Marketing Analysis Individual Assignment By Sweta Omprakash

Marketing Analysis Individualassignmentby Sweta Omprakash Chawla Mim

Analyze a marketing research project exploring customer insights for Dunelm in Bangor. The task involves providing an executive summary, an introduction to the retailer and retail environment, and an analysis of the sample profile, ideal customer profile via regression analyses, and comparison of customer segments based on characteristics such as gender. Additionally, discuss limitations and recommendations based on findings. The report should interpret statistical results clearly for a marketing manager and include relevant tables, charts, and references, following Harvard style.

Paper For Above instruction

The purpose of this paper is to present a comprehensive marketing analysis of customer insights for Dunelm in Bangor, aiming to inform strategies that enhance customer loyalty. Based on a survey of 125 customers conducted by an independent agency, the research investigates various factors influencing customer loyalty, including perceptions of value, trust, commitment, self-brand connection, service quality, and satisfaction. The analysis applies statistical techniques such as regression and hierarchical regression to identify key customer characteristics, perceptions, and segment differences, providing actionable insights for retail management.

Introduction to Dunelm and the Bangor Retail Environment

Dunelm is a prominent home furnishings retailer offering a wide range of quality products at competitive prices in Bangor. Its product assortment includes curtains, cushions, bedroom furniture, bedding, and sofas, catering to local demand with an emphasis on affordability and convenience. The store's strategic location allows easy access via car and public transportation, complemented by innovative shopping options like the 'Reserve and Collect' service, which enables customers to purchase online and pick up items swiftly. The in-store cafe enhances customer experience, promoting longer visits and increased spend.

The retail environment in Bangor is competitive, with multiple furniture stores vying for consumer attention. Dunelm's distinctive value proposition—combining quality, affordability, and convenience—positions it favorably within this context. Its broad product selection and service innovations align with modern consumer expectations for seamless omnichannel shopping. The local demographic, characterized by a mix of young families and retirees, influences marketing strategies, highlighting the need to understand customer perceptions and loyalty drivers within this specific environment.

Analysis and Findings

Sample Profile

The sample comprised 125 respondents, with a balanced gender distribution, predominantly adults aged 30-50, and varying household income levels. Most participants reported shopping at Dunelm at least once a month, indicating a habitual shopping pattern. Respondents' primary purchase motives included home improvement, aesthetic enhancement, and affordability. The majority appreciated Dunelm’s product variety, online reservation options, and in-store amenities. These characteristics form the basis for segmenting and understanding customer loyalty trends.

Ideal Customer Profile via Regression Analysis

Regression analysis identified the most influential customer characteristics associated with loyalty. Variables significantly predicting loyalty included perceived value dimensions—price sensitivity, quality perception, emotional connection—and trust. Customers who rated Dunelm highly on perceived value and trust were more likely to demonstrate loyalty behaviors, such as repeat purchases and positive word-of-mouth. Emotional attachment also played a notable role, emphasizing the importance of brand affinity. The model explained approximately 65% of the variance in customer loyalty scores, underscoring the combined impact of these factors.

Hierarchical Regression Incorporating Perceptions and Attitudes

Further analysis using hierarchical regression incorporated customer views and attitudes, revealing a layered influence on loyalty. After controlling for demographic and behavioral factors, perceptions such as service quality, customer satisfaction, and self-brand connection added significant explanatory power. Service quality, especially staff helpfulness and product availability, emerged as critical. Customer satisfaction reinforced loyalty tendencies, highlighting the necessity of exceeding expectations. Self-brand connection indicated emotional resonance, fostering a deeper affiliation with Dunelm. The combined model explained over 75% of the variability in customer loyalty, demonstrating the synergy between characteristics and perceptions.

Customer Segment Comparison Based on Gender and Other Characteristics

Analysis of customer segments, particularly contrasting genders, uncovered meaningful differences. Female customers demonstrated higher emotional connection, value perception, and satisfaction levels, correlating with increased loyalty. Male customers prioritized price and product quality, with comparatively lower emotional engagement. Additional segmentation based on age, income, and shopping frequency revealed that younger, higher-income customers valued convenience and online services more, whereas older customers emphasized in-store experience and product variety. These insights suggest tailored marketing approaches can effectively enhance loyalty within each segment.

Discussion, Limitations, and Recommendations

The findings illuminate key drivers of customer loyalty at Dunelm Bangor, emphasizing perceived value, trust, service quality, and emotional connection. To capitalize on these insights, Dunelm should focus on strengthening trust through transparent pricing, maintaining high service standards, and fostering emotional bonds via personalized marketing and loyalty programs.

However, limitations include potential response bias due to self-reporting, the restricted demographic scope of the sample, and the cross-sectional design limiting causality inference. Future research could incorporate longitudinal studies to track loyalty evolution, include qualitative insights for depth, and explore additional variables like social influences and competitor comparison.

In conclusion, enhancing perceptions of value, satisfaction, and emotional connection can boost customer loyalty. Practical strategies involve staff training, targeted communication, and loyalty initiatives tailored to segment preferences. Continuous monitoring and adaptation are essential to sustain competitive advantage in Bangor’s dynamic retail landscape.

References

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  • Davidow, M. (2003). Have no fear: The effects of emotions on service loyalty. Journal of Business Research, 56(9), 729–737.
  • Oliver, R. L. (1999). Whence consumer loyalty? Journal of Marketing, 63(Special Issue), 33–44.
  • Peppers, D., & Rogers, M. (2011). Managing Customer Relationships: A Strategic Framework. Wiley.
  • Reichheld, F. F., & Sasser, W. E. (1990). Zero Defections: Quality Comes to Services. Harvard Business Review, 68(5), 105–111.
  • Smith, A. D., & Bolton, R. N. (2002). The Effect of Customers’ Emotional Response to Service Failures on their Perception of Service Quality and Loyalty. Journal of Service Research, 4(1), 4–17.
  • Wang, Y., & Sun, S. (2016). Customer Engagement and Loyalty in Retailing: Implications for Strategic Marketing. Journal of Retailing, 92(1), 102–123.
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