DELL DIRECT

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Presented by Group – 4WMP6021:- Himanshu YadavWMP6024:- Kunal JainWMP6025:- Kunal MalhotraWMP6026:- Mahendra Pratap SinghWMP6027:- Manish Bansal

Situation:Dell has thrived in the environment of downward-spiralling

prices and commodization. Since 2008, Dell Inc. is pushing into consumer products market. Dell intends to expand the Partner Direct program globally. Dell’s strategy was then hinged on meeting customers’ need and demands by offering their products in retail stores. Now, Dell is pushing into consumer products business.

Complications: Intense competition is rampant and customer patronage is

critical for Dell

Questions:A survey was conducted amongst recent purchasers of Dell

PCs and notebooks to help Dell serve its customers and expand its business

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Question:

Dell wants to estimate: Customers probability to make a repeat purchase of Dell

products, andCustomers willingness to recommend Dell products to their

friends and family

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Question 6: If you could make your computer purchase decision again, how likely would you be to choose Dell?

Data is for those people who have answered "Definitely would” or “Probably would” in question 6 of survey.

Influence of Question 10_9:What number from 1 to 7 best indicates how

much you agree or disagree that this statement describes you; I often try new brands before my friends and neighbors do.

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If you could make your computer purchase decision again, how likely would you be to choose Dell?"Definitely would" in Q 6 survey:

10_9   score 3: 3510_9   score 2: 2110_9   score 1: 09

---------------------------Total: 65

"Probably would" in Q 6 survey:10_9   score 3: 1310_9   score 2: 0910_9   score 1: 02--------------------------- Total: 24

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If you could make your computer purchase decision again, how likely would you be to choose Dell?Therefore, 65+24=89 out of 372 are those people who

are definitely or probably would like to repurchase the product.

Sample size: 372

Sample favorable probability of recommendation: 89/372= 0.2393

Sample std dev for 372 people in Q6 response: 0.5807

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If you could make your computer purchase decision again, how likely would you be to choose Dell?Now we can estimate the proportion for

population with 95% confidence

Population parameter will be: 0.2393 + - 1.96 * 0.5807/sqrt (372) =0.1803 to 0.2983

This is the probability of a customer to

repurchase the Dell product.

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Customers willingness to recommend Dell products to their friends and family –

Data from survey used for analysis How likely would you be to recommend Dell to a friend or relative? –

q5 How much you agree or disagree the statement “I like introducing

new brands and products to my friends” – q10_1 How much you agree or disagree the statement “I like helping

people by providing them with information about many kinds of products ” – q10_2

How much you agree or disagree the statement “People ask me for information about products, places to shop, or sales” – q10_3

How much you agree or disagree the statement “My friends think of me as a good source of information when it comes to new products or sales” – q10_4

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Customers willingness to recommend Dell products to their friends and family –

Data is for those people who have answered "Definitely would recommend / Probably would recommend " or have a score of (1 or 2) in question 5 of survey.

“Definitely would recommend” in q5 with score of 4 and above in q10_1, q10_2, q10_3, q10_4,

Number of respondents – 90

“Probably would recommend” in q5 with score of 5 and above in q10_1, q10_2, q10_3, q10_4,

Number of respondents – 29

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Customers willingness to recommend Dell products to their friends and family –

“Might not recommend” in q5 but have score of 6 and above in q10_1, q10_2, q10_3, q10_4,

Number of respondents – 9

*Other 2 response of “Definitely would not recommend” and “Probably would recommend” for q5 are ignored

Therefore, 90+29+9=128 out of 372 are those people who are definitely or probably likely to recommend the product.

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Customers willingness to recommend Dell products to their friends and family –

Sample size: 372 Sample Favorable probability of recommendation: 128/372=

0.3441 Sample std dev for 372 people in Q5 response: 0.827725

Now we can estimate the proportion for population with 95% confidence:

Population parameter will be: = 0.3441 + - 1.96 * 0.827725/sqrt (372)= 0.3441 + - 1.96 * 0.827725/19.280.3441 + - 0.0841 = *0.2600 to 0.4282 * This is the probability of a customer to recommend the product. Therefore, 26% to 42.82% customers recommend the Dell

product to their family & friends. 11