Evaluate the purpose of market research undertaken in the case.

To understand what and how various factors impact Shiva Dhaba customer loyalty. Using this information,
Yadav intends to establish a clear marketing strategy that will allow him to retain loyal customers and convert
low loyal customers to high loyal customers in order to stay ahead of increasing competition

How market research can help create customer loyalty for Shiva Tourist Dhaba?

It’ll be helpful as it’ll provide Yadav with information on customer’s likes and dislikes allowing him to position
STD with the correct marketing mix. Furthermore it’ll give insights into what Yadav can do to take the
customer from low loyalty to high loyalty

How Shiva Tourist Dhaba is positioning itself and how its current value proposition helps obtain loyalty of
the customers?

STD is positioning itself as a family dhaba providing authentic high quality indian food at low price.

 Family oriented business – Casual atmosphere, prompt service

 Customer loyalty incentive program
 Relationship marketing – Direct customer feedback is readily applied
 Differentiation - Catering to other customer needs e.g. events and parties

Evaluate the use of discriminant analysis with respect to its scope and utility? Why it is being used and
what the client should expect?

It’ll be effective to use DA here as it’ll allow Yadav to differentiate between mutually exclusive groups of low,
mid and high loyalty customers. We are using DA as the dependent variable (loyalty) is categorical with more
than 2 categories and IVs are metric.

How the client can use the analysis?

Independent factors being analyzed will give insights into what Yadav is doing right and vice versa. With the
market research evidence in hand statistically significant, Yadav can amend and/or remove attributes that are
contributing negatively to customer loyalty and improve attributes that contribute to higher customer
loyalty.