8/13/2019 MRA03_Dell02

1/6

MRA03_Dell02

Recoding

We recoded the responses of Question 2, 4, 5, 6 and 9 on the basis that the higher the best and vice versa.

Inte

rnet

Usa

ge

We used dimension reduction to condense the Internet Usage questions into 3 factors as we saw fit. We were able

to subdivide the questions into 3 factors which were named

Entertainment (users who use the internet mainly for entertainment

purposes such as downloading movies, pictures etc), Information (users

who use the internet to look at TV program listings and go on

chatrooms), and Serious (users who use the internet mainly for looking

for jobs and to book trips). These were the 3 factors we were able to

decipher from the rotated component matrix. We also checked their

communalities and saw that the variables data was well represented in

the extraction.

Satisfaction & Loyalty

When we ran factor analysis on Q #4, 5, and 6 it did not give us rotated component matrix. We found that it is in fact

one factor because there is high correlation between three variables. And we can say that a person who is satisfied

can also recommend and repeat purchase dell.

Manufacturer Importance/performance Ratings

When we run factor analysis on Q # 8 we found that there are two sub factors, one is convenience and other is

technical. Convenience are those who seek for ease of ordering, customization, quick delivery, competitive pricing,

8/13/2019 MRA03_Dell02

2/6

8/13/2019 MRA03_Dell02

3/6

was done ab initio using 3 factors which were later reduced to 2 when it was felt that the latter gave a much more

meaningful result and conforming to expectations. (In the former market maven items and innovativeness were

exhibiting positive correlation which appears to be flawed as a person who likes to introduce new items cannot

possibly think unproven new products are a waste of time)

It can be observed that the component 1 characterizes respondents who are early adopters who also share their

opinions with others. On the other hand, component 2 contains respondents who are innovators who like to try

different things. Special attention should be paid tounproven new product are a waste of time. It is negatively

correlated to other innovativeness questions which makes

sense as a person who answered agree completelyto likes

to try new things would most definitely mark disagree

completelyon unproven products being a waste of time.

Factor of Factor

After factoring on all blocks we run factor on factors which

told us that what factors that are not relevant and weshould ignore it in making cluster analysis. We found that

technical and expert opinion leader are guys who are

almost same for every components so we ignored it for our

cluster analysis

After excluding technical, and expert opinion we

came up with the following factors and we can see

that every factor is quite different for every

component.

Cluster Analysis

Factor Cluster

1 2 3 4

Entertainment Satisfied X X Serious

Information Convenience X

Price X Innovation x

We used the following color codes for each cluster.

Cluster 1 is green. Cluster 2 is purple. Cluster 3 is

brown. Cluster 4 is orange color coded. Cluster 1 is

best in innovator and information whereas cluster 3 isworst in terms of innovation. Cluster 1 uses the

Rotated Component Matrixa

Component

1 2 3 4

Entertainment .090 .046 .847 .070

Information -.189 .769 .065 -.089

Serious -.102 .056 -.128 .681

Satisfied .866 .128 .022 .003

Convenience .801 -.142 .051 -.008

Technical .257 .530 -.292 .350

Price Increase .498 -.030 .026 -.132

Expert and Opinion .057 .631 .530 -.048

Innovator -.074 -.103 .279 .705

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 6 iterations.Rotated Component Matrix

a

Component

1 2 3 4

Entertainment .028 -.071 .886 -.033Information -.024 .004 -.001 .962

Serious -.050 .828 -.229 -.089

Satisfied .863 -.035 .078 -.012

Convenience .785 -.015 .067 -.244

Price Increase .576 -.039 -.087 .142

Innovator -.038 .631 .453 .162

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 5 iterations.

-1

-0.5

0

0.5

1

-1.00 -.50 .00 .50 1.00Informa

tion

Innovator

innovator vs information

8/13/2019 MRA03_Dell02

4/6

internet for information whereas cluster 2 does not use the internet for information seeking purposes.

Cluster 4 is most price sensitive but does not use the internet for serious purposes such as booking trips and job

searches. Cluster 2 is a very serious user and is not very price sensitive. Cluster 2 would buy even if prices are raised.

Cluster 1 wants the most entertainment and

values convenience whereas cluster 2 does not

think Dell is convenient. Cluster 4 is not a

serious user nor an entertainment-type user,

therefore cluster 4 uses the internet for

information mostly.

Cluster 1 is most satisfied and uses internet for

entertainment whereas cluster 2 is least

satisfied.

Clusters 1 and 4 are price insensitive. Cluster 3 is most innovative but least price insensitive. This shows that cluster 3

would be price sensitive but also is the most innovative out of all the clusters. Cluster 2 is least innovative.

-1

-0.5

0

0.5

1

1.5

-0.3 -0.2 -0.1 0 0.1 0.2 0.3 0.4Serious

Price sensitive

serious user vs price sensitive

-3

-2

-1

0

1

-1.5 -1 -0.5 0 0.5 1

Entertainment

Convenience

entertainment vs convenience

-2

-1

0

1

-1.5 -1 -0.5 0 0.5 1

E

ntertainment

Satisfied

entertainment vs satisfied

8/13/2019 MRA03_Dell02

5/6

Cluster 1Risk Takers

The respondents in this cluster are representative of a group of people who are highly innovative as they like to try

new products, require very low convenience as they know their way around the markets and least satisfied. This may

be due to the insight that consumers who are regularly in search of new products would constantly feel outdated as

new products are released due to technological innovation. Since their churn rate is high, they are rarely satisfied

with what they have.

The people in this segment belong to 35-39 age segment, have some college education and income between

$30,000$49,999.

Cluster 2Job Seekers

This segment is highly serious in terms of their customer usage as they mostly look up jobs or book trips online. They

are constantly in search of best deals/value online due to which they are also quite price sensitive. We have defined

this segment as job seekers who are out of jobs or unhappy with their current ones due to which they have less

money to spend on computers and therefore price sensitive.

The people in this segment belong to 35-45 age segment, are college graduates and income in the range $30,000

$49,999.

Cluster 3Risk averse

This segment is characterized by customers are not innovative. They go for the tried and tested products. Due to

their tendency to go for proven products, they are ready to pay high prices as they value reliability above all other

factors.

The people in this segment belong to 45 - 49 age segment, are college graduates and have income in the range

$50,000$74,999.

Cluster 4Satisfied

This segment contains consumers who surf the internet for entertainment purposes, require a lot of convenience

and highly satisfied. These are sort of the best customers in the sense that they think Dell meets their computing

needs adequately.

The people in this segment belong to 40 - 44 age segment, are college graduates and have income in the range

$50,000$74,999

-1

-0.5

0

0.5

1

-1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1 1.2

PriceInsensitive

Innovative

price insensitive vs innovative

8/13/2019 MRA03_Dell02

6/6

-2.5

-2

-1.5

-1

-0.5

0

0.5

1

Information Entertainment Serious Satisfied Convenience Price Insenstive Innovator

Clusters

1 2 3 4