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Chapter 14. Advanced Analysis and Presentation Approaches. Learning Objectives : Understand how to use cluster analysis with discriminant analysis. Understand how to use factor analysis with regression. Explain the use of summated scores instead of factor scores. - PowerPoint PPT Presentation
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1 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Learning Objectives:
1. Understand how to use cluster analysis with
discriminant analysis.
2. Understand how to use factor analysis with
regression.
3. Explain the use of summated scores instead of
factor scores.
4. Clarify the visual impact of Importance-
Performance Analysis.
Advanced Analysis and Advanced Analysis and Presentation Presentation ApproachesApproaches
Chapter 14
2 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Relationship Variables from Customer Relationship Variables from Customer SurveySurvey
17. How satisfied are you
with Samouel’s restaurant? Not Satisfied Very
At All Satisfied
1 2 3 4 5 6 7
18. How likely are you to return to
Samouel’s restaurant in
the future? Definitely Will Definitely Will
Not Return Return
1 2 3 4 5 6 7
19. How likely are you to recommend
Samouel’s restaurant to a friend? Definitely Will Not Definitely Will
Recommend Recommend
1 2 3 4 5 6 7
20. How often do you patronize
Samouel’s restaurant? 1 = Occasionally (Less than once a month)
2 = Frequently (1 – 3 times a month)
3 = Very Frequently (4 or more times a month)
21. How long have you been a customer of Samouel’s restaurant?
1 = Less than One Year
2 = One year to three years
3 = More than three years
3 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Cluster Analysis Research Cluster Analysis Research QuestionsQuestions
Research Question One:
“Can clusters be identified?”
Research Question Two:
“Are the clusters valid?”
Research Question Three:
“Do the perceptions variables predict the clusters?”
4 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-2 Error Coefficients Exhibit 14-2 Error Coefficients and Error Reduction for and Error Reduction for
Satisfaction Variables’ Cluster Satisfaction Variables’ Cluster SolutionsSolutions
Error Coefficients Error Reduction
Four Clusters = 140.865 3 – 4 Clusters = 42.013
Three Clusters = 182.878 2 – 3 Clusters = 99.972
Two Clusters = 282.850 1 – 2 Clusters =
551.405
One Cluster = 834.255
5 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-3 Means Exhibit 14-3 Means for Two-Cluster for Two-Cluster
SolutionSolutionVariables Groups N Mean
X17 – Satisfaction
1 80 4.14
2 120 6.19
Total 200 5.37
X18 – Return in Future
1 80 3.83
2 120 5.72
Total 200 4.96
X19 – Recommend to Friend
1 80 3.61
2 120 5.53
Total 200 4.76
6 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-3 Means Plots Exhibit 14-3 Means Plots for Two-Cluster Solutionfor Two-Cluster Solution
Ward Method
21
Mea
n of
X17
-- S
atis
fact
ion
6.5
6.0
5.5
5.0
4.5
4.0
Ward Method
21
Mea
n of
X18
-- R
etur
n in
Fut
ure
6.0
5.5
5.0
4.5
4.0
3.5
Ward Method
21M
ean
of X
19 --
Rec
omm
end
to F
riend
6.0
5.5
5.0
4.5
4.0
3.5
7 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-4 Means Exhibit 14-4 Means for Three-Cluster for Three-Cluster
SolutionSolutionVariables Groups N Mean
X17 – Satisfaction
1 80 4.14
2 75 6.53
3 45 5.62
Total 200 5.37
X18 – Return in Future
1 80 3.83
2 75 6.20
3 45 4.91
Total 200 4.96
X19 – Recommend to Friend
1 80 3.61
2 75 5.92
3 45 4.89
Total 200 4.76
8 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-4 Means Exhibit 14-4 Means Plots for Three-Plots for Three-Cluster SolutionCluster Solution
Ward Method
321
Mea
n of
X17
--
Sat
isfa
ctio
n
7.0
6.5
6.0
5.5
5.0
4.5
4.0
Ward Method
321
Me
an
of
X1
8 -
- R
etu
rn in
Fu
ture
6.5
6.0
5.5
5.0
4.5
4.0
3.5
Ward Method
321
Mea
n of
X19
--
Rec
omm
end
to F
riend
6.5
6.0
5.5
5.0
4.5
4.0
3.5
3.0
9 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-5 ANOVA Results for Exhibit 14-5 ANOVA Results for Two-Cluster Solution of Two-Cluster Solution of Satisfaction VariablesSatisfaction Variables
Variables F Sig.
