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CUSTOMER SURVEY OF LOCAL MARKET NEAR COMPANY TOWNSHIP

1. 2.

Your name ______________________________________ How frequently do you visit LOCAL market: O


Daily

Less than a week

Weekly

Less than a month

3. 4. 5.

How far is your home away from the market

_____________________

How many members you have in family _____________________ What is your occupation _________________________

6.

Rate the following options against the LOCAL market;


Strongly disagree Disagree Somewhat disagree Neutral Somewhat agree Agree Strongly agree

(1)

(2)

(3)

(4)

(5)

(6)

(7)

--------------------------------------------------------------------------------------------------------------------

Service quality is good

Product quality is good

High cost is charged for products.

Essential products are available.

Necessary gift items for birthday are not available.

Fresh vegetables are found.

More branded products should be available.

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Case: To study the behavior of the customers shopping in LOCAL market adjacent to COMPANY Township in order to find the customer segmentation.

LOCAL market adjacent to COMPANY Township in Golaghat district of Assam caters the consumers of COMPANY Township as well as the employees of government department in the nearby area and the local residents. On an average 100 120 customers make purchase in the market every day. The market supplies the commodities ranging from various food products, consumer durables, vegetables, fishes, meats etc for regular consumption. In order to study the behavior of the customers for finding the customer segmentation of LOCAL market, following variables were chosen; V1: Service quality is good. V2: Product quality is good. V3: High cost is charged for products. V4: Essential products are available. V5: Necessary gift items are not available for birthday. V6: Fresh vegetables are found. V7: Would like to have more branded products. Variables were considered as concerns to the customers visiting the market after interviewing the customers and the shop keepers. A questionnaire was designed to collect information from the consumers for the above variables. Data collection was on a 7-point Likert type scale, ranging from strongly-disagree to strongly-agree, where consumers were asked to give their ratings against each variable. 25 consumers visiting the market were interviewed to collect information against the questionnaire. Customers were selected so as to represent the consumers of the Township, government employees and local residents, who are the major consumers of LOCAL market. Responses of the negative question e.g. V5 (Necessary gift items are not available for birthday) were scored by reversing the scale while analyzing the data. Accordingly a strongly agree response to a favourable statement and strongly disagree response to an unfavourable statement, both have been assigned score of 7. If a respondent has assigned the rating 1 (strongly disagree) against V5, it was reversed to 7 (strongly agree) to represent his disagreement to the negative opinion which indicates the positive response that Necessary gift items are available.

After compiling the responses of all the customers interviewed, data are presented below;

DATA:
Customer 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 V1 6 2 7 4 1 6 5 7 2 3 1 5 2 4 6 3 4 3 4 2 4 6 3 4 3 V2 5 6 2 6 2 6 7 3 4 5 3 4 2 6 5 5 4 7 6 3 6 5 5 4 7 V3 7 1 4 6 2 6 6 7 3 3 2 5 1 4 4 4 7 2 3 2 4 4 4 7 2 V4 3 4 4 5 2 3 3 4 3 6 3 4 5 6 2 6 2 6 7 4 6 2 6 2 6 V5 2 5 1 3 6 3 3 1 6 4 5 2 4 4 1 4 2 4 2 7 4 1 4 2 4 V6 6 5 7 2 3 1 5 2 3 6 3 4 4 7 4 7 5 3 7 2 7 4 7 5 3 V7 6 7 3 3 2 5 1 4 5 2 4 6 3 4 3 4 2 4 6 3 6 5 5 4 7

Analysis was carried out on the above data using SPSS to find the customer segments of LOCAL market and cluster them into homogeneous groups. To carryout the analysis, Ward Linkage method of hierarchical cluster has been selected. The result of the SPSS analysis is presented below;

Case Processing Summary

Cases Valid N 25 a. Ward Linkage Agglomeration Schedule Cluster Combined Stage 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Cluster 1 16 14 17 15 9 14 18 5 1 14 5 4 2 10 5 7 4 1 1 1 1 2 2 1 Cluster 2 23 16 24 22 11 21 25 20 12 19 9 6 18 14 13 17 8 15 3 7 4 10 5 2 Coefficients .500 2.000 4.000 6.000 8.500 11.250 15.750 20.250 25.750 32.200 38.700 45.200 54.700 64.333 74.433 85.767 97.933 110.683 128.433 153.475 184.252 223.196 327.890 504.400 Stage Cluster First Appears Cluster 1 0 0 0 0 0 2 0 0 0 6 8 0 0 0 11 0 12 9 18 19 20 13 22 21 Cluster 2 0 1 0 0 0 0 0 0 0 0 5 0 7 10 0 3 0 4 0 16 17 14 15 23 Next Stage 2 6 16 18 11 10 13 11 18 14 15 17 22 22 23 20 21 19 20 21 24 23 24 0 Percent 100.0 N 0 Missing Percent .0 N 25 Total Percent 100.0

* * * * * * * * * * * * * * * * * * * H I E R A R C H I C A L N A L Y S I S * * * * * * * * * * * * * * * * * * * Dendrogram using Ward Method

C L U S T E R

Rescaled Distance Cluster Combine C A S E Label Num 16 23 14 21 19 10 18 25 2 9 11 5 20 13 4 6 8 17 24 7 15 22 1 12 3 0 5 10 15 20 25 +---------+---------+---------+---------+---------+ -+ -+ -+ -+-+ -+ +-------+ ---+ +-----------------+ -+-+ | | -+ +-------+ | ---+ +-------------------+ -+ | | -+-+ | | -+ +-------------------------+ | -+ | | ---+ | -+-+ | -+ +-----+ | ---+ | | -+-+ +---------------------------------------+ -+ +---+ | ---+ | | -+-+ +-+ -+ +-+ | -+-+ +-+ -+ | -----+

Number of clusters: From the dendrogram, it is observed that the cases can be divided into three clusters. The cluster members are as shown below;
Case 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Cluster no 1 3 1 1 2 1 1 1 2 3 2 1 2 3 1 3 1 3 3

20 21 22 23 24 25

2 3 1 3 1 3

CLUSTER CENTROID: V1 5.455 1.600 3.222 V2 4.636 2.800 5.889 V3 5.727 2.000 3.000 V4 3.091 3.400 5.889 V5 1.909 5.600 3.889 V6 4.091 3.000 5.778 V7 3.818 3.400 5.000

Cluster1 Cluster2 Cluster3

Interpretation and Profile the Clusters: The centroids represent the mean values of the objects contained in the cluster on each of the variables. Cluster1 has relatively high values on variables V1 (Service quality is good), V3 (High cost is charged for products). It has a low value on V5 (Necessary gift items are not available for birthday). Hence cluster1 could be labeled as Quality conscious and economical customers. Cluster2 has relatively high value on variable V5 (Necessary gift items are not available for birthday). It has low values on V1 (Service quality is good), V3 (High cost is charged for products). Cluster2 could be labeled as Concern shoppers for quality and demand better quality. Cluster3 has relatively high values on variables V2 (Product quality is good), V4 (Essential products are available), V6 (Fresh vegetables are found), V7 (Would like to have more branded products). Cluster3 could be labeled as Satisfied customers.

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