Management 3220Y
Marketing Research
SPSS Assignment
Objectives
As the group project requires a statistical analysis of the collected data it is essential that you
are familiar with SPSS and are able to both choose the right statistical techniques for the
project and interpret the results correctly. This assignment, worth 10% of the final grade, is
designed to provide experience in doing this before applying the techniques to the group
project data.
Assignment
The assignment involves answering questions based on a survey conducted by DuPont
Textiles and Interiors about designer carpets. The survey questions are reproduced below
and the raw data is provided in an SPSS database on the class web site. Read the background
to the case and answer the questions that follow.
Dupont Background
Based in Wilmington, Del., DuPont delivers science-based solutions for markets that
make a difference in people's lives in food and nutrition; health care; apparel; home and
construction; electronics and transportation. DuPont Textiles and Interiors (DTI) became
an independent, wholly owned subsidiary of DuPont in February 2002, making it the
largest integrated textile fiber and interiors company in the world, with approximate
annual revenue of $6.5 billion and 22,000 employees, operating in 50 countries.
DTI continually tracks the requirements of its consumers and their changing life styles
etc. and is constantly looking for innovation. It has an annual research and development
budget of $170 million.
DTI was wondering whether carpets could move “uptown” into the fashion-oriented
world typically associated with clothing and furniture and was searching for new ways to
expand in a slow growth market. In addition to the residential segment of the market, DTI
needed a way to differentiate its nylon fibre carpets from increased competition including
the strong challenge of Amoco’s new polypropylene fibre carpets.
The carpet industry can be divided into three end-use segments: commercial carpets for
offices, hospitals, hotels, schools government facilities, and industrial sites; contract
residential carpets for large residential purposes like apartment complexes or
subdivisions; and residential carpets for homes. Of this latter segment, DTI estimated that
30% of carpet sales were from new residential construction, and the other 70% were from
replacement purchases. In addition to different end use segments, each segment’s
consumers were quite different from the other segment’s consumers and each segment
was serviced through different channels. Commercial carpets were typically bought by
designers or by the contractor who typically focused on price and durability. The
residential segment differed for the other two because the purchaser was the end user.
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Typically, the woman of the house purchased carpeting from a retail outlet in order to
create the atmosphere she wanted in the home. In a recent trade journal, carpet industry
experts stated that retail sales are an important and effective component of the retail
environment.
Ninety-seven percent of all carpeting is produced from synthetic fibres derived from
petroleum. The leading fibre in the industry has been nylon, which was invented by
DuPont in the 1930s. Though the leader in the industry, DuPont was challenged by other
high-quality nylon producers, like Monsanto, Allied, BASF, and a host of generic lowend fibre producers. DTI has 27% of the global nylon market and 58% of the nylon-6/6
market (the most advanced nylon fibre). Fibre producers sell their output to carpet mills,
which then produce the carpeting. Until the 1980s, competition in the residential
segment was based on the technical qualities of the fibres, mill price of fibre, and
reliability in shipping – none of which directly affected the consumer. As such, the
industry tended to be very production oriented.
In the early 1980s, a giant breakthrough benefiting the consumer emerged – stainresistant carpets. By applying a chemical coating to the carpet fibre during production,
the carpet was protected from permanent staining arising from most household soiling
agents. Stains could be wiped off the carpet, thus alleviating the concern many people
had about entertaining or “living” on their carpet. The four major fibre producers quickly
announced their versions of the stain-resistant carpets in an effort to remain competitive.
Amoco also got into the game when it announced a “new revolution in carpeting,”
carpets made from polypropylene (PP) fibres rather than nylon. As a fibre PP is
inherently stain resistant. Thus, it offered the best overall protection from stains and it
cost les to produce than nylon. However, it did not accept dyes as readily as nylon, nor
was it as soft to the touch, thus making it less fashionable. As such, PP initially had
difficulty entering the residential market segment, but was well received by the
commercial segment. Approximately 24% of the total US carpet fibre is PP.
