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MKT 2004
RESEARCH METHODS FOR BUSINESS AND MARKETING
DELL CASE STUDY - GROUP PROJECT REPORT
UNDERSTANDING DELL’S CUSTOMERS...
2
TABLE OF CONTENTS
4 Introduction
4 Research Background
5 Research Objectives
6 Research Methodology
7 Findings
16 Conclu...
3
LIST OF FIGURES
4 Figure 1.1: Estimated shares of UK laptop market in 2010-2011
5 Figure 1.2: Estimated shares of UK des...
4
INTRODUCTION
RESEARCH BACKGROUND
Dell Inc. (www.dell.com) is the world’s leading direct-sale computer vendor. Dell was
f...
5
Estimated shares of UK desktop market in 2010-2011
Figure 1.2: Estimated shares of UK desktop market in 2010-2011 (Sourc...
6
RESEARCH METHODOLOGY
Dell hired a professional market researcher to conduct the survey for them. However, before
the sur...
7
FINDINGS
I. CUSTOMERS’ DEMOGRAPHIC PROFILE
Figure 2.1: Percentage of Education Level Groups
Based on the SPSS result, th...
8
Figure 2.3: Percentage of Household Income Categories
The largest income category of Dell purchasers has a household inc...
9
II. CUSTOMERS’ INTERNET USAGE
Figure 2.5: Percentage of Respondents’ Weekly Online Time Spending
37.4% of respondents sp...
10
(71.0%), followed by looked up information about a TV show or movie (69.3%), planned or
booked trips (64.2%), communica...
11
Hypothesis:
H0: There is no association between gender and internet usage
H1: There is association between gender and i...
12
IV. CUSTOMERS’ PERCEPTION OF DELL’S PERFORMANCE
The mean performance ratings for Dell, range from 6 (agree to a moderat...
13
THE LINK BETWEEN OVERALL PERFORMANCE AND LOYALTY
After doing further Chi-Square test through SPSS, a relationship betwe...
14
VI. CUSTOMERS’ PERSONALITY CHARACTERISTICS
The four market maven characteristics have a mean range of 4.2 to 4.4, which...
15
Based on the SPSS result, age group 18 to 29 seems to be the “typical” market maven among
Dell customers. 43% of those ...
16
CONCLUSIONS AND RECOMMENDATIONS
CONCLUSIONS
The demographic profile of Dell customers are college graduate or higher, a...
17
RECOMMENDATIONS
Price
Dell’s pricing policy should range from middle to middle high prices. Based on SPSS result,
a maj...
18
Promotion
Promotional effort should target the age group 18 to 29 since they are the “typical” market
maven among Dell ...
19
LIMITATIONS
There are 128 out of 500 recent purchasers who did not complete the survey. This appears to
be the disadvan...
20
REFERENCES
Barnes, S. J. and Pressey, A. D. (2002) 'In Search of the “Meta-Maven”: An Examination of
Market Maven Behav...
21
APPENDICES
Appendix 1 – Tables of Analysis and Comments
Table 1: Descriptive statistics of customers’ demographic profi...
22
Table 2: Descriptive statistics of Dell’s customers’ internet usage
Internet usage Percentage
Time spent online (q1)
Le...
23
Table 3: Descriptive statistics of customers’ satisfaction and loyalty to Dell products
Customer satisfaction/loyalty M...
24
Table 4: Descriptive statistics of customers’ perception of Dell performance
Performance attribute (q6a to q6m) Mean ra...
25
Table 5: Descriptive statistics of customers’ price sensitivity
Price sensitivity indicator Mean rating Std. dev
Likeli...
26
Table 6: Descriptive statistics of customers’ personality characteristics
Personality characteristic Mean rating Std. d...
27
agree rating of whether respondents’ friends think of them as a good source of
information when it comes to new product...
28
Table 7: Analysis of mean differences in overall satisfaction between the demographic
groups
Demographic Mean overall
s...
29
Age groups
Let:
μ1 = 18 to 29
μ2 = 30 to 39
μ3 = 40 to 49
μ4 = 50 or older
H0: μ1 = μ2 = μ3 = μ4
H1: All the means are ...
30
Table 8: Analysis of mean differences in overall customer loyalty between demographic
groups
Demographic Mean customer
...
31
Age groups
Let:
μ1 = 18 to 29
μ2 = 30 to 39
μ3 = 40 to 49
μ4 = 50 or older
H0: μ1 = μ2 = μ3 = μ4
H1: All the means are ...
32
Table 9: Analysis of relationship between market maven group and demographic
characteristics of respondents
Cross-tabul...
33
Secondly, Feick and Price (1987) found mavens to have a lower average educational level
than non- mavens. Feick and Pri...
34
Table 10: Analysis of inter-relationships between market mavenism, opinion leadership,
customer satisfaction and loyalt...
35
Appendix 2 – Further SPSS Analysis Output
Table 11: Chi-Square test between internet usage and education group
Chi-Squa...
36
Table 15a: Descriptive Statistics of males and females’ internet usage
Group Statistics
q13:Gender N Mean Std. Deviatio...
37
Table 18: Chi-Square test between performance overall and loyalty
Chi-Square Tests
Value df
Asymp. Sig. (2-
sided)
Pear...
