To answer the following questions, read the IBM case on the course site and review the questionnaire. Using the case and its associated data set, answer the following questions.Do not assume that the scales of measurement in the file are correct, you will need to access the data based on how it is collected as indicated by the questionnaire and the variable view in SPSS.

1a. Based on the case, what is the management decision problem for IBM?

1b. What is the resulting research problem for your response in question 1a?

2. What are the characteristics of the typical respondent in the IBM survey?In other words, who was surveyed?Use best practices to graph/visualize these variable(s).

3a.Looking at the data in the SPSS file and the questionnaire to guide you, in the data, how satisfied are the consumers on average with IBM and are they likely to recommend IBM?

3b. Is satisfaction (Q4) with IBM related to the likelihood to recommend (Q20) IBM?What is the null hypothesis and what is the alternative hypothesis?Can you reject or accept the null hypothesis?What is the statistical test that informs your answer and what is the result informing your hypothesis testing.

4. What is a key driver or predictor of the likelihood to recommend IBM? What is the null hypothesis and what is the alternative hypothesis?Can you reject or accept the null hypothesis?What is the statistical test that informs your answer and what is the result informing your hypothesis testing.

5a. IBM was rated on several variables to indicate respondent attitudes. What is the highest average rating for IBM?

5b. Are there any areas where the ratings for IBM differ by decision role (Q1) in the company? What is the null hypothesis and what is the alternative hypothesis?Can you reject or accept the null hypothesis in any instance?What is the statistical test that informs your answer and what is the result informing your hypothesis testing.