In the mid-1980s, technical advancements in dyeing allowed Amoco to seriously compete
in the residential segment. Amoco’s objective was to lead the introduction of PP fibres
into the residential market. DuPont, desiring to be the unquestionable leading fibre
producer in the residential segment, relied more on marketing than other companies. It
seemed to sense the threat of PP toward nylon fibres when it purchased Hercules Fibres, a
large PP extruder. However, DuPont believed that nylon was still the fibre for residential
carpets and was bent on letting the consumer cast the deciding vote.
Dupont believed it could use its well-respected company name to attract consumers. As
such, Dupont created the first fibre producer-backed carpets. DuPont Stainmaster
carpets, which carried a guarantee backed by DuPont on stain resistance, wear, and
antistatic, and was branded as a DuPont carpet. The results of the program were highly
successful, with DuPont creating high brand recognition among consumers, the first time
this had ever been achieved by a fibre company, thus differentiating it from the other
fibre producers. DuPont took its Stainmaster carpet business and converted it to a
premium carpet brand by increasing prices and reducing its distribution channels. Dupont
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spent over $10 million on television advertising beginning in 1995. A survey conducted
by Video Storyboard Tests Inc., rated the DuPont Stainmaster television commercial the
fourth “most popular television commercial.” Based on its success with DuPont
Stainmaster, the industry leader decided to forge new ground.
For most of its history, the residential segment had typically been the most blasé segment
of the carpet market. Styles tended to be simple, colours passive, and features uniform
across all competitors in the industry. Technically, industry players maintained that
differences did indeed exist, but in the words of one industry analyst, “The differences
were there in style and fibre quality, but the housewife out shopping for carpet didn’t
really know or care – she only liked what she could see and feel”. As such, Dupont
wondered if styles and designs so popular in the commercial segment could be
transferred to the residential segment. Was the average household willing to make
carpeting more than just a backdrop to other furnishings? If the program was successful,
it would mean further differentiation from other nylon fibre producers by creating a new
segment based on fashion and status for residential carpets; increasing brand awareness
among consumers for DuPont (resulting in increased demand for DuPont fibres); and
bringing in anew dimension to residential sales, which would be difficult for PP carpets
to duplicate and would solidify DuPont as the leader in the residential segment.
However, it would be an expensive undertaking, involving a significant amount of
publicity and risking its reputation with its major fibre clients.
In addition, if Dupont were to proceed with the Designer Collection, it would have to
move fast. The largest trade show in the industry – in which the companies announced
their major designs and programs for the coming year – was coming up in three months.
If DuPont wanted the Designer Collection to have maximum impact, it would have to
have carpet samples and promotional materials ready for distribution at the show and its
marketing program in line to begin shortly thereafter. As such, the go-no-go decision
would have to be made within six weeks.
To discover how receptive consumers might be to the Designer Collection, samples were
made up and 240 potential and current carpet owners were surveyed.
Questions
1. What is the management decision problem facing DuPont?
2. What is the marketing research problem facing DuPont?
3. Develop three suitable research questions and hypotheses from the marketing
research problem
4. Develop a codebook for the eight questions in Part A of the questionnaire. (include
column number, variable number and variable name, question number and coding
instructions)
5. Run descriptive statistics and obtain frequency distributions for all the variables. (one line
per question, or sub-question. Note questions that offer a range of responses from 1-7,
should be collapsed into 3 categories.
6. Cross-tab Q3 (is carpeting important?), Q4 (Is carpeting fashionable?), Q5 (is carpeting
central?) and Q6 (Is carpeting durable?) with the demographic variables in Q17 to 21. If
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7.
8.
9.
10.
11.
12.
13.
the results are poor, you may have to regroup variables in order to obtain valid results.
Interpret the results.
Conduct a t-test for each of the seven attributes listed in Q7 (importance ratings of
attributes) by each of the four responses to Q2 (what carpet do you own?). There will be
28 t-tests run. Present the results in summary tables and interpret the results. Note:
Respondents have been coded as either owning or not owning the style of carpet
mentioned in Q2. Thus, the t-tests examine the differences between the owners and nonowners of carpets of a particular style. Here you are trying to determine if a difference
exists between groups along some specified variable (i.e. carpet ownership type), e.g is
stain resistance more important among people who own one color, traditional style carpet
from those who do not
Conduct a t-test for each of the seven ratings listed in Q10 (Ratings of the Designer
Collection) by the response to Q12 (would you purchase Designer Collection?). There
will be 7 t-tests run. Present you results in a table and interpret them.
