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Study case
Avery sporting goods
The objective of this work is the study of customer perceptions of buying merchandise, in
Particular sporting equipment, through catalogue. More precisely, and stress the directive, it is
for us to focus on two major problems namely:
1- Do customers-have the same level of general confidence in the quality of sporting goods
you purchased through a catalogue or either a retail store?
2- What are the determinants of customers choice to purchase by catalogue?
The resolution of each of these two problematic facts involves a different method. Thus the
resolution of the first issue needs to use a comparative study of frequencies using a graphic
analysis and the Wilcoxon signed-rank test. Basing on these assumptions;
-H0: 1 - 2 = 0 (there is no difference between the level of customers confidence in the
quality of goods purchased by catalogue and quality of goods purchased in in a retail store.
-H1: 1 - 2 0 (there is a difference between the levels of trust in the quality of goods
purchased by catalogue and the quality of goods purchased in a retail store.
The choice of the Wilcoxon signed-rank test is not accidental. This test allows comparing two
measures of a qualitative ordinal variable performed on the same subjects. Indeed, our goal
here is to compare the confidence of individuals in the quality of products sold by catalogue
and the confidence that these same individuals have in the quality of goods purchased in a retail
store. We are therefore in the presence of hypothesis testing for a sample in which respondents
were assessed twice from the same measure. Traditionally, the hypothesis test used to this kind
of case is the t test for paired samples. However, the t-test is a parametric test that requires that
certain conditions be required, including a normal distribution of quantitative variables. Our
variables being qualitative ordinal and therefore not respecting the normal condition, the use
of a nonparametric test is required. Hence the use of the Wilcoxon signed-rank test that is the
nonparametric alternative to the t test for paired samples.
The second problematic clinging to the identification of variables that influence the choice of
catalogue shopping, the PCA (Principal Component Analysis) will be the multivariate
statistical approach on which we will build. The fundamental reason for the choice of the PCA
is that it is the most appropriate method that gives us the necessary tools that will allow us to
know how it will combine variables to make them orthogonal that is to say independent to each
other. This independence is important because it provides a unique solution not shared by some
other factor, and so removes the redundancy of information in the results.
Moreover, apart from the fact that it is a technique used to lessen a high number of indicators
without losing much information, it's also the most suitable technique for our data.
1. Description of data
The data refers to information collected from Avery Sporting Goods customers. It is collected
from old people, new or potential customers that the company has already sent a catalogue in
the past. From the survey, out of 225 individuals that were covered, 125 valid questionnaires
were retained and formed the basis of our analysis. The variables consist of information about
customers and divided into two categories:
Variables on the level of customers confidence:
I.
Do customers have the same level of general confidence in the quality of sporting goods
purchased either through a catalogue or a retail store?
Analysis comparing the level of confidence in the quality of sporting goods purchased either
through a catalogue or a retail store was done from the various customers on five products:
Athletic clothing, Athletic shoes, Fishing equipment, Balls and Skiing equipment.
1. Analysis of the level of confidence in the Athletic clothing s quality.
Analysis of the results for customer perception
on the quality of Athletic clothing purchased by
catalogue reveals a divided position on the
subject. Indeed, the study reveals that 16, 1% of
customers are not confident, 24% of clients are
slightly and 10.5% slightly confident, a total of
50.8% of customers less or not satisfied. This
brings to 49.1% the percentage of confident
customers (16.9%) and 27.4% very confident.
Mean Rank
Sum of Ranks
45a
47,52
2138,50
55,47
3217,50
Positive Ranks
58
Ties
21c
Total
124
rqclothing cqclothing
Z
Asymp. Sig. (2-tailed)
-1,793b
,073
Reading the table, we notice that the p-value of the test is greater than the significance level
(0.703> 0.05), and Z=-1,793. We do not reject the null hypothesis H0 and conclude that there
is no statistically significant difference between the level of confidence customers have in the
quality of clothing purchased through catalogue and clothing purchased through retail stores.
