Zaid Nizami

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INSTITUTE OF BUSINESS ADMINISTRATIOIN

Bicycle Exercise - WAC

Advanced & Applied Business Research

Submitted by:

Zaid Nizami

ERP #01069

Submitted to:

Dr. Shahid Qureshi

Dated:

31st

December 2012



Exercise A

1. What is the market share of each brand?

Brand in use

Frequency Percent Valid Percent Cumulative Percent

Valid Sohrab 39 47.6 47.6 47.6

Eagle 12 14.6 14.6 62.2

Falcon 11 13.4 13.4 75.6

Imported 20 24.4 24.4 100.0

Total 82 100.0 100.0

Sohrab is market leader as it has the highest market share of 47.6% while Falcon has the lowest

market share of 13.4%. Eagle has a market share of 14.6% and Imported bicycles have a

considerable market share in bicycle industry of 24.4%.

2. Develop an income profile of Sohrab user i.e. % of Sohrab users who will fall in each

income category.

Brand in use * Income Crosstabulation

Income

TotalStudent Below 5000

b/w 5000-

10000

b/w 10000-

15000

More than

15000

Brand in use Sohrab Count 7 17 14 1 0 39

% within Brand in use 17.9% 43.6% 35.9% 2.6% .0% 100.0%

% within Income 87.5% 63.0% 51.9% 16.7% .0% 47.6%

% of Total 8.5% 20.7% 17.1% 1.2% .0% 47.6%

Eagle Count 0 5 7 0 0 12

% within Brand in use .0% 41.7% 58.3% .0% .0% 100.0%

% within Income .0% 18.5% 25.9% .0% .0% 14.6%

% of Total .0% 6.1% 8.5% .0% .0% 14.6%

Falcon Count 0 4 4 2 1 11

% within Brand in use .0% 36.4% 36.4% 18.2% 9.1% 100.0%

% within Income .0% 14.8% 14.8% 33.3% 7.1% 13.4%

% of Total .0% 4.9% 4.9% 2.4% 1.2% 13.4%

Imported Count 1 1 2 3 13 20

% within Brand in use 5.0% 5.0% 10.0% 15.0% 65.0% 100.0%

% within Income 12.5% 3.7% 7.4% 50.0% 92.9% 24.4%

% of Total 1.2% 1.2% 2.4% 3.7% 15.9% 24.4%

Total Count 8 27 27 6 14 82

% within Brand in use 9.8% 32.9% 32.9% 7.3% 17.1% 100.0%

% within Income 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

% of Total 9.8% 32.9% 32.9% 7.3% 17.1% 100.0%



The above income cross tabulation

table shows that 87.5% of the Sohrab

users are students and this shows that

it is most common in students. 63%

fall in the income levels of below

5000, 51.9% fall between 5000-10000income levels, 16.7% fall in between

10000-15000 and no one falls in more

than 15000 income.

3. What % of Sohrab users have tried Eagle?

Brand in use * E.awareness / aware not used / unaware Crosstabulation

E.awareness / aware not used / unaware

TotalBought/Aware

Aware/But not

bought Unaware

Brand in use Sohrab Count 13 17 9 39

% within Brand in use 33.3% 43.6% 23.1% 100.0%

Residual 1.1 -.6 -.5

Std. Residual .3 -.1 -.2

Adjusted Residual .5 -.3 -.3

Eagle Count 9 3 0 12

% within Brand in use 75.0% 25.0% .0% 100.0%

Residual 5.3 -2.4 -2.9

Std. Residual 2.8 -1.0 -1.7

Adjusted Residual 3.6 -1.5 -2.1

Falcon Count 3 6 2 11


Residual -.4 1.0 -.7

Std. Residual -.2 .5 -.4

Adjusted Residual -.2 .7 -.5

Imported Count 0 11 9 20

% within Brand in use .0% 55.0% 45.0% 100.0%

Residual -6.1 2.0 4.1

Std. Residual -2.5 .7 1.9

Adjusted Residual -3.4 1.0 2.5

Total Count 25 37 20 82




As per the above table, it is seen that 33.3 % of Sohrab users have tried Eagle. There is a need to

compare people who tried Sohrab cycle and have awareness of Eagle.

or

E.awareness / aware not used / unaware * Brand in use Crosstabulation

Count

Brand in use

TotalSohrab Eagle Falcon Imported

E.awareness / aware not used /

unaware

Bought/Aware 13 9 3 0 25

Aware/But not bought 17 3 6 11 37

Unaware 9 0 2 9 20

Total 39 12 11 20 82

The above cross tabulation shows that (13/39) 33.3% of Sohrab users have tried Eagle.

