Computers R Us Company’s Customer Satisfaction Case Study

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Abstract

After multiple complaints from its call centre, Computers R Us has decided to launch an analysis into customer complaints. The company uses a survey to draw data-driven conclusions about the current customer satisfaction level within the business and the strategies that will most effectively increase their customer satisfaction. The present study suggests recommendations for improving customer satisfaction within the company.

Introduction

The management of Computers R Us acknowledges that customer satisfaction contributes greatly to the complaints that its CompleteCare division raises. Improving customer satisfaction should be the priority of each company’s management (Knox et al. 2003). The management proposed the survey to meet the following goals. First, the survey illuminates on the customers’ perspectives regarding the complaints about its distribution problems, availability of parts, and shortage of technical operators in its call centre.

Sujansky and Ferri-Reed (2009) support that survey instruments help a company’s management in learning about the customer’s reception of their services. The survey instrument includes customers across all levels to allow for a comparison of responses across several departments. Employing the survey instrument provides Computers R Us with data that they could not gain internally.

Research Design

The management of Computer R Us acknowledges that the company needs to improve its relationship with its customers. The survey approach was the most preferable because of its ability to collect large data from multiple participants. The instrument determines the differences in individual responses and the organizational support structures that could best improve customer satisfaction. According to Thomas (2009), the scale model of the survey avoids multiple invalid answers to improve the respondent’s accuracy. Additionally, the survey design has no time limit and costs less for the company to initiate.

Data collection instrument

A survey instrument is employed in the study, to find the possible initiatives that are applicable to improving customer satisfaction to a minimum scale of six out of ten. Yu, Wu, Chiao and Tai (2005) identify the survey method as the best instrument to yield a high rate of responses from its customers. The instrument is also the best approach for completing the project in a well-timed manner.

Sample

The researcher targeted a random sample of 500 customers to fill the survey instrument. However, only 420 responded to the survey. The staff furnished the survey with a stratified data sample that met the parameters of its earlier report. The data reflected the varied experiences of dissatisfaction within the company’s services. The remaining 80 who failed to respond to the surveys were excluded from the study.

Ethical considerations

The company was required to maintain customer confidentiality throughout the survey. The researcher sought the approval of the Industry Review Boards to ensure that the privacy of the subjects was protected.

Data Analysis

The company stored the results on a secure web server, where the data was easily portable to a spreadsheet for analysis using Excel. The six hypotheses identified below guide the study.

Hypothesis 1

  • H1: The current level of customer satisfaction differs from management’s goal of 6 out of 10.
  • H01: The current level of customer satisfaction does not differ from management’s goal of 6 out of 10.

To test this hypothesis, a one-sample t-test is applied to test the average income satisfaction of the people.

t-Test: Paired Two Sample for Means
Variable 1Variable 2
Mean36.352384.488095
Variance171.91855.505825
Observations420420
Pearson Correlation0.077865
Hypothesized Mean Difference0
Df419
t Stat49.70119
P(T<=t) one-tail4.4E-178
t Critical one-tail1.648498
P(T<=t) two-tail8.8E-178
t Critical two-tail1.965642

The results of the hypothesis test support the hypothesis that the current level of customer satisfaction differs from management’s goal of 6 out of 10. The mean of the respondents shows that majority (36.352) are satisfied with the level of customer satisfaction. When compared against the lowest mean variable of 4.488, it is evident that the management of goal of 6 out of 10 is met. Therefore, hypothesis H01, the current level of customer satisfaction differs from management’s goal of 6 out of 10, is true

Hypothesis 2

  • H2: A difference exists between the overall satisfaction of male and female customers at Computers R Us.
  • H02: A difference does not exist between the overall satisfaction of male and female customers at Computers R Us.

A paired sample t-test is appropriate for this hypothesis.

t-Test: Paired Two Sample for Means
MaleFemale
Mean210.54.488095
Variance147355.505825
Observations420420
Pearson Correlation-0.03265
Hypothesized Mean Difference0
Df419
t Stat34.75257
P(T<=t) one-tail8.6E-126
t Critical one-tail1.648498
P(T<=t) two-tail1.7E-125
t Critical two-tail1.965642

Since the value of the t-stat is greater than the -t-critical, H2 is rejected, and H02 accepted. We also reject H2 if the p-value is also less than the confidence level of 5%. Thus, we conclude that hypothesis H02, a difference does not exist between the overall satisfaction of male and female customers at Computers R Us, is true.

Hypothesis 3

  • H3: There are differences in the overall customer satisfaction across the following age groups: under 20, 21-30, 31-40, 41-50, 51 and over?
  • H03: There are no differences in the overall customer satisfaction across the following age groups: under 20, 21-30, 31-40, 41-50, 51 and over?

ANOVA (Analysis of Variance) is appropriate for measuring the mean between groups.