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The Wilcoxon signed-rank was used to ascertain whether the level of confidence was the same
in the quality of shoes purchased either through a catalogue or a retail store
Wilcoxon Signed Ranks Test
Ranks
rqshoes
cqshoes
Negative
Ranks
Positive
Ranks
Ties
Total
Mean
Rank
Sum
Ranks
35a
42,66
1493,00
70b
58,17
4072,00
19c
124
of
Test Statisticsa
rqshoes
cqshoes
Z
-4,170b
,000
The Wilcoxon signed-Ranks Test indicate that the mean rank of confidence in the quality of
shoes purchased through retail store is statistically significantly higher than the mean rank of
confidence in the quality of shoes purchased through catalogue. (Z = -4,190, p = 0.00).
We can conclude that customers do not have the same level of confidence in the quality of
sporting goods purchased either through a catalogue or a retail store. They have more
confidence in the quality of retail stores shoes
The Wilcoxon signed-rank was used to ascertain whether the level of confidence was the
same in the quality of balls purchased either through a catalogue or a retail store
Wilcoxon Signed Ranks Test
Ranks
rqballs - cqballs
Mean Rank
Sum of Ranks
Test Statistics
Negative Ranks
26a
36,44
947,50
Positive Ranks
68b
Z
Asymp. Sig. (2-tailed)
51,73
3517,50
Ties
30c
Total
124
rqballs - cqballs
-4,890b
,000
The Wilcoxon signed-Ranks Test shows that there is a statistically significant increase from
the mean rank of confidence in the quality of balls purchased through catalogue to the mean
rank of confidence in the quality of shoes purchased via catalogue (Z = -4,890, p = 0.00).
We reject null hypothesis and conclude that customers do not have the same level of
confidence in the quality of balls purchased either through a catalogue or a retail store. They
have more confidence in the quality of retail stores balls.
7
The Wilcoxon signed-rank was used to ascertain whether the level of confidence was the same.
In the quality of fishing equipment purchased either through a catalogue or a retail store
Wilcoxon Signed Ranks Test
Rank
Test Statisticsa
N
Mean Rank
Sum of Ranks
Negative Ranks
45a
47,52
2138,50
Positive Ranks
58b
55,47
3217,50
Ties
21c
Total
124
rqclothing - cqclothing
rqclothing cqclothing
Z
Asymp. Sig. (2-tailed)
-1,793b
,073
The Wilcoxon signed-Ranks Test indicate that the mean rank of confidence in the quality of
Fishing equipment purchased through retail store is statistically significantly higher than the
mean rank of confidence in the quality of Fishing equipment purchased through catalog. (Z =
-1,793, p = 0.00).We can conclude that customers do not have the same level of confidence in
the quality of Fishing equipment purchased either through a catalogue or a retail store.
35a
42,66
1493,00
58,17
4072,00
Positive Ranks
70
Ties
19c
Total
124
Test Statisticsa
rqshoes - cqshoes
Z
-4,170b
,000
rqshoes - cqshoes
The Wilcoxon signed-Ranks Test indicate that the median rank of confidence in the quality of
skiing equipment purchased through catalog is statistically significantly different from the
median rank of confidence in the quality of skiing equipment purchased through retail store.
(Z = -4,170, p = 0.00). We can conclude that customers have more confidence in the quality of
skiing equipment purchased through retail store than those purchased through catalog.
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Part II: Study of the determinants of customers decision to buy through catalogue
- What are the determinants of customers choice for purchase through catalogue?
The goal through this issue is to highlight the determinants of consumer decision to purchase
by catalogue. To do so, we will initially has a descriptive study of variables, then first of all
study the correlations between variables to achieve the study of individuals in the first factorial
designs from the principal component analysis. As such we will restrict the study to the
variables concerned by this problem.
1. Statistical analysis of the variables and test prior to the PCA
a. Descriptive Study of variables
Table A shows descriptive statistics. The highest average (4.06) goes to the variable "The
Companys policy is returning Goods" and the lowest average goes to the "Company
endorsements" variable. The standard deviations of the variables "reputation of the company,"
"The provision of a trial period" and "Shipping time" is relatively high, which can be interpreted
as a strong dispersion of individuals within each of these variables. There is also a high number
of missing data.
