Introduction
The Computer R Us Company received numerous complaints about the services offered in their CompleteCare division.
After thorough investigations into the complaints, the management established that the division was experiencing problems as a result of inadequacy of trained operators and problems with distribution and availability of parts.
In response to these problems, the management came up with four initiatives that aimed at improving customer satisfaction. In this paper, analysis will be carried using various tools to establish the effectiveness of the initiatives that were put in place.
Research design
Sampling technique
This research was conducted using research survey study approach. Data was collected using a questionnaire that had three sections. The first part required personal information, that is, age and gender. In the second section a Likert scale of ten points was used to collect some data.
The final section focused on determinants of customer satisfaction. Four questions were asked in this section and each had a Likert scale of ten points. The random sampling technique was used to select a sample of 500 customers (Kothari, 2004). The questionnaires were sent to the 500 customers and only 420 responded.
In order to collect the data necessary for this study, several steps will be taken to ensure that appropriate care is taken to protect the participants. There are no universally accepted determinants of customer satisfaction ((Verbeek, 2008).
Besides, the results of previous studies do not give conclusive result on the most effective determinant. Therefore, the attributes used by the management of Computer R Us to improve the level of customer satisfaction are a sample of what other companies use (Zikmund, Babin, Carr, Griffin, 2012).
Analysis
The first test show that the overall satisfaction is statistically different from 6 out of 10. The calculated mean is 4.4881 and it is less than the goal. The result of the second question shows that the overall satisfaction of female customers is higher than that of male customers.
Therefore, there is a need to improve the level of satisfaction of the male customers. The results of the third question indicate that there is no difference in the level of satisfaction across the different age groups. Further, tests on question five shows that there is no difference in gender composition across the five age groups.
The fifth test reveals that customers tend to be more satisfied with the loyalty rewards program than response times in the CompleteCare division. Therefore, the management needs to improve the response time in the division. The final test shows that all the four initiatives have a potential of improving customer satisfaction.
Further, response time of the CompleteCare division and level of advice CompleteCare staff provides on Computers R Us products have more impact than the other two initiatives (Baltagi, 2011).
Recommendations
The results of hypothesis testing show that the management did not achieve their goal. For the company to achieve the target of 6 out of 10, the management needs to consider the recommendations listed below.
- Decrease the response time of the CompleteCare division. This can be achieved by increasing the number of well trained personnel and equipment that can facilitate service delivery at the division. The company should introduce a rating system that can be used by customers continuously.
- The management should also focus on improving the level of satisfaction of the male customers.
- The management should train the CompleteCare staff on a continuous basis. This will improve the quality of advice they give clients.
References
Baltagi, G. (2011). Econometrics. New York: Springer Publisher
Kothari, J. (2004). Research methodology: methods and techniques. New Delhi: New Age International (P) Limited Publishers.
Verbeek, M. (2008). A guide to modern econometrics. England: John Wiley & Sons.
Zikmund, W., Babin, B., Carr, J., Griffin, M. (2012). Business research methods. USA: Cengage Learning.
Appendix: Hypothesis testing
Does the current level of customer satisfaction differ from management’s goal of 6 out of 10?
Hypothesis
H0: The current level of customer satisfaction = 6.
H1: The current level of customer satisfaction ≠6.
Statistical technique
In this case a one sample t-test will be used to test the hypothesis.
Justification
One sample t-test is most suitable for evaluating a hypothesis that compares the actual mean and hypothesized mean.
Results of the test
Interpretation
The results show that t-calculated is greater than t-critical. Also, the p-value (1.57013E-33) is less than alpha (5%). Therefore, the null hypothesis will be rejected at the 95% confidence level. This implies that the current level of customer satisfaction differ from management’s goal of 6 out of 10.
Is there any difference between the overall satisfaction of male and female customers at Computers R Us?
Hypothesis
H0: Overall satisfaction of male customers = overall satisfaction of female customers at computer R Us.
