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```					         Discount Store Survey
Prepared for Bruce Lammers
and Marketing 346

Prepared September 25th, 2007,
by Group 1107
–   Ara Demerdjian
–   Ryan Neal
–   Blake
–   Dan Rice
Initial Store Survey

Purpose                

Favorite Discount Store 

10 Likert Questions    

Satisfaction Rating  
Recommendation Rating

Demographic Questions 
Demographic/psychographic
features
Demographic/psychographic
features
at my preferred store.
L2. Most discount store’s
products are of low quality.
L3. This is the discount store
closest to where I live.
L4. I find the employees are
L5. I can usually find what I am
looking for at this store.
L6. In my experience the
checkout lines are short and fast
moving.
L7. The layout of this store
makes things harder to find.
L8. I believe this store has a
positive impact on the area
where it is found.
L9. Besides the one I prefer, I’ve
discount stores.
L10. There are certain items I
would not buy at a discount
store.
Total V ariance Explaine d

Component         Total     % of V arianc e Cumulativ e %     Total      % of V arianc e Cumulativ e %   Total     % of V arianc e Cumulativ e %
1                  2.555             25.548      25.548        2.555            25.548        25.548      2.242           22.421        22.421
2                  1.455             14.549      40.097        1.455            14.549        40.097      1.656           16.559        38.979
3                  1.292             12.918      53.015        1.292            12.918        53.015      1.303           13.035        52.014
4                  1.173             11.730      64.745        1.173            11.730        64.745      1.273           12.731        64.745
5                    .975              9.750     74.495
6                    .685              6.854     81.349
7                    .664              6.636     87.985
8                    .482              4.824     92.810
9                    .397              3.967     96.777
10                   .322              3.223    100.000
Ex traction Method: Princ ipal Component A naly sis.

How many Factors are relevant?
4.
Which Factors are relevant?
The top 4.
How do we know?
The EigenValue.
What is an EigenValue?
A value that reflects how
much variance can be
accounted to a factor.
a

Which Likerts go into                                     Rotate d Com pone nt M atrix

Component

Which Functions?                I believ e this s tore has a
positive impac t on the
1           2               3       4

.814        .034           .068    -.021
area w here it is f ound.
A Likert groups into a          In my experienc e the
chec kout lines are short          .769        -.147          -.107   .168
Function when it has more       and f as t mov ing.
I f ind the employees are
than a 40% correlation.         both helpf ul and                  .694        -.153          .023    -.469
know ledgeable.
Mos t disc ount s tore's
In this table it would be any   produc ts are of low               -.466       -.043          -.429   .320
quality.
components that fall into a     There are certain items I
w ould not buy at a                .107        .780           -.092   .094
correlation of over 0.4 or      disc ount s tore.
The layout of this store
under -0.4 in one of the        makes things harder to             -.385       .681           .375    -.057
f ind.
columns.                        I c an us ually f ind w hat I
am looking f or at this            .257        -.641          .457    .060
store.
price at my pref erred             -.065       -.079          .859    .133
correlation is -0.4?            store.
Besides the one I pref er,
When we do the Reliability      I've had bad experiences           .198        .303           .072    .737
at other dis count s tores .
Analysis we will use the        This is the disc ount s tore
-.142       -.163          .034    .588
clos est to w here I live.
reverse of these Likerts        Ex traction Method: Princ ipal Component A nalysis.
Rotation Method: V arimax w ith Kais er Normalization.
instead of the normal.              a. Rotation converged in 7 iterations.
Reliability Analysis of Factor 1

Item -Total Statis tics

Scale         Correc ted     Squared      Cronbach's
Scale Mean if       Varianc e if    Item-Total     Multiple     Alpha if Item
Reliability Statis tics                                                   Item Deleted      Item Deleted     Correlation   Correlation     Deleted
The Reverse of Likert 2              11.48             9.576            .345          .144            .716
Cronbach's
I f ind the employees are
A lpha Based
on
   both helpf ul and                   11.98              9.339            .563          .348            .574
know ledgeable.
Cronbach's    Standardiz ed                        In my experienc e the
A lpha          Items           N of Items        chec kout lines are short           11.30              9.502            .426          .230            .655
.690             .702               4        and f as t mov ing.
I believ e this s tore has
a positive impac t on the           11.08              8.959            .598          .378            .549
area w here it is f ound.

