Hypothesis testing:

1. To test hypothesis whether overall customer loyalty rating at the stores are good or
poor.

H1: Overall customer loyalty level rating at the stores is poor.

One sample t-test is used with α=.05 and confidence level at 95%, df = 99, t-3.

One-Sample Statistics
Std. Error
N Mean Std. Mean
Deviation
Overall 125 2.45 1.009 .101
satisfaction
/loyalty

One-Sample Test
Test Value = 3
95% Confidence
Interval of the
Sig. Mean Difference
t df Differenc Lower Upper
(2- e
tailed)
Overall -5.452 99 .000 -.550 -.75 -.35
satisfaction
/loyalty

Here, critical t=3 indicates customer loyalty rating is neutral, mean is 2.45 which is
less than 3. significant value of the sample population is less than
.05, ie.0.000.
Hence, null hypothesis is accepted and alternate hypothesis is rejected which conclude to say that overall
customer loyalty rating is very poor.

2) To test hypothesis whether customer service is a key attribute in consumer’s buying

decision making or not.

H2: Customer service is not a key attribute in consumers’ buying decision

making.

One sample t-test is used with α=.05 and confidence level at 95%, df = 99, t-3.
 One-Sample Statistics
Std. Std. Error
N Mean Deviatio Mean
n
Buying decision 125 4.05 .903 .090
making based on
Value added services.

One-Sample Test
Test Value = 3
95% Confidence Interval
Sig. Mean of the Difference
T df Differenc Lower Upper
(2- e
tailed)
Buying decision making 11.626 99 .000 1.050 .87 1.23
based on value added
services.

The above result shows that, the mean value 4.05 is greater than test value=3. The
significance value of the output, 0.00 is lesser than the tested significance level at 0.05.

Hence, null hypothesis is rejected and alternative hypothesis is accepted.

1. H3: Loyalty of customers is independent of their satisfaction level.

Descriptive Statistics
Std.
N Mean Deviatio Minimum Maximum
n
Loyalty, if 125 1.23 .446 1 3
value added
service level is
good

The observation says,mean value is 1.23 and also the observed significance value of 0.000 is
lesser than tested significance value at α=0.05. Hence, null hypothesis is rejected and
alternative hypothesis is accepted.

It can be concluded by saying that retailers should take steps to increase customer satisfaction
level in order to attain their loyalty which have higher chances of leading to increased sales
and profit.