Do the respondents in the survey attach more importance to stain resistance (Q7a) than
they do to long life (Q7b). Formulate the null and alternative hypotheses and prescribe
an appropriate statistical test.
Do the respondents in the survey attach more importance to price (Q7e) than they do to
warranty (Q7g). Formulate the null and alternative hypotheses and prescribe an
appropriate statistical test.
Do those who prefer different styles of carpet (A,B,C,, or D, in Q9e) differ in terms of
their agreement with the four statements of Q13. Conduct the appropriate analysis.
Interpret the results.
Do the different age groups (Q19) differ in terms of their opinions about carpeting as
expressed in Q13? Conduct the appropriate analysis. Interpret the results.
Prepare a report for management that explains your research results and provides an
answer for their management decision problem.
Format
Format should be single-spaced with answers to the questions numbered accordingly. Cover pages are
OK but please no binders or folders. Actual print outs of statistical tables should be kept to a
minimum. The information should be presented in summary tables.
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Carpeting Questionnaire
Part A
Please answer ALL the questions whether or not your household currently has carpeting.
Q1. Does your household currently own carpeting?
a._________ Yes
b._________No
(IF YES GO TO QUESTION 2; IF NO, GO TO QUESTION 7)
Q2. Which of the following styles of carpeting do you have in your home? Please check as
many as apply.
a._____________ one colour, traditional style
c. ______ one colour, fashion style
b._____________ multicolour, traditional style
d. ______ multicolour, fashion style
Q3. Carpeting is an important part of my home (Q3 to Q6)
Strongly Disagree
Neutral
Strongly Agree
1
2
3
4
5
6
7
Q4 Carpeting is a fashion item for my home.
Strongly Disagree
Neutral
1
2
3
4
5
6
Strongly Agree
7
Q5. Carpeting is a central item in the interior design of my home
Strongly Disagree
Neutral
Strongly Agree
1
2
3
4
5
6
7
Q6. It is more important for a carpet to last long than to look pretty
Strongly Disagree
Neutral
Strongly Agree
1
2
3
4
5
6
7
Q7. Suppose your household were to purchase new carpeting. Please rate the relative
importance of the factors you would consider in selecting carpeting on a 1 to 7 scale
where 1 means “not so important” and 7 means “very important”
Not so
Very
Important
Important
a. Stain resistance
1
2
3
4
5
6
7
b. Long Life
1
2
3
4
5
6
7
c. Fashionable
1
2
3
4
5
6
7
d. Matches my furniture
1
2
3
4
5
6
7
e. Price
1
2
3
4
5
6
7
f. Made by a well-known Co 1
2
3
4
5
6
7
g. Warranty
1
2
3
4
5
6
7
Q8. How likely is your household to buy carpeting in the next three months?
Not so likely
Maybe/Maybe not
Very likely
1
2
3
4
5
6
7
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Part B
(show the respondent the samples of designer carpets.)
Q9. Please rate the attractiveness of the designer styles you have just seen on a 1 to 7
scale where 1 means “Definitely Not my Style” and 7 means “Definitely my Style”
Definitely
Definitely
Not my Style
my Style
a. Style A
1
2
3
4
5
6
7
b. Style B
1
2
3
4
5
6
7
c. Style C
1
2
3
4
5
6
7
d. Style D
1
2
3
4
5
6
7
Q9e. Of the Designer Collection carpets you have just seen, which one would you most
prefer in your home? (Check only one)
a. Style A _________
c. Style C _________
b. Style B_________
d. Style D _________
Q10. Please rate the Designer Collection Carpets you have just seen on the following
attributes. Use a 1 to 7 scale where 1 means Very Poor and 7 means Excellent
Very
Very Poor
Excellent
a. Stain resistance
1
2
3
4
5
6
7
b. Long Life
1
2
3
4
5
6
7
c. Fashionable
1
2
3
4
5
6
7
d. Matches my furniture
1
2
3
4
5
6
7
e. Price
1
2
3
4
5
6
7
f. Made by a well-known Co 1
2
3
4
5
6
7
g. Warranty
1
2
3
4
5
6
7
Q11. Do you think it is desirable to have a designer carpet?
