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

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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: 13 th May 2013 Word count: 2183 words

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

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

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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

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

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)

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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.

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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.

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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%).

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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%).

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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

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(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

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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

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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

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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

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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

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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.

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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.

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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.

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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.

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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.

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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.

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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

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

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

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

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

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

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

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

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

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

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

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

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

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

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 7.681a 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 6.959a 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 21.428a 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 20.193a 5 .001

Likelihood Ratio 20.739 5 .001

Linear-by-Linear

Association

17.521 1 .000

N of Valid Cases 372

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 641.468a 267 .000

Likelihood Ratio 242.853 267 .853

Linear-by-Linear

Association

79.179 1 .000

N of Valid Cases 372

37

Table 18: Chi-Square test between performance overall and loyalty

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 1042.601a 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 95.098a 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

Appendix 3 – Report Presentation Slides

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