brainwave marketing project -ibm
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Marketing research
case study - IBMPresented by - The Brainwave
Group - 6
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On Demand Business
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IBM
IBM with a revenue of $91.13 was the worldslargest provider of computer hardware, softwareand services in 2005
It organized its hardware business, merging itsdesktop and laptop operations to concentrate onits leading enterprise server and storage
products.
In order to compete with Microsoft, IBM havesupported the Linux platform in a big way.
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The only area of software that IBMconspicuously lack is the ERP/CRM market,which is now being hotly contested by SAPand Oracle.
In order to maintain its lead its important forIBM to ensure that its customers are satisfiedwith IBMs hardware and software services
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Survey questionnaire
Consisted of 28 questions
Had evaluated IT companies on variousparameters like
Overall measures like satisfaction, quality ofproducts offered
Likelihood of purchase
Image as financially strong and ethical
company
Sales & service support
Future trends
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Statistical tools applied
Frequency count, bar chart
Recoding of data
Cross tabulation
T-test
Paired t-test
Regression analysis
SPSS software was used to analyze thegathered data
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Recoding of data
Recode satisfaction responses from likertscale of
1 2 3 4 5
very very satisfied
dissatisfied
low satisfaction high satisfaction
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Frequency count on variables
Role within your company
Frequency Percent Valid PercentCumulative
Percent
1.00 3 10.0 10.0 10.0
2.00 14 46.7 46.7 56.7
3.00 13 43.3 43.3 100.0
Valid
Total 30 100.0 100.0
Do a fr e q u e n c y c o u n t o n a l l the v a r ia ble s o fthe d a t a .
the numbers represent the roles within the company :
1 : IT Decision Maker 2: IT Influencer
3 : IT Staff
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Histogram output
Role within your company
3.002.502.001.501.00
Role within your company
Frequency
16
14
12
10
8
6
4
2
0
Std. Dev = .66
Mean = 2.33
N = 30.00
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Number of employees in your organization
Frequency Percent Valid PercentCumulative
Percent
1.00 5 16.7 16.7 16.7
2.00 3 10.0 10.0 26.7
3.00 9 30.0 30.0 56.7
4.00 3 10.0 10.0 66.7
5.00 3 10.0 10.0 76.7
6.00 1 3.3 3.3 80.0
7.00 6 20.0 20.0 100.0
Valid
Total 30 100.0 100.0
Frequency count
Here in the column, numbers represent the number of
employees
1 (1-49)
2 (50-99)
3 (100-499)
4 (500-999)
5 (1000-4999)
6 (5,000-9,999)
7 10,000 or more
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Frequency count
Outsource existing IT services
Frequency Percent Valid PercentCumulative
Percent
1.00 8 26.7 27.6 27.62.00 8 26.7 27.6 55.2
3.00 4 13.3 13.8 69.0
4.00 6 20.0 20.7 89.7
5.00 2 6.7 6.9 96.6
9.00 1 3.3 3.4 100.0
Valid
Total 29 96.7 100.0
Missing System 1 3.3
Total 30 100.0
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Question
In this survey, what role and what sizecompanies are represented highest??
we go for cross tabulation
In cross tabulation we can get the relationshipbetween two variables simultaneously
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Role within your company * Number of employees in your organization CrosstabulationCount
Number of employees in your organization Total
1.00 2.00 3.00 4.00 5.00 6.00 7.00 1.00
1.00 2 1 3
2.00 2 5 1 1 5 14
Role withinyour company
3.00 1 3 4 2 2 1 13
Total 5 3 9 3 3 1 6 30
He r e in t h e c o l u m n , n u m b e r s r e p r e s e n t th e
n u m b e r o f e m p l o y e e s
1 (1-49)
2 (50-99)
3 (100-499)
4 (500-999)
5 (1000-4999)
6 (5,000-9,999)
7 10,000 o r m o r e
In R o w ,t h e n u m b e r s r e p r e s e n t t h e r o l e s w i t h i n t h e c o m p a n y :
1 : ITDe c i s i o n Ma ke r 2: IT In f l u e n c e r
3 : ITSt a f f
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Role within your company * Overall satisfaction Crosstabulation
CountOverall satisfaction Total
1.00 3.00 4.00 5.00 9.00 1.00
1.00 1 1 2
2.00 1 3 5 4 13
Role withinyour company
3.00 3 7 2 1 13
Total 1 6 13 7 1 28
Role within your company * Value offered Crosstabulation
Count
Value offered Total2.00 3.00 4.00 5.00 9.00 2.00
1.00 1 1 2
2.00 3 1 4 4 1 13
Role withinyour company
3.00 2 5 4 2 13
Total 5 7 8 5 3 28
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Is IBM seen as ethical company??
