MBA Marketing Research Report: iPhone Survey at UTS, Autumn 2016

This report presents a marketing research survey conducted at the University of Technology, Sydney, focusing on iPhone users. The study, a requirement for the MBA Marketing Research course in Autumn 2016, analyzed data from 100 participants using a questionnaire with both open and closed-ended questions. The analysis, performed using SPSS version 21, included reliability, correlation, and regression analyses. Reliability analysis using Cronbach’s Alpha showed acceptable internal consistency for most variables. Correlation analysis revealed the strongest relationship between the intention to recommend and repurchase. Three regression models were developed, with all proving significant, identifying key factors influencing customer satisfaction, recommendation, and repurchase intention. The report provides detailed statistical findings and interpretations, offering insights into consumer behavior and iPhone user preferences. This report contributes to the understanding of factors influencing customer satisfaction and loyalty towards iPhones.

A Marketing Research Survey of iPhone among the students at
University of Technology, Sydney
Student Name:
Student ID:
Course: Master of Business Administration (MBA) University of
Technology, Sydney
This report is prepared for academic purpose only.
The report is prepared as a requirement for the course Marketing
Research (24720), Autumn Semester 2016.
The report is submitted to Professor Dr. Graham Massey.
Date: 31st October 2017
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Table of Contents
Executive Summary.........................................................................................................................3
1. Introduction..............................................................................................................................4
1.1 Motivation.........................................................................................................................4
1.2 Purpose of the Research:...................................................................................................4
1.3 Methodology:....................................................................................................................4
2. Reliability Analysis..................................................................................................................5
2.1 List: Questionnaire Variables:..............................................................................................6
2.2 Reliability Statistics and Interpretations:..............................................................................7
2.3 Summary of Reliability Analysis:......................................................................................21
3. Means and Standard Deviation Mean:...................................................................................21
3.1 Means and Standard Deviation: Interpretation of the Variables........................................22
4. Correlation Analysis...............................................................................................................24
5. Regression Analysis...............................................................................................................25
5.1 Intention to repurchase as the dependent variable..........................................................25
5.2 Recommend as the dependent variable...........................................................................28
5.3 Overall Satisfaction as the dependent variable...............................................................30
6. Conclusion..............................................................................................................................33
References......................................................................................................................................35
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Executive Summary
This report is about a marketing study that was conducted at the University of Technology
Sydney in Australia. The key areas of statistical analysis that the report focused on include:
Reliability Analysis, Correlation Analysis and Regression Analysis to identify and measure the
overall satisfaction, opinion regarding the usability of the iPhone and report the factors that make
the customer love using the iPhone. A sample of 100 participants took part in this study.
Questionnaire that contained both open ended and closed ended questions was used to collect
responses from the participants. The responses were then entered and coded into SPSS version
21 for analysis. Cronbach’s Alpha Coefficient was used to analyze the reliability as well as check
for the measure of internal consistency. For the reliability analysis, Cronbach’s Alpha for all the
items was found to be above >=0.70 except for Q4 “iPhone’s price” which was found to be
unacceptable .481 (less than 0.5), by removing the item “I always find the price of the iPhone to
be very low” we were able to achieve Alpha of .538 which was now acceptable. In terms of the
correlation analysis, highest correlation coefficient was found to be between Recommend and
Intention to Repurchase (r = 0.752). The lowest correlation was found to be between Battery
Durability and Operating System (r = 0.01).
Three different regression models were done. The first one used Intention to repurchase as the
dependent variable. While the second and the third regression models used Recommend and
Overall satisfaction as the dependent variables. All the three models were found to be significant.
However, 2 variables out of 7 variables were found to be significant in both the first and the third
models. In the second model, 3 explanatory variables were found to be significant.
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1. Introduction
1.1 Motivation
Iphone phones have gained huge following among the middle and upper class consumers in the
recent past. Understanding consumer behavior is an important aspect in market research as it
informs the producers on the best way to reach to their potential clients. It also helps forge ways
of beating the competition that other subsidiary products may poise.
1.2 Purpose of the Research:
The main aim of this research was to understand the various factors that affect the user’s overall
experience with iPhones. The research sought to determine factors that influence in customers
purchasing the iPhones as well as factors that motivates the customers to recommend their
friends and relative to purchase iPhones. The following are the main research objectives: ·
 Conduct Reliability Analysis of the items in the dataset. ·
 Conduct Correlation Analysis
 Conduct Regression Analysis
1.3 Methodology:
This report was developed using four statistical methods namely: Reliability Analysis,
Correlation Analysis, Analysis of Variance (ANOVA) and Regression Analysis. A seven-point
Likert scale questionnaire was developed to collect the views of the respondents where 1 was
equivalent to “Strongly Disagree” and 7 was equivalent to “Strongly Agree”. The questionnaire
consisted of a total of 13 questions and it was distributed among the students of the University of
Technology of Sydney. The respondent were surveyed within the university. A total of 100 (n =
100) responses were collected. Data was analyzed using Statistical Package for Social Science
(SPSS) version 21.