4. What % of Eagle users have tried Sohrab?Brand in use * S. awareness / aware not used/ unaware Crosstabulation

S. awareness / aware not used/ unaware

TotalBought/Aware

Aware/But not

bought Unaware


% within Brand in use 100.0% .0% .0% 100.0%

% within S. awareness / aware

not used/ unaware

63.9% .0% .0% 47.6%

% of Total 47.6% .0% .0% 47.6%




not used/ unaware

16.4% 12.5% .0% 14.6%

% of Total 12.2% 2.4% .0% 14.6%




not used/ unaware

9.8% 25.0% 20.0% 13.4%

% of Total 7.3% 4.9% 1.2% 13.4%




not used/ unaware

9.8% 62.5% 80.0% 24.4%

% of Total 7.3% 12.2% 4.9% 24.4%






not used/ unaware

100.0% 100.0% 100.0% 100.0%

% of Total 74.4% 19.5% 6.1% 100.0%

As per the above table, it is seen that 83.3 % of Eagle users have tried Eagle. There is a need to

compare people who tried Eagle cycle and have awareness of Sohrab.

OR

S. awareness / aware not used/ unaware * Brand in use Crosstabulation

Count

Brand in use

TotalSohrab Eagle Falcon Imported

S. awareness / aware not used/

unaware

Bought/Aware 39 10 6 6 61

Aware/But not bought 0 2 4 10 16

Unaware 0 0 1 4 5

Total 39 12 11 20 82

The above cross tabulation shows that (10/12) 83.3% of Eagle users have tried Sohrab.



5. What are three attributes of which users consider most important when purchasing a

bicycle?Report

brand

name

peers

advic

e

salesm

an

recom.

per.

experie

nce

quali

ty

appeara

nce color frame

Price/va

lue of

money

durability /

reliabil

ity

weigh

t

streng

th

light

drive

comforta

ble seat

warranty /

guarant

ee

Mean 5.5000 5.0000 4.7683 5.5854 6.5122 4.0976 4.4512 6.0488 5.7683 6.0122 5.5366 5.7561 5.9634 5.4512 6.3171

N 82 82 82 82 82 82 82 82 82 82 82 82 82 82 82

Std.

Deviati

on

1.565

44

1.586

98

1.8479

1

1.64768 .689

32

1.63004 1.588

17

1.004

96

1.22019 1.2619

2

1.362

60

1.212

70

1.082

35

1.05588 .76784

There are three main attributes Quality, frame and warranty.

OR

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

brand name 82 1.00 7.00 5.5000 1.56544

peers advice 82 1.00 7.00 5.0000 1.58698

salesman recom. 82 1.00 7.00 4.7683 1.84791

per. experience 82 1.00 7.00 5.5854 1.64768

quality 82 4.00 7.00 6.5122 .68932

appearance 82 1.00 7.00 4.0976 1.63004

color 82 2.00 7.00 4.4512 1.58817

frame 82 3.00 7.00 6.0488 1.00496

Price/value of money 82 3.00 7.00 5.7683 1.22019

durability / reliability 82 3.00 7.00 6.0122 1.26192

weight 82 2.00 7.00 5.5366 1.36260

strength 82 2.00 7.00 5.7561 1.21270

light drive 82 2.00 7.00 5.9634 1.08235

comfortable seat 82 3.00 7.00 5.4512 1.05588

warranty / guarantee 82 3.00 7.00 6.3171 .76784

Valid N (listwise) 82

We can see from the above table that Quality is the most important attribute in purchasing a bicycle

as it has the highest mean of 6.5122. It is followed by warranty/guarantee with 6.3171 and frame

with 6.0488 mean



6. What are the three attributes which users of a foreign brand consider most important

when purchasing bicycle?

