bstat final

8/7/2019 Bstat Final

1/20

Survey on ConsumerBuying Behavior of


2/20

2 Comparative Analysis of Laptop Industry

Table of Contents

About the Survey.............................................................................................................................2

Industry Profile................................................................................................................................3

Major Findings and Analysis...........................................................................................................4

Data Summary.................................................................................................................................6

Brand preference..........................................................................................................................6

Budget..........................................................................................................................................7

Preferred screen size....................................................................................................................8

Purpose of buying Laptop............................................................................................................9

Original Operating System..........................................................................................................9

After Sales Service....................................................................................................................10

Optical Drive.............................................................................................................................11

Promotional offer.......................................................................................................................11

Measure of Location..................................................................................................................12Mean, Median & Mode..........................................................................................................12

Mean......................................................................................................................................12

Median...................................................................................................................................13

Mode......................................................................................................................................13

Measure of Variability...............................................................................................................14

Variance.................................................................................................................................14

Standard Deviation................................................................................................................14

Coefficient of Variation.........................................................................................................14

Probability of events..................................................................................................................15

Hypothesis.................................................................................................................................17

State the hypothesis...............................................................................................................17

Formulate an analysis plan....................................................................................................17

BUSINESS STATISTICS

Business Statistics Assignment I

Submitted by:

Aditya Negi (191064)Ankit Jethani (191073)Ankita Sehjpal (191076)Anshul Kaul (191077)

Khem Singh (191090)Prateek Jain (191104)

Submitted to:

Dr. SumeetKaur


3/20


Analyze sample data..............................................................................................................18

Interpret results......................................................................................................................18

Annexure....................................................................................................................................20

Annexure

About the Survey

Consumer Buying Behavior of Laptopis a survey to gather feedback about Users buyingbehavior of laptop and their various preferences and suggestions. The purpose of the survey is togather as much information as possible and then to apply various Business Statistics tools to

summarize and analyze the collected data to make out further inferences and trends prevailing.

There were over 77 respondents to the survey. We would like to thank them for theirparticipation.

As part of the survey, respondents were supposed to state their preferences and opinions onissues ranging from which Brand they prefer to what is their budget for buying a laptop to whatall they look for in a laptop, etc. The survey was basically weaved around the various parametersthat a consumer considers while buying a laptop and what all factors influences the purchase,like price, brand, configuration, purpose etc. The demographic variables collected include: age&gender.

The Questionnaire was administered online, hosted on FOREIAN.COM and apart frompublishing it on the website the survey was promoted through social media websites like twitterand Facebook.

BUSINESS STATISTICS


4/20


Industry Profile

Laptops were originally considered to be "a small niche market" and were thought suitablemostly for "specialized field applications" such as "the military, the Internal Revenue Service,accountants and sales representatives". But today, there are already more laptops than desktopsin businesses, and laptops are becoming obligatory for student use and more popular for generaluse. The laptop sales are growing at much faster rate than projected. India's personal computermarket is undergoing a major transition. However, laptop computers cannot completely wipe outdesktop computers, because both are designed to meet different needs or different consumersegments.

Major Players:

The major players in the laptop category are:

Hewlett Packard (HP)

Apple

Dell Computers

Sony

Growth Drivers: Indian Laptop market in now in sync with global market. It was in 2005 that sales of

laptops surpassed the sales of desktop computers for the first time in India.

BUSINESS STATISTICS


5/20


The Laptop market is growing at a fast rate because of change in work life of consumers.As the need for "anytime anywhere" access to information is increasing, the sales ofLaptops are also increasing.

Other factors that are responsible for the hike in sales figure are reduction in prices andaffordability. Laptops are now sold at approximately half the price at which they were

sold two years ago. Laptops prices are now almost at par with the desktop computerprices.

The third most important factor is duty free import of Laptops as a personal baggage thathas helped a lot in increasing the penetration level of the product among the consumerpopulation. Awareness about laptops has also increased over the years.

BUSINESS STATISTICS


6/20


7/20


The probability of a female to choose Apple is the highest and Apple has got the highestrating in terms of looks and style. So we can say that for female customer style and looks ofthe laptop is the top priority. So Dell should try and make its laptops more stylish or couldlaunch a new line of laptops for women.