Item -Total Statis tics

Scale        Correc ted     Squared      Cronbach's
Scale Mean if       V arianc e if   Item-Total     Multiple     A lpha if Item
Reliability Statis tics                                                  Item Deleted      Item Deleted     Correlation   Correlation      Deleted
I f ind the employees are
Cronbach's

both helpf ul and                     8.18             5.000            .561          .334            .599
A lpha Based                         know ledgeable.

Cronbach's
on
Standardiz ed
   In my experienc e the
chec kout lines are short             7.50             4.763            .480          .230            .703
A lpha           Items           N of Items       and f as t mov ing.
.716              .720               3       I believ e this s tore has
a positive impac t on the             7.28             4.817            .574          .345            .581
area w here it is f ound.
Reliability Analysis of Factor 2
Item -Total Statis tics

Reliability Statis tics                                                                      Scale         Correc ted     Squared       Cronbach's
Scale Mean if       Varianc e if    Item-Total     Multiple      Alpha if Item
Cronbach's                                                       Item Deleted      Item Deleted     Correlation   Correlation      Deleted
A lpha Based
on
   The layout of this store
makes things harder to              7.12             3.003            .385           .156           .478
Cronbach's    Standardiz ed                        f ind.
A lpha          Items           N of Items        There are certain items
.564             .595               3        I w ould not buy at a               4.83             3.660            .381           .157           .451
disc ount s tore.
The Reverse of Likert 5             7.81             4.878            .422           .179           .462

Item -Total Statis tics

Reliability Statis tics                                                                   Scale          Correc ted      Squared       Cronbach's
Scale Mean if       Varianc e if     Item-Total      Multiple      Alpha if Item
Cronbach's                                                    Item Deleted      Item Deleted      Correlation    Correlation      Deleted
A lpha Based                           I know I'll get the
on                              best pric e at my               4.93              .685             .310           .096                .
a

Cronbach's     Standardiz ed
A lpha           Items           N of Items        pref erred s tore.
I c an us ually find                                                                                      a
.459              .473               2         w hat I am looking              4.59             1.211             .310           .096                .
f or at this s tore.
a. The value is negative due to a negative av erage covariance among items. This violates
reliability model assumptions. You may w ant to check item codings .
Reliability Analysis of Factors 3 and 4
Item -Total Statis tics

Scale         Correc ted      Squared       Cronbach's
Scale Mean if       Varianc e if    Item-Total      Multiple      Alpha if Item
Item Deleted      Item Deleted     Correlation    Correlation      Deleted
price at my pref erred                  8.78             3.347            .203           .096            .296
Cronbach's                          store.
Alpha Based
on
   The Reverse of Likert 2                 9.53             2.461            .162           .042            .459
I c an us ually find w hat I
Cronbach's     Standardiz ed                       am looking f or at this                 8.44             3.630            .336           .128            .139
Alpha            Items           N of Items       store.
.367               .424               3

Item -Total Statis tics
Reliability Statis tics                                                                            Scale        Corrected       Squared      Cronbach's
Cronbach's                                                            Scale Mean if       Variance if    Item-Total      Multiple     Alpha if Item
A lpha Based
on
    This is the discount store
Item Deleted      Item Deleted    Correlation    Correlation     Deleted

Cronbach's    Standardiz ed                         closest to w here I live.
7.70             4.858           .194           .075           .321
A lpha          Items           N of Items
The Reverse of Likert 4                  8.32             6.356           .328           .108           .107
.359             .391               3
Besides the one I prefer,
at other discount stores.
•Unreliable Items
Primary Reliability -Factor 2: layout and certain items
Analysis Results -Coefficientlayout of this store makes things
- The
Alpha = 0.564

• Reliable Items                   harder to find
– Factor 1: helpful, fast line, -There are certain items I would not buy at
and a positive impact         a discount store

– Coefficient Alpha = 0.716 -Factor 3: best price and usually find
-Coefficient Alpha = 0.459
knowledgeable.                   -I can usually find what I am looking for at
this store
• In my experience the
checkout lines are short and -Factor 4: closest and bad experiences
fast moving.                 -Coefficient Alpha = 0.359
• I believe this store has a       -This is the discount store closest to
positive impact on the area      where i live
discount stores
Primary Reliability Analysis Results
• Factor 1 Statistics:
– Final Coefficient Alpha: 0.716

– Attitude Dimension: Measures
• helpful, fast line, and a positive impact

– Likert Summated Ratings Score:
• Mean response to the reliable Likert ≈ 3.83
– Respondents were slightly neutral to the reliable items in
this factor
Final Revision of
Survey

Three relevant questions
remain after analysis.
How satisfied are consumers where they shop?
What are consumers telling people about where they shop?

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