Market segment analysis is one of the critical step when assessing a new market for different products. However, to understand the economic growth and potential of a market segment requires decision making from existing data to understand potential customers’ preferences and purchasing power. Through relevant data, a company can assess the internal and external factors which are critical for the success and growth of the business. This report is based on online survey about potential customer in Phoenix market as the company seeks to expand its tablet business into the area. The report highlights findings from data analysis to provide important information about the potential customers and how the company can leverage on some of the information to satisfy its customers.
Four statistical analysis procedures were used to extract useful information from the data set. First descriptive statistics were generated to understand the structure of the data and find important information to apply in inferential tests. The second test was independent sample t test and one way ANOVA to compare means among different variables in order to understand how different independent variables (IVs) affected different dependent variables (DVs). The third set of test was bivariate correlation which involved testing the trends and relationships among different variables to understand how such relationships can inform critical decision making when creating product lines for the Phoenix market customers. The last set of statistical test was linear regression which provided the association between DV and one or more IVs to help the business understand the effect of different variables of specific dependent variables of interest.
The company will be able to build their decision based on the findings of this report to appropriately serve the customers in Phoenix area by understanding their customers better.
- Descriptive statistics
The following variables were selected for this analysis.
VARIABLES: income, sex, internet hours, petowner, weable, political, homo marry, religious, facebook, nextgen, companies, banks, science tech, USETECH, issues, degree, tvhours, careself, age, emailhrs, CINTV. There were a total of 500 respondents. 499 provided their age where the mean age for the sample population was 52.27, median of 50.00, and mode 42.0. The maximum and minimum age among the respondents was 102 and 9 respectively. Out of the 500 respondents, 274 were female while 226 were female representing 54.8% and 45.2% respectively. The maximum and minimum income was 383 and 250000 dollars respectively with min home income of 60752.71.
RESPONDENTS SEX
Cumulative
Frequency Percent Valid Percent Percent Valid FEMAL 274 54.8 54.8 54.8 E MALE 226 45.2 45.2 100.0 Total 500 100.0 100.0 Most of the respondents 40% were moderately religious followed by those without religious affiliation at 24.3%. Table 2 shows the frequency of religious affiliation.
R CONSIDER SELF A RELIGIOUS PERSON
Cumulative
Frequency Percent Valid Percent Percent Valid VERY RELIGIOUS 71 14.2 14.3 14.3 MODRTE RELIGIOUS 199 39.8 40.0 54.3 SLIGHT RELIGIOUS 106 21.2 21.3 75.7 NOT RELIGIOUS 121 24.2 24.3 100.0 Total 497 99.4 100.0 Missing DONT KNOW 2 .4 NA 1 .2 Total 3 .6 Total 500 100.0 A larger number of respondents were affiliated with Democratic and independent party, 40.9% and 40.2% respectively. Table 3 shows political affiliations.
POLITICAL PARTY AFFILIATION
Cumulative
Frequency Percent Valid Percent Percent Valid Democrat 203 40.6 40.9 40.9
Valid Independent 201 40.2 40.5 81.5 Republican 80 16.0 16.1 97.6 Other party 12 2.4 2.4 100.0 Total 496 99.2 100.0 Missing NA 4 .8 Total 500 100.0 Table 4 shows percentage of highest degree each respondent had. Most respondents (55.1%) were bachelors degree holders.
THE HIGHEST DEGREE R HAVE EARNED
Cumulative
Frequency Percent Valid Percent Percent Valid ASSOCIATE'S 16 3.2 13.6 13.6 BACHELOR'S 65 13.0 55.1 68.6 MASTER'S 27 5.4 22.9 91.5 MBA 2 .4 1.7 93.2 LAW 2 .4 1.7 94.9 PHD 4 .8 3.4 98.3 MD 2 .4 1.7 100.0 Total 118 23.6 100.0 Missing IAP 382 76.4 Total 500 100.0 A larger number of respondents agreed (61.4%) that science and technology was necessary and should be supported by federal government.
SCI RSCH IS NECESSARY AND SHOULD BE SUPPORTED BY
FEDERAL GOVT
Cumulative
Frequency Percent Valid Percent Percent Valid Strongly agree 69 13.8 27.7 27.7 Agree 153 30.6 61.4 89.2 Disagree 19 3.8 7.6 96.8 Strongly disagree 8 1.6 3.2 100.0 Total 249 49.8 100.0 Missing IAP 239 47.8 DONT KNOW 10 2.0 NO ANSWER 2 .4 Total 251 50.2 Total 500 100.0 There was mixed attitude among respondent regarding self care among individuals in need.
THOSE IN NEED HAVE TO TAKE CARE OF THEMSELVES
Cumulative
Frequency Percent Valid Percent Percent Valid Strongly Agree 8 1.6 2.4 2.4 Agree 68 13.6 20.4 22.8 Neither Agree nor 82 16.4 24.6 47.4
Disagree Disagree 131 26.2 39.3 86.8 Strongly Disagree 44 8.8 13.2 100.0 Total 333 66.6 100.0 Missing IAP 164 32.8 DONT KNOW 2 .4 NO ANSWER 1 .2 Total 167 33.4 Total 500 100.0 More than half of the respondents 51.5% had confidence in banks and financial institutions.