The probability of a male to choose Dell is the highest. Good after sales service could be a

reason for them choosing Dell as 69% of the total sample thinks that after sales service is animportant factor in making buying decision. Dell should try to find new ways to increasecustomer satisfaction.

BUSINESS STATISTICS


8/20


Data Summary

Brand preferenceBrand preference is the measure of brand loyalty that a consumer will opt for. In our surveyfollowing data was collected and summarized accordingly.

BrandFrequen

cyApple 18

Dell 27

HP 16

Sony 16

Total 77

Table 1: Frequency distribution

This frequency distribution provides a summary of how the Laptop preferences are distributedacross the four brands. Viewing the frequency distribution, we see that Dell is the leader with 27respondents opting for it, followed by Apple with 27 likes, and HP and Sony are tied for thirdwith 16 each. The relative frequency and percent frequency can be worked out.

BrandRelative

FrequencyPercent

Frequency

Apple 0.23 23Dell 0.35 35

HP 0.21 21

Sony 0.21 21

Total 1 100

Table 2: Relative and Percent Frequency Distribution

The Relative and Percent Frequency data can be depicted graphically by using bar graph or piechart. This graphical device for depicting qualitative data summarized in a frequency, relativeand percent frequency distribution are utilized for better understanding of the collected data.

Pie chart of Brand Preference

From the above summarized data various analysis could be made out like Dell is the mostpreferred Brand among the customers with 35% share of mind. We can also note that togetherDell and Apple, with 35% + 23% = 58%, occupy almost 3/5th of the total preferred brand.

BUSINESS STATISTICS


9/20


Budget

This segment summarizes the budget preference that all the respondents have opted for. The datais then compiled into frequency distribution table, given below:

BudgetRange

frequency

50000 13

Table 3: Budget Frequency

The above data is then graphically summarized to provide a better view of the findings i.e. the

preference of people opting for a budget range of 30000-40000 almost half of all the response

Preferred screen size

More than 50% of all the respondents preferred to choose thin & light i.e. 13``-14`` screen sizedlaptop, as it is easy to handle and is lighter in weight, thus making it more convenient.

Preferred screen size Frequency

Ultraportable; 12" screen or less 5

Thin and Light; 13" - 14" 42

Mainstream; 15" - 16" 29

Desktop Replacement; 17"+ 2

Table 4: Screen Size Preference

Preferred screen size

Purpose of buying LaptopWhen asked about the reason to buy a laptop, majority of the replies were related to either workor study, followed by portability and animation & gaming. This gives an idea that animation andgaming laptop are still less preferred and thus more work needs to be done in order to increase itsdemand.

Purpose of Buying Laptop Frequency

portable 29

BUSINESS STATISTICS


10/20


work 46

Animation & gaming 20

study 46

Table 5: Purpose

As can be seen from the figure, work and study together comprises of 46 responses. Here,multiple choices were counted, hence no. of response are more.

Purpose of buying Laptop

Original Operating System

On the given criteria of preferring original Operating System for laptops, more than 65% of therespondents preferred original OS while very few preferred duplicate ones.

Original OS Frequency

Yes 52

No 25

Table 6: Operating OS

Operating OS

After Sales Service

When viewed in Indian scenario, the users prefer their commodities being of rough use. So, we

asked people for importance of after sales service in case of laptops and we found out that about69% of the respondents felt that the after sales service is an important criteria for selecting abrand. So, for a brand to promote themselves in the Indian market it is essential to provide

excellent after sales service to the consumers.

Table 7: After sales service

BUSINESS STATISTICS

After Sales Service Frequency

Yes 53

Maybe 20

No 4


11/20


Optical Drive

Through the responses collected for the preferred optical drive, it was found that most of theusers dont really bother about specifications of the optical drive. Although, rest majority of the

users prefer Blu-Ray, maybe because of the technology advancement and the quality offered bythe Blu-Ray drives.

Optical Drive Frequency

DVD 15

Blu-Ray 20

HD-DVD 15

Any of the above 27

Table 8: optical drive

Promotional offer

In case of promotional offers offered by various brands, most of the consumers opt for them onlyif they dont have to pay any extra cost for the same. And also, the number of users opting for nooffers is much lesser than the ones preferring offers even at some cost.

