brainwave marketing project -ibm

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    Marketing research

    case study - IBMPresented by - The Brainwave

    Group - 6

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    On Demand Business

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    IBM

    IBM with a revenue of $91.13 was the worldslargest provider of computer hardware, softwareand services in 2005

    It organized its hardware business, merging itsdesktop and laptop operations to concentrate onits leading enterprise server and storage

    products.

    In order to compete with Microsoft, IBM havesupported the Linux platform in a big way.

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    The only area of software that IBMconspicuously lack is the ERP/CRM market,which is now being hotly contested by SAPand Oracle.

    In order to maintain its lead its important forIBM to ensure that its customers are satisfiedwith IBMs hardware and software services

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    Survey questionnaire

    Consisted of 28 questions

    Had evaluated IT companies on variousparameters like

    Overall measures like satisfaction, quality ofproducts offered

    Likelihood of purchase

    Image as financially strong and ethical

    company

    Sales & service support

    Future trends

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    Statistical tools applied

    Frequency count, bar chart

    Recoding of data

    Cross tabulation

    T-test

    Paired t-test

    Regression analysis

    SPSS software was used to analyze thegathered data

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    Recoding of data

    Recode satisfaction responses from likertscale of

    1 2 3 4 5

    very very satisfied

    dissatisfied

    low satisfaction high satisfaction

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    Frequency count on variables

    Role within your company

    Frequency Percent Valid PercentCumulative

    Percent

    1.00 3 10.0 10.0 10.0

    2.00 14 46.7 46.7 56.7

    3.00 13 43.3 43.3 100.0

    Valid

    Total 30 100.0 100.0

    Do a fr e q u e n c y c o u n t o n a l l the v a r ia ble s o fthe d a t a .

    the numbers represent the roles within the company :

    1 : IT Decision Maker 2: IT Influencer

    3 : IT Staff

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    Histogram output

    Role within your company

    3.002.502.001.501.00

    Role within your company

    Frequency

    16

    14

    12

    10

    8

    6

    4

    2

    0

    Std. Dev = .66

    Mean = 2.33

    N = 30.00

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    Number of employees in your organization

    Frequency Percent Valid PercentCumulative

    Percent

    1.00 5 16.7 16.7 16.7

    2.00 3 10.0 10.0 26.7

    3.00 9 30.0 30.0 56.7

    4.00 3 10.0 10.0 66.7

    5.00 3 10.0 10.0 76.7

    6.00 1 3.3 3.3 80.0

    7.00 6 20.0 20.0 100.0

    Valid

    Total 30 100.0 100.0

    Frequency count

    Here in the column, numbers represent the number of

    employees

    1 (1-49)

    2 (50-99)

    3 (100-499)

    4 (500-999)

    5 (1000-4999)

    6 (5,000-9,999)

    7 10,000 or more

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    Frequency count

    Outsource existing IT services

    Frequency Percent Valid PercentCumulative

    Percent

    1.00 8 26.7 27.6 27.62.00 8 26.7 27.6 55.2

    3.00 4 13.3 13.8 69.0

    4.00 6 20.0 20.7 89.7

    5.00 2 6.7 6.9 96.6

    9.00 1 3.3 3.4 100.0

    Valid

    Total 29 96.7 100.0

    Missing System 1 3.3

    Total 30 100.0

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    Question

    In this survey, what role and what sizecompanies are represented highest??

    we go for cross tabulation

    In cross tabulation we can get the relationshipbetween two variables simultaneously

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    Role within your company * Number of employees in your organization CrosstabulationCount

    Number of employees in your organization Total

    1.00 2.00 3.00 4.00 5.00 6.00 7.00 1.00

    1.00 2 1 3

    2.00 2 5 1 1 5 14

    Role withinyour company

    3.00 1 3 4 2 2 1 13

    Total 5 3 9 3 3 1 6 30

    He r e in t h e c o l u m n , n u m b e r s r e p r e s e n t th e

    n u m b e r o f e m p l o y e e s

    1 (1-49)

    2 (50-99)

    3 (100-499)

    4 (500-999)

    5 (1000-4999)

    6 (5,000-9,999)

    7 10,000 o r m o r e

    In R o w ,t h e n u m b e r s r e p r e s e n t t h e r o l e s w i t h i n t h e c o m p a n y :

    1 : ITDe c i s i o n Ma ke r 2: IT In f l u e n c e r

    3 : ITSt a f f

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    Role within your company * Overall satisfaction Crosstabulation

    CountOverall satisfaction Total

    1.00 3.00 4.00 5.00 9.00 1.00

    1.00 1 1 2

    2.00 1 3 5 4 13

    Role withinyour company

    3.00 3 7 2 1 13

    Total 1 6 13 7 1 28

    Role within your company * Value offered Crosstabulation

    Count

    Value offered Total2.00 3.00 4.00 5.00 9.00 2.00

    1.00 1 1 2

    2.00 3 1 4 4 1 13

    Role withinyour company

    3.00 2 5 4 2 13

    Total 5 7 8 5 3 28

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    Is IBM seen as ethical company??