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2. Reliability Analysis
According to Zikmund et.al (2010), reliability Analysis refers to an internal consistency measure
for a multi-item variables. The test (reliability analysis), is used to tell on the consistency of a
given set of variables based on a single construct. If items in a given variable fail then we can say
that there is inconsistency. Cronbach’s alpha is the most popularly known and used method in
estimating the reliability of the items in a multipoint scale. Alpha calculates the average and the
correlation for the individual items in a Likert scale (Leech et al. 2011). An acceptable value for
the Cronbach’s alpha is 0.70, values less than 0.70 implies the items have performed poorly. The
higher the correlation between the items in a given construct, the higher the Cronbach’s alpha
(Coakes & Steed, 2003). According to George and Mallery (2003), the rule of thumb for the
internal consistency is as follows;
Cronbach’s Alpha Internal consistency
α <0. 5 Unacceptable
0.5 ≤ α < 0.6 Poor
0.6 ≤ α <0.7 Questionable
0.7 ≤ α <0. 8 Acceptable
0.8 ≤ α <0.9 Good
α ≥ 0. 6 Excellent
Likert scale: refers to a psychometric response scale that is mainly used in questionnaires to get
participant’s preferences or rather degree of agreement or disagreement with a statement or set of
statements. The scale is non-comparative scaling technique that is unidimensional (that is, it only
measures a single trait) in nature. Respondents are normally asked to indicate their level of
agreement or disagreement with a given statement on an ordinal scale. Most commonly used
Likert-Scale are 5‐point scale which ranges from “Strongly Disagree” on one extreme end to
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“Strongly Agree” on the other extreme end with “Neither Agree nor Disagree” in the middle.
Example is given below;
Other used scales are 7-point scale, 9-point scale and even 4-point scale. In this study we used a
7-point scale.
2.1 Variables in the questionnaire:
This study employed a multi-item measurement questionnaire. Three items per question are used
to measure the respondent attitude;
Variable Number Variable name Question number
1 iPhone's back camera 2
2 iPhone's battery durability 3
3 iPhone's price 4
4 appeal of the iPhone's design 5
5 iPhone's operating system 6
6 iPhone's screen fragility 7
7 the security of the iPhone 8
8 your overall satisfaction with the iPhone 9
9 the intention to recommend the iPhone 10
10 Intention to repurchase the iPhone 11
6
Strongly
AgreeAgree
54321
Strongly
Disagree Disagree Neither

The questionnaire also had questions on demography (e.g. age, gender and occupation) and
whether the respondents owned an iPhone. Those who said to not having an iPhone were
disqualified from the study since only iPhone holders were eligible for the study.
2.2 Reliability Statistics and Interpretations:
In this section, we present the variables that had at least one of the items deleted so as to increase
the internal consistency. The following 5 questions (Q3, Q4, Q5, Q8 and Q11) increased in their
internal consistency after deleting one item.
Q3: iPhone's battery durability
Case Processing Summary
N %
Cases Valid 100 97.1
Excludeda 3 2.9
Total 103 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.752 .767 3
Item Statistics
Mean Std. Deviation N
The iPhone has a very long lasting battery. 3.7600 1.46419 100
I would say that iPhone's battery is not very long lasting. 3.3100 1.90000 100
I could go a long time without charging my iPhone's
battery every time I use it.
3.3600 1.65462 100
Inter-Item Correlation Matrix
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The iPhone has
a very long
lasting battery.
I would say that
iPhone's battery is not
very long lasting.
I could go a long time without
charging my iPhone's battery
every time I use it.
The iPhone has a very long lasting
battery.
1.000 .492 .666
I would say that iPhone's battery is
not very long lasting.
.492 1.000 .411
I could go a long time without
charging my iPhone's battery every
time I use it.
.666 .411 1.000
Summary Item Statistics
Mean Minimum Maximum Range
Maximum /
Minimum Variance
Item Means 3.477 3.310 3.760 .450 1.136 .061
Item Variances 2.831 2.144 3.610 1.466 1.684 .544
Inter-Item Correlations .523 .411 .666 .255 1.620 .014
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance
if Item Deleted
Corrected Item-
Total Correlation
Squared Multiple
Correlation
The iPhone has a very long lasting
battery.
6.6700 8.930 .681 .500
I would say that iPhone's battery is not
very long lasting.
7.1200 8.107 .492 .254
I could go a long time without charging
my iPhone's battery every time I use it.
7.0700 8.490 .602 .452
Item-Total Statistics
Cronbach's Alpha if Item Deleted
The iPhone has a very long lasting battery. .578
I would say that iPhone's battery is not very long lasting. .796
I could go a long time without charging my iPhone's battery every
time I use it.