Promotional Offer Frequency

Yes, if it doesn't cost me anything extra 53

Yes, absolutely 20

No 4

Table 8: optical drive

Measure of Location

Mean, Median & Mode

The respondents were asked to rate the laptops on the basis of their looks and stylishness, on ascale of 0 (poor) to 5 (excellent). The response was then collected and further analysis was doneusing mean, median & mode. The findings are summarized below.

Ratings Apple Dell HP Sony1(poor) 0 2 1 9

2(average) 4 13 13 11

3(good) 8 28 34 7

4(very good) 23 30 24 32

5(excellent) 42 4 5 17

Table 9: Ratings

BUSINESS STATISTICS


12/20


Mean

Ratings Apple Dell HP Sony

1 0 0 2 2 1 1 9 9

2 4 8 13 26 13 26 11 22

3 8 24 28 84 34 102 8 24

4 23 92 30 120 24 96 32 128

5 42 210 4 20 5 25 17 85

Sum 77 334 77 252 77 250 77 268

Mean 4.337662 3.272727 3.246753 3.480519

Table 10: Mean Values

When the no. of response were multiplied by the values i.e. 1 5 and finally summed up, we gotthe sum total of the values of responses. This was then divided by the no. of response i.e. 77, thus

giving us the mean value for different brands of laptops. The inference can be sought out that,the mean rating for Apple is highest with a rating of 4.337 followed by Sony 3.480, Dell 3.272and HP 3.246

Median

As we are considering 77 responses, therefore for an odd number of observations the median isthe middle value. Thus the values are:

Table 11: Median Values

Contrary to the mean ratings, the value of median is preferred in some cases as it is notinfluenced by outliers i.e. extremely small and large values. But here as the range is only from 1

to 5, thus mean ratings are more accurate in this case and gives a better idea of the ratings. Herealso the median rating was highest for Apple but there is uncertainty over the 3 rdposition inbetween Dell and HP.

BUSINESS STATISTICS

Apple Dell HP Sony

Median 5 3 3 4


13/20


Mode

This is the value that occurs with greatest frequency. It provides the information about theinterest.

Apple Dell HP Sony

Mode 5(42) 4(30) 3(34) 4(32)

Table 12: Mode Values

In this case, the mode for the rating of 5 (excellent) occurs mostly in the case of Apple. Thus anycustomer going out for looks and stylishness will choose Apple as its preferred laptop followedby Sony, Dell and HP.

Measure of Variability

From the entire sample data Age was taken into account to measure the variability. The sampledata included age ranging from 19 to 32. This data was then calculated for differentmathematical tools and following summarized values were obtained:

Sum of AgeNo. of

ResponsesMean (Xi - X`)2

1828 77 23.74025974 416.81

Table 12: Sample Variance (Annexure)

Variance

Here the data being analyzed are for a sample, thus sample variance is taken into account.Itdescribes how far values lie from the mean. We have taken sample variance of Age andfollowing results were obtained :

S2 = (Squared deviation about the mean) / n-1

S2 = 416.81/76 = 5.48427 (years)2

Standard Deviation

It is the positive square root of the variance. It is the measure in the same unit as the original dataand thus is more easily compared to the mean and other statistics that are measured in the sameunit as the original data.the standard deviation statistic is a number that marks a distance on themeasurement scale. The sample variance was 5.48427, thus the sample standard deviation is

S = S2

BUSINESS STATISTICS


14/20


S = 5.48427 = 2.3418 (years)We can say here that, in general each value of age varies from the mean value by a difference of2.3418 years. In very general terms it is the average difference between each score and the meanaverage.

Coefficient of VariationIt gives us the descriptive statistics that indicates how large the standard deviation is relative tothe mean. From the above calculated data we got the values of standard deviation and mean,which can be then further used to calculate coefficient of variation.

(Standard Deviation / Mean) * 100

2.3418/23.7402 * 100 = 9.864 %

This means that sample standard deviation is 9.864 % of the value of sample mean.

