Direct

Presented by:
Rahul Agnihotri Ranjit Singh Abhinav Singh Kanika Gupta Vipin Sachdeva

Experiential Research Case

Introduction
Dell is one of the most successful companies mostly due to its direct marketing strategy. Unlike other computer companies which sell their product through retailers, Dell provides their computer and service directly to customers. The direct-selling model makes the company understand their customers better and eliminates the retailer cost. What is more, each PC is customized to the customers who can specify what components they want. Dell also holds little or no inventory and assembles products as soon as an order placed. Dell was the e-commerce leader as early as in 1996, for its website was not only some pages describing the details of products but also an online shop specializing computers for consumers. People can buy computer on the website which covering 80 countries, 27 languages/dialects, and 40 currencies without leaving home. Therefore, direct marketing strategy with low cost (low price), customization and e-commerce is the key factor for Dells success.

Objectives
To continue the wave of its success despite of intense competition for market share and customer patronage, Dell is conducting this survey of recent purchasers of Dell PCs and notebooks. Through the results of this survey Dell wants to: Understand The level of customer satisfaction from Dell products

Estimate the probability of repeat buying and brand loyalty

Correlate all the usage factors covered and underlying demographic aspects of classification of their customers

Methodology
In this study, We surveyed 100 recent Dell computer and notebook consumers and asked few questions for demographic segmentation and to evaluate brand loyalty or contentment level with Dell products. Example of questions asked: 1. Approximately how many hours per week you use internet? 2. Overall, how satisfied are you with the Dell products?

Demographic Details Gender

100 90 80 70 60 50 40 30 20 10 0 Male

63

37
Female

Demographic Details Education

Last Grade of School Completed

14%

34%

Some High School or less High School Graduate

29%

Some College/Technical School College Graduate or Higher

23%

Demographic Details Age Group

45-49 Yrs 4% 40-44 Yrs 11% 50-54 Yrs 5% 55-59 Yrs 5% 60-64 Yrs 5%

35-39 Yrs 12%

Other 14% 30-34 Yrs 20%

65-69 Yrs 2% 70-74 Yrs 2% 75-79 Yrs 2%

18-19 Yrs 3% 20-24 Yrs 4%

80 Yrs or older 3%

25-29 Yrs 22%

Demographic Details Household Annual Income

Household Annual Income

3%

6%

5%

10%

$20,000 $20,000-$29999
55%

$30,000-$49999 $50000-$74999 $75000-$99999 $100000 or more

21%

Internet Usage and Online Activity

Online Activities of Dell Respondents

Weekly Internet Usage in Hours

8%

90 80 76 68 70

89

28%

10% 14%

70 60 50 40

72 63 64

21%

19%

30 20 10 0

< 1 hour 11-20 hours

1-5 hours 21-40 hours

6-10 hours 41 or more hours

Satisfaction with Dell Products

Overall Satisfaction with Dell Products

19%

24%
Very Satisfied Somewhat Satisfied

29%

Somewhat Dissatisfied

28%

Very Dissatisfied

Overall Satisfaction (Male)

16%

Overall Satisfaction (Female)

16% VS 27% 33% SS SD VD

29% VS SS SD 30% VD

24%

25%

10

Recommendation and Repeat Buying

Recommend Dell to Friends and Family Repeat Purchase of Dell Computer

Definitely would 12% 13% might or might not 23% 34% Probably would not Definitely would not recommend 23% Definitely would recommend 18% Probabale would 10% 23% Might or might not Probably would not Definitely would not 20% 24% Probably would

11

Performance Rating on Various Parameters

Easily accessible technical support Readily upgradable computer system Allow users to assemble components 4.33 4.32 5.64 2.95 5.98 4.43 5.37 5.44 5.69 4.37 4.91 4.77 5.98 0 1 2 3 4 5 6 7

Bundling with internet access

Bundling with appropriate S/w High quality peripherals High quality, no technical problems Computers run programs quickly Attractive design Competitive Pricing Quick delivery Customised ordering of computers Make ordering a computer easy

Dell Meets Requirement Averages

12

Effect of 5% Price Rise on Purchasing Decision

Buying Decision with 5% Price Rise

Definitely Purchased Probabaly Purchased 24% 29% Might or might not purchased Probabaly would not have purchased

10%

14%

23%

Definitely would not have purchased

13

Effect of 10% Price Rise on Purchasing Decision

Buying decision with 10% price rise

19%

5% 10%

Definitely Purchased Probabaly Purchased Might or might not purchased

29%

37%

Probabaly would not have purchased Definitely would not have purchased

14

Early Adopter Attributes

Market Maven
4.8

considered good source of information on products or sales 3.3

People ask me for information about products, places of sale

Helping people by providing information about products 2.89

4.97

Like introducing new brands & products to friends

Innovative
Like to do things in new ways Like to try new brands
like to try new and different things Experminatation need to be reduced Buying a new product not proven in Like to take chance 3.38 3.57 3 4.74 3.31 4.53

Opinion Leadership

Often tell my friends what I think about computer related products

3.77

Often used as a source of advise about computer-related products

3.25

Friends likely to ask opinion about products

2.84

15

Correlation
Demographic Details and Overall Satisfaction with Dell Products
Household Income Household Income Gender Education Age Group Overall Satisfaction

Gender

-0.451021369

Education

0.230934423 -0.048364743

Age Group Overall Satisfaction

0.021176824 -0.120787161

-0.123799362

-0.029928467 0.159395698

0.097146635

-0.035966795

16

Correlation

Recommend Dell Recommend Dell as Opinion Leader

Recommend Dell Friends likely to ask opinion about products Often used as a source of advise about computerrelated products

Often tell my friends what I think about computer related products, 0.028676632 3 3.5

-0.12859

0.5

1.5

2.5

-0.05737

Often tell my friends what I think about computer related products

Often used as a source of advise about computerrelated products, 0.057365168

0.028677
Friends likely to ask opinion about products, -0.128585487

17

Direct
Presented by:
Rahul Agnihotri Ranjit Singh Abhinav Singh Kanika Gupta Vipin Sachdeva