HATCO
HATCO
HATCO
HATCO is is mainly into paper products manufacturing. It has been in the business for the last 6 decades.
It has also successfully entered into the third generation of its family business, doing reasonably well.
Overall, the Indian paper industry is doing good and is expected to grow in the years to come. With the advent
of laptops, Internet, emails, and ebooks, the paper industry is certainly facing the challenge. Nevertheless,
no substantial fall in the demand is noted in the near future.
It is the availability of raw materials that keeps the Indian paper industry rolling. The major raw materials needed
to produce paper are wood timber, straw, bagasse (the fibrous material that is left, after juice is extracted from
sugarcane), residues of agricultural products and recycled paper.
India is almost self-sufficient in meeting the demand of all kinds of paper, including newspaper and magazine
paper.
The dataset given in the next worksheet is based on surveys of HATCO customers completed on a secure website
managed by an established marketing research company. The research company contacts purchasing managers
and encourages them to participate.
To do so, managers log onto the website and complete the survey. The data sets are supplemented by other
information compiled and stored in HATCO's data warehouse and accessible through its decision support system.
The primary database consisting of 100 observations on 14 separate variables, is based on a market segmentation
study of HATCO customers. HATCO sells paper products to two market segments: the newspaper industry and
the magazine industry.
Also, paper products are sold to these market segments either directly to the customer, or indirectly through a broker.
Two types of information was collected in the surveys. The first type of information was perceptions of HATCO's
performance on 13 attributes. These attributes, developed through focus groups, a pretest, and use in previous studies,
are considered to be the most influencial in the selection of suppliers in the paper industry. Respondents included
purchasing managers of firms buying from HATCO and they rated HATCO on each of the 13 attributes using a scale
of 0-10, with 10 being "Excellent" and 0 being "Poor". The second type of information relates to purchase outcomes and
business relationships (e.g., satisfaction with HATCO and whether the firm would consider a strategic alliance/partnership
with HATCO). A third type of information is available from HATCO's data warehouse and includes information such as size
of customer and length of purchase relationship.
By analysing the data, HATCO can develop a better understanidng of both the characteristics of its customers and the
relationships between their perceptions of HATCO, and their actions toward HATCO (e.g., Satisfaction and likelihood to
recommend). From this understanding of its customers, HATCO will be in a good position to develop its research plan
for the next year, expecially related to marketing.
Question:
HACTO management has long been interested in more accurately predicting the satisfaction level of its customers.
If successful, it would provide a better foundation for their marketing efforts. To this end, researchers at HATCO proposed to
consider a statistical model to predict the customer satisfaction based on their perceptions of HATCO's performance.
In addition to finding a way to accurately predict satisfaction, the researchers were also interested in identifying the factors
that lead to increased satisfaction for use in differentiated marketing campaigns. The researchers were of the opinion that
the performance perception variables should be considered for this study.
Based on the suggestions of HATCO researchers use an appropriate statistical model for the prediction of customers' satisfacti