38
Appendix 3 – Report Presentation Slides
39
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DELL CASE STUDY - UNDERSTANDING DELL’S CUSTOMERS AS A KEY IN DEVELOPING MARKETING MIX STRATEGY

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DELL CASE STUDY - UNDERSTANDING DELL’S CUSTOMERS AS A KEY IN DEVELOPING MARKETING MIX STRATEGY

  1. 1. MKT 2004 RESEARCH METHODS FOR BUSINESS AND MARKETING DELL CASE STUDY - GROUP PROJECT REPORT UNDERSTANDING DELL’S CUSTOMERS AS A KEY IN DEVELOPING MARKETING MIX STRATEGY SUBMITTED BY: GROUP 25 ANGELINE TJANDRA – 110562630 ROXANNE MELISSA TUCK – 110471871 CHRISTIE LOUISE WOODHOUSE – 110108391 TIEZHENG YUAN – 110562836 Date: 13th May 2013 Word count: 2183 words
  2. 2. 2 TABLE OF CONTENTS 4 Introduction 4 Research Background 5 Research Objectives 6 Research Methodology 7 Findings 16 Conclusions and Recommendations 19 Limitations 20 References 21 Appendices 21 Appendix 1 (Tables of Analysis and Comments) 35 Appendix 2 (Further SPSS Analysis Output) 38 Appendix 3 (Report Presentation Slides)
  3. 3. 3 LIST OF FIGURES 4 Figure 1.1: Estimated shares of UK laptop market in 2010-2011 5 Figure 1.2: Estimated shares of UK desktop market in 2010-2011 7 Figure 2.1: Percentage of education level groups 7 Figure 2.2: Percentage of age groups 8 Figure 2.3: Percentage of household income categories 8 Figure 2.4: Percentage of genders 9 Figure 2.5: Percentage of respondents’ weekly online time spending 9 Figure 2.6: Percentage of type of activities participants have ever done on the internet
  4. 4. 4 INTRODUCTION RESEARCH BACKGROUND Dell Inc. (www.dell.com) is the world’s leading direct-sale computer vendor. Dell was founded in 1984, initially under the name of PC’s Limited (Dell, 2013). It is a global information technology company which offers customers a range of both solutions and services, delivered not only through Dell itself, but also other distribution channels (Reuters, 2012). Dell’s product portfolio includes laptops, desktops, workstations, networking, servers, storage devices, printers, software products and computer peripherals (CBR, 2012). At the end of the first quarter in 2013, Hewlett Packard (HP), which is one of Dell’s competitors, had a 15.7% global market share in comparison to Dell which had an 11% market share (Seitz, 2013). Dell maintained its position as the number one server unit vendor in the North American market, and number two worldwide, whereas HP is the number one server vendor on a worldwide server unit basis, and number two in North America. (Burke, 2013). Estimated shares of UK laptop market in 2010-2011 Figure 1.1: Estimated shares of UK laptop market in 2010-2011 (source: Mintel, 2012)
  5. 5. 5 Estimated shares of UK desktop market in 2010-2011 Figure 1.2: Estimated shares of UK desktop market in 2010-2011 (Source: Mintel, 2012) Within the UK, Dell has intense competition with Acer and HP. In 2011, Acer retained the top position in the UK laptop market, despite registering the largest percentage-point drop in share from an estimated 19% in 2010 to 17% in 2011. Dell retained second place despite also losing share, while HP’s share grew from 13% in 2010 to 15%. However, Dell retained the top position in the UK desktop market, with an estimated market share of 19% in 2011. HP overtook Acer to take second position, with the latter registering the highest percentage-point drop, falling from second to third position as its market share declined from 16% to 13%. With intense competition for market share and customer loyalty, Dell is conducting a survey of recent purchasers of Dell PCs and notebooks. RESEARCH OBJECTIVES This report seeks to understand the following about Dell’s customers: (a) Customers’ demographic profile (b) Customers’ primary usage of their computers for internet and other usage (c) Satisfaction and loyalty of the customers to Dell products (d) Customers’ perceptions of Dell performance (e) Customers’ price sensitivity (f) Customers’ personality characteristics Following analyses of the results, appropriate recommendations regarding marketing mix strategy for Dell will be developed.
  6. 6. 6 RESEARCH METHODOLOGY Dell hired a professional market researcher to conduct the survey for them. However, before the survey was administered, four careful steps were taken in drawing the sample. Firstly, the target population was defined as all Dell PCs and notebooks purchasers in the UK. Secondly, the sampling frame was taken from the database of customers who purchased Dell PCs or notebooks in the UK, in the last 2 years. Thirdly, simple random sampling method was chosen as the appropriate sampling technique. Lastly, the sample size was determined at 500 recent purchasers (i.e. in the last 2 years). The questionnaire was administered online by posting it on survey hosting website qualtrics (www.qualtrics.com). An e-mail was sent to the 500 recent purchasers inviting them to complete the questionnaire. A total of 372 questionnaires were completed representing a response rate of 74%. The data collected from the surveys was input to SPSS and critically analysed, starting from descriptive statistics (frequency, mean, and standard deviation), to mean difference comparison (ANOVA and independent sample t-test), cross-tabulation/chi-square tests, and correlation. Some interpretations of the results were drawn and then integrated with respect to the research objectives. Links between different parts of results were also made for further analyses. In addition, secondary data from journal articles, books, and databases were used to support the findings. Based on the conclusive findings, appropriate recommendations were made for Dell.
  7. 7. 7 FINDINGS I. CUSTOMERS’ DEMOGRAPHIC PROFILE Figure 2.1: Percentage of Education Level Groups Based on the SPSS result, the majority of Dell purchasers are college graduate or higher (58.1%), followed by some college education (30.4%) then secondary school graduate or less (11.6%). Figure 2.2: Percentage of Age Groups The largest age group category of Dell purchasers is from 40 to 49 (26.6%). Next is 30 to 39 (25.5%), followed by 18 to 29 (25.0%). Lastly is those age 50 or older (22.8%).
  8. 8. 8 Figure 2.3: Percentage of Household Income Categories The largest income category of Dell purchasers has a household income from £50,000 to £74,999 (27.5%). Next is from £30,000 to £49,999 (26.0%), followed by those with income £100,000 or over (19.8%). The two lowest income categories are under £30,000 and £75,000 to £99,999 with 13.8% and 12.9% respectively. Figure 2.4: Percentage of Genders The majority of Dell purchasers are females (50.8%), males constitute (49.2%).
  9. 9. 9 II. CUSTOMERS’ INTERNET USAGE Figure 2.5: Percentage of Respondents’ Weekly Online Time Spending 37.4% of respondents spend 1 to 5 hours using internet, the highest across the categories. This is followed by 6 to 10 hours (28.2%) then 11 to 20 hours (14.8%). 5.4% of respondents use less than 1 hour. Only 5.1% of respondents use the internet 41 hours or more, the lowest across the categories. Figure 2.6: Percentage of Type of Activities Participants Have Ever Done on the Internet All the activities listed have been done by more than 50% of respondents, except looked for a job. The activity that most respondents have ever done is downloaded a picture or graphic on the internet (85.8% or 319 out of 372 respondents). Next, downloaded sounds or audio clips
  10. 10. 10 (71.0%), followed by looked up information about a TV show or movie (69.3%), planned or booked trips (64.2%), communicated with other via new groups or chat rooms (57.5%), downloaded a video clip (56.5%), and lastly looked for a job (43.3%). THE LINK BETWEEN INTERNET USAGE AND DEMOGRAPHIC After doing further Chi-Square test through SPSS, relationships between demographics and internet usage were discovered. Hypothesis: H0: There is no association between educational level and internet usage H1: There is association between educational level and internet usage Based on SPSS result (chi-square test), no relationship was discovered between educational level and internet usage. The p-value was found to be 0.660 1 which is greater than 0.05, thus there is no evidence to reject H0. Therefore, we retain H0. Hypothesis: H0: There is no association between age groups and internet usage H1: There is association between age groups and internet usage Based on SPSS result (chi-square test), no relationship was discovered between age group and internet usage. The p-value was found to be 0.959 2 which is greater than 0.05, thus there is no evidence to reject H0. Therefore, we retain H0. Hypothesis: H0: There is no association between income and internet usage H1: There is association between income and internet usage Based on SPSS result (chi-square test), no relationship was discovered between income and internet usage. The p-value was found to be 0.372 3 which is greater than 0.05, thus there is no evidence to reject H0. Therefore, we retain H0. 1 Refer to Appendix 2 Table 11 2 Refer to Appendix 2 Table 12 3 Refer to Appendix 2 Table 13
