Power of Hindon Designs Plc - Assignment Example

HINDON DESIGNS PLC – ANSWERS TO QUESTIONS Prepare a report exploring the data that your has collected, shown in the file ‘Hindon Designs Data’. This report should give the results of using various exploratory data analyses tools, including scatter charts, histograms and correlation coefficients, and interpret what they show. While your report should use all the information provided, among other things it should look in particular at the relationship between individual purchasing share and overall satisfaction.  ANSWER: The scatter diagrams of Factors 1 – 8 individually revealed favourable ratings for Factors 2 and 7; mediocre ratings for Factor 3 and overall satisfaction; and not so favourable ratings for Factors 1, 4, 5 and 6. The scatter diagram for the individual purchase share (IPS) showed that customers spend from 30-60 per cent of their total income on Hindon products. Meanwhile, the histograms revealed that customer ratings were widely dispersed for Factors 1, 2, 3, 4 and 7, whereas Factors 5 and 6, IPS and overall satisfaction were found to be moderately dispersed. The combined scatterplots for Factors 8 and Factors 1 to 7, showed that: (1) Factor 8 has a very strong relationship with Factor 5 and overall satisfaction; (2) Factor 8 has a substantial to very strong association with Factors 1 and 2; and (3) Factor 8 has a low to moderate relationship with Factors 3, 6 and 7, although 7 tends to be negatively correlated with Factor 8. All these three generalizations were verified using correlation analysis. The complete workings with 26 figures and two tables are shown in Appendix 1. 2. The HD management is interested in finding out the average perceptions of HD Factors 1 to 7 as seen by all of its customers. Do calculations to produce information on what you can say about these average perceptions on the basis of your sample.  Answers: The average customer satisfaction ratings are as follows: For Factor 1, 3.5; for Factor 2, 7.9, for Factor 3, 5.2; for Factor 4, 2.4; for Factor 5, 2.9; for Factor 6, 2.7; and for Factor 7, 7.0. From the average perceptions, it may be concluded that among Factors 1 to 7, Factor 2 or the design factor obtained the most favourable rating of 7.9 from the customers, followed by Factor 7 or the website quality factor with the second most favourable rating of 7.0. Factor 3 or the reliability factor was rated to be mediocre from an average of 5.2. The rest of the factors received very low ratings, with Factor 4 or the price factor getting the lowest average rating of 2.4. Further explanation is presented in Appendix 2. 3. The management of HD believes that the customers with different characteristics in terms of spending and purchasing power (Factors 10 and 11) have different levels of individual purchasing share for HD products. The HD Marketing Director believes in particular that customers tend to spend a larger proportion of their total cleaning and maintenance equipment spending on HD products if their total spending on consumer durables is higher. Investigate whether there is statistical evidence to support her belief about the effect of total consumer durables spending on the individual purchasing share of HD products.  The results of the two sample t-test assuming equal variances is shown below as Table 3. Table 3. Results of the two-sample t-test assuming equal variances. t-Test: Two-Sample Assuming Equal Variances   Low Earners High Earners Mean 0.766666667 0.7 Variance 0.55480226 0.574358974 Observations 60 40 Pooled Variance 0.562585034 Hypothesized Mean Difference 0 df 98 t Stat 0.435431932 P(T Read More