Dataset: Retailer Survey Excel
You have been hired to conduct research on behalf of two retailers who would like to figure out what
factors affect word-of-mouth recommendations to and customer satisfaction of their store. To help them
answer this question, you have obtained a Retailer Survey dataset with 260 responses.
1. Your clients would like to know whether overall satisfaction (sat) correlates with its customers’
propensity to recommend the brand via word-of-mouth (WOM).
a. Create a scatterplot of sat and WOM and copy/paste the figure below. Does there appear to be a
positive, negative, or no association?
b. Test the correlation between sat and WOM. Report the correlation and p-value. What is the
relationship between the two variables (i.e., strong/weak positive/negative correlation)?
c. How much variance is shared between sat and WOM?
2. A manager wants to know: Does the frequency of marketing communication of the retailer (contfreq)
have a positive effect on customer satisfaction (sat)?
a. Write the null and alternative hypotheses.
b. Run the simple regression. What is the shared variance between contfreq and sat? Copy/paste the
c. Can we reject the null hypothesis? Why or why not?
d. What will Customer Satisfaction be when Communication Frequency is 5?
3. Manager Evan proposes a model predicting word-of-mouth (WOM) from the following variables:
1-whether the person is a member of the store’s loyalty program (Member)
2-how pleasant the person’s shopping experience was at the retailer (sat2)
3-customer satisfaction with the shopping experience at the retailer (sat3)
4-service quality of retailer (servql1)
5-whether the customer felt the retailer gave individual attention (servql3)
a. Run a regression testing Evan’s proposed model. What percentage of variance does the model
explain? Is the model significant? Copy/paste the output below
b. How do you interpret the coefficient of sat2? Does sat2 have a significant effect on WOM?
c. What is the strongest predictor of WOM? The weakest? How do you know? (Hint: you need to
calculate the standardized coefficients – show your work)
d. If a customer is not a member of the store’s loyalty program, rated his shopping experience
pleasantness as 3, rated his shopping experience satisfaction as a 3, rated the service quality as a
5, and rated individual attention as 4, what is his likelihood of promoting the retailer via word-of-
4. Create a more parsimonious version of Evan’s model. What independent variables will you keep?
Why? Rerun the regression with only those variables. Copy/paste the output below.
a. How does the updated version of Evan’s model compare to the original version of Evan’s model? How do you Know?