Foundations of business analysis

Maximum word length: 2000 words (excluding references, tables and figures).

Case Study – Computers R Us

Computers R Us, a computer manufacturer and retailer has recently launched a service and repair division, CompleteCare, for its portable/laptop/notebook computers. This division promises to provide a rapid response to customer technical enquiries and warranty repairs.

However, the division is experiencing:

–          a shortage of trained technical operators in its telephone centre;

–          distribution problems; and

–          parts availability problems.

As a result, Computers R Us has received multiple complaints about CompleteCare at the Computers R Us call centre.

To address these issues, a research proposal was prepared (Assignment 1) and the research overseen by the management of Computers R Us. It was found that customer satisfaction was a contributing factor to the issues experienced in the CompleteCare division. Consequently, the management of Computers R Us have developed several possible initiatives to improve customer satisfaction to a minimum level of 6 out of 10. These initiatives include: decreasing response times in the CompleteCare division, increasing methods of communication between Computers R Us and its customers, the level of advice CompleteCare staff provide on Computers R Us products and services, and a new loyalty rewards program. Management is interested to know which of these strategies is considered the most effective by Computers R Us customers.

A member of your team has already collected data that can be used for this analysis. To collect this data, a simple random sample of 500 customers was selected. Of the 500 customers to whom surveys were sent, 420 responded. The survey used to collect this data is provided below and the survey responses have been collated in the CompleteCare.xls Excel file. You are required to write a report after performing an analysis on the data collected from the customers of Computers R Us.

A member of your team has suggested that, when you perform this analysis, you should undertake a series of hypothesis tests to examine the following:

1.       Does the current level of customer satisfaction differ from management’s goal of 6 out of 10?

2.       Is there any difference between the satisfaction of male and female customers with the response time of the CompleteCare division?

3.       Are there any differences in the overall customer satisfaction across the following age groups: 1, 2, 3, 4 and 5?

4.       Is there any difference in customer satisfaction between responses to the initiatives of ‘decreasing response times in the CompleteCare division’ and ‘the level of communication with staff and management’?

5.       Do any of the initiatives of ‘decreasing response times in the CompleteCare division’, ‘the level of advice CompleteCare staff provide on Computers R Us products and services’,  ‘the level of communication with staff and management’ and ‘new loyalty rewards program’ influence the overall satisfaction of Computers R Us customers?

Required:

Write a data analysis report that provides the results to each of the five hypothesis tests above and make overall recommendations to Computers R Us that management can use for future business decision-making. Based on your analysis relating to these hypotheses, your report should focus on two key issues: the current degree of customer satisfaction and the strategy or strategies that would be most effective to increase customer satisfaction.

Customer Satisfaction Survey

Section 1: Personal information

Please complete the following information about yourself.

Question 1 – What is your gender?

                Male                        Female

Question 2 – Please check the box that indicates your age group.

25 years and below (Age Group 1)

26-35 years (Age Group 2)

36-45years (Age Group 3)

46-55 years (Age Group 4)

56 and over (Age Group 5)

Section 2: Current Customer Satisfaction

Question 3 – Have you experienced any problems with the CompleteCare division?

Yes                               No

Question 4 – Overall, I am satisfied as a customer of Computers R Us.

Please circle the number that corresponds with your level of agreement with the statement below.

Strongly Disagree = 1 and Strongly Agree = 10

Section 3: Determinants of Customer Satisfaction

Please circle the number that corresponds with your level of agreement with statements below.

Strongly Disagree = 1 and Strongly Agree = 10

Question 5 – I am satisfied with the response time of the CompleteCare division.

Question 6 – I am satisfied with the level of advice CompleteCare staff provide on Computers R Us products and services.

Question 7 – I am satisfied with the level of communication with staff and management at Computers R Us.

Question 8 – I am satisfied with the loyalty rewards program at Computers R Us.

Report Structure

Executive Summary

This section should provide a brief overview of the data analysis report. You should discuss the subject matter, the method of analysis, the findings and recommendations and any limitations of the report. It is suggested that the Executive Summary should be the last section that you write.

Introduction

Provide a brief background to the case to put your analysis in context. Provide a discussion of the objectives of your analysis.

Research Design

Discuss the data collection process and the sampling procedures that were applied. In this section, you should also outline the ethical considerations that would have been taken into account when collecting data from this survey and reporting your results. This section should include references from at least three credible sources, such as textbooks or journal articles.

Analysis

Synthesise the hypothesis test results as they relate to the two key research questions: the current degree of customer satisfaction and the strategy or strategies that would be most effective to increase customer satisfaction. Report the conclusions that can be derived from this analysis.

Recommendations

Briefly summarise your results and provide recommendations to Computers R Us. Bullet points can be used for the recommendations.

Referencing style

American Psychological Association (APA) 6th Edition. You can find helpful examples of APA 6th ed. citation in pp 27-41 of the 2015 NBS Postgraduate Student Manual as well as at http://www.apastyle.org/index.aspx.

Appendix: Hypothesis Testing

For each hypothesis you should:

a)      State the null and alternative hypotheses.

b)      Select an appropriate statistical test and briefly justify your selection.

c)       Perform the appropriate test using Microsoft Excel.

d)      Report the results of your analysis (including test statistic and p-value).

e)      Provide a brief interpretation (both statistical and non-statistical) of the results.

An example is provided below.

Hypothesis Testing Example

Question: How much are potential patrons willing to pay for the entrées? Is the $18 amount from the forecasting model the correct value to use when setting food prices?

Appendix 1: Average patron expenditure

H₀: The average amount patrons are willing to spend on the entrée course is equal to $18

H_A: The average amount patrons are willing to spend on the entrée course is not equal to $18

A one-sample t-test is used, as this is the appropriate test to compare the difference between one variable and a pre-determined mean (Zikmund, Babin, Carr, & Griffin, 2012, p. 520). The results from this one-sample t-test are shown below:

From Table 1, it is evident that we can reject that null hypothesis that the average patron is willing to pay $18 for their entrée (p-value 0.0000477). As the average expenditure is greater than $18 ($20.14), this value should be used when pricing food in the restaurant.

Word count (excluding tables): 107