1. 2:2 What is the Management Decision Problem Facing Dupont A: Should the Designer Collection line of carpets be introduced into the residential market. 2.3: What is the research marketing problem Facing Dupont A: Determine the consumer preferences and purchase intentions for the Designer Collection. (i.e. will they buy and if so what style will they buy) Chapter 2

2. 2.7: Develop three suitable research questions and hypotheses from the marketing research problem. RQ: On what dimensions do consumers evaluate residential carpets H: Consumers evaluate carpets according to price, style and durability. RQ: Do consumers desire designer fashion in residential carpeting? H: The residential market is willing to accept designer carpets i.e. there is a designer-conscious segment RQ: Is there a significantly large segment (i.e. 25%) of the market interested in designer residential carpets. H: A significant section of the residential market is interested in designer carpeting. RQ: On what variables can this segment be identified? H: It can be identified by certain demographic and psychographic characteristics

3. Col. No Variable NameQuestion No. Coding Instructions 1-3Respondent ID 001-890 4Own Carpeting1Yes=1, No=0, missing = 9 5One colour traditional style 2a1 if checked, 0 if otherwise 6Multicolor traditional style 2b1 if checked, 0 if otherwise 7One colour fashion style2c1 if checked 8Multicolor fashion style2d1 if checked 9Important part of home3Enter number circled 10Fashion item for home4Enter number circled 11Central item5Enter number circled 12Last long6Enter number circled 13Factors: stain resitant7aEnter number circled 14Factors: long life7bEnter number circled 15Factors: fashionable7cEnter number circled 16Factors: matches furniture 7dEnter number circled 17Factors: price7eEnter number circled 18Factors: reputation7fEnter number circled 19Factors: Warranty7gEnter number circled 20Likely to buy carpeting8Enter number circled Q15 Codebook

4. Chapters 16 and 17 1.Run descriptive stats and obtain frequency distributions for all variables. The descriptive statistics provide both an indication of the underlying distributions of the variables and an initial indication of the attitudes and impressions the respondents have toward carpeting. They are useful for suggesting whether further analysis needs to be conducted in more detail. Q1. : 209 respondents owned carpet (87.1% Q2a: 63.2% owned a one color traditional carpet Q2b: 47.4% owned a multicolored traditional carpet Q2c: 41.6% owned a one-colour designer carpet Q2d: 54.5% owned a multicolor designer carpet Q3: 35.4% consider carpeting to be important (responses 5-7)

5. Q4: 13.9% believe that carpeting is a fashion statement (responses 5-7) Q5: 28.7% believe that carpet is central to their home (responses 5-7) Q6: 51% believe that durability is more important than looks (responses 5-7) Q7a: 41.2% believe Stain resistance is an important feature (responses 5-7) Q7b: 27.5% agree that long life is not an important issue (responses 5-7) Q7c: Fashion distinguishes two groups – moderately fashionable (58.7%) (responses 4 & 5) and not fashionable (responses 1 & 2) Q7d: It is important to have carpet match furniture (58.7%) (responses 5-7) Q7e: Price distinguishes two groups: price sensitive (41.2%) (responses 6 & 7) and moderately price sensitive (58.8%) (responses 3 & 4) Q7g: Warranties distinguish two groups – warranty important (41.2%, responses 5-7) ad warranty not so important (46.7% (responses 2 & 3). Q8: 35% are likely to buy carpet in the next 3 months (Responses 5-7) Etc.

6. Q2 Cross-Tab Q3 (is carpeting important?), Q4 (is Carpeting fashionable?), Q5 (is carpeting central?) and Q6 (is carpeting durable?) with the demographic variables in Q17 to Q21 ) i.e. gender, marital status, age, education, principle dwelling. If the results are poor, you may have to regroup variables in order to obtain valid results. Interpret the results In all initial cross-tab results some of the cells need to be recoded since the observed count is less than 5. Marital status collapse single and other into not married Collapse age into under 40 and under 40 Collapse education into college graduate and non-graduate Collapse is carpeting important etc. into not-important (1-3), undecided (4) and important (5-7). Cross-tabulations of the variables are significant (or not significant) at the.05 level. i.e. carpets are more important to men than women, those who are married, those over 40 and those with a college education.