X17 – Satisfaction Between Groups 426.270 .000
X18 – Return in Future Between Groups 340.375 .000
X19 – Recommend to Friend Between Groups 394.646 .000
ANOVA
10 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-6 Validation Exhibit 14-6 Validation Statistics for Two-Group Statistics for Two-Group
Satisfaction ClustersSatisfaction Clusters
Variables Groups N Mean
X20 – Frequency of Patronage
1 80 1.53
2 120 2.63
Total 200 2.19
X21 – How Long a Customer
1 80 1.40
2 120 2.63
Total 200 2.14
Descriptives
Variables F Sig.
X20 – Frequency of Patronage Between Groups 139.289 .000
X21 – How Long a Customer Between Groups 178.330 .000
ANOVA
11 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-7 Prediction of Exhibit 14-7 Prediction of Customer Satisfaction Customer Satisfaction
ClustersClusters
Test of Function(s) Wilks’ Lambda Chi- Square Sig.
1 .671 77.795 .000
Wilks’ Lambda
*79.0% of original grouped cases correctly classified.
Predicted Group Membership Total
Dependent Variables 1 2
Original Count 1 53 27 80
2 15 105 120
% 1 66.3 33.8 100.0
2 12.5 87.5 100.0
Classification Results*
12 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-8 Structure Exhibit 14-8 Structure Matrix for Matrix for
Two-Cluster SolutionTwo-Cluster SolutionVariables Function 1
X6 – Friendly Employees .777
X12 – Competent Employees .752
X1 – Excellent Food Quality .510
X4 – Excellent Food Taste .387
X11 – Courteous Employees .384
X9 – Wide Variety of Menu Items .189
13 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-9 Group Means for Exhibit 14-9 Group Means for Food and Employee Independent Food and Employee Independent
VariablesVariables
Variables Mean Mean
Group 1 Group 2
X1 – Excellent Food Quality 5.01 5.87
X4 – Excellent Food Taste 5.06 5.70
X6 – Friendly Employees 2.93 4.14
X9 – Wide Variety of Menu Items 5.31 5.63
X11 – Courteous Employees 2.10 2.60
X12 – Competent Employees 1.64 2.55
Group Statistics
14 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-10 Rotated Factor Solution for 12 Exhibit 14-10 Rotated Factor Solution for 12 Perceptions Variables on the Customer SurveyPerceptions Variables on the Customer Survey
Variables Components (Factors)
1 2 3 4
X4 – Excellent Food Taste .912
X9 – Wide Variety of Menu Items .901
X4 – Excellent Food Quality .883
X6 – Friendly Employees .892
X11 – Courteous Employees .850
X12 – Competent Employees .800
X8 – Fun Place to Go .869
X2 – Attractive Interior .854
X7 – Appears Clean and Neat .751
X3 – Generous Portions .896
X5 – Good Value for Money .775
X10 – Reasonable Prices .754
15 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-10 Rotated Factor Solution Exhibit 14-10 Rotated Factor Solution for 12 Perceptions Variables on the for 12 Perceptions Variables on the
Customer Survey ContinuedCustomer Survey Continued
ComponentRotation Sums of Squared Loadings
% of Variance Cumulative %
Total
1 2.543 21.188 21.188
2 2.251 18.758 39.946
3 2.100 17.498 57.444
4 2.060 17.170 74.614
16 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
. . . are composite
scores calculated for
each respondent on
each of the derived
factors..