    To analyze this we go for a sample t- test

    we take

    H0 = IBM is ethical company

    Ha = IBM is not ethical

    For a CI = 95 %, DF= 26

    t value comes out to be 2.604

    t critical : 2.056

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    since t(observed) > t (critical)

    We reject the null hypothesis that IBM isethical.

    Hence IBM is not seen as an ethical

    company by the people

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    For Microsoft, how do evaluations differ on

    ratings of "overall satisfaction, & overall

    quality

    Microsoft is chosen as it is one of the

    biggest rival ofI

    BM Both of these are the variables of overall

    measures.

    For this we will go for a paired t test

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    Paired Samples Statistics

    Mean N Std. Deviation

    Std. Error

    Mean

    Overall satisfaction 3.7500 8 1.1650 .4119Pair 1

    Value offered 3.1250 8 .8345 .2950

    T-Te s t

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    T-Test

    N Mean StDev SE MeanDifference 8 0.625000 0.220500 0 .077959

    95% CI

    for mean difference: (0.440657, 0.809343)

    T-Test of mean difference = 0 (vs not = 0)

    T-Value = 8.02P-Value = 0.000

    This means that there is no significant relationship b/wthe overall satisfaction and value offered by thecompany

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    For Microsoft how do evaluations differ on the

    rating of financially sound company &

    company I can trust

    We select only Microsoft to analyze the

    variables (as it is one of the biggestcompetitor ofIBM)

    Again we go for the paired t test

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    Paired Samples Statistics

    Mean N Std. Deviation

    Std. Error

    Mean

    Financially soundcompany 3.8571 7 1.3452 .5084

    Pair 1

    Company I can trust 3.0000 7 1.1547 .4364

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    T-Test

    N Mean StDev SEMean

    Difference 7 0.857100 0.180500 0.068223

    95% CI for mean difference: (0.690165, 1.024035)

    T-Test of mean difference = 0 (vs not = 0)

    T-Value = 12.56

    P-Value = 0.000

    Again we see that there is no significant relationship b/wthe customer perception of company he can trust and thefinancial structure of that company

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    Question

    Can the evaluation of participant onoverall quality of the company in relationto prices be explained in terms of

    participants evaluation on sales & supportvariables when the variables areconsidered simultaneously??

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    M del S ar

    Model R R Square

    Adjusted R

    Square

    Std. Error of

    the Esti ate

    1 .670(a) .448 .317 1.66390

    a redi tors: ( onstant), O erall qualit of te hni al support, O erall

    qualit of produ ts or ser i es pur hased, O erall qualit of training,Qualit of a ount representati e, O erall qualit of non-te hni alusto er ser i e

    Regression Analysis

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    ANOVA(b)

    ModelSum of

    Squares df Mean Square F Sig.

    Regression 47.268 5 9.454 3.415 .021(a)

    Residual 58.140 21 2.769

    1

    Total 105.407 26

    a Predictors: (Constant), Overall quality of technical support, Overall quality of products or servicespurchased, Overall quality of training, Quality of account representative, Overall quality ofnon-technical customer serviceb Dependent Variable: Value offered

    Regression Analysis

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    Coefficients(a)

    UnstandardizedCoefficients

    StandardizedCoefficients t Sig.

    odel B Std. Error Beta B Std. Error

    (Constant) .518 1.085 .478 .638Quality of accountrepresentative .007 .145 .010 .046 .964

    Overall quality of productsor services purchased .692 .250 .472 2.765 .012

    Overall quality of

    non-technical customerservice

    -.047 .200 -.067 -.233 .818

    Overall quality of training -.042 .129 -.063 -.324 .749

    1

    Overall quality of technicalsupport .328 .223 .441 1.471 .156

    a Dependent Variable: Value offered

    Regression Analysis..

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    Results.. The customer's evaluation of the value

    offered by the companies cannot becompletely explained completely in termsof sales and staff support variables

    But the only sales and staff supportvariable having any significant influenceon the perception is overall quality ofproducts & services purchased

    Hence IBM should focus on improving thequality of their products if it wants to beseen as a company offering value.

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    Question

    Can the likelihood of purchase fromcompany being evaluated be explained interms of the participants evaluation on

    sales & service support variables & whenthese variables are consideredsimultaneously??

