Regression Analysis Report: Customer Satisfaction in Deccan Cement
Author: Dezdiar Phiroze Madan
Introduction
Deccan Cement, a prominent South Indian cement manufacturer, strives to understand factors influencing customer satisfaction. This report explores a regression analysis aiming to identify a possible association between customer satisfaction with the price and customer satisfaction with the product.
Methodology
The analysis utilizes a simple linear regression model, where:
- Dependent Variable: Number of customers satisfied with the product
- Independent Variable: Number of customers satisfied with the price
The key metrics analyzed include:
- R-squared: Represents the proportion of variance in the dependent variable explained by the model.
- P-value: Assesses the statistical significance of the relationship between the variables.
Data Analysis
R-squared: The R-squared value is 0.0346, indicating a very weak relationship between the two variables. Only a small portion of the variance in customer satisfaction with the product is explained by the model.
P-value: The p-value for the coefficient of the independent variable is 0.2056, exceeding the significance level of 0.05. This implies we fail to reject the null hypothesis, meaning there is no statistically significant relationship between customer satisfaction with the price and product satisfaction.
Limitations
- Sample Size: The analysis is based on a limited sample size of 48 observations. Generalizability to a broader population might be hindered.
- Limited Scope: The model only considers one independent variable, neglecting other potentially influential factors like product quality, service, or brand image.
Discussion and Recommendations
The findings suggest that customer satisfaction with the price in Deccan cement does not significantly impact product satisfaction. This indicates other factors might play a more significant role in shaping customer perception.
Here are some recommendations for further investigation:
- Identify additional factors: Conduct market research or analyze data on other variables potentially influencing customer satisfaction (e.g., product features, customer service).
- Explore alternative models: Consider more complex regression models incorporating multiple independent variables or utilizing non-linear relationships to capture a wider picture of influencing factors.
Conclusion
This preliminary analysis found no statistically significant relationship between customer satisfaction with price and product satisfaction for Deccan cement. Further research is recommended to explore other contributing factors and potentially develop a more comprehensive understanding of customer satisfaction dynamics.
References
https://www.nseindia.com/reports-indices-historical-index-data
https://www.nseindia.com/get-quotes/equity?symbol=DECCANCE
https://deccancements.com/index.php