The Relationship Between Quality of Data and Market Share

Abstract

Companies spend a substantial amount of time to ensure profitability. To be profitable, sometimes departments need to increase their data mining efforts. The goal of this study was to determine if there is a relationship between the perceived quality of data obtained and the profitability as measured by increased market share. A survey was designed and administered to 30 employees of XYZ Insurance with 17 responding. Using a Likert style scale, it was determined that a negative correlation exists between perceived quality of data obtained and the profitability as measured by increased market share.

Problem Statement

In the insurance business, they are always looking for ways to make the business more profitable. This is especially important in times of a struggling economy. This means evaluations of every department and every employee. Occasionally, combining departments and resources is the answer to making areas more lean and profitable. Businesses must focus on continuous improvement to survive in today's competitive marketplace. If companies control the costs associated with the successful delivery of products and services by seeking constant improvement, they can be both competitive and profitable (Jerralds, 2008).

Because of this, XYZ Insurance has decided to combine their commercial and personal lines of business. Previously, these lines of business have been doing business as two separate entities. Personal lines, has almost always been profitable for the XYZ organization. Commercial lines is a different story and is currently losing business and ultimately losing market share. The commercial side is seen as a potential growth area for XYZ, but they are lacking in competitive data to determine their competitive position.

Purpose of the Study

The purpose of this quantitative research was to determine if an increase in commercial lines research data means a correlation with commercial lines market share. This...