FOR DENNISWRIGHT - Revision to Inferential Statistics document

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INTRODUCTION

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MOCKING DATA

  • Dependent variable: Coffee drinkers
  • Independent variable: frequency of drinking coffee and the amount of customers that were satisfied

The data variables was mocked into both depend and independent variables. The dependent variable (response) is coffee drinkers while the depend variables is the total frequency of drinking coffee from the coffee restaurants.

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SUMMARY OF DESCRIPTIVE STATISTICS

  • 100 coffee drinkers that were surveyed in a week.
  • Average customer drinks in a week is 10.35 cups.
  • The mode was 21cups of coffee.
  • The median is eight cups per customers.
  • The standard deviation is 7.663
  • Using a 95% confidence interval level was -4.699. The parameter lies within -4.699.

A total of 100 coffee drinkers were surveyed for a week. The number of cups of coffee that was consumed during the week were 1035 and thus the average coffee consumption per customer was 10.35 cups for the whole week. Most consumers consumed 21 cups of coffee over the week. The standard deviation which represents the average deviation from the standard consumption was 7.663. Using the 5% standard error, the study found that the 95% confidence interval for the study was -4.699.

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SUMMARY OF DESCRIPTIVE STATISTICS

  • The customer coffee experience rating sum is 345.
  • The total amount of people surveyed was 100.
  • Mean of the survey was 3.45. The median or middle of the number is 4.
  • The mode or most common of the numbers is 4. The standard deviation is .925
  • The 95% confidence interval level was 1.637.
  • The parameter lies within 1.637.

The customers indicated their experience using a rating scale of between 1 to 5. The total customer coffee experience rating sum was 345. Thus, the mean survey was 100 from the 100 people who were surveyed. The most common rating was 4 and the standard deviation was 0.945. In addition, the 95% confidence interval was 1.637.

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SUMMARY OF THE RESULTS OF TESTING THE NULL HYPOTHESIS

  • Null hypothesis, H0: There is no relationship between customer experiences (DV) and returning customers (IV)
  • Alternative hypothesis, H1: There is a relationship between customer experiences (DV) and returning customers (IV).
  • Since the P-Value< 0.05 hence we rejected H0 and accepted H1.
  • Conclusion: There is a relationship between customer experiences (DV) and returning customers (IV).

The study aimed at investigating the relationship between the customers’ experience and the number of customers returning to the restaurants. The p-value calculated was less than 0.05 and thus we rejected the null hypothesis and accepted the alternative hypothesis.

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STRENGTHS OF THE STUDY

  • Mean, mode, standard deviation, and confidence interval provided, which supported by a histogram, a chart, and raw data
  • The calculations allowed the team to discern if data normally distributed or skewed.
  • It allowed the team to validate the skewers or normal distribution by comparing against the graphs and histograms
  • The team also established a 95% confidence interval

The strengths of the study was the calculation of the mean, mode, standard deviation and the confidence interval that were supported by the charts, histogram scatter plots. These charts and calculations enabled the team to evaluate data and determine if it was normally distributed depending on the skewness. The evaluation of the 95% Confidence interval enabled the team to determine the margin error allowable to determine the interval range of the values

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WEAKNESSES

  • The team needs to go more in depth with discerning the relationship between the two variables presented
  • Data could have been more supportive
  • The team still has to determine if the customer experience impacts the frequency in which customers’ comeback to drink at the Coffee Shop
  • Validity of the hypotheses has not been achieved yet

There were several weaknesses experienced during our study. The team needs to examine in depth the relationship that exists between the two variables in order to make a more conclusive study. In addition, the collected data was inadequate and thus there was need for more supportive data to ensure the validity of the hypothesis is achieved.

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RESEARCH QUESTION

  • Is there a relationship between the frequency of drinking coffee (DV) and the customer experience rating?
  • We sampled 100 coffee drinkers from three different cities
  • Aim: Investigate the relationship between frequency of drinking coffee and customer experience rating

The research question was establishing whether there is any relationship between the frequency of drinking coffee and the customers’ experience. A total of 100 people drinking coffee within three different cities were sampled and their responses in form of rating between one to five indicating their different experiences analyzed.

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ANSWERS TO THE RESEARCH QUESTION

  • From the p-value calculated, we rejected the null hypothesis.
  • we concluded that there is significance relationship between the frequency of drinking coffee and customer experience among the three cities

There was a significance relationship between the frequency of drinking coffee and the customer experience. The answer was concluded after evaluating the sample responses and testing the results against the null and the alternative hypothesizes.