To analyze this we go for a sample t- test
we take
H0 = IBM is ethical company
Ha = IBM is not ethical
For a CI = 95 %, DF= 26
t value comes out to be 2.604
t critical : 2.056
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since t(observed) > t (critical)
We reject the null hypothesis that IBM isethical.
Hence IBM is not seen as an ethical
company by the people
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For Microsoft, how do evaluations differ on
ratings of "overall satisfaction, & overall
quality
Microsoft is chosen as it is one of the
biggest rival ofI
BM Both of these are the variables of overall
measures.
For this we will go for a paired t test
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Paired Samples Statistics
Mean N Std. Deviation
Std. Error
Mean
Overall satisfaction 3.7500 8 1.1650 .4119Pair 1
Value offered 3.1250 8 .8345 .2950
T-Te s t
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T-Test
N Mean StDev SE MeanDifference 8 0.625000 0.220500 0 .077959
95% CI
for mean difference: (0.440657, 0.809343)
T-Test of mean difference = 0 (vs not = 0)
T-Value = 8.02P-Value = 0.000
This means that there is no significant relationship b/wthe overall satisfaction and value offered by thecompany
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For Microsoft how do evaluations differ on the
rating of financially sound company &
company I can trust
We select only Microsoft to analyze the
variables (as it is one of the biggestcompetitor ofIBM)
Again we go for the paired t test
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Paired Samples Statistics
Mean N Std. Deviation
Std. Error
Mean
Financially soundcompany 3.8571 7 1.3452 .5084
Pair 1
Company I can trust 3.0000 7 1.1547 .4364
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T-Test
N Mean StDev SEMean
Difference 7 0.857100 0.180500 0.068223
95% CI for mean difference: (0.690165, 1.024035)
T-Test of mean difference = 0 (vs not = 0)
T-Value = 12.56
P-Value = 0.000
Again we see that there is no significant relationship b/wthe customer perception of company he can trust and thefinancial structure of that company
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Question
Can the evaluation of participant onoverall quality of the company in relationto prices be explained in terms of
participants evaluation on sales & supportvariables when the variables areconsidered simultaneously??
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M del S ar
Model R R Square
Adjusted R
Square
Std. Error of
the Esti ate
1 .670(a) .448 .317 1.66390
a redi tors: ( onstant), O erall qualit of te hni al support, O erall
qualit of produ ts or ser i es pur hased, O erall qualit of training,Qualit of a ount representati e, O erall qualit of non-te hni alusto er ser i e
Regression Analysis
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ANOVA(b)
ModelSum of
Squares df Mean Square F Sig.
Regression 47.268 5 9.454 3.415 .021(a)
Residual 58.140 21 2.769
1
Total 105.407 26
a Predictors: (Constant), Overall quality of technical support, Overall quality of products or servicespurchased, Overall quality of training, Quality of account representative, Overall quality ofnon-technical customer serviceb Dependent Variable: Value offered
Regression Analysis
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Coefficients(a)
UnstandardizedCoefficients
StandardizedCoefficients t Sig.
odel B Std. Error Beta B Std. Error
(Constant) .518 1.085 .478 .638Quality of accountrepresentative .007 .145 .010 .046 .964
Overall quality of productsor services purchased .692 .250 .472 2.765 .012
Overall quality of
non-technical customerservice
-.047 .200 -.067 -.233 .818
Overall quality of training -.042 .129 -.063 -.324 .749
1
Overall quality of technicalsupport .328 .223 .441 1.471 .156
a Dependent Variable: Value offered
Regression Analysis..
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Results.. The customer's evaluation of the value
offered by the companies cannot becompletely explained completely in termsof sales and staff support variables
But the only sales and staff supportvariable having any significant influenceon the perception is overall quality ofproducts & services purchased
Hence IBM should focus on improving thequality of their products if it wants to beseen as a company offering value.
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Question
Can the likelihood of purchase fromcompany being evaluated be explained interms of the participants evaluation on
sales & service support variables & whenthese variables are consideredsimultaneously??
