QUANTITATIVE

METHODS

Ashutosh
Naik(PGP/22/345)

Rahul Soren
(PGP/22/372)

Sania Sawant
(PGP/22/376)

Sharon Soreng
(PGP/22/380)

Shikha Netam
(PGP/22/382)

Analyzing the factors affecting the Customer Satisfaction and the Sneha
Shinde(PGP/22/386)
Performance0of the Institute’s Laundry
Chinmayee
Behera(PGP/22/418)
 Table of Contents
S.no. Topic Page
1 Title of Project 2
2 Introduction 2
3 Source of Data 3
4 Objectives 3
5 Data Presentation 4
6 Data Analysis 9
7 Summary and Conclusion 12

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 Title of Project
Forecasting the Student Demand for Laundry Services at IIM-K and its Implications for the
Profitability of its sole Laundry Service Provider

Introduction
In the hectic and restless routine at IIM-K, management students hardly find time to wash their
clothes. Even if they wash, ironing them is impossible because as per the institute rules electrical
appliances are not allowed. In addition to this we can’t escape dry cleaning of our formal suits
and blazers. Amma Laundry (situated adjacent to E hostel) plays a crucial role in providing these
quality services. We thus wish to gauge the viability and scope of improvement for this business
through data analysis.

The working days are from Monday to Saturday between 11 am and 5 pm. Its major source of
revenue includes mainly the two PGP batches of total 800 IIM-K students. The time to
delivery/collection of clothes is 2-3 days.

Goal
The main objective of our project is to study the service pattern availed by the students and their
expenditure on laundry services. We further wish to extend the problem statement to include the
profitability trend of the laundry service provider in concern.

Research Methodology
The data required for this project can be obtained from two sources:

 Customers: IIM-K students (Population size: 800) will be interrogated using a Google
Form regarding the quality and timeliness of the laundry services availed by them.
 Laundry Service Provider: We plan to construct an estimate of the financial statements of
the laundry based on the student demand for its services. Interviewing the owners as well
as the workers will give us an idea of any hardships faced in service delivery and the
anticipated quality of service provider.

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 Source of Data

A Google form was floated amongst the students asking them about their clothes cleaning
pattern from the laundry in the campus
Secondary data was collected from visiting the laundry and noting the data from the bill books
of the laundry
We entered the data that was received from the different sources into excel and performed
multiple tests like Regression and Chi-square test to make sense out of it

Objective
The objective of this project is to analyse the pattern of students giving laundry and its relation to
the factors such as hostel, frequency of visit in month, preferred day of visit number, types of
clothes, number of clothes per set, average expenditure and the rating given by the customers.

The data is also analysed using the following

 Correlation
Correlation testing is done to check whether the variables are correlated and the number of
variables that are actually responsible for manipulating the output

 Hypothesis Testing
To check whether the null hypothesis is rejected or not by the alternate hypothesis with
respect to the Laundry data that was received

 Frequency distribution
Areas where the maximum output generally observed and the spread of the data

 Consistency matching
To check whether the expected data received is matching with the observed data or not

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 Analysis

Data Presentation
Level of Satisfaction

It is found that majority of the students visiting the laundry are mostly satisfied with the laundry service.

Hostel

In order to determine how location of the hostel can affect laundry visits, we carried out the following
analysis:

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Here, we can observe that we have maximum representation from D, F, G and J hostels as compared to
other hostels, since they are closer to the laundry. Hence, students from these hostels choose to go
more often to the laundry due to ease of the visit.

Prefered Day of Visit

Students preffered to go to the laundry mostly on Fridays and Saturdays as they have more time
available during the weekend to clean up and visit the laundry as compared to weekdays.

5
Average Expenditure per Month

This parameter gave the following results as shown:

Majortiy of the students spend between Rs. 200 – 300 on an average per month on laundary. This
amount is dependant on varoius other factors like – Type of Clothes, Number of Clothes per Set,
Frequency of Visit and Type of Service Availed, which are discussed further in detail.

Type of Clothes

Due to certain obligations that MBA life presents, the following results were obtained:

Students gave more number of formals to the laundry as compared to other clothing because formals
are more delicate are require professional care and handling. Whereas, students can easily wash casuals
and other laundry items using the washing machines provided in the hostels itself at their own disposal
and leisure.

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Number of Clothes per Set

From the above results, it is observed that students on an average gave around 8 – 12 clothes to the
laundry.

Frequency of Visit

Visiting the laundry twice to thrice a month is observed to be most optimal frequency adopted by
students. This is in coherance with the generally accepted lifestyle patterns of student life, where most
students have “just enough” clothes to wear and repeat for two - three weeks, before the situation
worsens.

