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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
L1. I know I’ll get the best price
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
both helpful and knowledgeable.
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
had bad experiences at other
discount stores.
L10. There are certain items I
would not buy at a discount
store.
                                                               Total V ariance Explaine d

                               Initial Eigenvalues               Ex traction Sums of Squared Loadings        Rotation Sums of Squared Loadings
   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.
What if the Likert’s            I know I'll get the best
                                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
         Reliability Statis tics                    I know I'll get the best
                                                    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,
                                                     I've had bad experiences                 8.02             6.186           .140           .039           .402
                                                     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
• I find the employees are         -I know I will get the best price at my
  both helpful and                 preferred store
  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
  where it is found.               -I’ve had bad experiences at other
                                         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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