1) The survey analyzed perceptions of and purchasing outcomes from 100 customers of an industrial supplier called HATCO.
2) Customers generally rated HATCO lowest on delivery speed, price level, salesforce image, and service. They rated price flexibility highest. Usage levels and satisfaction were also low.
3) Perceptions of service, delivery speed, and price flexibility correlated most strongly with higher usage levels and satisfaction.
1) The survey analyzed perceptions of and purchasing outcomes from 100 customers of an industrial supplier called HATCO.
2) Customers generally rated HATCO lowest on delivery speed, price level, salesforce image, and service. They rated price flexibility highest. Usage levels and satisfaction were also low.
3) Perceptions of service, delivery speed, and price flexibility correlated most strongly with higher usage levels and satisfaction.
1) The survey analyzed perceptions of and purchasing outcomes from 100 customers of an industrial supplier called HATCO.
2) Customers generally rated HATCO lowest on delivery speed, price level, salesforce image, and service. They rated price flexibility highest. Usage levels and satisfaction were also low.
3) Perceptions of service, delivery speed, and price flexibility correlated most strongly with higher usage levels and satisfaction.
Shindung SURVEY DATA CONTEXT The Hair, Anderson, and Tatham Company (HATCO) is a large industrial supplier. The data used in this report comes from a survey of 100 HATCO customers that were collected through an established marketing research firm. The dataset consists of 100 cases 14 separate variables, classified into three main groups; namely: (1) The perception of HATCO on seven attributes identified in past studies as the most influential in the choice of suppliers. The respondents, purchasing managers of firms buying from HATCO, rated HATCO on each attribute. (2) The actual purchase outcomes, either the evaluations of each respondent's satisfaction with HATCO or the percentage of his or her product purchases from HATCO. (3) The general characteristics of the purchasing companies (e.g., firm size, industry type). The Variables and Questions on the HATCO Company Data Customers’ Perception on 7 Purchaser Variable Values Questions for Describing the Data Company Attributes Characteristics (0 to 10 scale) X8 Size of firm 1=large, and 0=small 1) What is the profile of the product X1 Delivery speed X11 Specification 1= total value analysis purchasers of HATCO as to the X2 Price level buying- approach, following characteristics? Size of 0=use of specification firm , Specification buying, X3 Price flexibility buying Structure of procurement, Type of X4 Manufacturer's image X12 Structure of 1=centralized procurement procurement, industry they belong and Type of X5 Service- buying situation 0=decentralized X6 Salesforce's image procurement X7 Product quality- X13 Type of 1=industry A 2) What are the typical responses of the industry 0=other industries respondents on their perceptions of X14 Type of 1=new task HATCO company attributes? How do Purchase Outcomes buying situation 2=modified rebuy their responses vary? 3=straight rebuy X9 Usage level (0 to 100%) 3) Are their relationships between their X10 Satisfaction level (0 to 10) perceptions of HATCO and their actions toward HATCO (purchases and satisfaction). ANSWER TO QUESTION 1. Table 1.Profile of Product Purchasers of HATCO Based On Firm Characteristics Firm Size Firm Characteristics Small Large Total No. Percent No. Percent No. Specification on Buying Specification Buying 0 0.0 40 100.0 40 Total Value Analysis 60 100.0 0 0.0 60 Structure of Procurement Centralized 10 16.7 40 100.0 50 Decentralized 50 83.3 0 0.0 50 Type of Buying Situation New Task 10 16.7 24 60.0 34 Modified Rebuy 16 26.7 16 40.0 32 Straight Rebuy 34 56.7 0 0.0 34 Type of Industry Firm Type 1 30 50.0 20 50.0 50 Firm Type 2 30 50.0 20 50.0 50 Total 60 60 40 40.0 100 PROFILE OF PRODUCT PURCHASERS OF HATCO ANSWER TO QUESTION 2 Table 2. Descriptive Summary Measures of HATCO Customers’ Perceptions on Company Attributes (Scale from 0 to 10)
Company Attributes Lowest Rating Highest Rating Mean Std. Deviation
ANSWER TO QUESTION 3 Table 3. Relationships Between HATCO Customers’ Perception On Company Attributes and Purchase Outcomes (Usage and Satisfaction Levels) Pearson Correlation Values HATCO Company Usage Attributes Level Satisfaction Level Delivery Speed 0.676 0.651 Price Level 0.082 0.028 Price Flexibility 0.559 0.525 Service 0.701 0.631 Salesforce Image 0.256 0.341 Manufacturer 0.224 0.476 Image Product Quality -0.192 -0.283 INTERPRETATIONS AND RECOMMENDATIONS •The profile of the survey respondents show that there are more HATCO customers from small firms (60%) than from large firms. It is recommended that HATCO intensifies their product promotion to supply for large firms. •HATCO’s customers’ perception on the 7 attributes are quite low in a scale from 0 to 10 with the highest mean rating of 7.89 on Price Flexibility, but other attributes like Service, Salesforce Image, Price Level and Delivery Speed are quite low. Customers’ usage and satisfaction levels are also quite low. It is recommended that HATCO must improve in these attributes with low ratings. INTERPRETATIONS AND RECOMMENDATIONS •There is a moderately strong relationship between respondents’ perception of HATCO’s service, delivery speed and price flexibility on their firm’s usage level and satisfaction level. •This supports the recommendations earlier for HATCO to improve in these areas of service, salesforce image and delivery speed through intensifying supervision, performance evaluation and professional development of staff.