Probability of events

Probability is the numerical measure of the likelihood that an event will occur. Thus,probabilities can be used as measures of the degree of uncertainty associated with the knownevents. If probabilities are available, we can determine the likelihood of each event occurring.For a manager it is very important to know how many people will buy or have the companysproduct. This is essential to know what the customer thinks about the product or the brand. Thebrand may be in the heart of the customer or in his/her mind and knowing that helps the managerto estimate the market share of the brand/product.

Brand Male Female Grand Total

apple 9 9 18

Dell 23 4 27

HP 9 7 16

Sony 12 4 16

Grand Total 53 24 77

Table 13

Brand Male Female Person

apple 0.17 0.38 0.23

Dell 0.43 0.17 0.35

HP 0.17 0.29 0.21Sony 0.23 0.17 0.21

Table 14

BUSINESS STATISTICS


15/20


We can see from the above table that the probability for a male to choose Dell is the highest(0.43) and the probability of a female to select apple is highest (0.38). Also the probability of aperson to select Dell is highest among all the other brands (0.35).

Specification Male Female Grand Total

>4 GB, 500 GB 7 1 8

3 or 4 GB, 320 or 500 13 3 16

4 GB, 500 GB 0.10

3 or 4 GB, 320 or 500 0.21


16/20


Hypothesis

Hypothesis is a concept that is not yet verified but that if true would explain certain facts or

phenomena. As the data that we are concerned about in this section deals about the rating ofvarious brands on a scale of 1(bad) to 5(excellent), thus we cannot use the population mean.

We have to conduct a hypothesis test about a population proportion. This approach consists offour steps:

(1) State the hypothesis

(2) Formulate an analysis plan

(3) Analyze sample data

(4) Interpret results.

State the hypothesis

Every hypothesis test requires the analyst to state a null hypothesis (H0) and an alternativehypothesis (Ha). The hypotheses are stated in such a way that they are mutually exclusive. Thatis, if one is true, the other must be false; and vice versa.

Here, our null hypothesis is that proportion of consumer purchasing Dell laptops does not preferlooks and stylishness as a factor before buying laptops.

For this, we conducted a survey and asked people to rate various laptop brands on a scale of 1 to5. We found out that from a sample (n) of 77, 34 people were satisfied by the looks and stylefactor of Dell laptop. Thus, our sample proportion (P) comes out to be:

P= 34/77 = 0.441

And from the secondary data, we found out that the population proportion (P0) is the marketshare of Dell laptop in India that is 27 %. Thus, our population proportion is:

BUSINESS STATISTICS


17/20


P0= 0.27

Therefore, the hypothesis statement can be written as

H0:p 0.27

Formulate an analysis plan

The analysis plan describes how to use sample data to accept or reject the null hypothesis. Itshould specify the following elements.

Significance level: Often, researchers choose significance levels equal to 0.01, 0.05, or0.10; but any value between 0 and 1 can be used. We have assumed the significance levelto be 0.05.

= 0.05

Test method: we are using Z-test method to determine whether the hypothesizedpopulation proportion differs significantly from the observed sample proportion.

Analyze sample data

To analyze a given sample data, we have to find out the test statistic and the P value associatedwith it.

Test statistic: The test statistic is a z-score (z) defined by the following equation.

z = (P P0) / P0(1-P0) / n

WhereP0 is the hypothesized value of population proportion in the null hypothesis, P is thesample proportion and n is the sample size.

From the stated value ofP0,P and n,

i.e.P0= 0.27, P = 0.441 and n = 77, the value of z comes out to be:

z = 3.0379

Using the table of areas for the standard normal distribution, we find that the area between themean and z = 3.03 is 0.4988

Thus the p value for the test is

0.500 0.4988 = 0.0012

p Value = 0.0012

Interpret results

The final decision to accept or reject null hypothesis can be made by using any of the twomethods:

1. p value approach

BUSINESS STATISTICS


18/20


2. Critical value approach

We have taken p value approach to come to the results. This involves comparing the p Valueto the significance level (). If the p value is less than the significance level than the nullhypothesis (H0) is rejected and alternate hypothesis is accepted.