  11. 11. 11 Hypothesis: H0: There is no association between gender and internet usage H1: There is association between gender and internet usage Based on SPSS result (chi-square test), there is relationship between gender and internet usage. The p-value was found to be 0.001 4 which is less than 0.05, thus there is evidence to reject H0 and accept H1. Upon further test (independent t-test), it is found that there is mean difference between males and females’ internet usage as the p-value is 0.000 5 . Males tend to use longer hours of internet compared to females. The mean for male is 3.28 while female is 2.74 6 . III. CUSTOMERS’ SATISFACTION AND LOYALTY TO DELL’S PRODUCTS Dell’s computer system received a 4.47 satisfaction rating, which is between ‘somewhat satisfied’ and ‘very satisfied’. The loyalty overall rating is 4.43, which can be considered as above average. Based on the SPSS results, there is a convergence of opinion in satisfaction and loyalty, judging from the standard deviations which are all less than 1. Low variability in satisfaction and loyalty was further supported by the mean differences analysis with the demographic groups. Based on the analysis, all the p-values are greater than 0.05, therefore, there are no significant differences in satisfaction and loyalty mean ratings among education groups, age groups, income groups, and genders. THE LINK BETWEEN SATISFACTION AND LOYALTY After doing further Pearson correlation coefficient calculation using SPSS, it is found that there is a positive relationship between customer satisfaction and loyalty, as the coefficient correlation (r) is 0.747 7 . This is further supported by the p-value 0.000 (less than 0.05), where we reject null hypothesis (r = 0) and retain alternative hypothesis (r ≠ 0). 4 Refer to Appendix 2 Table 14 5 Refer to Appendix 2 Table 15b 6 Refer to Appendix 2 Table 15a 7 Refer to Appendix 1 Table 10
  12. 12. 12 IV. CUSTOMERS’ PERCEPTION OF DELL’S PERFORMANCE The mean performance ratings for Dell, range from 6 (agree to a moderate extent) to 8 (agree to a large extent). The top 3 performance attributes that most respondents agreed with are Dell offers easily accessible technical support (8.20), price its products competitively (8.20), and make ordering a computer system easy (7.74). The bottom 3 performance attributes that most respondents least agreed with are Dell “bundle” its computer with appropriate software (6.07), feature attractively designed computer system component (6.45), and “bundle” its computers with internet access (6.55). The distinguishing characteristic between the top 3 and bottom 3 performance attributes is that the respondents agree more with the service and price that Dell provide in comparison to the physical product. Judging from the low standard deviation, there is a convergence of opinion of the performance attributes that respondents agree more. Only the bottom 3 performance attribute have standard deviation higher than 2. The mean of Dell’s overall performance is 7.35 with standard deviation 1.159 8 . This means that Dell’s overall performance can be considered as good as the mean score is quite high (near to 9 - the maximum score). Judging from the standard deviation, it can be seen that there is low variability in this respect. THE LINK BETWEEN OVERALL PERFORMANCE AND SATISFACTION After doing further Chi-Square test through SPSS, some relationship between performance and satisfaction were discovered. Hypothesis: H0: There is no association between performance and satisfaction H1: There is association between performance and satisfaction Based on SPSS result (chi-square test), relationship was discovered between performance and satisfaction. The p-value was found to be 0.000 9 which is less than 0.05, thus there is evidence to reject H0 and accept H1. 8 Refer to Appendix 2 Table 16 9 Refer to Appendix 2 Table 17
  13. 13. 13 THE LINK BETWEEN OVERALL PERFORMANCE AND LOYALTY After doing further Chi-Square test through SPSS, a relationship between performance and loyalty were discovered. Hypothesis: H0: There is no association between performance and satisfaction H1: There is association between performance and satisfaction Based on SPSS result (chi-square test), relationship was discovered between performance and satisfaction. The p-value was found to be 0.000 10 which is less than 0.05, thus there is evidence to reject H0 and accept H1. V. CUSTOMERS’ PRICE SENSITIVITY It is found that the mean rating for overall price sensitivity is 2.5094 with a standard deviation of 0.97919. This means that most purchasers are between ‘probably would not have purchased’ and ‘might or might not have purchased’. Based on the standard deviation, there is a convergence of opinion. It is also found that as the percentage of price increases, the number of people willing to purchase Dell product decreases, from mean rating 2.92 to 2.10. It can also be seen that standard deviation dropped from 1.062 to 1.013. This means that there is a convergence of opinion as price increases. More people are not willing to buy Dell products if price increases. This means that Dell products are price elastic. This is where a change is price causes a proportionately larger change in quantity demand. THE LINK BETWEEN PRICE SENSITIVITY AND LOYALTY After doing further Chi-Square test through SPSS, it can be seen that there is a relationship between price sensitivity and loyalty. Hypothesis: H0: There is no association between price sensitivity and loyalty. H1: There is an association between price sensitivity and loyalty. Based on the SPSS result, the p-value was found to be 0.000 11 , which is less than 0.05. Thus, there is an evidence to reject H0 and accept H1, concluding there is a relationship between price sensitivity and loyalty. 10 Refer to Appendix 2 Table 18 11 Refer to Appendix 2 Table 19
  14. 14. 14 VI. CUSTOMERS’ PERSONALITY CHARACTERISTICS The four market maven characteristics have a mean range of 4.2 to 4.4, which is assumed to be ‘neutral’ to ‘slightly agree’. The standard deviations of the four characteristics are 1.919, 1.851, 1.896 and 1.847. This shows that there is a convergence in these characteristics (low variability). The market maven overall mean is 4.3526 with a standard deviation of 1.62787. Innovativeness has a mean range from 4.6 to 6, from ‘neutral’ to ‘somewhat agree’. It can also be seen that the standard deviations of these innovativeness characteristics range from 1.49 to 1.76. This means that there is a convergence is these characteristics (low variability).The innovativeness overall mean is 5.0734 with a standard deviation of 1.05522. The means of these three opinion leadership characteristics are assumed to be ‘neutral’ (around 4). The standard deviations of the characteristics are around 2.1, which shows that there is not much variability in the mean agree rating. The opinion leadership overall mean is 4.2061 with a standard deviation of 2.0018. After comparing all three overall means, the highest overall mean agree rating score is innovativeness, followed by market maven, and the lowest is opinion leadership (5.07, 4.35, and 4.21 respectively). Judging from the standard deviations of the mean ratings, there is generally low variability in agree ratings in which respondents agree with more, compared to those that have relatively low agree ratings. THE LINK AMONG CUSTOMERS’ PERSONALITY CHARACTERISTICS The correlation between market maven and opinion leadership were found to be 0.523 12 . This means that there is medium correlation between market maven and opinion leadership. The correlation between market maven and innovativeness were found to be 0.465 13 . This means that there is medium correlation between market maven and innovativeness. Besides that, the correlation between innovativeness and opinion leadership were found to be 0.27114 . This means that there is weak correlation between innovativeness and opinion leadership. Overall, the 3 personality characteristics are distinct with certain degree of correlation. THE LINK BETWEEN MARKET MAVEN GROUP AND DEMOGRAPHIC Based on the SPSS output, it is found that there are no associations between market maven group and education group; income group; and gender. Only age group has an association with market maven group. 12 Refer to Appendix 1 Table 10 13 Refer to Appendix 2 Table 20 14 Refer to Appendix 2 Table 21
  15. 15. 15 Based on the SPSS result, age group 18 to 29 seems to be the “typical” market maven among Dell customers. 43% of those ages 18 to 29 are in the high maven category, the highest across all age categories. Age 30 to 39 has 34.7% in high maven, age 40 to 49 and 50 or older have 33.3% and 24.7%. According to Feick and Price (1987), market mavens are somewhat more likely to be female, but there are no significant differences between the groups in age or income. The result from SPSS contradicts with the findings from Feick and Price (1987). Firstly, Feick and Price (1987) found that females tend to be mavens. However, from the SPSS result, gender has no association with market maven. Clearly, there are contradictions with the SPSS result and Feick and Price findings. However, the SPSS result is supported by the research by Barnes and Pressey (2002). The findings from Barnes and Pressey (2002) suggested that there would be no difference between gender and market maven propensity. Secondly, Feick and Price (1987) found mavens to have a lower average educational level than non-mavens. Feick and Price’s (1987) findings were further supported by Willams and Slama (1995); they too, found that mavens tend to have lower average educational levels. However, from the SPSS result, educational level has no association with market maven. Hence there is a clear contradiction between the research findings and literature reviews. Thirdly, Feick and Price (1987) found that income has no significant association with market maven. This finding is supported by two other researches which are Willams and Slama (1995), and Barnes and Pressey (2002). These two researches support the claim that income has no association with market maven. The SPSS result is consistent with the literatures reviewed. There is no association between income and market maven. Lastly, according to Feick and Price (1987), age has no significant association with market maven. This finding is further supported by Barnes and Pressey (2002) and Willams and Slama (1995). Both literatures found that there is no association between age and market maven. However, the SPSS result contradicts the above findings. According to SPSS result, there is association between age and market maven. Clearly, there are contradictions between SPSS result and literatures reviewed.
