Question

1\ The Excel file HATCO1 consists of data related to predicting the level of business (Usage Level) obtained from a survey of purchasing managers of customers of an industrial supplier, HATCO. The following are the independent variables.

• Delivery Speed—amount of time it takes to deliver the product once an order is confirmed.

• Price Level—perceived level of price charged by product suppliers.

• Price Flexibility—perceived willingness of HATCO representatives to negotiate price on all types of purchases.

• Manufacturing Image—overall image of the manufacturer or supplier.

• Overall Service—overall level of service necessary for maintaining a satisfactory relationship between supplier and purchaser.

• Sales Force Image—overall image of the manufacturer’s sales force.

• Product Quality—perceived level of quality of a particular product.

• Size of Firm—size relative to others in this market (0 = small; 1 = large) .

Responses to the first seven variables were obtained using a graphic rating scale, where a 10‐cm line was drawn between endpoints labeled “poor” and “excellent.” Respondents indicated their perceptions using a mark on the line, which was measured from the left endpoint. The result was a scale from 0 to 10 rounded to one decimal place.

1) You have been asked to analyze these data. Your analysis should include a descriptive summary of the data using appropriate charts and visual displays, recommendations on whether any interventions are necessary based on the benchmark targets, whether any differences exist between firm size and customer ratings, and between firm size and usage level. Use appropriate hypothesis tests to support your conclusions and summarize your findings in a formal report to the Vice President of Purchasing.

2) Using the tools in this chapter 6 and 7 (regression and forecasting), conduct a complete analysis to predict Usage Level. Be sure to investigate the impact of the categorical variable Size of Firm (coded as 0 for small firms and 1 for large firms) and possible interactions. Also stratify the data by firm size to account for any differences between small and large firms. Write up your results in a formal report to HATCO management.

Answer 1