Business Research Methods ePGP04 In Campus Workshop Assignment Pilgrim Bank ( B )

Submission by Manoj Benedict ePGP- 04B - 049

Pilgrim Bank ( B ) : Customer Retention Case Questions 1. Whether the use of Online channel influenced The profitability Retention

2. If it was possible to predict the following for individual customers, The future profitability The likelihood of retention

Pilgrim Bank ( B ) variable set

Recodes @9age_r @inc_r Dist1100/Dist1200 @0Retained Online_Change_Status

Recoded to fill in the missing data ( missing values replaced by most repeated data ie 3 ) - Recoded to fill in the missing data ( missing values replaced by most repeated data ie 6 ) Dummy variable recoding for category predictor. - Recoded to identify if the customer left / retained in 2000 - Recoded to identify the group of customer according to their 19992000 Online status

Pilgrim Bank ( B ) Missing value analysis

Customer Assumed to Have left the bank

26% values in Age and Income missing from 1999 data , these are replaced with the mode values.

Influence of Online Status on Profits t-test Compare Means ( 2000 Profits of two groups 0Online and 0Offline )

Null hypothesis The difference in profits is not significant. Alternate hypothesis The difference is significant
Means of the groups

Observation T-test significance < .05 , in the rejection region. The Null rejected and the Profits are statistically different significantly.

Influence of Online Status on Profits One way ANOVA between groups of customers

Null hypothesis The difference in profits between groups is not significant. Alternate hypothesis The difference is significant

Observation T-test significance < .05 , in the rejection region. The Null rejected and the Profits of different groups are statistically significant. Since the Profits are higher for Online customers compared to Offline , we believe that the high profits may have been influenced by Online status.

Influence of Online channel in Retention of the customers Chi-Square test of independence

Null : The variables are independent of each other. Alternate : They are not independent and there is an influence of Online status on retention

Observation T-test significance < .05 , in the rejection region. The Null rejected and we believe that there might have an influence of Online status on Customer Retention

Future predictability of Customer profit Regression of year 2000 profit v/s 1999 independent variables.
Observations The regression model is significant ( P-value < .05 ) , though it explain only a small R-square component. Regression Equation to predict future profitability
Profit = -100+4.8*@9tenure+21*@9inc+15*@9age+31*@9online+17*Dist_1200(1)

Likelihood to predict the Customer Retention Logistic Regression of Customer retention v/s independent variables.

Observation T-test significance < .05 , in the rejection region. The regression model is significant. 83.4% of the time the model is able to predict the customer retention correctly for individual customers. Regression equation Y = 0.787+0.042*@9tenure+0.264*@9age-0.036*@9inc+0.353*@9Online

Retention probability for individual customer P( X ) = e^Y/(1+e^Y)

Business Research Methods ePGP04 In Campus Workshop Assignment Store24 ( B )

Submission by Manoj Benedict ePGP- 04B - 049

Store 24 ( B ) : Service Quality and Employee Skills Case Questions 1. Whether Service quality , as is measured , is truly a driver of store level financial performance , given its increasing reliance at Store24.

2. Analyze the impact of skill level on Service Quality and Financial Performance.

Store24B variable Set

Almost no missing values No recode performed

Regression for Financial Performance ( Profit ) Enter Method

Observation Simultaneous regression executed R^2 = .66 , 66% of variation explained by all variables. The Model is significant since the ANOVA sig value < .05 There are several variables showing no individual significance for the variation. Performing Stepwise Regression for an optimum model. Collegiality between some of the variables might explain the insignificance of those variables ( Please refer to the slide no # for such instances of possible collegiality.

Regression Stepwise to get to Optimum Regression model.

This Model represent an optimum model still explaining 61% of variation in Profits and with only 5 significant depended variables.

Regression Equation
Profit = 32782+737*Mtenure+37238*PedCount-25592*Comp+1790*ServQual+47740*Hours24

Service Quality as a true driver of profit. Regressing the optimum model again with ServQual variable removed against Profit
Observation Model still significant. R-square reduced by ~6% indicating that Service Quality might have been explaining the reduced 6% in variation

Alternate Method Service Quality as a true driver of profit - Regressing ServQual alone against Profit
Observation Model still significant ( p value < .05 ) R-square is at .11, indicating that Service Quality might have been explaining the 11% of variation in profits

Understanding the Impact of Skill Level ( Manager Skill and Crew Skill ) on Service Quality Linear regression of Skill Levels against Service Quality
Observation Model still significant ( p value < .05 ) Only Manager Skill seems to be impacting the service quality. Crew Skills are not statistically significant for the Service quality. R-square is at ..65, indicating that Manager Skill Level might have been explaining the 6.5 % of variation in Service quality.

Regression Equation ServQual = 64.25 + 6.349 MgrSkill

Understanding the Impact of Skill Level ( Manager Skill and Crew Skill ) on Business performance - Linear regression of Skill Levels against Profit
Observation Model not significant ( p value > .05 ) The skill levels statistically have no significant impact on the profit/business performance. The skill level may have significant impact on some other variables like Service Quality as we have see in previous exercise.