  16. 16. 16 CONCLUSIONS AND RECOMMENDATIONS CONCLUSIONS The demographic profile of Dell customers are college graduate or higher, age segment between 18 to 49 years old, income category between £30,000-£49,999 and £50,000-£74,999. Both male and females can be Dell’s customer. Generally, Dell customers spend 1 to 10 hours per week using the internet. Besides that, males tend to use longer hours of internet compared to females. Customers use the internet for a wide range of activities such as downloading pictures or audio clips. It is difficult to pin point which activity is most common. Dell customers are ‘somewhat satisfied’ or ‘very satisfied’ with its computer system and its customers are loyal to a large extent. Dell customers agree to a large extent that Dell computers have good performance. The respondents agree more with the service and price that Dell provides however agree less with Dell’s physical product. There is a relationship between performance and satisfaction. There is also a strong, positive relationship between satisfaction and loyalty. This means that the better the performance of Dell computers, the more satisfied the customers will be and customers would be more loyal to Dell. Dell’s customers are price sensitive; people are not willing to buy Dell products if the price increases. This means that Dell products are price elastic. There is a relationship between price sensitivity and loyalty. This means price would affect loyalty. The age group ‘18 to 29’ seems to be the “typical” market maven among Dell customers. There were no association found between market maven and educational levels, income and gender. This result mostly contradicts with the literatures reviewed with the exception of income. Innovativeness was found to be the prominent personality characteristic of Dell customers. The 3 personality characteristics (market maven, innovativeness and opinion leadership) are distinct with certain degree of correlation.
  17. 17. 17 RECOMMENDATIONS Price Dell’s pricing policy should range from middle to middle high prices. Based on SPSS result, a major section of Dell purchasers come from household income between £30,000 to £49,999 (26.0%) and £50,000 to £74,999 (27.5%). Pricing products in the middle to middle high range make its products attractive to this 2 section of purchasers. Dell’s customers are price sensitive; people are not willing to buy Dell products if price increases. In addition, there is relationship between price sensitivity and loyalty. This means that customers are loyal to Dell as long as price is reasonable. Therefore, Dell should continue to make its products affordable and avoid a price increase. Dell could produce some high quality and luxury computers to attract more wealthy consumers. From SPSS result, 12.9% of Dell purchasers come from income category £75,000 to £99,999. Clearly, Dell should attract more customers from this income category as they have high purchasing power. Product Enhancing computer performance is a major priority for Dell. The performance of its computers could influence customer satisfaction and loyalty. The better the performance of Dell’s computers the more satisfied the customers will be, therefore customers would be more loyal to Dell. Dell computers could improve its information processing speed, increase workload handling and provide high reliability. This is because the majority of Dell purchasers are college graduate or higher, age 18 to 49 years old (working adults) and most likely would be working in jobs with heavy reliance on computers. By making the above 3 improvements, it will bring more convenience to users and this will make Dell computers more attractive. Dell could “bundle” its computer with appropriate software, feature attractive designed computer system components, and “bundle” its computers with internet access. These 3 attributes were rated low. ‘Bundling’ its computers with internet access is particularly important because a major section of Dell customers spend 1 to 10 hours per week using the internet. Better internet access would bring great convenience to users, especially to male users as they spend more time using the internet. Dell could continue to offer easily accessible technical support and make ordering a computer system easy as these 2 attributes were highly rated.
  18. 18. 18 Promotion Promotional effort should target the age group 18 to 29 since they are the “typical” market maven among Dell customers. Promotion could be done in Universities as there is high concentration of young adults age 18 to 29. Besides that, universities also have a large concentration of college graduate or higher who constitutes the biggest portion of Dell customers. Promotional effort should also target innovativeness of Dell products as innovativeness was found to be the prominent personality characteristic of Dell customers. Dell’s advertisements should highlight the changes or improvements of its products. It should also highlight the unique characteristics of its products. Besides that, the advertisement itself should be featured creatively as it will capture the attention of the audience (innovativeness personality). Dell could also highlight its excellent service provided and improvements made to its physical product in its promotion. These 2 areas were major concerns in terms of performance attributes. Dell could spend more effort in online promotion as Dell customers spend 1 to 10 hours per week using the internet. Online promotion could be more male orientated as males spend longer time online. Place Dell stores could locate at city center or near office buildings. This will make its stores highly accessible. Locating stores within the city center or close to office buildings will attract a high concentration of working adults age 18 to 49. In addition, there is also a large concentration of college graduate or higher education levels. Dell should continue to improve its online ordering service to bring more convenience. This would be attractive to customers who have a busy lifestyle especially to working adults age 18 to 49.
  19. 19. 19 LIMITATIONS There are 128 out of 500 recent purchasers who did not complete the survey. This appears to be the disadvantage of using online survey. Some of Dell’s purchasers might not have the internet access to complete the survey. There are some problems in the questionnaire design. Firstly, Question 2 did not define the issue in terms of who, what, when and where clearly, as people could access internet from smartphones and tablets (not Dell PCs or notebooks). Besides that, there is also no time limit given to respondents. It is suggested that the questions should be: “Please indicate which of these you have ever done on the internet using Dell computers during the last month.” Secondly, the rating scale in Question 6 and 9 should address what each number means to avoid confusion. For example, 3 refers to somewhat agree, 5 refers to neutral, and so on. There is a problem of fit with the secondary data collected. Some of the articles about market maven have no direct link to the study of market mavens on computer products. As a result, the data collected did not fit the research problem perfectly.