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Type of Service Availed

Wash + Iron is the most common type of service chosen by students, which is optimal not just from the
ease point of view, but also in terms of monetary benefits and time constraints. Wash and Iron
individually cost Rs.5 and Rs.6 respectively, whereas Wash + Iron together costs Rs.10, thereby providing
an incentive to students.

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Data Analysis

Regression Analysis:

The survey floated in the campus covered a sample size of 135 students. The objective of the project
being to streamline the laundry processes, the focus is primarily on relating the delay in service and
customer satisfaction to the kind of service provided.

Customer Satisfaction:

It was essential to determine what the customer satisfaction of the laundry customers depended upon.
The factors considered were:

a. Proximity to the laundry: Relative Proximity out of 100

b. Type of items given for laundry: Categorical Variable considering 1 for Formals, 0 for no formals
c. Type of service availed: Categorical Variable considering 1 for Ironing Services, 0 for no Iron
d. Volume of service availed: Number of Visits per Month * Clothes per visit
e. Delay in service: Additional days taken for service delivery
Above methods were used to convert categorical variables into quantifiable parameters.
The following results were obtained through regression analysis of the survey data.

Hostels Relative Proximity to the Laundry

A 70
B 70
D 85
E 100
F 90
G 100
H 50
J 80
K2 65
L1 60
L2 60
Q 55

The relative proximity of all hostels from the laundry is calculated for using it as a parameter in
regression analysis.

Column1 Coefficients Standard t Stat P- Lower Upper

Error value 95% 95%
Intercept 1.769 0.580 3.04 0.002 0.62 2.91
Female 0.2569616 0.19875968 1.2928 0.1984 -0.1363 0.65
Iron 0.750 0.3590 2.09 0.0385 0.04 1.460
Formals 0.66 0.3319 2.00 0.047 0.0078 1.321
Proximity 0.00321 0.007 0.451 0.6522 -0.01087 0.0173

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 Service Availed (Volume) 0.009167 0.005313 1.725 0.0868 -0.001345 0.01968
Delay in Service (if any, -0.03514 0.04520 -0.777 0.4383 -0.1245 0.0543
in days)

Following conclusions could be deduced from the above results:

a. Availing Ironing services resulted in more customer satisfaction than only washing. The
coefficient is within 95% confidence interval.
b. Proximity to the laundry also positively affected customer satisfaction. The p-value of this
coefficient is too high. Thus, the coefficient is not within 95% confidence interval.
c. Customers using the service for formals have more satisfaction than those for only casuals. The
coefficient is within 95% confidence interval.
d. Customers availing larger volumes of service have more satisfaction. The coefficient is within
90% confidence interval.

Chi-Square Test for Hypothesis Testing:

The expected delay in service is found out through personal interview with the laundry owners. Through
the interview, an insight into the acceptable delay in service from the laundry’s perspective was gained.
We then performed a Chi-square test to determine whether the laundry is performing as per
expectations within 95% confidence interval.

Hypotheses of the Chi-square test:

H0: Delay in service is within our expected limits.
Ha: Delay in service is not within our expected limits.

Frequency Observed Value Expected Value Chi-square

0 66 108 16.33333333
1 24 13.5 8.166666667
2 30 6.75 80.08333333
3 4 4.05 0.000617284
4 3 2.7 0.033333333
104.617284

Five Categorical Variables of frequency ranging from 0 to 4 were considered since frequencies greater
than 5 were not even expected by the laundry and hence considered to be exceptional cases. Thus
number of degrees of freedom was 5.

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 Chi-Square Distribution Table:

Considering degree of freedom equal to 5 and Chi-square value of 104.62, using the Chi-square
distribution it can be said that the p-value of the sample lies in the critical region within greater than
99% confidence interval. Thus it can be concluded that the observed delay in service provided deviates
from the delay expected by the service provider. We REJECT the null hypothesis.

Given that the service is not delivered within time as planned, the laundry must look into the operations
aspect of its service and must plan service delivery as per varying demand.

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 Summary and Conclusion
From the regression analysis it was concluded that customer satisfaction was affected by factors
like the type of laundry items, type and volume of laundry service availed, proximity to the
laundry and delay in service delivery. Except for delay in service, customer satisfaction was
positively affected by all the other parameters. Customers availing ironing services tend to get
more satisfied than those who do not. From the Chi-square test, it was concluded that the
observed delay in service delivery deviated from the expected delay. It is thus noted that the
laundry was not delivering its services as planned. In order to get the services within planned
levels of service delivery, it is essential for the laundry to focus on its efficiency. To further
enhance the customer satisfaction, it will necessary for it to increase its ironing services.

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