3-1

Redbox Customer Satisfaction

3-2
Organization Introduction
Website: www.redbox.com
Redbox is a subsidiary of Outerwall, Inc. for rental
of DVDs, Blu-ray Discs, and video games through
automated kiosks
2002: Initially funded by McDonald's Corp.
2005: Started expanding outside of McDonald's
restaurants to grocery stores, convenience stores,
drug stores and mass-merchant spots
Sep, 2008: reached the 200-million-rentals
one of Americas top source for entertainment
Near future: plan with Verizon for service of
streaming movies on smartphone

3-3
Factor 4
Convenience
Factor 3
Price/Payment

Factor 2
Selection
Factor 1
Customer Service
Redbox
Customer
Satisfaction/
Loyalty
4.1 Proximity to Home/Work
4.3 Visited Retail Location
4.2 Line Wait Time
5.1 Online Reservation
5.2 Phone App
2.1 Payment Methods
2.2 Costs vs Competition
2.3 Late Fees
2.4 Promotional Discount
3.1 New Releases
3.2 Older Movies
3.3 Desired Movies
3.4 Video Games
1.3 Type of Problems
1.4 Problem Resolution
1.5 Resolution Decision
4.4 Ease of Return
1.1 Redbox Rentals/Month
1.2 Other Rentals/Month
Factor 5
Convenience
Website/Phone
App
Factors of
Customer
Satisfaction
3-4
Survey
Factors # of items to measure
Convenience 8
Price 3
Selection 5
Customer Service 3
Convenience- Website/Smartphone App 3
Instrument- Data collected and analyzed via Surveymonkey.com

Other variables : General demographics, rental frequency, damaged
movie resolutions.
3-5
Sample
Sample size : 100

Collected via SurveyMonkey and in person
interviews.

Target audience:
18+ citizens of New Orleans Metro Area
Required to have rented from Redbox in the past.


3-6
Factor Analysis and Reliability Analysis
Factors
Initial
items
Items
dropped
Alpha value
Convenience 8 1 .882 (forced 1 factor)
Price 3 1 .601 .722
Selection 5 0 .711 (forced 1 factor)
Customer Service 3 1 .231 .749
Convenience-
Website/Smartphone App

3 0 .921
3-7
Regression Analysis
F ratio = 5.785
P-value: .000
Adjusted R sq = 35.2%


Customer
satisfaction/
loyalty
Convenience
Web/App
Convenience
Selection
Price/
payment
Customer
Service
3-8
Correlation Analysis

35.2% Adj R-Squared
No. of Correlations greater than .50: 2
Convenience & Selection Correlation = .651
Convenience & Price Correlation = .695
3-9
Quantitative Data
Open ended questions : Have you ever received a
damaged movie or game from Redbox? If so,
briefly explain the problem resolution and
response from the Redbox team.

8 Responses
7- Scratched disks
1- Would not load

Redbox Response
8- Complimentary free movies
3-10
Conclusion & Recommendations
Interesting finds:
Convenience was the only statistically significant
predictor. Team was expecting price.

Price was not a statistically significant predictor.
The team expected this to be the strongest.

There was no correlation between the customers
who use the website/app and the number of times
they rented a month. The team expected a
correlation.

3-11
Conclusion & Recommendations
Dont fix what isnt broken.
The team believes that the Redbox model is
working effectively based on the correlation
between convenience and customer satisfaction.
However, we would recommend that Redbox
create a campaign to educate their customers on
the benefits of using the website/smartphone app.

53% of respondents had not used the app/website
before