  20. 20. 20 REFERENCES Barnes, S. J. and Pressey, A. D. (2002) 'In Search of the “Meta-Maven”: An Examination of Market Maven Behavior across Real-Life, Web, and Virtual World Marketing Channels', Psychology & Marketing, 28 (3), pp. 167-185 Burke, S. (2013) 'Michael Dell: HP Server Share Losses Are 'Staggering'' Available at: http://www.crn.com/news/data-center/240154153/michael-dell-hp-server-share-losses-are- staggering.htm. (Accessed: 4th May 2013) Dell (2013) 'Company Heritage: The Birth of a Company'. Available at: http://www.dell.com/Learn/uk/en/ukcorp1/birth-of- company?c=uk&l=en&s=corp&cs=ukcorp1. (Accessed: 2nd May 2013) Feick, L. F. and Price, L. L. (1987) 'The Market Maven: A Diffuser of Marketplace Information', Journal of Marketing 51(January 1987), pp. 83-97. Mintel (2012) 'Desktop, Laptop and Tablet Computers - UK - August 2012'. Available at: http://academic.mintel.com/display/635044/. (Accessed: 3rd May 2013) Reuters (2012) 'Profile: Dell Inc '. Available at: http://www.reuters.com/finance/stocks/companyProfile?symbol=DELL.O. (Accessed: 4th May 2013) Seitz, P. (2013) 'HP, Dell ceding personal computer market to Lenovo '. Investors Business Daily. Available at: http://news.investors.com/technology-click/041113-651587-lenovo-aims- to-be-top-pc-maker-worldwide.htm?p=full. (Accessed: 3rd May 2013) CBR (2012) 'Dell Inc.' CBR Systems and Networks. Available at: http://www.cbronline.com/companies/dell_inc. (Accessed: 3rd May 2013) Williams, T. G. and Slama, M. E. (1995) 'Market mavens’ purchase decision evaluative criteria: implications for brand and store promotion efforts', Journal of Consumer Marketing, 12(3), pp. 4-21.
  21. 21. 21 APPENDICES Appendix 1 – Tables of Analysis and Comments Table 1: Descriptive statistics of customers’ demographic profile Demographic characteristics Percentage Education (q10_recoded) Secondary school graduate or less 11.6 Some College 30.4 College graduate or higher 58.1 Age groups (q11_recoded) 18 to 29 25.0 30 to 39 25.5 40 to 49 26.6 50 or older 22.8 Household Income (q12_recoded) Under £30,000 13.8 £30,000-£49,999 26.0 £50,000-£74,999 27.5 £75,000-£99,999 12.9 £100,000 or over 19.8 Gender (q13) Males 49.2 Females 50.8 Comment: Education Based on the SPSS result, the majority of Dell purchasers are college graduate or higher (58.1%). Followed by some college education (30.4%) then secondary school graduate or less (11.6%). Age group The largest age group category of Dell purchasers is from 40 to 49 (26.6%). Next is 30 to 39 (25.5%), followed by 18 to 29 (25.0%). Lastly is those age 50 or older (22.8%). Household Income The largest income category of Dell purchasers has a household income from £50,000 to £74,999 (27.5%). Next is from £30,000 to £49,999 (26.0%), followed by those with income £100,000 or over (19.8%). The two lowest income categories are under £30,000 and £75,000 to £99,999 with 13.8% and 12.9% respectively. Gender The majority of Dell purchasers are females (50.8%), males constitute (49.2%). All 372 respondents answered the question regarding education, age group, and gender. However, only 334 out of 372 answered the question regarding income. That is 10% of respondent did not answer, 90% answered.
  22. 22. 22 Table 2: Descriptive statistics of Dell’s customers’ internet usage Internet usage Percentage Time spent online (q1) Less than 1 hour 5.4 1 to 5 hours 37.4 6 to 10 hours 28.2 11 to 20 hours 14.8 21 to 40 hours 9.1 41 hours or more 5.1 Type of activities (q2) (percentage saying they have ever done the following on the internet) Communicated with others via new groups or chat rooms 57.5 Looked for a job 43.3 Planned or booked trips 64.2 Downloaded a picture or graphic 85.8 Downloaded sounds or audio clips 71.0 Looked up information about a TV show or movie 69.3 Downloaded a video clip 56.5 Comment: 65.6% of the respondents spend 1 to 10 hours per week online. Only 14.1% of respondents spend more than 20 hours per week online. All the activities listed have been done by more than 50% of respondents, except looked for a job. The activity that most respondents have ever done is downloaded a picture or graphic on the internet (85.8% or 319 out of 372 respondents). Next is downloaded sounds or audio clips (71.0%), followed by looked up information about a TV show or movie (69.3%), planned or booked trips (64.2%), communicated with other via new groups or chat rooms (57.5%), downloaded a video clip (56.5%), and lastly looked for a job (43.3%). All 372 participants answered Question 1 and Question 2.
  23. 23. 23 Table 3: Descriptive statistics of customers’ satisfaction and loyalty to Dell products Customer satisfaction/loyalty Mean rating Std. dev(SD) Overall satisfaction with Dell computer system (q3) 4.47 0.735 How likely to recommend Dell to a friend or relative (q4) 4.26 0.828 How likely to choose DELL again (q5) 4.60 0.581 Customer loyalty overall (Loyalty_overall) (Note: new variable computed in 1.2a) 4.4328 0.64075 Comment: Based on the result, it can be seen that Dell computer system received 4.47 satisfaction rating, which is between somewhat satisfied and very satisfied. It also can be seen that respondents ‘probably would’ or ‘definitely would be’ likely to choose Dell again (4.60). This has the highest rating in satisfaction and loyalty category. However, respondents give the lowest mean rating to recommendation to friend or relative (4.26). It can be seen that the likelihood is between ‘might or might not’ and ‘probably would recommend’ Dell. The mean rating of customer loyalty overall is 4.4328, which can be considered as above average. Judging from the standard deviations, all of them are less than 1. This shows that there is a convergence of opinion in satisfaction and loyalty. All 372 respondents provided answers to all the three questions regarding satisfaction and loyalty.
  24. 24. 24 Table 4: Descriptive statistics of customers’ perception of Dell performance Performance attribute (q6a to q6m) Mean rating Std. dev Make ordering a computer system easy 7.74 1.479 Let customers order computer systems customised 7.58 1.628 Deliver its products quickly 6.90 1.866 Price its products competitively 8.20 1.306 Feature attractively designed computer system components 6.45 1.886 Have computers that run programmes quickly 7.50 1.792 Have high-quality computers that with nom technical problems 7.64 1.899 Have high-quality peripherals (e.g. monitor, keyboard, mouse, speakers, disk drives) 7.54 1.647 “Bundle” its computers with appropriate software 6.07 3.188 “Bundle” its computers with internet access 6.55 2.796 Allow users to easily assemble components 7.38 2.483 Have computer systems that users can readily upgrade 7.73 1.686 Offers easily accessible technical support 8.20 1.307 Comment: The mean performance rating for Dell is range from ‘agree to a moderate extent’ to ‘agree to a large extent’ (6-8). The top 3 performance attribute Dell purchasers most agree with are Dell offers easily accessible technical support (8.20), price its products competitively (8.20), and make ordering a computer system easy (7.74). The bottom 3 performance attribute that Dell purchasers agree least are Dell “bundle” its computer with appropriate software (6.07), feature attractively designed computer system component (6.45), and “bundle” its computers with internet access (6.55). The distinguishing characteristics between the top 3 and bottom 3 performance attribute is that the respondents agree more with the service and price that Dell provides, however agree less with Dell’s physical product. Judging from the standard deviations of the mean rating, there is generally low variability in agree ratings in which respondents agree with more, compared to those that have relatively low agree ratings. For example, the bottom two attributes in descending order of ratings (i.e. “bundle” its computers with internet access and “bundle” its computers with appropriate software) have a standard deviation of 2.796 and 3.188 respectively while the other attribute have a standard deviation of less than 2. 43 people did not provide a complete response to question 6 (did not answer all 13 questions). Judging from the low standard deviation, there is a convergence of opinion of those performance attributes that respondents agree more. Only 3 performance attribute have standard deviation higher than 2, hence there is divergence of opinion.