Anova: Single Factor
SUMMARY
GroupsCountSumAverageVariance
Column 14201526836.35238171.9185
Column 242018854.4880955.505825
ANOVA
Source of VariationSSdfMSFP-valueF crit
Between Groups213219.91213219.92403.5022.2E-2483.852579
Within Groups74340.7983888.71216
Total287560.7839

From the data, since F-calculated > F-Critical and we accept the hypothesis. Additionally, the p-value is within the confidence level of 5%, meaning that differences exist in the overall customer satisfaction across the age groups: under 20, 21-30, 31-40, 41-50, 51 and over. Hypothesis H3, there exist differences in the overall customer satisfaction across the following age groups: under 20, 21-30, 31-40, 41-50, 51 and over, is true.

Hypothesis 4

  • H4: There are differences in the gender compositions across the five age groups
  • H04: There are no differences in the gender compositions across the five age groups
Anova: Single Factor
SUMMARY
GroupsCountSumAverageVariance
14198840921114665
464191522236.32936172.1066
ANOVA
Source of VariationSSdfMSFP-valueF crit
Between Groups639181016391810861.59791E-1303.852606
Within Groups62019118367418.553
Total12593721837

Since F-calculated > F-Critical and we accept the hypothesis. Additionally, the p-value is lower than the confidence level of 5%, meaning that differences exist in the gender compositions across the five age groups. The hypothesis H4, there are differences in the gender compositions across the five age groups, is true.

Hypothesis 5

  • H5: There exists a difference in customer satisfaction based upon ‘response times in the CompleteCare division’ and the ‘loyalty rewards program.’
  • H05: There exists no difference in customer satisfaction based upon ‘response times in the CompleteCare division’ and the ‘loyalty rewards program.’

A paired sample t-test is employed for this hypothesis

t-Test: Paired Two Sample for Means
Variable 1Variable 2
Mean3.2428571435.645238
Variance4.2225025577.842817
Observations420420
Pearson Correlation-0.011950135
Hypothesized Mean Difference0
Df419
t Stat-14.09404771
P(T<=t) one-tail1.69112E-37
t Critical one-tail1.648498411
P(T<=t) two-tail3.38224E-37
t Critical two-tail1.965641764

Since the value of the t-critical is greater than t-stat, we accept the hypothesis. We also accept H2 if the p-value is less than the confidence level of 5%. Thus, we conclude that the hypothesis H05, there exists a difference in customer satisfaction based upon ‘response times in the CompleteCare division’ and the ‘loyalty rewards program’, is true

Hypothesis 6

  • H6: The initiatives proposed by management relate to the overall satisfaction of Computers R Us customers
  • H06: The initiatives proposed by management do not relate to the overall satisfaction of Computers R Us customers

A correlation coefficient is applied to answer this question.

Question 5Question 6Question 7Question 8
Question 51
Question 60.924816961
Question 70.002530920.0231851
Question 8-0.0119501-0.00591-0.00141

From the results, question 6 (I am satisfied with the level of advice CompleteCare staff provide on Computers R Us products and services) indicates a strong relationship with satisfaction, because it is closest to 1. The remaining initiatives do not have a positive correlation because they are further from 1. The hypothesis H6, ‘the initiatives proposed by management relate to the overall satisfaction of Computers R Us customers’ is not convincing.

Conclusions

The results of the current study show that the current level of satisfaction with the company is above the management’s goals. Although customer satisfaction between male and female customers does not exist, there is a difference in the gender composition of the groups. Most of the customers are satisfied with the level of advice CompleteCare staff provide on Computers R Us products and services. This initiative satisfies most Computers R Us customers. This study has successfully measured customer satisfaction with the overall services of Computers R Us. The empirical findings show that customers are satisfied with the service quality of the company. The findings also show that their overall satisfaction outweighs the company’s minimum of six out of ten.

Recommendations

The company should hold meetings with its senior leadership team to identify how they are to move forward with its goals of satisfying customers. Customers show a general dissatisfaction with the initiatives that have been instituted. Additional research is required to identify this cause of the problem that could be rooted within the new division. This research will identify the root cause of the survey findings amidst all the satisfaction levels.

It is also recommended that the company encourages on-going assessments to identify the services and support systems that could aid in finding out the nature of problems that customers are experiencing. Open-ended questionnaires are required to complete these assessments.

References

Knox. S. et al. (2003). Customer Relationship Management. London, UK: Butterwirth- Heinemann.

Sujansky, J. G., & Ferri-Reed, J. (2009). Keeping the Millennials: Why Companies Are Losing Billions in Turnover to this Generation and what to do about it. Hoboken, NJ: John Wiley & Sons.

Thomas, J. (2009). Trust in customer relationship: Addressing the impediments in research’, Proceedings of Asia-Pacific Conference on Advances in Consumer Research, 346–349.

Yu, C.J., Wu, L., Chiao, Y., & Tai, H. (2005). Perceived quality, customer satisfaction, and customer loyalty: The case of Lexus in Taiwan. Total Quality Management and Business Excellence, 16(6), 707–719.

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