CONFID IN BANKS & FINANCIAL INSTITUTIONS
Cumulative
Frequency Percent Valid Percent Percent Valid A GREAT DEAL 35 7.0 10.2 10.2 ONLY SOME 176 35.2 51.5 61.7 HARDLY ANY 131 26.2 38.3 100.0 Total 342 68.4 100.0 Missing IAP 155 31.0 DK 3 .6 Total 158 31.6 Total 500 100.0 There was a small number of respondents who had confidence in television with most having no confidence in television.
Confidence in television
Cumulative
Frequency Percent Valid Percent Percent Valid A GREAT DEAL 80 16.0 16.2 16.2 ONLY SOME 177 35.4 35.8 51.9 HARDLY ANY 238 47.6 48.1 100.0 Total 495 99.0 100.0 Missing DK 4 .8 NA 1 .2 Total 5 1.0 Total 500 100.0 Most of the respondents 35.6% spend more than 3hour watching TV per day. With only a few spending less than 6 hours watching TV per day. The mean hours per day watching TV among the respondents was 3.32 and the mode was 2.87. The mean email hours per week among the respondents was 3 hours, the mode was 4, and median was 6.33 hours. The mean of hours spend on internet was 14.37 hours and mode of 18.0 hours. Mean percentage of time respondents used technology was 51.66% technology with most spending 50% of their time with technology. Most of the respondents had excellent and good ability to use the internet with only less than 100 having poor to very poor ability of using internet.
R's ability to use internet
Cumulative
Frequency Percent Valid Percent Percent Valid Excellent 125 25.0 25.0 25.0 Good 171 34.2 34.2 59.2 Fair 115 23.0 23.0 82.2 Poor 59 11.8 11.8 94.0 Very poor 30 6.0 6.0 100.0 Total 500 100.0 100.0 More than 70% of the respondents had and understanding of the issues facing the country while only 2.5% of the sample population did not understand issues facing the country.
UNDERSTAND ISSUES FACING COUNTRY
Cumulative
Frequency Percent Valid Percent Percent Valid None 4 .8 2.5 2.5 A little 33 6.6 20.6 23.1 Some 69 13.8 43.1 66.3 Quite a bit 42 8.4 26.3 92.5 A great deal 12 2.4 7.5 100.0 Total 160 32.0 100.0 Missing IAP 333 66.6 DON'T KNOW 5 1.0 No answer 2 .4 Total 340 68.0 Total 500 100.0 More than 89% of the sample population disagreed with the fact that science and technology gives more opportunities to the next generation. SCIENCE & TECH. GIVE MORE OPPORTUNITIES TO NEXT
GENERATION
Cumulative
Frequency Percent Valid Percent Percent Valid Strongly agree 5 1.0 2.0 2.0 Agree 21 4.2 8.5 10.5 Disagree 144 28.8 58.3 68.8 Strongly disagree 77 15.4 31.2 100.0 Total 247 49.4 100.0 Missing IAP 240 48.0 DONT KNOW 12 2.4 NO ANSWER 1 .2 Total 253 50.6 Total 500 100.0 51.2% of the respondents visited Facebook once a day. While less than 10% hardly visited the social media. About how often do you visit or use Facebook ?
Cumulative
Frequency Percent Valid Percent Percent Valid Several times a day 134 26.8 26.8 26.8 About once a day 256 51.2 51.2 78.0 A few times a week 66 13.2 13.2 91.2 Every few weeks 11 2.2 2.2 93.4 Less often 21 4.2 4.2 97.6 Never 12 2.4 2.4 100.0 Total 500 100.0 100.0 344 respondents (68.8%) of the respondents owned pets. ARE YOU CURRENTLY A PET OWNER?
Cumulative
Frequency Percent Valid Percent Percent Valid YES 344 68.8 68.8 68.8 NO 156 31.2 31.2 100.0 Total 500 100.0 100.0 Reliability test was conducted using Cronbach’s analysis on three variables; confidence measures of banks, tv, and major companies subscales. Findings revealed that alpha level of the subscale to be .58 suggesting adequate level of inter item reliability. Further analysis suggested that deleting any the items would result to insignificant Cronbach’s subscale alpha.
- Test of Difference
Independent sample t-test 1: Statistical difference between means of female and male respondents on income
Independent sample t-test is one of the statistical procedures to compare the means of two independent groups to determine significance difference between them. This independent sample t-test tested the difference in means of home income between the two distributions. The following variables were used.