Report

Brand in use

bran

d

name

peers

advic

e

salesman

recom

.

per.

experie

nce

qual

ity

appeara

nce color

fram

e

Price/v

alue of

money

durability /

reliabi

lity

weig

ht

stren

gth

light

drive

comfort

able

seat

warranty /

guara

ntee

Sohra

b

Mean 5.79

49

5.12

82

5.025

6

5.7436 6.53

85

3.8718 4.20

516.38

46

6.1026 6.205

1

4.53

85

5.74

36

5.66

67

5.0513 6.435

9

N 39 39 39 39 39 39 39 39 39 39 39 39 39 39 39

Std.

Deviat

ion

1.23

926

1.45

420

1.441

62

1.1634

3

.719

87

1.5075

2

1.39

886

.781

88

1.0710

3

1.055

80

1.21

061

1.27

151

1.22

116

.99865 .8206

2

Eagle Mean 5.7500

5.8333

5.5000

6.1667 6.8333

2.5833 2.8333

6.2500

6.0833 6.0000

6.50

00

6.50

00

6.4167

5.2500 6.666

7

N 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12

Std.

Deviat

ion

1.76

455

1.80

067

2.276

36

1.5859

2

.389

25

.66856 .834

85

.621

58

1.0836

2

1.414

21

.797

72

.674

20

.668

56

.86603 .4923

7

Falcon

Mean 5.6364

4.9091

3.9091

4.3636 6.18

18

4.0909 4.6364

5.9091

5.2727 5.5455

6.18

18

5.4545

5.7273

5.2727 5.818

2

N 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11Std.

Deviat

ion

1.12

006

1.22

103

2.256

30

2.5796

4

.873

86

1.5782

6

1.80

404

1.13

618

1.2720

8

1.572

49

.750

76

1.63

485

1.19

087

1.00905 .9816

5

Impor ted

Mean 4.7000

4.3000

4.3000

5.6000 6.45

00

5.4500 5.8000

5.3500

5.2000 5.9000

6.55

00

5.5000

6.4000

6.4500 6.1500

N 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20

Std.

Deviat

ion

2.00

263

1.68

897

1.894

59

1.6670

2

.604

81

1.3168

9

1.00

525

1.18

210

1.3218

8

1.372

67

.604

81

.945

91

.680

56

.60481 .4893

6

Total Mean 5.5000

5.0000

4.7683

5.5854 6.5122

4.0976 4.4512

6.0488

5.7683 6.0122

5.5366

5.7561

5.9634

5.4512 6.3171

N 82 82 82 82 82 82 82 82 82 82 82 82 82 82 82

Std.

Deviat

ion

1.56

544

1.58

698

1.847

91

1.6476

8

.689

32

1.6300

4

1.58

817

1.00

496

1.2201

9

1.261

92

1.36

260

1.21

270

1.08

235

1.05588 .7678

4

The three main attributes are:

Sohrab Users: Frame, Guarantee, Quality

Eagle Users: Strength, Weight, Guarantee

Falcon Users: Guarantee, Quality, Weight

Imported Users: Comfortable Seat, Quality, Weight

OR



We can see from the above compare means table that Weight is the most important attribute when

considering a foreign brand with a mean of 6.55. It is followed by Comfortable seat and quality with

the same mean of 6.45.