Rejection Rule: RejectH0 if p value


19/20


Annexure1. Computation of the Sample Variance for the Data

Age(Xi)Sample Mean

Deviation aboutthe mean

(Xi - )

Squared deviation about

the mean (Xi - )2

21 23.74025974 -2.74025974 7.509023443

26 23.74025974 2.25974026 5.106426043

28 23.74025974 4.25974026 18.14538708

29 23.74025974 5.25974026 27.664867624 23.74025974 0.25974026 0.067465003

25 23.74025974 1.25974026 1.586945523

24 23.74025974 0.25974026 0.067465003

26 23.74025974 2.25974026 5.106426043

27 23.74025974 3.25974026 10.62590656

23 23.74025974 -0.74025974 0.547984483

29 23.74025974 5.25974026 27.6648676

24 23.74025974 0.25974026 0.067465003

19 23.74025974 -4.74025974 22.4700624

24 23.74025974 0.25974026 0.067465003

24 23.74025974 0.25974026 0.067465003

28 23.74025974 4.25974026 18.1453870825 23.74025974 1.25974026 1.586945523

26 23.74025974 2.25974026 5.106426043

24 23.74025974 0.25974026 0.067465003

22 23.74025974 -1.74025974 3.028503963

22 23.74025974 -1.74025974 3.028503963

23 23.74025974 -0.74025974 0.547984483

24 23.74025974 0.25974026 0.067465003

21 23.74025974 -2.74025974 7.509023443

22 23.74025974 -1.74025974 3.028503963

22 23.74025974 -1.74025974 3.028503963

25 23.74025974 1.25974026 1.586945523

24 23.74025974 0.25974026 0.06746500332 23.74025974 8.25974026 68.22330916

22 23.74025974 -1.74025974 3.028503963

26 23.74025974 2.25974026 5.106426043

22 23.74025974 -1.74025974 3.028503963

26 23.74025974 2.25974026 5.106426043

21 23.74025974 -2.74025974 7.509023443

25 23.74025974 1.25974026 1.586945523

23 23.74025974 -0.74025974 0.547984483

BUSINESS STATISTICS


20/20


22 23.74025974 -1.74025974 3.028503963

21 23.74025974 -2.74025974 7.509023443

28 23.74025974 4.25974026 18.14538708

24 23.74025974 0.25974026 0.067465003

22 23.74025974 -1.74025974 3.028503963

24 23.74025974 0.25974026 0.067465003

23 23.74025974 -0.74025974 0.54798448327 23.74025974 3.25974026 10.62590656

22 23.74025974 -1.74025974 3.028503963

25 23.74025974 1.25974026 1.586945523

25 23.74025974 1.25974026 1.586945523

22 23.74025974 -1.74025974 3.028503963

22 23.74025974 -1.74025974 3.028503963

21 23.74025974 -2.74025974 7.509023443

25 23.74025974 1.25974026 1.586945523

22 23.74025974 -1.74025974 3.028503963

24 23.74025974 0.25974026 0.067465003

25 23.74025974 1.25974026 1.586945523

22 23.74025974 -1.74025974 3.028503963

22 23.74025974 -1.74025974 3.028503963

26 23.74025974 2.25974026 5.106426043

22 23.74025974 -1.74025974 3.028503963

23 23.74025974 -0.74025974 0.547984483

22 23.74025974 -1.74025974 3.028503963

20 23.74025974 -3.74025974 13.98954292

26 23.74025974 2.25974026 5.106426043

21 23.74025974 -2.74025974 7.509023443

22 23.74025974 -1.74025974 3.028503963

22 23.74025974 -1.74025974 3.028503963

25 23.74025974 1.25974026 1.586945523

23 23.74025974 -0.74025974 0.547984483

22 23.74025974 -1.74025974 3.028503963

25 23.74025974 1.25974026 1.586945523

22 23.74025974 -1.74025974 3.028503963

25 23.74025974 1.25974026 1.586945523

24 23.74025974 0.25974026 0.067465003

25 23.74025974 1.25974026 1.586945523

22 23.74025974 -1.74025974 3.028503963

22 23.74025974 -1.74025974 3.028503963

21 23.74025974 -2.74025974 7.509023443

22 23.74025974 -1.74025974 3.028503963

(Xi - )=0.00

(Xi - )= 416.81

BUSINESS STATISTICS

bstat final

Documents