Independed variable: sex
Dependent Variable: income The null hypothesis for this test was that the distribution of income between male and female was significantly different. According to the results, there were 254 female and 214 male respondents. The mean income for the female respondents was 55004.83 dollars while the mean income for male participants was 67574.95 dollars which is slightly higher than that for female. The standard deviations were also different. The results according to the p value>.05 suggests that there was significant difference in the means. However, further analysis of the sig value for two tailed test suggests that p value<.05 which corresponds to the F value suggests that there was no significant difference in the means of the two groups. However, results in the 95% confidence interval of the difference suggests that there are chances that the means could be significantly similar for the two distributions. Therefore, the null hypothesis was acceptable and the test was significant. Therefore, the final conclusion from the results is that sex of the customer does not affect home income.
Independent sample t-test 2: Statistical difference between means of petowner respondents on internethrs
This t test compared the mean difference in the hours spend on the internet between respondents who owned pets and those who did not with the assumption that the mean between the two groups was the same.
Independent variable: petowner
Dependent variable : internet_hrs
The results indicate that the mean internet hours of those who did not own a pet was slightly below those who owned a pet by 0.45. However, the p value was .83 >.05 which suggested that the variance in the means between the two groups was the same. Further analysis of the sig value with respect to the F statistic also confirms that the test was significant and that there was no significant difference between the means of internet hours for the two groups. The results therefore, informs that owning or not owning a pet does not affect the hours one spends on the internet per week.
One way ANOVA
Test 1: Difference in means emailhr, HRS2, and USETECH by WEBABLE
One way ANOVA compares the means of dependent variables on groups of independent variable. Therefore, this one way ANOVA tested the difference in means of ability to use technology against percentage of time respondents use technology, email hours, and working hours per week.
IV: webable
DV: USETECH, emailhr, HRS2 The results suggested the test was significant F=.180, 1.549, 1.361 for emailhrs, HRS2, and USETECH, p>.05. The results suggests that there was no significant difference among the different groups based on their email hours per day, work hours per week, and percentage use of technology according to their ability to use technology. Therefore, one’s ability to use technology does not determines their ability to use email, working hours per week, and percentage of time they will use the technology.
Test 2: Difference in mean homo_marry, care_self by political
IV: political
DV: homo_marry and care_self The results suggested that the test was not significant p<.05 for both groups. This implies that there was no significant difference in the means of people who advocated for homosexual marriage and attitude on self-care according to their political affiliation. Therefore, political different opinions regarding self-care and homosexual marriage differ between different people based on their political affiliations.
- Bivariate Correlations
Correlation 1: relationship between religious, facebook, and nextgen
The results suggests that there significant negative correlation between those who considered themselves religious and frequency of visiting facebook (df=496 r=-.054, p>.05) but strong positive correlation between religious and belief that technology would open opportunities for future generation (r=.099, p>.05). There was no significant positive correlation between those who use facebook and the perception that technology will open more opportunity for future generation (df = 499, r=.130, p<.05). Therefore, facebook use could not determine ability to embrace future technology but religion and attitude towards technology could.
Correlation 2: companies, banks, science_rsch
The results show no significant correlation between those with confidence in major companies and those with confidence in banks and financial institutions (df = 337 , r=.00, p<.001). There is significant positive correlation between confidence in major companies and support for science and technology by the government (df = 243, r=.027, p>.05). No significant negative correlation between confidence in banks and support for science and technology from the federal government (df = 246, r=-.146, p<.05). The results means that those supporting major companies and banks and financial institutions advocate for support from federal government towards science and technology.
- Linear Regression
Linear Regression 1: Association bettween USETECH and income, issues, degree
IV: income, issues, degree
DV: USETECH (Only Continous DV variable in the dataset)
The results suggested that the three variables had significant potential to increase the percentage of time using technology (R2=0.88, p>.05, F=1.289). Each of the independent variable could result to 88% change in the percentage use of technology.
Linear Regression 2: Association between USETECH (only continuous variable for DV) and tvhours, CINTV, careself, age
The results suggested that there was significant negative association between the four variables and percentage use of technology (p>.05, R2=.012, F=.980). However, further analysis of Adjt R2=.000 suggests that there is no significant association.
- Conclusion
Based on the analysis results of the dataset with 500 respondents, the first t test results suggested that the potential customers in Phoenix market have no variation in their house income according to sex. The second t test suggested that there was no variation in the hours an individual would spend on the internet per week and the ability to own a pet. The first ANOVA test suggested that one’s ability to use technology does not determines their ability to use email, working hours per week, and percentage of time they will use the technology. The second
ANOVA test suggested that political different opinions regarding self-care and homosexual marriage differ between different people based on their political affiliations. First bivariate correlation showed that Facebook use could not determine ability to embrace future technology but religion and attitude towards technology could while the second revealed that those supporting major companies and banks and financial institutions advocate for support from federal government towards science and technology. The first linear regression analysis revealed that the percentage of time one uses technology can be predicted by their understanding of current issues, home income, and level of higher education. The last regression analysis revealed that attitude towards self-care, confidence in television, age, and hours spend on television.
Therefore, the company should consider source of income, level of education, and ability to use technology while building product lines and shaping their customer service to enhance improved customer relationship in Phoenix market.
