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8/13/2019 MRA03_Dell02
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MRA03_Dell02
Recoding
We recoded the responses of Question 2, 4, 5, 6 and 9 on the basis that the higher the best and vice versa.
Inte
rnet
Usa
ge
We used dimension reduction to condense the Internet Usage questions into 3 factors as we saw fit. We were able
to subdivide the questions into 3 factors which were named
Entertainment (users who use the internet mainly for entertainment
purposes such as downloading movies, pictures etc), Information (users
who use the internet to look at TV program listings and go on
chatrooms), and Serious (users who use the internet mainly for looking
for jobs and to book trips). These were the 3 factors we were able to
decipher from the rotated component matrix. We also checked their
communalities and saw that the variables data was well represented in
the extraction.
Satisfaction & Loyalty
When we ran factor analysis on Q #4, 5, and 6 it did not give us rotated component matrix. We found that it is in fact
one factor because there is high correlation between three variables. And we can say that a person who is satisfied
can also recommend and repeat purchase dell.
Manufacturer Importance/performance Ratings
When we run factor analysis on Q # 8 we found that there are two sub factors, one is convenience and other is
technical. Convenience are those who seek for ease of ordering, customization, quick delivery, competitive pricing,
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was done ab initio using 3 factors which were later reduced to 2 when it was felt that the latter gave a much more
meaningful result and conforming to expectations. (In the former market maven items and innovativeness were
exhibiting positive correlation which appears to be flawed as a person who likes to introduce new items cannot
possibly think unproven new products are a waste of time)
It can be observed that the component 1 characterizes respondents who are early adopters who also share their
opinions with others. On the other hand, component 2 contains respondents who are innovators who like to try
different things. Special attention should be paid tounproven new product are a waste of time. It is negatively
correlated to other innovativeness questions which makes
sense as a person who answered agree completelyto likes
to try new things would most definitely mark disagree
completelyon unproven products being a waste of time.
Factor of Factor
After factoring on all blocks we run factor on factors which
told us that what factors that are not relevant and weshould ignore it in making cluster analysis. We found that
technical and expert opinion leader are guys who are
almost same for every components so we ignored it for our
cluster analysis
After excluding technical, and expert opinion we
came up with the following factors and we can see
that every factor is quite different for every
component.
Cluster Analysis
Factor Cluster
1 2 3 4
Entertainment Satisfied X X Serious
Information Convenience X
Price X Innovation x
We used the following color codes for each cluster.
Cluster 1 is green. Cluster 2 is purple. Cluster 3 is
brown. Cluster 4 is orange color coded. Cluster 1 is
best in innovator and information whereas cluster 3 isworst in terms of innovation. Cluster 1 uses the
Rotated Component Matrixa
Component
1 2 3 4
Entertainment .090 .046 .847 .070
Information -.189 .769 .065 -.089
Serious -.102 .056 -.128 .681
Satisfied .866 .128 .022 .003
Convenience .801 -.142 .051 -.008
Technical .257 .530 -.292 .350
Price Increase .498 -.030 .026 -.132
Expert and Opinion .057 .631 .530 -.048
Innovator -.074 -.103 .279 .705
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.Rotated Component Matrix
a
Component
1 2 3 4
Entertainment .028 -.071 .886 -.033Information -.024 .004 -.001 .962
Serious -.050 .828 -.229 -.089
Satisfied .863 -.035 .078 -.012
Convenience .785 -.015 .067 -.244
Price Increase .576 -.039 -.087 .142
Innovator -.038 .631 .453 .162
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 5 iterations.
-1
-0.5
0
0.5
1
-1.00 -.50 .00 .50 1.00Informa
tion
Innovator
innovator vs information
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internet for information whereas cluster 2 does not use the internet for information seeking purposes.
Cluster 4 is most price sensitive but does not use the internet for serious purposes such as booking trips and job
searches. Cluster 2 is a very serious user and is not very price sensitive. Cluster 2 would buy even if prices are raised.
Cluster 1 wants the most entertainment and
values convenience whereas cluster 2 does not
think Dell is convenient. Cluster 4 is not a
serious user nor an entertainment-type user,
therefore cluster 4 uses the internet for
information mostly.
Cluster 1 is most satisfied and uses internet for
entertainment whereas cluster 2 is least
satisfied.
Clusters 1 and 4 are price insensitive. Cluster 3 is most innovative but least price insensitive. This shows that cluster 3
would be price sensitive but also is the most innovative out of all the clusters. Cluster 2 is least innovative.
-1
-0.5
0
0.5
1
1.5
-0.3 -0.2 -0.1 0 0.1 0.2 0.3 0.4Serious
Price sensitive
serious user vs price sensitive
-3
-2
-1
0
1
-1.5 -1 -0.5 0 0.5 1
Entertainment
Convenience
entertainment vs convenience
-2
-1
0
1
-1.5 -1 -0.5 0 0.5 1
E
ntertainment
Satisfied
entertainment vs satisfied
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Cluster 1Risk Takers
The respondents in this cluster are representative of a group of people who are highly innovative as they like to try
new products, require very low convenience as they know their way around the markets and least satisfied. This may
be due to the insight that consumers who are regularly in search of new products would constantly feel outdated as
new products are released due to technological innovation. Since their churn rate is high, they are rarely satisfied
with what they have.
The people in this segment belong to 35-39 age segment, have some college education and income between
$30,000$49,999.
Cluster 2Job Seekers
This segment is highly serious in terms of their customer usage as they mostly look up jobs or book trips online. They
are constantly in search of best deals/value online due to which they are also quite price sensitive. We have defined
this segment as job seekers who are out of jobs or unhappy with their current ones due to which they have less
money to spend on computers and therefore price sensitive.
The people in this segment belong to 35-45 age segment, are college graduates and income in the range $30,000
$49,999.
Cluster 3Risk averse
This segment is characterized by customers are not innovative. They go for the tried and tested products. Due to
their tendency to go for proven products, they are ready to pay high prices as they value reliability above all other
factors.
The people in this segment belong to 45 - 49 age segment, are college graduates and have income in the range
$50,000$74,999.
Cluster 4Satisfied
This segment contains consumers who surf the internet for entertainment purposes, require a lot of convenience
and highly satisfied. These are sort of the best customers in the sense that they think Dell meets their computing
needs adequately.
The people in this segment belong to 40 - 44 age segment, are college graduates and have income in the range
$50,000$74,999
-1
-0.5
0
0.5
1
-1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1 1.2
PriceInsensitive
Innovative
price insensitive vs innovative
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-2.5
-2
-1.5
-1
-0.5
0
0.5
1
Information Entertainment Serious Satisfied Convenience Price Insenstive Innovator
Clusters
1 2 3 4