a._________ Yes
b._________No
Please Explain
Q12. After viewing Designer Carpets, do you think you would purchase them for your
home?
a._________ Yes
b._________No
Why or why not?
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Part C
Q13. The following statements describe different opinions about carpeting. Please
indicate how strongly you agree or disagree with each statement by using the following
guide.
1 = Strongly Disagree
4 = Neither agree nor Disagree
2 = Generally Disagree
5 = Somewhat agree
3 = Somewhat Disagree
6 = Generally Agree
a.
b.
c.
d.
Strongly
Disagree
Carpeting is primarily a functional item
1
2
I like to be associated with the latest styles
1
2
It is important to buy the best quality
1
2
I am fashionable
1
2
Neither Agree
nor Disagree
3
4
5
3
4
5
3
4
5
3
4
5
6
6
6
6
Strongly
Agree
7
7
7
7
Q 14. Please rank the following colours in your order of preference when buying
residential carpet.
Colour
Rank-order
a. Beige
_______
b. Gold
_______
c. Blue
_______
d. Crimson
_______
e. Green
_______
f. Brown
_______
Q15.
In this section there are several statements about interests and opinions. For each
statement, indicate if you agree or disagree with the statement based on a 7-point scale
where 1 means Definitely Disagree and 7 Definitely Agree.
Definitely
Definitely
Disagree
Agree
a. Magazines are more interesting than television
1
2
3
4
5
6
7
b. All men should be clean shaven every day
1
2
3
4
5
6
7
c. When I must choose between the two, I usually 1
2
3
4
5
6
7
Dress for fashion, not comfort
d. I am a homebody
1
2
3
4
5
6
7
e. A subcompact car can meet my needs
1
2
3
4
5
6
7
f. My friends come to me more than I go
1
2
3
4
5
6
7
To them for advice on clothes
g. I like to buy new and different things
1
2
3
4
5
6
7
h. I often wish for the good old days
1
2
3
4
5
6
7
i. It is important for me to feel attractive to others 1
2
3
4
5
6
7
j. I don’t like to take chances
1
2
3
4
5
6
7
k. I get personal satisfaction from using cosmetics 1
2
3
4
5
6
7
7
Q16 Please answer the following questions as they relate to the way in which you have
answered this questionnaire
a. How interested were you? Not so interested
Very Interested
1
2
3
4
5
6
7
b. How committed were you? Not so committed
Very Committed
1
2
3
4
5
6
7
c. How much effort did you use Not much effort
Much Effort
1
2
3
4
5
6
7
d. How motivated were you?
Not so motivated
Very Motivated
1
2
3
4
5
6
7
Did this questionnaire lead you to No change
A lot of change
Change your views on carpeting
1
2
3
4
5
6
7
Part D
Q17. Your Gender
a. Male____________
Q18. Marital Status
a. Married _______
_______
Q19. Your Age
a. 18-24 _______
b. Female____________
b. Never Married _______
b. 25-40 _______
c. Divorced/Separated/Widowed
41-60_______
Q20. Your Formal Education
a. less than high school
_______
b. High School graduate
_______
60+_______
c. Some College
d. College graduate
_______
_______
Q21. Which of the following is your principle dwelling?
a. House _______ Condominium_______ Apartment_______ Trailer _______
Q22. What is your zip code? _____________
Q23. What is the approximate combined annual income of your household before taxes?
a. $10,000 or less _______ c. $30,001-50,000_______ e. $90,001 – 150,000_______
b. $10,001–30,000 _______ d. $50,001-90,000_______ f. $150,001 and over_______
Thank you for your participation.
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