Verified Document

Customer Satisfaction And Hypothesis Term Paper

Parameter Estimation, Inferences, and Tests of Difference The benefits of parameter estimation are that the measurement gives you a sense of which customers are buying which products, what the production costs are, and how the profits will look. Essentially it allows one to use sample data to gauge the parameters of the distribution. By performing a type of test, the statistical analysis will tell you more about the population with a fitted distribution line curve depicting true values. This is a statistical way to evaluate or project one's profit-making potential based on the evidence or data available.

Types of parameters that marketing decision-makers would use would include location parameter, dispersion or scale parameter and shape parameter. Concentration parameter could also be of interest along with statistical parameters such as regression coefficients.

Examples of parameter methods that might be of interest to decision-makers in areas such as marketing would be probability plotting, which is not very dependent upon mathematical skills and consists of basic plotting of data and allows one to see a visual representation of the parameter in a linear way.

Another example would be maximum likelihood estimation, which consists of a rather strong technique with complete data usage with large sample properties and consistency that add to its attractiveness. It does depend, however, on a large sample size -- but for a marketing team this should not be a problem, as it will most likely want to draw from a large sample size in the first place.

A third example would be the Bayesian parameter estimation method, which is separate from the classical statistics models discussed above in that it uses prior knowledge plus present observational data to produce results. Prior sets of data can consists of information recorded during past operations or from sets of observations already conducted in the past. Building on prior knowledge can be a good way to project forward looking expectations. Prior distributions play a major role in the execution of...

The quality of the decisions made on this type of analysis would be solidly based not on qualitative assessment or opinion but rather on quantitative data that could be tested and re-tested and evaluated by others under the same circumstances in order to verify accounts. Far from being subjective and uncertain, these parameters help to define and concretely visualize the objective data that supports decision-making.
The business benefits of drawing inferences -- specifically when it is advantageous to rely on inferences and what is required to ascertain the correctness of inferences -- are that it allows the firm to better understand the customer and then appeal to the customer by giving him or her what he/she wants. Advantageous times to rely on inferences could be when a survey is conducted of customer satisfaction, when one examines the records of customer complaints -- how frequently they come, how severe they are, etc., or when a focus group study is conducted, or what customer turnover rates are. Each of these instances would be grounds for making inferences about a consumer base. Essentially what is required to make a solid inference is verifiable data, whether quantitative or qualitative that is based in fact and not in assumption.

The relationship between tests of difference and hypothesis testing in the context of designing marketing promotions is that in a paired difference test (a location test), measurements can be taken to see if the means of the populations are different; while in a hypothesis test is used to see if ample evidence is available to make an inference about a variable (for example to see if it applies to the whole or just…

Cite this Document:
Copy Bibliography Citation

Related Documents

Customer Satisfaction and Bank Loyalty in Today's
Words: 2320 Length: 8 Document Type: Essay

Customer Satisfaction and Bank Loyalty In today's world the competition has increased so much mainly because of all the globalization taking place around us. As a result of this increase in competition it is very important for all the organizations, including the banking sector, to retain the customers and make sure that they there customer base is increasing instead of decreasing. The most definite way of achieving all this is by

Customer Satisfaction and Loyalty of
Words: 7443 Length: 27 Document Type: Term Paper

The results of the data analysis are presented below in both tabular, graphic and narrative analyses formats. Validity Validity refers to the establishment of evidence that the measurement is actually measuring the intended construct. Measures can be reliable without being valid, but cannot be valid without being reliable. To develop a model by which validity issues could be assessed we used the validation model developed by Chandler and Lyon (2001) in

Customer Satisfaction and Loyalty in
Words: 5232 Length: 20 Document Type: Term Paper

2 of the respondents were self-employed and 11.2% of respondent were white-collar workers with 1.2% of respondents being blue-collar workers. The following chart shows the factor analysis results with VARIMAX rotation of traveler's perceptions of hotel attributes in the study of Choi and Chu (2000). Factor Analysis Results with VARIMAX Rotation of Traveler's Perceptions of Hotel Attributes Source: Choi and Chu (2000) The following chart shows a 'regression analysis results of hotel factors

Digitalization to Enhance Customer Satisfaction at APM Terminals
Words: 3458 Length: 10 Document Type: Essay

While digitalization has been shown to positively influence customer satisfaction in organizations in diverse sectors and industries, there has been little scholarly attention to the port industry. Focusing on APM Terminals, one of the largest container terminal and port management companies in the world, the proposed study seeks to fill this gap in literature. The study will take the mixed methods approach. In business, the significance of customer satisfaction cannot be

Employee Turnover and Customer Satisfaction: A Comparison
Words: 2440 Length: 7 Document Type: Research Proposal

Employee turnover and customer satisfaction: a comparison of rural and urban healthcare facilities Staff turnover within the long-term care industry continues to increase at a significant rate (Castle, 2003). National averages show the overall turnover rate ranges from 38% to 50% for Licensed Practical Nurses (LPN), registered nurses (RN) and administrators and 66% for Certified Nurses Aides (CNA) (American Health Care Association [AHCA], 2008). Turnover increases cost associated with recruitment

Customer Service
Words: 1317 Length: 4 Document Type: Term Paper

Customer Service Effectiveness of Employee Training Programs in Customer/Employee Satisfaction and Increased Profitability Customer service is an important part of keeping a business profitable. However, in a changing business and cultural environment, it is difficult to ascertain exactly what values or features will accomplish that mission. This research attempts to identify the new aspects of the customer service-profitability equation and describe a model for effective use of employee training in creating both

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now