  25. 25. 25 Table 5: Descriptive statistics of customers’ price sensitivity Price sensitivity indicator Mean rating Std. dev Likelihood of purchasing Dell computer system if price had been 5% higher (q7) 2.92 1.062 Likelihood of purchasing Dell computer system if price had been 10% higher (q8) 2.10 1.013 Overall price sensitivity (Psensivity_overall) (Note: new variable computed in 1.2b) 2.5094 0.97919 Comment: Based on the SPSS result, the lowest mean ratings come from Question 8 (likelihood of purchasing Dell computer system if price had been 10% higher) of 2.10 and standard deviation 1.013. This means that the majority of respondents answered they probably would not have purchased if Dell price had been 10% higher. The mean rating for Question 7 is 2.92, standard deviation 1.062. This means that most answered ‘might or might not have purchased’ if Dell’s prices had been 5% higher. It can be seen that as the percentage of price increases, the number of people willing to purchase Dell products decreases, from a mean rating of 2.92 to 2.10. It can also be seen that the standard deviation dropped from 1.062 to 1.013. This means that there is a convergence of opinion as price increases. More people are not willing to buy Dell products if price increases. The mean rating for overall price sensitivity is 2.5094 with standard deviation 0.97919. This means that most purchasers are between ‘probably would not have purchased’ and ‘might or might not have purchased’. Based on the standard deviation 0.97919, there is a convergence of opinion. Purchasers are more unwilling to purchase Dell products as price increases. This also means that Dell products are price elastic. This is where a change is price causes a proportionately larger change in quantity demand. All 372 respondents answered question 7 and 8.
  26. 26. 26 Table 6: Descriptive statistics of customers’ personality characteristics Personality characteristic Mean rating Std. dev Market Maven a) I like to introduce new brands and products to my friends 4.35 1.919 b) I like helping people by providing them with information about many kinds of products 4.44 1.851 c) People ask me for information about products, places to shop, or sales 4.36 1.896 d) My friends think of me as a good source of information when it comes to new products or sales 4.27 1.847 Market maven overall (Note: new variable computed in 1.2c) 4.3526 1.62787 Innovativeness e) I like to take a chance 4.60 1.758 f) Buying a new product that that has not yet been proven is usually a waste of time and money 3.40 1.714 g) If people would quit wasting their time experimenting, we would get a lot more accomplished 2.02 1.538 h) I like to try new and different things 5.44 1.488 i) I often try new brands before my friends and relatives do 4.67 1.643 j) I like to experiment with new ways of doing things 5.17 1.535 Innovativeness overall (Note: new variable computed in 1.2d) 5.0734 1.05522 Opinion Leadership k) When it comes to computer-related products, my friends are very likely to ask my opinion 4.27 2.139 l) I am often used as a source of advice about computer-related products by friends and relatives 4.10 2.155 m) I often tell my friends what I think about computer-related products 4.24 2.140 Opinion leadership overall (Note: new variable computed in 1.2e) 4.2061 2.00118 Comment: Market Mavenism Based on the SPSS results, the mean agree rating of whether respondents like to introduce new brands and products to their friends is 4.35. The mean agree rating of whether respondents like helping people by providing them with information about many kinds of products is 4.44. The mean agree rating of whether people ask the respondents for information about products, places to shop, or sales is 4.36. The mean
  27. 27. 27 agree rating of whether respondents’ friends think of them as a good source of information when it comes to new products or sales is 4.27. All four market maven characteristics have the mean around 4.2 to 4.4 which is assumed to be neutral to slightly agree. The standard deviations of the four characteristics are 1.919, 1.851, 1.896 and 1.847 respectively. This shows that there is a convergence in these characteristics (low variability). Innovativeness Based on the SPSS results, the mean agree rating of whether respondents like to take a chance is 4.60, which is assumed as slightly agree. The mean agree rating of whether buying a new product that has not yet been proven is usually a waste of time and money is 3.40 which is assumed as slightly disagree. The mean agree rating of if people would quit wasting their time experimenting, we would get a lot more accomplished is 2.02, which is assumed as somewhat disagree. The mean agree rating of whether respondents like to try new and different things is 5.44 which is assumed as somewhat agree. The mean agree rating of whether respondents often try new brands before their friends and relatives do is 4.67 which is assume to be slightly agree. The mean agree rating of whether respondents like to experiment with new ways of doing things is 5.17 which is assumed to be somewhat agree. It can be seen that the standard deviations of these innovativeness characteristics range from 1.49 to 1.76. This means that there is a convergence is these characteristics (low variability). Opinion Leadership Based on the SPSS results, the mean agree rating for whether participants’ friends are very likely to ask their opinion when it comes to computer-related products is 4.27. The mean agree rating for whether participants are often used as a source of advice about computer-related products by friends and relatives is 4.10. The mean agree rating for whether participants often tell their friends what they think about computer- related products is 4.24. The means of these three opinion leadership characteristics are assumed to be neither agree nor disagree. The standard deviations of the characteristics are around 2.1, which shows that there is not much variability in the mean agree rating. Overall The characteristic that has the highest overall mean agree rating score is innovativeness, followed by market maven, and the lowest is opinion leadership (5.07, 4.35, and 4.21 respectively). Judging from the standard deviations of the mean rating, there is generally low variability in agree ratings in which respondents agree with more, compared to those that have relatively low agree ratings. For example, market maven with the highest mean agree rating score has the lowest standard deviation and opinion leadership with the lowest mean agree rating score has the greatest standard deviation. 22 people did not provide a complete response to question 9 (did not answer all 13 questions).
  28. 28. 28 Table 7: Analysis of mean differences in overall satisfaction between the demographic groups Demographic Mean overall satisfaction (q3) p-value Comment (Reject or retain H0) Education (q10_recoded) 0.079 Retain H0. There is no significant difference in mean overall satisfaction among the customers with various education levels. Secondary school graduate or less 4.49 Some College 4.34 College graduate or higher 4.53 Age groups (q11_recoded) 0.799 Retain H0. There is no significant difference in mean overall satisfaction among the age groups. 18 to 29 4.41 30 to 39 4.46 40 to 49 4.52 50 or older 4.47 Income (q12_recoded) 0.497 Retain H0. There is no significant difference in mean overall satisfaction among the customers with various income levels. Under £30,000 4.30 £30,000-£49,999 4.45 £50,000-£74,999 4.47 £75,000-£99,999 4.40 £100,000 or over 4.56 Gender (q13) 0.331 Retain H0. There is no significant difference in mean overall satisfaction between the two genders. Males 4.50 Females 4.43 Comment: Education Let: μ1 = Secondary school graduate or less μ2 = Some College μ3 = College graduate or higher H0: μ1 = μ2 = μ3 H1: All the means are not equal Based on the SPSS result, the p-value for education groups is 0.079 (>0.05). Hence there is insufficient evidence to reject H0 and conclude that there is no difference in overall satisfaction with Dell computers among education groups. The mean overall satisfaction for secondary school graduate or less, some college and college graduate or higher are 4.49, 4.34 and 4.35 respectively. It can be seen that all 3 means are close to each other. All 3 groups are somewhat satisfied with Dell computers.