Exercise B

1. Compare brand loyalty:

2. Develop an awareness, trial, usage diagram:

Crosstab

S. awareness / aware not used/ unaware

TotalBought/Aware

Aware/But not

bought Unaware


% within Brand in use 100.0% .0% .0% 100.0%


not used/ unaware

63.9% .0% .0% 47.6%

% of Total 47.6% .0% .0% 47.6%




not used/ unaware

16.4% 12.5% .0% 14.6%

% of Total 12.2% 2.4% .0% 14.6%




not used/ unaware

9.8% 25.0% 20.0% 13.4%

% of Total 7.3% 4.9% 1.2% 13.4%




not used/ unaware

9.8% 62.5% 80.0% 24.4%

% of Total 7.3% 12.2% 4.9% 24.4%




not used/ unaware

100.0% 100.0% 100.0% 100.0%

% of Total 74.4% 19.5% 6.1% 100.0%

Sohrab

Percentage of people aware: [61+16]/82=94%

Percentage of trial among aware:61/ [61+16]=80%

Percentage of current users among trial users:39/61=64%



Crosstab

E.awareness / aware not used / unaware

TotalBought/Aware

Aware/But not

bought Unaware



% within E.awareness / aware

not used / unaware

52.0% 45.9% 45.0% 47.6%

% of Total 15.9% 20.7% 11.0% 47.6%




not used / unaware

36.0% 8.1% .0% 14.6%

% of Total 11.0% 3.7% .0% 14.6%




not used / unaware

12.0% 16.2% 10.0% 13.4%

% of Total 3.7% 7.3% 2.4% 13.4%


% within Brand in use .0% 55.0% 45.0% 100.0%


not used / unaware

.0% 29.7% 45.0% 24.4%

% of Total .0% 13.4% 11.0% 24.4%




not used / unaware

100.0% 100.0% 100.0% 100.0%

% of Total 30.5% 45.1% 24.4% 100.0%

Eagle

Percentage of people aware:[25+37]/82=75%

Percentage of trial among aware:25/[25+37]=40%

Percentage of current users among trial users:9/25=36%



3. Conclusion regarding bicycle purchase behavior?

Eagle has a lesser awareness than Sohrab among the people i.e. 75% comparison to 94%.

Among the people who are aware of these brands Eagle is tried by 40% while Sohrab is tried by

80%. There are 36% Eagle users while 64% Sohrab users. Eagle’s image is negatively impacted

by weight as it requires more force to balance the cycle when the weight is heavy. Eagle user

retention is due to weight, strength and guarantee while Sohrab user retention is due to frame,guarantee and quality.

4. Develop a profile analysis:Report

Brand in use

brand

name

peers

advic

e

salesman

recom

.

per.

experie

nce

qual

ity

appeara

nce color

fram

e

Price/v

alue of

money

durability /

reliabi

lity

weig

ht

stren

gth

light

drive

comfort

able seat

warranty /

guaran

tee

Sohra

b

Mean 5.794

9

5.128

2

5.025

6

5.7436 6.53

85

3.8718 4.205

1

6.384

6

6.1026 6.2051 4.538

5

5.743

6

5.666

7

5.0513 6.4359

N 39 39 39 39 39 39 39 39 39 39 39 39 39 39 39

Std.Deviat

ion

1.23926

1.45420

1.44162

1.16343

.71987

1.50752 1.39886

.78188

1.07103 1.05580

1.21061

1.27151

1.22116

.99865 .82062

Eagle Mean 5.750

0

5.833

3

5.500

0

6.1667 6.83

33

2.5833 2.833

3

6.250

0

6.0833 6.0000 6.500

0

6.500

0

6.416

7

5.2500 6.6667

N 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12

Std.

Deviat

ion

1.764

55

1.800

67

2.276

36

1.5859

2

.389

25

.66856 .8348

5

.6215

8

1.08362 1.4142

1

.7977

2

.6742

0

.6685

6

.86603 .49237

Falco

n

Mean 5.636

4

4.909

1

3.909

1

4.3636 6.18

18

4.0909 4.636

4

5.909

1

5.2727 5.5455 6.181

8

5.454

5

5.727

3

5.2727 5.8182

N 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11

Std.Deviat

ion

1.12006

1.22103

2.25630

2.57964

.87386

1.57826 1.80404

1.13618

1.27208 1.57249

.75076

1.63485

1.19087

1.00905 .98165

Impor

ted

Mean 4.700

0

4.300

0

4.300

0

5.6000 6.45

00

5.4500 5.800

0

5.350

0

5.2000 5.9000 6.550

0

5.500

0

6.400

0

6.4500 6.1500

N 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20

Std.