6 decades.
materials needed
extracted from
and magazine
on a secure website
chasing managers
nted by other
on support system.
market segmentation
per industry and
Customer satisfaction with past purchases from HATCO, measured on a 10-pt graphic rating sca
Likelihood of recommending HATCO to other firms as a supplier of paper products, measured on a
Likelihood of purchasing paper products from HATCO in the future, measured on a 10-pt graphic
Percentage of the responding firm's paper needs purchased from HATCO, measured on a 100-pt
Extent to which the customer/respondent perceives his or her firm would engage in strategic all
Variable Type
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metric
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metric
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metric
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nonmetric
ID cust_type ind_type firm_size region dist_sys prod_qual ecom_act tech_supt comp_resl
8 8.4 65.1 1
6.5 7.5 67.1 0
8.4 9 72.1 1
6 7.2 40.1 0
6.6 9 57.1 0
6.3 6.1 50.1 0
7.8 7.2 41.1 0
5.8 7.7 56.1 0
7.5 8.2 56.1 1
5.9 6.7 59.1 0
7 8.4 68.1 0
6.3 6.6 53.1 0
8.4 7.9 58.1 1
6.9 8.2 72.1 1
7 7.6 62.1 1
6.4 7.1 71.1 0
7.5 7.2 50.1 1
6.9 8.2 58.1 1
7.5 7.9 55.1 0
8.5 8.8 67.1 1
5.5 7 50.1 0
9.6 9.9 70.1 1
7.1 8.1 60.1 0
8.1 8 65.1 1
4.9 5.5 55.1 0
6.8 7 58.1 0
7.1 7 70.1 0
5.5 5.6 55.1 0
6.9 7.2 70.1 0
5.5 6.2 52.1 0
6.8 7.1 44.1 0
5.8 6.2 51.1 0
6.5 7.6 44.1 0
7.5 9 62.1 1
6.6 6.7 54.1 0
4.6 7.1 51.1 0
8 7.2 57.1 0
9.9 9.9 77.1 1
6.9 7.6 65.1 1
5.5 5.8 53.1 0
7.5 8.4 61.1 1
8 7.9 61.1 1
7.8 7.6 72.1 1
7.9 8.4 55.1 1
5.6 6.5 65.1 0
8.6 7.7 58.1 1
8.8 8 67.1 1
7.6 7.1 60.1 0
8.1 8.5 67.1 1
7.8 7.6 61.1 1
7.5 7.2 48.1 0
7.1 8.2 67.1 1
9 9 66.1 1
7 7.2 44.1 0
8.1 8.1 62.1 1
7.6 8.9 59.1 1
7.9 8.8 74.1 1
7.5 7.5 58.1 1
6.5 7 67.1 0
8.5 8.5 61.1 1
6.9 7.2 71.1 1
7.6 8.8 63.1 1
5.5 8 44.1 0
6 8.1 47.1 0
6.9 7.1 48.1 0
6.9 9 60.1 1
5.6 6.2 50.1 0
6.3 8.2 48.1 0
5.8 5.8 51.1 0
6.6 8 58.1 1
7.5 7.7 67.1 0
6 7 43.1 0
6.6 7.9 66.1 0
8.8 9.8 66.1 1
7 8.4 65.1 1
6.6 8.9 63.1 1
6.9 7.5 49.1 0
7.3 8 61.1 1
7.3 8.1 72.1 1
5.8 7.6 44.1 0
7.9 8.8 63.1 0
7.3 8 68.1 1
6.1 8.5 53.1 0
5.1 6.5 37.1 0
7.5 7.7 52.1 1
6 7.2 51.1 0
5.5 6 48.1 0
7.6 8.2 52.1 0
6.5 7.4 59.1 0
7.6 9.3 59.1 1
7.9 7.9 58.1 1
5 6.5 51.1 0
7.5 8.6 72.1 0
7.6 8.9 72.1 1
7.3 8.4 59.1 1
8.1 8.1 50.1 1
5.5 7.2 48.1 0
7 7.7 51.1 0
7.1 7.4 61.1 0
7.3 7 57.1 0
5.5 6.1 52.1 0
9.1 7.1 71.1 1
7 7.6 59.1 1
9.4 9 58.1 1
8.4 8.9 66.1 1
7 7.5 61.1 0
7.6 9.3 77.1 1
7.9 8 62.1 0
7.3 7.6 61.1 0
5.3 7.1 43.1 0
7.1 8.1 66.1 0
6.3 7.9 69.1 0
8.3 7.2 65.1 1
7 7.7 65.1 0
8.8 7.9 63.1 1
6.9 6.9 59.1 0
8 9.5 71.1 1
6.4 7.5 46.1 0
8.5 8 45.1 1
5.9 7.1 51.1 0
7.5 8.8 74.1 1
6.5 8 57.1 0
6.4 7.7 47.1 0
7.9 8.2 66.1 1
6.1 6.5 52.1 0
8 8.1 54.1 1
6.5 8.1 61.1 1
6 6.9 46.1 0
8.1 9.3 70.1 1
5 6.2 47.1 0
6.9 8 60.1 1
5.6 7.1 65.1 0
5.1 6.5 37.1 0
6.9 7.1 53.1 0
7.5 8.2 51.1 0
7.1 7 75.1 1
5.8 6.7 47.1 0
6.6 7.5 61.1 1
6.1 7.4 51.1 0
6.8 7.4 49.1 0
6.5 7.9 55.1 0
8.3 8 61.1 1
9.4 8 72.1 1
6.6 8.4 72.1 0
7.6 8.8 66.1 1
7.8 7.9 66.1 1
6 6 53.1 0
6 8.2 58.1 1
9.1 8.4 55.1 1
5 7.4 55.1 0
5.8 8 65.1 0
5.9 6.6 56.1 0
5.3 7.6 52.1 0
6.8 7.5 69.1 0
6.1 7.1 55.1 0
5.9 7.9 61.1 0
5.3 7.6 48.1 0
5.6 7.1 48.1 0
6.1 7.6 48.1 0
7.4 8.2 59.1 1
5.3 6.9 44.1 0
7 8.1 62.1 1
7 7.6 54.1 0
7.1 8.4 53.1 0
6.8 7.4 53.1 0
5.9 7.9 45.1 0
6.1 7.2 44.1 0
6.6 7.6 41.1 0
6.5 6.7 53.1 0
7.1 7.4 54.1 0
7 6.2 55.1 0
7 7.5 59.1 1
7.3 7.4 66.1 1
6.4 7.9 50.1 0
5.8 6.5 55.1 0
8.5 8.6 67.1 1
8 8.6 65.1 1
7.8 8 66.1 1
6 8.1 59.1 0
8.1 8.2 70.1 1
7.1 7.2 51.1 0
8.1 8.4 75.1 1
9 9.4 70.1 1
8 9.4 72.1 1
6.3 7.5 61.1 0
6.9 6.6 72.1 0
4 4.3 50.1 0
7.4 6.6 48.1 0
6.6 7.4 56.1 0
6.5 7.1 61.1 1
7.9 6.7 44.1 1
5.6 6.7 59.1 0
4.5 7.2 48.1 0
6.5 7.1 50.1 0
5.5 6 40.1 0
6.9 8.4 58.1 1
7.8 8.6 62.1 1
8.8 7.9 66.1 1
7.1 7.6 59.1 1
8.1 8.5 66.1 1