  29. 29. 29 Age groups Let: μ1 = 18 to 29 μ2 = 30 to 39 μ3 = 40 to 49 μ4 = 50 or older H0: μ1 = μ2 = μ3 = μ4 H1: All the means are not equal Based on the SPSS result, the p-value for age groups is 0.799 (>0.05). Hence, there is insufficient evidence to reject H0 and conclude that there is no difference in overall satisfaction among age groups. The mean overall satisfactions for 18 to 29, 30 to 39, 40 to 49, and 50 or older are 4.41, 4.46, 4.52 and 4.47 respectively. It can be seen that all 4 means are close to each other. All 4 groups are somewhat satisfied with Dell computers. Income Let: μ1 = Under £30,000 μ2 = £30,000-£49,999 μ3 = £50,000-£74,999 μ4 = £75,000-£99,999 μ5 = £100,000 or over H0: μ1 = μ2 = μ3 = μ4 = μ5 H1: All the means are not equal Based on the SPSS result, the p-value for income groups is 0.703 (>0.05). Hence, there is insufficient evidence to reject H0 and conclude that there is no difference in overall satisfaction among age groups. The mean overall satisfactions for under £30,000, £30,000- £49,999, £50,000-£74,999, £75,000-£99,999, and £100,000 or over are 4.30, 4.45, 4.47, 4.40 and 4.46 respectively. It can be seen that all 5 means are close to each other. All 5 groups are somewhat satisfied with Dell computers. Gender Let: μ1 = Males μ2 = Females H0: μ1 = μ2 H1: μ1 ≠ μ2 Based on the SPSS result, the p-value for education groups is 0.605 (>0.05). Hence, there is insufficient evidence to reject H0 and conclude that there is no difference in overall satisfaction among genders. The mean overall satisfaction for males and females are 4.50 and 4.43 respectively. It can be seen that both means are close to each other. Both groups are somewhat satisfied with Dell computers.
  30. 30. 30 Table 8: Analysis of mean differences in overall customer loyalty between demographic groups Demographic Mean customer loyalty overall (Loyalty_overall) p-value Comment (Reject or retain H0) Education (q10_recoded) 0.470 Retain H0. There is no significant difference in mean customer loyalty overall among the three education levels. Secondary school graduate or less 4.4767 Some College 4.3717 College graduate or higher 4.4560 Age groups (q11_recoded) 0.731 Retain H0. There is no significant difference in mean customer loyalty overall among the four age groups. 18 to 29 4.4194 30 to 39 4.4053 40 to 49 4.4949 50 or older 4.4059 Income (q12_recoded) 0.703 Retain H0. There is no significant difference in mean customer loyalty overall among the five income levels. Under £30,000 4.3043 £30,000-£49,999 4.4540 £50,000-£74,999 4.4239 £75,000-£99,999 4.3837 £100,000 or over 4.4697 Gender (q13) 0.605 Retain H0. There is no significant difference in mean customer loyalty overall among the two genders. Males 4.4153 Females 4.4497 Comment: Education Let: μ1 = Secondary school graduate or less μ2 = Some College μ3 = College graduate or higher H0: μ1 = μ2 = μ3 H1: All the means are not equal Based on the SPSS result, the p-value for education groups is 0.470 (>0.05). Hence, there is insufficient evidence to reject H0 and conclude that there is no difference in overall customer loyalty among education groups. The mean customer loyalty overall for secondary school graduate or less, some college and college graduate or higher are 4.48, 4.37 and 4.46 respectively. It can be seen that all 3 means are close to each other. All 3 groups probably would recommend Dell to a friend or relative and probably would choose Dell when purchasing computer again.
  31. 31. 31 Age groups Let: μ1 = 18 to 29 μ2 = 30 to 39 μ3 = 40 to 49 μ4 = 50 or older H0: μ1 = μ2 = μ3 = μ4 H1: All the means are not equal Based on the SPSS result, the p-value for age groups is 0.731 (>0.05). Hence, there is insufficient evidence to reject H0 and conclude that there is no difference in overall customer loyalty among age groups. The mean customer loyalty overall for 18 to 29, 30 to 39, 40 to 49, and 50 or older are 4.42, 4.41, 4.50 and 4.41 respectively. It can be seen that all 4 means are close to each other. All 4 groups probably would recommend Dell to a friend or relative and probably would choose Dell when purchasing computer again. Income Let: μ1 = Under £30,000 μ2 = £30,000-£49,999 μ3 = £50,000-£74,999 μ4 = £75,000-£99,999 μ5 = £100,000 or over H0: μ1 = μ2 = μ3 = μ4 = μ5 H1: All the means are not equal Based on the SPSS result, the p-value for income groups is 0.703 (>0.05). Hence, there is insufficient evidence to reject H0 and conclude that there is no difference in overall customer loyalty among age groups. The mean customer loyalty overall for under £30,000, £30,000- £49,999, £50,000-£74,999, £75,000-£99,999, and £100,000 or over are 4.30, 4.45, 4.42, 4.38, and 4.47 respectively. It can be seen that all 5 means are close to each other. All 5 groups probably would recommend Dell to a friend or relative and probably would choose Dell when purchasing computer again. Gender Let: μ1 = Males μ2 = Females H0: μ1 = μ2 H1: μ1 ≠ μ2 Based on the SPSS result, the p-value for education groups is 0.605 (>0.05). Hence, there is insufficient evidence to reject H0 and conclude that there is no difference in overall customer loyalty among genders. The mean customer loyalty overall for males and females are 4.42 and 4.45 respectively. It can be seen that both means are close to each other. Both groups probably would recommend Dell to a friend or relative and probably would choose Dell when purchasing computer again.
  32. 32. 32 Table 9: Analysis of relationship between market maven group and demographic characteristics of respondents Cross-tabulation of market maven groups(Marven_group) and: p-value Decision about null hypothesis* Education levels (q10_recoded) 0.475 Retain H0. Age group (q11_recoded) 0.026 Reject H0. Income (q12_recoded) 0.216 Retain H0. Gender (q13) 0.131 Retain H0. *Hypotheses: H0: There is no significant association between market maven group and demographic characteristics of respondents H1: There is a significant association between market maven group and demographic characteristics of respondents Comment: Based on the SPSS output, the p-value between education levels and market maven is 0.475 > 0.05. Hence, there is no evidence to reject H0 and we conclude that there is no association between market maven group and education. The p-value between income group and market maven groups is 0.216 > 0.05. Hence there is no evidence to reject H0 and we conclude that there is no association between market maven and education. The p-value between gender and market maven groups is 0.131 > 0.05. Hence there is no evidence to reject H0 and we conclude that there is no association between market maven and gender. The p-value between age group and market maven groups is 0.026 < 0.05. Hence there is sufficient evidence to reject H0 and accept H1 that there is significant association between market maven and age group. Based on the SPSS result, age group 18 to 29 seems to be the “typical” market maven among Dell customers. 43% of those ages 18 to 29 are in the high maven category, the highest across all age categories. Age 30 to 39 has 34.7% in high maven, age 40 to 49 and 50 or older have 33.3% and 24.7% respectively. The result from SPSS contradicts with the findings from Feick and Price (1987). According to Feick and Price (1987), market mavens are somewhat more likely to be female, but there are no significant differences between the groups in household size, number of children under 18, age, or income. Hence the result from SPSS and Feick and Price are contradicting. Firstly, Feick and Price (1987) find that females tend to be mavens. However, from the SPSS result, Gender p-value = 0.131 which is larger than 0.05. This means that gender has no association with market maven. Clearly, there are contradictions with the SPSS result and Feick and Price findings. However, the SPSS result is supported by a research done by Barnes and Pressey (2002). The finding from Barnes and Pressey (2002) suggested that there would be no difference between gender and market maven propensity.