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Model Summary
Model R R SquareAdjusted R
SquareStd. Error ofthe Estimate
1 .554(a) .307 .297 .673
a Predictors: (Constant), Overall quality of technical support, Quality ofaccount representative, Overall quality of training, Overall quality ofproducts or services purchased, Overall quality of non-technicalcustomer service
Regression Analysis
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ANOVA(b)
Model
Sum of
Squares df Mean Square F Sig.Regression 74.133 5 14.827 32.742 .000(a)
Residual 167.545 370 .453
1
Total 241.678 375
a Predictors: (Constant), Overall quality of technical support, Quality of account representative,Overall quality of training, Overall quality of products or services purchased, Overall quality ofnon-technical customer serviceb Dependent Variable: Continue purchasing from this company next year
Regression Analysis
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Coefficients(a)
UnstandardizedCoefficients
StandardizedCoefficients t Sig.
Model B Std. Error Beta B Std. Error
(Constant) 2.355 .158 14.870 .000Quality of accountrepresentative .222 .054 .269 4.140 .000
Overall quality of productsor services purchased .138 .056 .163 2.486 .013
Overall quality of
non-technical customerservice -.021 .055 -.026 -.385 .701
Overall quality of training .167 .052 .210 3.231 .001
1
Overall quality of technicalsupport .017 .054 .023 .320 .749
a Dependent Variable: Continue purchasing from this company next year
Regression Analysis..contd
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Results & recommendations
Likelihood of purchase next year is influenced by:
Quality of account representative
Overall quality of products & services purchased.
Overall quality of training
Recommendations for IBM
If the company wants to retain its customers then
Improve product quality offerings
Should invest more in hiring &training of its sales force
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Question
Can the likelihood of recommending thecompany being evaluated be explained interms of participants evaluation on sales
and support variables when thesevariables are considered simultaneously??
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ANOVA(b)
Model
Sum of
Squares df Mean Square F Sig.Regression 151.780 5 30.356 76.415 .000(a)
Residual 146.984 370 .397
1
Total 298.763 375
a Predictors: (Constant), Overall quality of technical support, Quality of account representative,Overall quality of training, Overall quality of products or services purchased, Overall quality ofnon-technical customer serviceb Dependent Variable: Would recommend this company
Regression Analysis
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Coefficients(a)
UnstandardizedCoefficients
StandardizedCoefficients t Sig.
Model B Std. Error Beta B Std. Error
(Constant) 1.290 .148 8.704 .000
Quality of accountrepresentative .204 .050 .224 4.087 .000
Overall quality of productsor services purchased .323 .052 .342 6.179 .000
Overall quality of
non-technical customerservice -.025 .051 -.027 -.481 .631
Overall quality of training .097 .048 .109 2.016 .045
1
Overall quality of technicalsupport .147 .050 .174 2.916 .004
a Dependent Variable: Would recommend this company
Regression Analysis..contd
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Result & recommendations
IBM should lay emphasis on
The quality of its account representative
Quality of products offered
Quality of technical support Quality of training of its sales staff
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Question
Can the likelihood of purchase from thecompany being evaluated be explained interms of participants evaluation on
dimension of overall measures??
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Model Summary
Model R R SquareAdjusted R
SquareStd. Error ofthe Estimate
1 .581(a) .338 .218 1.30140
a Predictors: (Constant), Value offered, Overall satisfaction, Total costof ownership, Overall quality
Regression Analysis..contd
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ANOVA(b)
ModelSum ofSquares df Mean Square F Sig.
Regression 19.036 4 4.759 2.810 .050(a)
Residual 37.260 22 1.694
1
Total 56.296 26
a Predictors: (Constant), Value offered, Overall satisfaction, Total cost of ownership, Overall qualityb Dependent Variable: Continue purchasing from this company next year
Regression Analysis..
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Coefficients(a)
UnstandardizedCoefficients
StandardizedCoefficients t Sig.
Model B Std. Error Beta B Std. Error
(Constant) 2.000 .989 2.022 .056
Overall satisfaction .910 .372 .828 2.447 .023
Overall quality-.417 .420 -.360 -.992 .332
Total cost of ownership .539 .207 .716 2.607 .016
1
Value offered -.412 .232 -.564 -1.775 .090
a Dependent Variable: Continue purchasing from this company next year
Regression Analysis..
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Analysis
The decision to buy next year cannot beexplained in terms of overall factors likeoverall quality, satisfaction and value
offered.
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Thanks