Factor ScoresFactor Scores
17 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-11 Factor Exhibit 14-11 Factor Scores for Five Scores for Five
Respondents in Customer Respondents in Customer SurveySurvey
Factors
1 2 3 4
Respondents
#1 -.89212 1.24493 .84853 -.38169
#2 -2.33246 -1.01861 .21274 .65610
#3 -.55517 -1.14659 -.90178 -.91886
#4 -.22994 -1.91237 .23862 -.20539
#5 -.03014 .19599 1.30175 -.53036
18 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-12 Descriptive Exhibit 14-12 Descriptive Statistics for Multiple Regression Statistics for Multiple Regression
Using Factor ScoresUsing Factor Scores
X25 – Competitor Variables Mean
Samouel’s
X17 – Satisfaction 4.78
Food Factor – .153
Employees Factor – .626
Atmosphere Factor .262
Value Factor – .076
Gino’s
X17 – Satisfaction 5.96
Food Factor .153
Employees Factor .626
Atmosphere Factor – .262
Value Factor .076
19 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-13 Multiple Exhibit 14-13 Multiple Regression Regression
Using Factor ScoresUsing Factor Scores
X25 – Competitor
Model R R Square
Samouel’s 1 .604 .365
Gino’s 1 .548 .300
Model Summary
*Predictors: (Constant), Food Factor, Employees
Factor, Atmosphere Factor, Value Factor
20 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-13 Multiple Exhibit 14-13 Multiple Regression Regression
Using Factor Scores Using Factor Scores ContinuedContinued
X25 – Competitor
Model Sum of Squares
Mean Square
F Sig.
Samouel’s
1 Regression 48.583 12.146 13.643 .000
Residual 84.577 .890
Total 133.160
Gino’s
1 Regression 28.130 7.032 10.167 .000
Residual 65.710 .692
Total 93.840
*Predictors: (Constant), Dependent Variable: X17 – Satisfaction
ANOVA
21 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-14 Regression Coefficients for Exhibit 14-14 Regression Coefficients for Regression ModelsRegression Models
X25 – Competitor
Standardized Coefficients
t Sig.
Model Beta
Samouel’s 1
(Constant) 39.221 .000
Food Factor .433 5.155 .000
Employees Factor .319 3.736 .000
Atmosphere Factor .137 1.564 .121
Value Factor .162 1.951 .054
Gino’s 1
(Constant) 45.521 .000
Food Factor .421 4.673 .000
Employees Factor .480 5.305 .000
Atmosphere Factor .028 .318 .752
Value Factor .091 1.052 .296
Coefficients*
*Dependent Variable: X17 – Satisfaction
22 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-15 Raw Data for 12 Exhibit 14-15 Raw Data for 12 Perceptions Variables on Perceptions Variables on
Customer SurveyCustomer Survey
Perceptions Variables
ID X1 X2 X3 X4 X5 X6 X7 X8 X9 X10 X11 X12
1 6 4 1 6 4 4 4 3 6 3 3 2
2 6 5 3 4 4 4 5 4 4 4 4 3
3 7 4 4 7 6 4 4 3 7 4 3 4
4 3 4 5 3 3 2 5 4 3 5 2 1
5 5 4 5 5 5 5 3 3 5 4 3 2
23 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
. . . . are calculated by adding the
original scale responses together and
determining the mean value.
Summated Summated
ScoresScores
24 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-16 Summated Exhibit 14-16 Summated Scores for Five Customer Scores for Five Customer
Survey RespondentsSurvey Respondents
New Summated Scores Variables
food_s employ_s atmos_s value_s
Respondent ID
#1 6.00 3.00 3.67 2.67
#2 5.33 3.67 4.67 3.67
#3 7.00 3.67 3.67 4.67
#4 3.00 1.67 4.33 4.33
#5 5.00 3.33 3.33 4.67
25 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-17 Discriminant Analysis with Exhibit 14-17 Discriminant Analysis with Summated ScoresSummated Scores
Test of Function(s) Wilks’ Lambda Sig.