Deviation

2.002

63

1.688

97

1.894

59

1.6670

2

.604

81

1.31689 1.005

25

1.182

10

1.32188 1.3726

7

.6048

1

.9459

1

.6805

6

.60481 .48936

Total Mean 5.500

0

5.000

0

4.768

3

5.5854 6.51

22

4.0976 4.451

2

6.048

8

5.7683 6.0122 5.536

6

5.756

1

5.963

4

5.4512 6.3171

N 82 82 82 82 82 82 82 82 82 82 82 82 82 82 82

Std.Deviat

ion

1.56544

1.58698

1.84791

1.64768

.68932

1.63004 1.58817

1.00496

1.22019 1.26192

1.36260

1.21270

1.08235

1.05588 .76784



For Sohrab and Eagle brand name

has same significance. Appearance

and color hinder the people to buy

Eagle cycle as they are the least

among all brands. On the other hand

the remaining attributes are similar

to Sohrab.

5. Profile Analysis:



Users are differentiated on

the basis income brackets

though the line graph. People

who are in more than 15000

income bracket do not think

much about the brand name

however they need all the

other attributes having higher

percentages. While the

people in Below 5000 income

bracket desire a famous brand

but have negligible

significance for color,

appearance and comfortable

seat.

6. Factor Analysis:

Image is the name of x-axis and Functioning is the name of y-axis. On the rotated space plot, Image

is comprised of variables qq8a, q8b, q8c, q8d, q8e, q8h, q8i, q8j, q8l, q8o i.e. quality, reliability,

warranty etc. Light drive/less effort, weight and comfortable seats i.e.q8n,q8m,q8k are the

variables in pedaling that effect the Functioning of bicycle. So these Functioning attributes must

have a positive effect on performance of the bicycle.

F

U

N

C

T

I

O

N

I

N

G

IMAGE



7. Preference Map:

The following variables have highest

significance:

Peer advice & Salesman Recomm: 62.7%

Color & Appearance: 80.8%

Making 2 new variables:Compute Recommendation=(q8b+q8c)/82.

EXECUTE.

Compute Image=(q8g+q8f)/82.

EXECUTE.

While comparing Eagle and Sohrab we note

that Eagle is recommended higher but it is

not actually bought because of it is low on

image than Sohrab.

Imported bicycles are rated more on Image

than the local brands but are not

recommended due to their high prices.

8. Profile analysis:

Report

Brand in use Recommendation Image

Sohrab Mean .1238 .0985

N 39 39

Std. Deviation .03184 .03385

Eagle Mean .1382 .0661

N 12 12


Falcon Mean .1075 .1064

N 11 11


Imported Mean .1049 .1372

N 20 20


Total Mean .1191 .1043

N 82 82


.0000

.0500

.1000

.1500

.0000 .0500 .1000 .1500 R e c o m m e n d a t i o n

Image

Sohrab

Eagle

Falcon

Imported



It is seen from the line graph,

people in income bracket of Rs.

5000-10000 give a higher rating

to Sohrab on all attributesmaking them equally important.

9. Perceptual Map

Making of 2 new variables:

COMPUTE

SohrabAppearance=(q9a3+q9

a2)/78.

EXECUTE.

COMPUTE

SohrabRidingExcitment=(q9

a9+q9a10)/78.

EXECUTE.

Sohrab’s image in people in the

income bracket Rs.5000-10000

have the highest preference for

Appearance andRidingExcitement. People in

income bracket below 5000

have 2nd

highest preference.

The remaining follow.

Report

IncomeSohrabAppeara

nceSohrabRidingEx

citement

Student Mean .12 .13

N 8 8


Below 5000 Mean .14 .14

N 26 26


b/w 5000-10000 Mean .15 .15

N 26 26


b/w 10000- 15000 Mean .12 .11

N 5 5Std. Deviation .065 .070

More than 15000 Mean .10 .10

N 13 13


Total Mean .13 .13

N 78 78




10. Segment Bicycle User:

Number of Cases in each

Cluster

Cluster 1 41.000

2 41.000

Valid 82.000

Missing .000

Cluster 1 and Cluster have been developed, comprising of 41 variables.

Report

Cluster Number of Case

Primary

transport

Loading

Purpose

Ridingfun

Stylish

Rides

Riding

Comf ort

Conven.

shortdistances

Conven.

longdistances

Saferide

Bicycle

Thef t

Qlty.Pak.Bicy

cles

Better Qlty.Imp.

