Marketing 460 Homework #1

Marketing 460: Information and Analysis

Spring 2014

Individual Assignment #1

Due Date: Feb 6, 2014

1. Sample Characteristics

Conclusion: After testing the hypothesis and performing a chi-square test on the sample, it’s apparent that the sample is not representative of the population. The chi-square table gives these two sets of data a probability of less than .001 for getting the calculated chi-square value. (See appendix for calculations).

2. Market Share

3. Market Structure - Brand Switching Matrix

Brand Switching Matrix |

| Folgers | Hill Brothers | Maxwell House | Yuban | Total |

Folgers | 100 | 25 | 4 | 5 | 134 |

Hill Brothers | 15 | 18 | 5 | 5 | 43 |

Maxwell House | 7 | 8 | 49 | 26 | 90 |

Yuban | 2 | 3 | 13 | 14 | 32 |

Total | 124 | 54 | 71 | 50 | 299 |

Retention Rates by Brand:

* Folgers – 74.63% Customer Retention

* Hill Brothers – 41.86% Customer Retention

* Maxwell House – 54.44% Customer Retention

* Yuban – 43.75% Customer Retention

Most loyal customers

* Folgers coffee drinkers

Least loyal customers

* Hill Brothers coffee drinkers

Brand | Loses Most Customers to | Gains Most Customers From |

Folgers | Hill Brothers | Hill Brothers |

Hill Brothers | Folgers | Folgers |

Maxwell House | Yuban | Yuban |

Yuban | Maxwell House | Maxwell House |

Based on the given information, it’s easy to conclude that “brand groups” exist. Hill Brothers and Folgers would constitute one group and Yuban and Maxwell House would make up the other. Both of the brands in each group have a large number of their customer gains and losses from the other “brand group-member.” This information suggests that the two brands are likely substitutes for one another. That is, when a customer stops using one brand for some given reason, he or she will likely switch to the substitute brand.

4. Attribute Importance

Most important attribute

* Freshness of the coffee

Least important attribute...