1 .716 .000
Classification Results
*79% of original grouped cases correctly classified
Predicted Group Membership Total
Ward Method 1 2
Original Count 1 54 26 80
2 16 104 120
% 1 67.5 32.5 100.0
2 13.3 86.7 100.0
26 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-18 Significant Exhibit 14-18 Significant Predictors in Discriminant Predictors in Discriminant
FunctionFunction
Variables Function 1
Employees Summated .854
Food Summated .444
Value Summated .438
Atmosphere Summated -.022
Correlations between discriminating variables and the discriminant function.
Variables ordered by absolute size of correlation within function.
27 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-19 Cluster Means Exhibit 14-19 Cluster Means for Summated Score for Summated Score
VariablesVariables
Ward
Method
Variables Mean
Cluster 1
Moderately Satisfied
Cluster 2
Highly Satisfied
Food Summated 5.1292 5.7333
Employees Summated 2.2200 3.0972
Atmosphere Summated 4.0792 4.0556
Value Summated 3.7375 4.3250
28 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-20 Rankings of Exhibit 14-20 Rankings of Restaurant Selection Factors Restaurant Selection Factors
for Samouel’s Customersfor Samouel’s Customers
Samouel’s X13 –
Food Quality
Ranking
X14 –
Atmosphere
Ranking
X15 –
Prices Ranking
X16 –
Employees
Ranking
N Valid 100 100 100 100
Missing 0 0 0 0
Median 4.00 3.00 2.00 1.00
Mode 4 3 2 1
Minimum 2 2 1 1
Maximum 4 4 3 4
Multiple modes exist. The smallest value is shown.
29 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-20 Rankings of Exhibit 14-20 Rankings of Restaurant Selection Factors Restaurant Selection Factors
for Gino’s Customersfor Gino’s Customers
Gino’s X13 –
Food Quality
Ranking
X14 –
Atmosphere
Ranking
X15 –
Prices Ranking
X16 –
Employees
Ranking
N Valid 100 100 100 100
Missing 0 0 0 0
Median 4.00 3.00 1.00 2.00
Mode 4 3 1 2
Minimum 2 2 1 1
Maximum 4 4 2 3
Multiple modes exist. The smallest value is shown.
30 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-21 Means of Selected Exhibit 14-21 Means of Selected Perceptions Variables on Customer Perceptions Variables on Customer
Survey for Samouel’sSurvey for Samouel’s
Samouel’s X1 –
Excellent
Food Quality
X8 –
Fun Place
To Go
X10 –
Reasonable
Prices
X12 –
Competent Employees
N
Valid 100 100 100 100
Missing 0 0 0 0
Mean 5.24 3.65 4.14 1.62
Minimum 3 1 2 1
Maximum 7 6 6 3
31 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-21 Means of Selected Exhibit 14-21 Means of Selected Perceptions Variables on Customer Perceptions Variables on Customer
Survey for Gino’sSurvey for Gino’s
Gino’s X1 –
Excellent
Food Quality
X8 –
Fun Place
To Go
X10 –
Reasonable
Prices
X12 –
Competent Employees
N
Valid 100 100 100 100
Missing 0 0 0 0
Mean 5.81 3.12 3.97 2.75
Minimum 3 1 2 1
Maximum 7 5 6 5
32 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
. . . . a process used to develop maps
that show the perceptions of a
company, product, service, brand, or
any other object in two dimensions.
Perceptual Perceptual
MappingMapping
33 Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 14-22 Illustration of Exhibit 14-22 Illustration of Importance/Performance Chart Using Importance/Performance Chart Using
Restaurant Customer Survey DatabaseRestaurant Customer Survey Database Importance
4
Atmosphere
Performance 1 2 3 4 5 6
EmployeesGino’s =
Samouel’s =
Food Quality
3
2
1
Prices