for catalogue shopping.
As for the second component, it is positively correlated with Guarantees, Availability of
quantity discounts, and The Companys policy on returning merchandise variables. We note here that the most correlated variables with the second component are those that were the least
correlated with the first component. We can also note that the correlations are lower in the
case of the second component. This is partly explained by the fact that the corresponding
eigenvalue is significantly lower than one associated to the first component. So the second
factor can be considered as customer benefit For better visualization of correlations between variables and the principal components, it
is useful to present these variables in the first main plane as a map. (Chart 2).
The map below summarizes what has been already mentioned by the matrix components.
It is indeed observed that there are two main events on the map groups: a group positively
correlated with the first axis which is surrounded by red, and a group positively correlated with
the second axis, and surrounded by green.
Chart 2: Variable Map
The principal components analysis of the determinants of customers' decision to purchase by
catalogue suggests that there is a hierarchy between components and another between the
variables of the same component. In order of importance, the variables Reputation of the
company, Availability of a toll-free number for, the provision of a trial period and Shipping
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time correlated with the first component are the most important for customers.
We can see that the second component is less important for customers. We may think
Guarantees variables Availability of quantity discounts, The company's policy is returning
merchandise are necessary conditions, but not decisive in the decision to opt for customers to
buy by catalogue
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Conclusion
The resolution of both issues has helped to highlight some of the major characteristics of clients.
The analysis of the first issue has highlighted that customers do not perceive all items the same
way. We learn that they do not differentiate between sports clothing purchased by catalogue
and sports clothes bought in a shop, because their confidence is no different from one product
to another. However, with regard to other sporting products, customers are more sensitive. The
study showed that on average, customers have more confidence in the quality of shoes, fishing
equipment, balloons and skiing equipment purchased in retail stores than those bought by
catalogue. This is probably explained by the need of customers to finger these products before
buying them.
The analysis of the second problem highlighted the variables that most influence customers in
their decision to buy by catalogue. It is thus apparent that the variables Reputation of the
company, Availability of a toll-free number for, the provision of a trial period and Shipping
time are the variables that most influence customers. Followed, to a lesser extent the variables
Guarantees, availability of quantity discounts, the Companys policy in returning merchandise. It will therefore be good if every sporting society improves the level of these conditions in the
daily management and to use, if necessary, in the promotion and advertising
As earlier advised above, Avery sporting Goods has to reconsider its commitment to investing
in catalogue sales. It would be better, and smarter, to view the results, to develop the retail
segment.
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