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    Model Summary

    Model R R SquareAdjusted R

    SquareStd. Error ofthe Estimate

    1 .554(a) .307 .297 .673

    a Predictors: (Constant), Overall quality of technical support, Quality ofaccount representative, Overall quality of training, Overall quality ofproducts or services purchased, Overall quality of non-technicalcustomer service

    Regression Analysis

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    ANOVA(b)

    Model

    Sum of

    Squares df Mean Square F Sig.Regression 74.133 5 14.827 32.742 .000(a)

    Residual 167.545 370 .453

    1

    Total 241.678 375

    a Predictors: (Constant), Overall quality of technical support, Quality of account representative,Overall quality of training, Overall quality of products or services purchased, Overall quality ofnon-technical customer serviceb Dependent Variable: Continue purchasing from this company next year

    Regression Analysis

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    Coefficients(a)

    UnstandardizedCoefficients

    StandardizedCoefficients t Sig.

    Model B Std. Error Beta B Std. Error

    (Constant) 2.355 .158 14.870 .000Quality of accountrepresentative .222 .054 .269 4.140 .000

    Overall quality of productsor services purchased .138 .056 .163 2.486 .013

    Overall quality of

    non-technical customerservice -.021 .055 -.026 -.385 .701

    Overall quality of training .167 .052 .210 3.231 .001

    1

    Overall quality of technicalsupport .017 .054 .023 .320 .749

    a Dependent Variable: Continue purchasing from this company next year

    Regression Analysis..contd

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    Results & recommendations

    Likelihood of purchase next year is influenced by:

    Quality of account representative

    Overall quality of products & services purchased.

    Overall quality of training

    Recommendations for IBM

    If the company wants to retain its customers then

    Improve product quality offerings

    Should invest more in hiring &training of its sales force

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    Question

    Can the likelihood of recommending thecompany being evaluated be explained interms of participants evaluation on sales

    and support variables when thesevariables are considered simultaneously??

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    ANOVA(b)

    Model

    Sum of

    Squares df Mean Square F Sig.Regression 151.780 5 30.356 76.415 .000(a)

    Residual 146.984 370 .397

    1

    Total 298.763 375

    a Predictors: (Constant), Overall quality of technical support, Quality of account representative,Overall quality of training, Overall quality of products or services purchased, Overall quality ofnon-technical customer serviceb Dependent Variable: Would recommend this company

    Regression Analysis

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    Coefficients(a)

    UnstandardizedCoefficients

    StandardizedCoefficients t Sig.

    Model B Std. Error Beta B Std. Error

    (Constant) 1.290 .148 8.704 .000

    Quality of accountrepresentative .204 .050 .224 4.087 .000

    Overall quality of productsor services purchased .323 .052 .342 6.179 .000

    Overall quality of

    non-technical customerservice -.025 .051 -.027 -.481 .631

    Overall quality of training .097 .048 .109 2.016 .045

    1

    Overall quality of technicalsupport .147 .050 .174 2.916 .004

    a Dependent Variable: Would recommend this company

    Regression Analysis..contd

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    Result & recommendations

    IBM should lay emphasis on

    The quality of its account representative

    Quality of products offered

    Quality of technical support Quality of training of its sales staff

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    Question

    Can the likelihood of purchase from thecompany being evaluated be explained interms of participants evaluation on

    dimension of overall measures??

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    Model Summary

    Model R R SquareAdjusted R

    SquareStd. Error ofthe Estimate

    1 .581(a) .338 .218 1.30140

    a Predictors: (Constant), Value offered, Overall satisfaction, Total costof ownership, Overall quality

    Regression Analysis..contd

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    ANOVA(b)

    ModelSum ofSquares df Mean Square F Sig.

    Regression 19.036 4 4.759 2.810 .050(a)

    Residual 37.260 22 1.694

    1

    Total 56.296 26

    a Predictors: (Constant), Value offered, Overall satisfaction, Total cost of ownership, Overall qualityb Dependent Variable: Continue purchasing from this company next year

    Regression Analysis..

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    Coefficients(a)

    UnstandardizedCoefficients

    StandardizedCoefficients t Sig.

    Model B Std. Error Beta B Std. Error

    (Constant) 2.000 .989 2.022 .056

    Overall satisfaction .910 .372 .828 2.447 .023

    Overall quality-.417 .420 -.360 -.992 .332

    Total cost of ownership .539 .207 .716 2.607 .016

    1

    Value offered -.412 .232 -.564 -1.775 .090

    a Dependent Variable: Continue purchasing from this company next year

    Regression Analysis..

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    Analysis

    The decision to buy next year cannot beexplained in terms of overall factors likeoverall quality, satisfaction and value

    offered.

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    Thanks