Table A: Descriptive Statistics
Mean Std. Deviation Analysis N
Availability of a toll-free number for
3,52
placing orders
Availability of quantity discounts
3,83
Missing N
,999
119
,893
111
11
Shipping time
The company's policy on returning
merchandise
The provision of a trial period
Number of years the company has been
in business
Reputation of the company
3,61
1,021
118
4,06
,797
109
13
3,95
1,076
120
3,91
,916
112
10
3,50
1,171
119
Guarantees
3,90
,904
111
11
Company endorsements
1,96
,931
115
,
c. KMO and Bartlett's Test
We note in passing that the test Kayser-Meyer-Olkin is equal to 0.873, which indicates a high
validity. Finally, Bartlett's test indicates that the hypothesis Ho must be dismissed since the test
result lowered to 0.05. The research component is therefore justified.
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Approx. Chi-Square
Bartlett's Test of Sphericity
Df
Sig.
,729
257,802
36
,000
1
2
3
4
5
6
7
8
9
Initial Eigenvalues
2,784
2,258
,829
,759
,695
,542
,512
,348
,273
30,937
25,094
9,210
8,437
7,719
6,018
5,692
3,864
3,031
30,937
56,030
65,240
73,677
81,395
87,414
93,105
96,969
100,000
30,937
25,094
30,937
56,030
1
,883
,774
2
,036
,046
,750
,715
-,563
-,038
,206
,295
Guarantees
,056
,804
-,040
,773
,059
,720
-,035
,607
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The component matrix gives an overview of the share of each variable in a factor. This
approach allows us to identify which are the most represented variables in each component or
factor. Based on these data we can identify a nomination for each factor. In our case we
observe that the variables Reputation of the company, Availability of a toll-free number
for, The provision of a trial period and Shipping time are highly correlated with the first
component. The first axis seems to be interpreted as a factor representing the reputation and
delivery policy or the company. The more a company has a high score on the first component,
the more customers will opt for catalogue shopping.
As for the second component, it is positively correlated with Guarantees, Availability of
quantity discounts, and The Companys policy on returning merchandise variables. We note
here that the most correlated variables with the second component are those that were the least
correlated with the first component. We can also note that the correlations are lower in the
case of the second component. This is partly explained by the fact that the corresponding
eigenvalue is significantly lower than one associated to the first component. So the second
factor can be considered as customer benefit
For better visualization of correlations between variables and the principal components, it
is useful to present these variables in the first main plane as a map. (Chart 2).
The map below summarizes what has been already mentioned by the matrix components.
It is indeed observed that there are two main events on the map groups: a group positively
correlated with the first axis which is surrounded by red, and a group positively correlated with
the second axis, and surrounded by green.
Chart 2: Variable Map
time correlated with the first component are the most important for customers.
We can see that the second component is less important for customers. We may think
Guarantees variables Availability of quantity discounts, The company's policy is returning
merchandise are necessary conditions, but not decisive in the decision to opt for customers to
buy by catalogue
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Conclusion
The resolution of both issues has helped to highlight some of the major characteristics of clients.
The analysis of the first issue has highlighted that customers do not perceive all items the same
way. We learn that they do not differentiate between sports clothing purchased by catalogue
and sports clothes bought in a shop, because their confidence is no different from one product
to another. However, with regard to other sporting products, customers are more sensitive. The
study showed that on average, customers have more confidence in the quality of shoes, fishing
equipment, balloons and skiing equipment purchased in retail stores than those bought by
catalogue. This is probably explained by the need of customers to finger these products before
buying them.
The analysis of the second problem highlighted the variables that most influence customers in
their decision to buy by catalogue. It is thus apparent that the variables Reputation of the
company, Availability of a toll-free number for, the provision of a trial period and Shipping
time are the variables that most influence customers. Followed, to a lesser extent the variables
Guarantees, availability of quantity discounts, the Companys policy in returning merchandise.
It will therefore be good if every sporting society improves the level of these conditions in the
daily management and to use, if necessary, in the promotion and advertising
As earlier advised above, Avery sporting Goods has to reconsider its commitment to investing
in catalogue sales. It would be better, and smarter, to view the results, to develop the retail
segment.
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