  33. 33. 33 Secondly, Feick and Price (1987) found mavens to have a lower average educational level than non- mavens. Feick and Price (1987) finding was further supported by Willams and Slama (1995); they too found that mavens tend to have lower average educational level. However, from the SPSS result, p-value for educational level is 0.475 which is larger than 0.05. This means that educational level has no association with market maven. Hence there is a clear contradiction between the research finding and literature reviews. Thirdly, Feick and Price (1987) found that income has no significant association with market maven. This finding is supported by two other research which is Willams and Slama (1995), and Barnes and Pressey (2002). These two researches support the claim that income has no association with market maven. The SPSS result is consistent with the literatures reviewed. The p-value for income = 0.216 which is bigger than 0.05. Thus there is no association between income and market maven. Lastly, according to Feick and Price (1987), age has no significant association with market maven. This finding is further supported by Barnes and Pressey (2002) and Willams and Slama (1995). Both literatures found that there is no association between age and market maven. However, the SPSS result contradicts the above findings. The p-value for age group is 0.026 which is less than 0.05. Hence according to SPSS result there is association between age and market maven. Clearly, there are contradictions between SPSS result and literatures reviewed.
  34. 34. 34 Table 10: Analysis of inter-relationships between market mavenism, opinion leadership, customer satisfaction and loyalty Hypothesis Relationship Correlation coefficient p-value Comment (i.e. state if hypothesis is supported or not supported) H1 Market mavenism and opinion leadership 0.523 0.000 The hypothesis is supported. H2 Market mavenism and satisfaction 0.038 0.464 The hypothesis is not supported. H3 Market mavenism and loyalty 0.054 0.298 The hypothesis is not supported. H4 Satisfaction and loyalty 0.747 0.000 The hypothesis is supported. Comment: 1. Based on the SPSS result, the correlation coefficient is 0.523 which means there is a moderate positive correlation between market mavenism and opinion leadership. This is further supported by the p-value 0.000 (less than 0.05), where we reject the null hypothesis (r = 0) and accept the alternative hypothesis (r ≠ 0). Concluding that H1 is supported. 2. Based on the SPSS result, the correlation coefficient is 0.038 which means there is no significant relationship between market mavenism and satisfaction. This is further supported by the p-value 0.464 (greater than 0.05), where we retain the null hypothesis (r = 0). Concluding that H2 is not supported. 3. Based on the SPSS result, the correlation coefficient is 0.054 which means there is no significant relationship between market mavenism and loyalty. This further supported by the p-value 0.298 (greater than 0.05), where we retain the null hypothesis (r = 0). Concluding that H3 is not supported. 4. Based on the SPSS result, the correlation coefficient is 0.747 which means there is a strong positive relationship between satisfaction and loyalty. This is further supported by the p-value 0.000 (less than 0.05), where we reject null hypothesis (r = 0) and retain alternative hypothesis (r ≠ 0). Concluding that H4 is supported.
  35. 35. 35 Appendix 2 – Further SPSS Analysis Output Table 11: Chi-Square test between internet usage and education group Chi-Square Tests Value df Asymp. Sig. (2- sided) Pearson Chi-Square 7.681 a 10 .660 Likelihood Ratio 8.170 10 .612 Linear-by-Linear Association .199 1 .655 N of Valid Cases 372 Table 12: Chi-Square test between internet usage and age group Chi-Square Tests Value df Asymp. Sig. (2- sided) Pearson Chi-Square 6.959 a 15 .959 Likelihood Ratio 6.860 15 .961 Linear-by-Linear Association 1.796 1 .180 N of Valid Cases 372 Table 13: Chi-Square test between internet usage and income group Chi-Square Tests Value df Asymp. Sig. (2- sided) Pearson Chi-Square 21.428 a 20 .372 Likelihood Ratio 21.850 20 .349 Linear-by-Linear Association .113 1 .736 N of Valid Cases 334 Table 14: Chi-Square test between internet usage and gender Chi-Square Tests Value df Asymp. Sig. (2- sided) Pearson Chi-Square 20.193 a 5 .001 Likelihood Ratio 20.739 5 .001 Linear-by-Linear Association 17.521 1 .000 N of Valid Cases 372
  36. 36. 36 Table 15a: Descriptive Statistics of males and females’ internet usage Group Statistics q13:Gender N Mean Std. Deviation Std. Error Mean q1: How many total hours per week do you spend online? Male 183 3.28 1.311 .097 Female 189 2.74 1.132 .082 Table 15b: Independent Sample t-test between males and females’ internet usage Independent Samples Test Levene's Test for Equality of Variances t-test for Equality of Means F Sig. t df Sig. (2- tailed) Mean Difference Std. Error Difference 95% Confidence Interval of the Difference Lower Upper q1: How many total hours per week do you spend online? Equal variances assumed 4.722 .030 4.282 370 .000 .543 .127 .294 .793 Equal variances not assumed 4.272 358.638 .000 .543 .127 .293 .793 Table 16: Descriptive Statistics of Performance Overall Descriptive Statistics N Minimum Maximum Mean Std. Deviation Performance overall 372 3 9 7.35 1.159 Valid N (listwise) 372 Table 17: Chi-Square test between performance overall and satisfaction Chi-Square Tests Value df Asymp. Sig. (2- sided) Pearson Chi-Square 641.468 a 267 .000 Likelihood Ratio 242.853 267 .853 Linear-by-Linear Association 79.179 1 .000 N of Valid Cases 372
  37. 37. 37 Table 18: Chi-Square test between performance overall and loyalty Chi-Square Tests Value df Asymp. Sig. (2- sided) Pearson Chi-Square 1042.601 a 534 .000 Likelihood Ratio 436.913 534 .999 Linear-by-Linear Association 81.601 1 .000 N of Valid Cases 372 Table 19: Chi-Square test between price sensitivity and loyalty Chi-Square Tests Value df Asymp. Sig. (2- sided) Pearson Chi-Square 95.098 a 48 .000 Likelihood Ratio 84.980 48 .001 Linear-by-Linear Association 35.235 1 .000 N of Valid Cases 372 Table 20: Correlation between market maven and innovativeness Relationship Correlation Coefficient p-value Market maven and innovativeness 0.465 0.000 Table 21: Correlation between innovativeness and opinion leadership Relationship Correlation Coefficient p-value Innovativeness and opinion leadership 0.271 0.000
  38. 38. 38 Appendix 3 – Report Presentation Slides
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