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CONCLUSIONS THAT WERE DERIVED FROM THIS STUDY

  • There is significance relationship between the customer’s experience in drinking tea and the number of returning customers
  • From the scatter plot, we conclude that through relationship is linear.
  • Thus, increase in customers’ experience in drinking coffee will cause him to return to the coffee restaurant

Since the P-value was less than the margin error of 0.05, we rejected the null hypothesis and accepted the alternative hypothesis and concluded that there was a significance relationship between customer’ experience and the frequency of returning customers. To evaluate the nature of the relationship, we used the scatter plot and concluded that the nature of the relationship was positive. Thus, the two variables are positively correlated with moderate degree of strength.

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RECOMMENDATIONS BASED ON THE RESULTS

  • From the results, the relationship between number of customers returning to the coffee restaurants and their experiences is positive.
  • Thus, since customer’s experience from a coffee restaurant determine whether he is likely to return to the restaurant, we recommend that coffee restaurants should enhance the customer’s experience to enhance customer returns and hence increase sales and profits

From the study results, we recommended that since the relationship between the two variables was positive, the coffee restaurant needed to enhance the customers’ experience to ensure more visitors. This is the major strategy that can be used by the coffee restaurants to enhance their sales and hence improve profitability.

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REFLECTION ON THE BUSINESS PROBLEM AND ITS SOLUTION

  • The aim was to investigate the relationship between customers' experience and the number of customers returning back
  • The results sampling involved 100 coffee drinkers from 3 different cities
  • Their responses were consistent with our findings
  • Thus, since customer’s experience influences their frequency of returning to restaurant, it is essential for restaurants to ensure high best customer experiences

The responses from the 100 drinkers who were surveyed in the study were consistent with our findings. Thus, the results were conclusive in arriving at our final conclusion that helped us in answering the main research question which was to establish the relationship between the two variables and also establish the nature of the relationship for conclusive results to be achieved.

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RESEARCH CHALLENGES

  • Low number of responses
  • Research question whose conclusion is poor
  • Inability to accurately measure customers’ experience in an appropriate rating scale
  • Poor sampling methods
  • Inconsistency of research question and variables used by group members

There were several challenges that were experienced which included low number of responses from consumers, inclusive research questions, inability to accurately measure the customers’ experience and inconsistency of the research question and the variables used by group members. In addition, members carried out different studies and combining the different data was the biggest challenge experienced by the team members

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STEPS TO MINIMIZE CHALLENGES IN FUTURE RESEARCH

  • Group of individual to respond

  • Reword the research question

In order to minimize the challenges in future research by taken a group of individual to respond the first draft of the survey ,which the feedback will give an idea of what information missing, and what question confusing. Then reword the research question to gain available an accurate result.

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SUGGESTED FUTURE RESEARCH

  • The research data should include more study factors that affect customers’ experience
  • Data collection to include a wider sample of the population
  • The study should also include the specific ingredients that promote customer’s experience

SUGGESTION OF FUTURE CHALLENGES, AND IMPLICATIONS

  • Focus on customer quality
  • Analyzing survey findings
  • Develop new series of coffee, tea and fruit drinks
  • Price reduction

Some of the recommendations are management should focus on customer quality. Second, management should analyzing survey findings and driving through action planning by having a workshop. Third, Starbucks should develop new series of coffee, tea and fruit drinks with better nutritional values for health conscious customers, which will be use an outcome to gain customer back and develop more effective marketing strategies. Finally, Starbucks should have price reduction strategies. That's why Starbucks researchers should pay more attention to service quality, customer satisfaction, and affordable coffee price.

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REFERENCES

  • Easton, Valerie. (2014). Confidence interval. Retrieved from http://www.stats.gla.ac.uk/steps/glossary/confidence_intervals.html
  • Bald, B., & Moore, D. (2009). The Practice of statistics in the life sciences (1st ed.). New York: W.H. Freeman and Co.
  • Math.uah.edu,. (2014). Hypothesis Testing. Retrieved 25 July 2014, from http://www.math.uah.edu/stat/hypothesis /
  • McClave, J. T., Benson, P. G., & Sincich, T. (2011). Statistics for Business and Economics. (11th ed.). Boston, MA: Prentice Hall