Lightweig

htbicycles

highmar ketprices

1 3.8537

2.1463

5.0000

4.3171

4.3659

5.3171

2.8780

3.0488

4.2439

4.2683 5.4390

5.4634

4.7805

2 6.8537

6.1707

4.9024

5.3171

6.0488

6.3415

5.4146

5.2195

6.1707

5.8780 6.2683

6.0976

5.4390

Total 5.3537

4.1585

4.9512

4.8171

5.2073

5.8293

4.1463

4.1341

5.2073

5.0732 5.8537

5.7805

5.1098

People in Cluster 1 give a higher rating to all the attributes than people in cluster 2 but there is one

common attitude i.e. Riding Fun.

Clust

er Num

ber

of Case

bran

dnam

e

peer

sadvi

ce

salesmanr

ecom.

per.

experience

qual

ity

appear

ance

colo

r

fra

me

Price/v

alue of money

durabi

lity /reliabi

lity

wei

ght

stren

gth

ligh

tdriv

e

comfort

ableseat

warra

nty /guara

ntee

1 5.07

32

4.48

78

4.0488 4.7561 6.31

71

4.7561 5.12

20

5.78

05

5.2683 5.707

3

5.78

05

5.26

83

6.07

32

5.7073 6.146

3

2 5.9268

5.5122

5.4878 6.4146 6.7073

3.4390 3.7805

6.3171

6.2683 6.3171

5.2927

6.2439

5.8537

5.1951 6.4878

Total 5.50

00

5.00

00

4.7683 5.5854 6.51

22

4.0976 4.45

12

6.04

88

5.7683 6.012

2

5.53

66

5.75

61

5.96

34

5.4512 6.317

1

.0000

1.00002.00003.00004.00005.00006.00007.00008.0000

1

2



We can see that both the clusters are opposite, by comparing the preferences in the two clusters i.e.

cluster 1 people that need high level of satisfaction in all the attributes but they do not think about color

and appearance of cycle as opposed to cluster 2.

Crosstab


Total1 2

Brand in use Sohrab Count 17 22 39

% within Brand in use 43.6% 56.4% 100.0%

% within Cluster Number of Case 41.5% 53.7% 47.6%

% of Total 20.7% 26.8% 47.6%

Eagle Count 2 10 12



% of Total 2.4% 12.2% 14.6%

Falcon Count 6 5 11



% of Total 7.3% 6.1% 13.4%

Imported Count 16 4 20



% of Total 19.5% 4.9% 24.4%

Total Count 41 41 82



% of Total 50.0% 50.0% 100.0%

.0000

1.00002.0000

3.0000

4.0000

5.0000

6.0000

7.0000

8.0000

1

2



Crosstab


Total1 2

Income Student Count 7 1 8

% within Income 87.5% 12.5% 100.0%


% of Total 8.5% 1.2% 9.8%

Below 5000 Count 11 16 27

% within Income 40.7% 59.3% 100.0%% within Cluster Number of Case 26.8% 39.0% 32.9%

% of Total 13.4% 19.5% 32.9%

b/w 5000-10000 Count 7 20 27

% within Income 25.9% 74.1% 100.0%


% of Total 8.5% 24.4% 32.9%

b/w 10000- 15000 Count 4 2 6

% within Income 66.7% 33.3% 100.0%


% of Total 4.9% 2.4% 7.3%

More than 15000 Count 12 2 14

% within Income 85.7% 14.3% 100.0%


% of Total 14.6% 2.4% 17.1%

Total Count 41 41 82

% within Income 50.0% 50.0% 100.0%


% of Total 50.0% 50.0% 100.0%

11. Conclusion:

Segmentation on basis of Income: There are same overall percentages of people who buy bicycle in the

income segments below Rs. 5000 and Rs. 5000-10000.

Segmentation on basis of Brand: Sohrab has higher market share compared to its competitors because it

is the most popular brand. If we look at the shares: Cluster1 = 44% and Cluster2 = 56%.

Zaid Nizami

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