Data Analysis

and
Decision Making
Session 8/14 of DADM
 Classroom instructions
• Please occupy chairs with your group members.

• Please open MS Excel data sheet sent to you.

 Decision-making in Business!
VP (Sales), Pantaloon: I noticed, users search our products very much on
websites like Flipkart and Amazon.in, but I am unable to understand why
buyers in West India not buying them.

Director (Marketing): So, did you find out about buyer behaviour?

VP (Sales), Pantaloon : I need to figure out!

Director (Marketing): How are sales and profits figures in online channel
in West India?

VP (Sales), Pantaloon: I need to figure out even that too!!

Director (Marketing): I think, you should decide if you need to change

something for my online buyers.
 1. Problem definition
• Management decision problem:
• Do I need to do something different for online buyers (e.g. different
marketing mix)?

• Research problem:
• What factors will affect purchase of online buyers for our products?
FOCUS GROUP
DISCUSSION
or
FOCUS GROUP
INTERVIEW
 IN-DEPTH INTERVIEW

• When responses of respondents may be influenced by

fellow respondents

• Discussion of sensitive topics

• When to uncover respondents’ hidden thoughts OR

motives

• When it is not possible to gather respondents for FGD

 Conceptual Framework
Product reviews

Product authenticity Purchase

satisfaction

Economic benefits
 Questionnaire

• For demographic information

• For variables / factors

• For comparison of behavioural / product attributes

• For ranking OR comparison of brands

 Research questions
1. Are consumer reviews more important for consumers in age group 21-30
than the consumers in age group 31-40?

2. Are consumer reviews more important for those who access online e-
commerce websites less frequently than those who access more
frequently?

3. Do consumers who buy products online less frequently consider economic

benefits more seriously than those who buy more frequently?

4. Which, among the three, is most important factor for buyers?

 Conceptual Framework
Product reviews

Product authenticity Purchase

satisfaction

Economic benefits
 Research Process
1. Problem definition

2. Developing the approach to the problem

3. Research design formulation

4. Data Collection

5. Data Preparation and Analysis

6. Report preparation and presentation

 Statistical Analysis
• Cross-tabulation and Chi-square test
• t-test
• ANOVA
• Correlation analysis
• Regression analysis
t-Test
 WHEN to use WHAT?
Chi-square t-test ANOVA
Nature of
First Variable Categorical Continuous Continuous
Nature of
Second Categorical Categorical Categorical
Variable
Number of
Categories 2 or more 2 More than 2
 Weblinks
paired sample / dependent t-test
https://
statistics.laerd.com/spss-tutorials/dependent-t-test-using-spss-statisti
cs.php
independent sample t-test
https://
statistics.laerd.com/spss-tutorials/independent-t-test-using-spss-stati
stics.php
one sample t-test
https://statistics.laerd.com/spss-tutorials/one-sample-t-test-using-sps
s-statistics.php
 Research questions
1. Does importance to Economic Benefits vary across
Gender?

2. Does Pantaloon’s Product Review (PR) score

statistically significantly vary from 4?

3. Do respondents perceive Product Reviews (PR) and

Product Authenticity (PA) differently?
 1. Does importance to Economic
Benefits vary across Gender?
Null Hypothesis: Importance to Economic Benefits does
not vary across Gender.
• When p<0.05, null hypothesis is rejected.
• It means that importance to Economic Benefits vary
across Gender.
Two groups: Male and Female.
We identify whether mean score is different for two
groups
 1. Does importance to Economic
Benefits vary across Gender?
Compute average for EB for each respondent.
Prepare SPSS sheet for Gender and EB.
Use independent sample t-test.
Analyze  Compare Means  Independent sample t-
test
Gender  Grouping variable; Define group 1: 1
(Male), group 2: 2 (Female)
EB  Test variable
 1. Does importance to Economic
Benefits vary across Gender?
Independent sample t-test
If F-test is significant (i.e. p<0.05), it means that we
analyze row of “Equal Variance assumed” and based on
p-value, we reject or accept null hypothesis
Otherwise, we analyze row of “Equal Variance not
assumed” and based on p-value, we reject or accept null
hypothesis
 2. Does Pantaloon’s Product Review
(PR) score statistically significantly vary
from 4?
Null Hypothesis:
Pantaloon’s Product Review (PR) does not vary from 4
statistically significantly.
• When p<0.05, null hypothesis is rejected.
• It means that Pantaloon’s Product Review (PR)
statistically significantly vary from 4.
 2. Does Pantaloon’s Product Review
(PR) score statistically significantly vary
from 4?
Compute average for PR for each respondent.
Prepare SPSS sheet for PR.
Use one sample t-test.
Analyze  Compare Means  One sample t-test
Test variable is PR. Use 4 as Test value.
 2. Does Pantaloon’s Product Review
(PR) score statistically significantly vary
from 4?
One sample t-test
p-value is interpreted to accept or reject null hypothesis
“Mean difference” is difference of actual mean value
from Test value
 3. Do respondents perceive Product
Reviews (PR) and Product Authenticity
(PA) differently?
Null Hypothesis:
Respondents perceive Product Reviews (PR) and Product
Authenticity (PA) differently.
When p<0.05, null hypothesis is rejected. It means,
respondents perceive Product Reviews (PR) and Product
Authenticity (PA) differently i.e. their mean scores are
different.
 3. Do respondents perceive Product
Reviews (PR) and Product Authenticity
(PA) differently?
Compute average for PR and PA for each respondent.
Prepare SPSS sheet for PR and PA.
Use paired (dependent) sample t-test.
Analyze  Compare Means  Paired sample t-test
Out of PR and PA, shift one to Variable 1 and another to
Variable 2
 Research questions
1. Does importance to Economic Benefits vary across
Gender?

2. Does Pantaloon’s Product Review (PR) score

statistically significantly vary from 4?

3. Do respondents perceive Product Reviews (PR) and

Product Authenticity (PA) differently?
 t-Test VS Chi-Square

t-Test Chi-Square
One sample K-S one sample test
Two independent sample Mann-Whitney U test
Paired sample K-S two sample test
Research Questions for t-test

Product Quality
Customer
Product Benefits Loyalty
 Research Questions for t-test
4. Does customer loyalty (CL) score for my brand
statistically significantly vary from 4 on a scale of 1 to
5?

5. Does customer loyalty (CL) for my brand vary across

work status?

6. Do the respondents have different perceptions about

product quality of my brand (PQ) and its product
benefits (PB)?
One-sample t-test (secondary data)

• ICICI: Are most of my customers Females?

Gender: Male (1) Female (2)
ICICI: Do most customers have salary accounts in my bank?
Saving account (1) Current account (2) PF
account (3)
Is this continuous data?
Then, how can we apply one sample t-test?
 Use of t-test
• For BI, when we have gender as well as work status,
we either use two number of independent sample t-
tests (one for Gender and BI, and another for Work
status and BI) or we use ANOVA
• For customer service, we have to see different scores
for gender and work status, we use two number of
independent sample t-tests
• Which one has more BI score: CCD or Starbucks? We
use independent sample t-test
 One sample t-test
• How satisfied are my customers?
• Are my customers satisfied (4) on a scale of 1 to 5?
• Run one sample t-test on customer satisfaction data with a
cut off score of 4
• Did my customer satisfaction score improved to 4.5 from
last year?
• Run one sample t-test on customer satisfaction data with a
cut off score of 4.5 and compare with customer satisfaction
sore of last year