.645
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Scale Statistics
Mean Variance Std. Deviation N of Items
10.4300 17.035 4.12740 3
The standardized Cronbach’s Alpha for the variable named “iPhone's battery durability” is
0.767. This value is greater than 0.70 which is an acceptable range. If item 1 and 3 are deleted
the Cronbach’s Alpha value becomes 0.578 and 0.645 respectively. These values are actually
lower than the standardized Alpha of 0.767. However, the Cronbach’s alpha value increases to
0.796 when item 2 (I would say that iPhone's battery is not very long lasting) is deleted. This
implies that deleting item 2 would result to a higher Cronbach value of 0.796. For the squared
item correlation, we see that the values for items 1 and 3 are 0.5 and 0.452 respectively while the
value is 0.254 for item 2. This suggests that when we use items 1 and 3 as the independent
variables and item 2 as the dependent variable then the two independent variables explains
25.4% of the variance in item 2. The findings clearly shows that item 2 is weaker when
compared to the other 2 items when it comes to predicting the variable “iPhone's battery
durability”.
We can therefore conclude that the second item for the variable “iPhone's battery durability” in
our survey questionnaire is weaker than the other two items. However, it is important to note that
al the values are positive and that if we delete item 2 the Alpha value increases by 0.044, though
less than 0.05. Hence, though item 2 “I would say that iPhone's battery is not very long lasting”
is weaker in the questionnaire, it should not be deleted.
Q4: iPhone's price
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Case Processing Summary
N %
Cases Valid 101 98.1
Excludeda 2 1.9
Total 103 100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability Statistics
Cronbach's Alpha
Cronbach's Alpha Based on
Standardized Items N of Items
.481 .508 3
Item Statistics
Mean Std. Deviation N
I would say that price of iPhone is inexpensive. 5.2277 1.77133 101
In my opinion iPhone is very expensive. 5.8812 1.27505 101
I always find the price of the iPhone to be very
low.
5.6040 1.80044 101
Inter-Item Correlation Matrix
I would say that
price of iPhone
is inexpensive.
In my opinion
iPhone is very
expensive.
I always find the price
of the iPhone to be
very low.
I would say that price of iPhone is inexpensive. 1.000 .388 .160
In my opinion iPhone is very expensive. .388 1.000 .219
I always find the price of the iPhone to be very low. .160 .219 1.000
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Summary Item Statistics
Mean Minimum Maximum Range
Maximum /
Minimum Variance
Item Means 5.571 5.228 5.881 .653 1.125 .108
Item Variances 2.668 1.626 3.242 1.616 1.994 .818
Inter-Item Correlations .256 .160 .388 .228 2.424 .011
Summary Item Statistics
N of Items
Item Means 3
Item Variances 3
Inter-Item Correlations 3
Item-Total Statistics
Scale Mean
if Item
Deleted
Scale
Variance if
Item Deleted
Corrected
Item-Total
Correlation
Squared
Multiple
Correlation
I would say that price of iPhone is inexpensive. 11.4851 5.872 .323 .157
In my opinion iPhone is very expensive. 10.8317 7.401 .398 .176
I always find the price of the iPhone to be very low. 11.1089 6.518 .221 .055
Item-Total Statistics
Cronbach's Alpha if Item Deleted
I would say that price of iPhone is inexpensive. .342
In my opinion iPhone is very expensive. .276
I always find the price of the iPhone to be very low. .538
Scale Statistics
Mean Variance Std. Deviation N of Items
16.7129 11.787 3.43318 3
The standardized Cronbach’s Alpha for the variable named “iPhone's price” is 0.508. This value
is less than 0.70 which indicates a poor internal consistency. If item 1 and 2 are deleted the
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Cronbach’s Alpha value becomes 0.342 and 0.276 respectively. These values are actually lower
than the standardized Alpha of 0.508. However, the Cronbach’s alpha value slightly increases to
0.538 when item 3 (I always find the price of the iPhone to be very low) is deleted. This implies
that deleting item 3 would result to a higher Cronbach value of 0.538. For the squared item
correlation, we see that the values for items 1 and 2 are 0.157 and 0.176 respectively while the
value is 0.055 for item 3. This suggests that when we use items 1 and 2 as the independent
variables and item 3 as the dependent variable then the two independent variables explains 5.5%
of the variance in item 3. The findings clearly shows that item 3 is weaker when compared to the
other 2 items when it comes to predicting the variable “iPhone's price”. The Inter-item
Correlation matrix for items 1 & 2 the value is 0.388, for items 1 & 3 the value is 0.160 and
lastly for items 2 & 3 the values is 0.219. The values are higher in the absence of item 3.
We can therefore conclude that the third item for the variable “iPhone's price” in our survey
questionnaire is weaker than the other two items. However, it is important to note that al the
values are positive and that if we delete item 3 the Alpha value increases by 0.057, this value is
greater than 0.05. The internal consistency of item in the current form is poor and by deleting
item 3 “I always find the price of the iPhone to be very low” the internal consistency will still
remain poor hence making it needless to be deleted from the questionnaire.
Q5: Appeal of the iPhone's design
Case Processing Summary
N %
Cases Valid 99 96.1
Excludeda 4 3.9
Total 103 100.0
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