H1: Overall satisfaction of male customers ≠overall satisfaction of female customers at computer R Us.
Statistical technique
In this case, a paired sample t-test will be used to test the hypothesis.
Justification
A paired sample t-test is the most suitable for testing hypothesis that compared the mean of two related variables.
Results of the test
t-Test: Two-Sample Assuming Equal Variances
Interpretation
In the results, the mean and variance of overall satisfaction for the male is greater than that of the female group. Further, t-calculated is greater than t-critical. Also, the p-value is less than alpha (5%). Therefore, the null hypothesis will be rejected at the 95% confidence level. This implies that there is a difference between the overall satisfaction of male and female customers of the company.
Are there any differences in the overall customer satisfaction across the following age groups: under 20, 21-30, 31-40, 41-50, 51 and over?
Hypothesis
H0: There is no difference in the overall satisfaction across the various age groups.
H1: The overall satisfaction of at least one age group is different from the others.
Statistical technique
In this case, analysis of variance (ANOVA) will be used to test the hypothesis.
Justification
ANOVA is the most suitable technique for testing hypothesis that entails comparing mean for more than one group. One way ANOVA will be used because there is only one independent variable.
Results of the test
Interpretation
In the results above, the value of F-calculated is less than the F-critical. Besides, the p-value is greater than alpha (5%). Therefore, the null hypothesis will not be rejected at the 95% confidence level. This implies that there is no difference in the overall satisfaction across the various age groups.
Are there any differences in the gender compositions across the five age groups?
Hypothesis
H0: There are no differences in gender composition across the five age groups.
H1: Gender composition is different in at least one of the age groups.
Statistical technique
Analysis of variance (ANOVA) will be used to test the hypothesis.
Justification
ANOVA is the most suitable technique for testing hypothesis that entail comparing mean for more than one group. One way ANOVA will be used because there is only one independent variable (Verbeek, 2008).
Results of the test
Interpretation
In the results above, the value of F-calculated is less than the F-critical. Besides, the p-value is greater than alpha (5%). Therefore, the null hypothesis will not be rejected at the 95% confidence level. This implies that there are no differences in gender composition across the five age groups.
Is there any difference in customer satisfaction based upon ‘response times in the CompleteCare division’ and the ‘loyalty rewards program’?
Hypothesis
H0: Customer satisfaction based upon response times in the CompleteCare division = the customer satisfaction based upon loyalty reward program.
H1: Customer satisfaction based upon response times in the CompleteCare division ≠the customer satisfaction based upon loyalty reward program.
Statistical technique
In this case, a paired sample t-test will be used to test the hypothesis.
Justification
A paired sample t-test is the most suitable for testing hypothesis that compared the mean of two related variables (Verbeek, 2008).
Results of the test
Interpretation
The results show that t-calculated is greater than t-critical. Also, the p-value is less than alpha (5%). Therefore, the null hypothesis will be rejected at the 95% confidence level. This implies that there are differences in customer satisfaction based upon response times in the CompleteCare division and the loyalty rewards program.
Are any of the initiatives proposed by management related to the overall satisfaction of Computers R Us customers?
Hypothesis
H0: The initiatives proposed by the management are determinants of the overall satisfaction of Computer R Us customers.
H1: The initiatives proposed by the management are not determinants of the overall satisfaction of Computer R Us customers
Statistical technique
In this case, a multiple regression analysis will be used.
Justification
Multiple regression analysis is used to model the relationship between one dependent variable and other explanatory variables.
Results of the test
Interpretation
The F-test will be used to test the overall significance of the regression model. The p-value for the F – test is less than alpha (0.05). Therefore, reject the null hypothesis and conclude that the four determinants are significant determinants of the overall customer satisfaction. Further, the p-value for response time and level of advice are greater than alpha (0.05). This implies that they are significant determinants of overall customer satisfaction of the company.