7. Q3. Conduct a t-test for each of the seven attributes listed in Q7 (importance ratings of attributes) by each of the four responses to Q2. (What carpet do you own?). There will be 28 t-tests run. Note the Respondents have been coded as either owning or not owning the style of carpet mentioned in question 2. Thus the t-test examines the differences between the owners and non-owners of carpets of a particular style. Interpret the results. T-tests allow us to determine if a difference exists between groups along some specified variable. Here we want to determine if respondents groups by their ownership of styles of carpets (Q2, i.e. owning carpet style A group, and not owning carpet style A group) differ on their ratings of carpet attributes (Q7) For single-colour traditional styles and multicolor designer styles no significant differences exist between owners and non-owners on ratings of the importance of carpet attributes (i.e. not significant at.005 level).

8. However, significant differences exist between owners of multicolor traditional style and single-colour designer carpets. Considering multicolour traditional styles, we note differences (in means) between owners and non-owners on stain resistance, long-life, matching furniture, company reputation and warranty. Specifically owners rate stain resistance, long-life, and warranty as less important than non-owners, but matching furniture and brand name as more important. We see this by noting the means for the two groups. Multi-colour traditional styles Owners Non-owners Stain resistant 3.64.4 Long-life 3.03.6 Matches furniture 5.04.4 Well-known maker 5.04.3 Warranty 4.04.6 This suggests that the owners of these carpets are more fashion/image conscious and less function conscious.

9. Q4. Conduct a t-test for each of the seven ratings listed in Q10 (Ratings of the designer collection) by the response to Q12 (would you purchase Designer collection). There will be 7 t-tests to run. Interpret the results. All the t-tests are significant at the.05 level. Those who purchase designer carpets rate them more favorably in terms of stain resistance, fashionable rating, matches furniture and reputation and less favorably in terms of long life, price and warranty. The means ratings are: Would purchase Designer Carpets Yes No stain resistance4.92.3 long life2.25.3 fashionable rating4.92.3 matches furniture3.81.9 price1.85.0 reputation4.42.1 warranty1.44.5

10. Ho = stain resistance < Long life Hi = stain resistance > long life A paired t-test should be conducted The difference is significant. I.e. respondents attach more importance to stain resistance (mean = 3.8), than they do to long life (mean =3.1) Q5. Do the respondents in the survey attach more importance to price (Q7e) than they do to warranty (Q7g). Formulate the null and alternative hypotheses and prescribe an appropriate statistical test.

11. Ho = price < warranty Hi = price > warranty A paired t-test should be conducted The difference is significant. I.e. respondents attach more importance to price resistance (mean = 4.7), than they do to long life (mean = 4.1) Q6. Do respondents attach more importance to price (Q7e) than they do to warranty (Q7g). Formulate the null and alternative hypotheses and prescribe an appropriate statistical test.

12. A one way analysis of variance should be conducted for each statement of Q13. All the four ANOVAs are significant at the.05 level. Thus the means of the groups are not equal. Carpeting is functional is most agreed to by those who prefer Style A Associated with the latest styles is most agreed to by those who prefer Style D Important to buy best quality is most agreed to by whose who prefer style A I am fashionable is most agreed to by those who prefer style D. Q7: Do those who prefer different styles of carpet (A, B, C, or D in Q9e) differ in terms of their agreement with the four statements of Q13. Conduct the appropriate analyses. Interpret the results.

13. A one way ANOVA should be conducted for each statement in Q13. Three of the 4 ANOVAs are significant at the.05 level. Thus the means of these variables in all groups are not equal. Associated with the latest styles is most agreed to by 18-24 year olds Important to buy best quality is most agreed to by 41-60 year olds I am fashionable is most agreed to by 18-24 year olds. Q8: Do the different age groups (Q19) differ in terms of their opinions about carpeting as expressed in Q13? Conduct the appropriate analyses. Interpret the results.