$FL2@(#) IBM SPSS STATISTICS 64-bit MS Windows 24.0.0.0 #########################Y@09 Dec 1716:56:23 ###########################IDNO ########################Q1 ####Role within your company########################Q2 (###Number of employees in your organization########################Q4 ####Overall satisfaction######"@###### @########################Q5 ####Overall quality ######"@###### @########################Q6 ####Total cost of ownership ######"@###### @########################Q7 ###Value offered ######"@###### @########################Q8 ####Company cares about the society ######"@###### @########################Q9 ####Highly ethical company ######"@###### @########################Q10 ####Leader in the IT industry ######"@###### @########################Q11 ####Innovative company ######"@###### @########################Q12 )###Company has strong capable senior leaders ######"@###### @########################Q13 ####Financially sound company ######"@###### @########################Q14 ####Company I can trust ######"@###### @########################Q15 %###Company has advertising I really like ######"@###### @########################Q16 %###Known for treating its employees well ######"@###### @########################Q17 +###Company does its fair share to help society ######"@###### @########################Q18 /###Continue purchasing from this company next year ######"@###### @########################Q20 ####Would recommend this company######"@###### @########################Q21 ,###Increase current purchases from this company######"@###### @########################Q22 !###Quality of account representative ######"@###### @########################Q23 1###Overall quality of products or services purchased ######"@###### @########################Q24 1###Overall quality of non-technical customer service ######"@###### @########################Q25 ####Overall quality of training ######"@###### @########################Q26 $###Overall quality 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SASDataFile L-------------------------------------------------------------------------------------~-------------------IBM:, The World's Top Provider of Computer Hardware, Software, and Services International Business Machines (IBM, www.ibm.com) had been dubbed the proverbial "sinking ship" in the early nineties, but since then, due to the competent leadership of its management team, IBM has made a successful comeback. IBM,with$103.63 billion in revenue in 2008, is the world's top provider of computer hardware, software, and services. More than 50% ofIBM'srevenues in 2008 can be attributed to sales outside the U.S. Among the leaders in almostevery market in which it competes, IBM makes mainframes and servers, storage systems, and peripherals in its hardware product stream, IBM's service arm is the largest in the world. It is also one of the largest providers of bot~ ~(}ft:vare(ranking number two, behind Microsoft) and semiconductors. IBMhastraditionally used acquisitions to augrnentits software and service businesses, while streamlining its hardware, software, and service operations. In 2007, for the fifteenth consecutive year, 'IBM was issued .more U.S. patents (3,125) than any other company: IBM has seen significant changes in recent years. It reorganized its hardware business, merging its desktop and laptop operations to concentrate on its leading enterprise server arid storage products. Eai'ly in 2004, IBM announced that it wouldalso combine its technology (microchipsjand systemsIservers, storage) groups. L~te in 2004, IBMended~the year with.an agreement to sell its PC business-a segment that had yielded little profit for the company in recent years-to China's Lenovo. IBM's growing services business now accounts for almost half of its sales, eventhough it is traditionally seen as a provider of mainframe hardware. Looking to extend its lead, IBM acquired Prieewaterhousef'oopers' consulting andI'I' services 'unit, PWCConsulting, for an estimated $3.5 billion in cash and stock. PresentingIBM with a significant integration challenge, the transaction also served the dual purpose of augmenting IBM's standard array of outsourcing, maintenance, and' integration services, while moving the company into high-end management consulting. IBM has largely used acquisitions to become a leader in yet another market-e-software-c-where it trails only FromCaseStudiesof Marketing Research: An Applied Publishedby PrenticeHall. All rightsreserved. Orientation, Microsoft. A pioneer in server operating system (OS) -software, IBM made an early move into' messaging and .network management software with its acquisitionsof Lotus Deyelopme~t(1995) and Tivoli (1996). Its sofuvare oIJerationsnowfecused primarily on e-commerce infrastructure, IBM has continuedits push beyond OS software,purch~ing , the database operations of Inforrnix '(2001) andappJic.aticin integration products from CrossWorlds Software (2'002). In 2003, IBMllcquireddevelopment tool maker Rational Software for $2Tbillion in cash, and it also acquited supply chain softwaredeveloper Trigo Technologiesearlyin 2004. In early 2d05;Lerro~0 Group Limited conipleted the acquisition IB.M'~Personal Computing Division: I~~'s ownership in Lenovo upon closing is 18.9 pers:ent.rrtthe dynamicIT industry,co.mpani9sneedtoeontinua,iiyrei~vent themselves 19 bring long~teim~aiue.forclie.nts., IBM's strategy is to.be' the w0H'df~ader in providing~~~~Ya1ue solutions-l-fccused.on theenterprise arid small aild ~ediUm business clients. Ih2007,'I~M and ~FohaIll1ouIlced'the formation of a ]ointveri~e company,theI11f~I>rint SolLltions Company,based on IBM's PrintiligS),stellls,Divisipu. In late 2007, IBM acquiredCogIlos fOr$5)illio~. For, IBM, the Cognos acquisition.is.a contiriuation afa,"groW.th through I?i~g~fs-and-acquisitions" effort' it lal!Af;tre{ll1 February 2006. Since then, IBM has bought 23 software companies as part of its Information on Demand strategy, which combines software and services to help corporations get the mosiou't opall the data they gather about customers and their owiBuSiness operations. IBM is one of the top Fortune 500 companies. Roughly half of IBM' s revenues and profits come from its hardware andsoftware products. In Orderto compete with Microsoft, IBM, along with others likeSun, has supported the Linux platform in a big way. Also, the open source initiative thatIBM and others have spearheaded is seen as'an effective means of cornering Microsoft. To gain support in the developer community, IBM has fully supported Java in its.flagship middleware software platform,Websphere, arid also in its other parallel of 6/e.NareshN. Malhotra.Copyright 2010by PearsonEducation. 291 CASE: iBM: THE WORLD'S TOP PROVIDER O~ COMPUTER HARDWARE, SOFTWARE, AND SERVICES IBM Annual Revenue and Profits II Revenues (billions) Gross profits (billions) 40 20 O~-------r-------.-------.--------.-------~ 2003 2004 2005 products such as Tivoli. IBM has almost the complete footprint in its product line in the hardware segment and software segment. The only area of software product that IBM conspicuously lacks is the ERPfCRM market, which is now being hotly contested by SAP and Oracle, especially after Oracle's buyout of PeopleS oft. But, even in this segment, IBM has made successful inroads using its Websphere rniddleware product, which is often preferred by some customers for their applications-integration requirement. Also, IBM's PWC is one of the major players in the ERP/CR.,.YI implementation-services market. In order to maintain this lead, it is important for IBM to ensure that its customers-the managers and decision makers who make purchasing decisions-are satisfied with IBM's hardware and software products. IBM therefore conducted a survey-based study of decision makers in different roles in various companies. The survey participants chose a company, which they evaluated. The company chosen by the participants was IBM or a different company that competes with IBM in some way. The survey, named the ITlndustry CustomerBencbrnark Survey, will be repeated each year. It will provide data on how IBM and its competitors are perceived by customers. The survey questionnaire follows and the data file can be downloaded from the Web site for this book. IBM's management team can use the results ot' the survey and its analysis to make strategic decisions to improve IBM's standing in the eyes of its customers. 292 -( 2006 2007 Packard, should be receded to 2. All the firm variables for all the remaining cases should be recoded to value 999. The value 999 for the variable Q3_Recoded should be declared as a missing value. ., CASE: IBM: THE WORLD'S TOP PROVIDER OF COMPUTER HARDWARE, SOFTWARE, AND SERVICES 2008 IT INDUSTRY CUSTOMER BENCHMARK SURVEY It'l"TRODUCTION We are conducting a study to obtain a comprehensive view of your attitudes and perceptions about companies in the IT industry. You will be asked to evaluate the quality, products, and services ofkey companies in the IT field. We would like you to complete the online survey, as we are interested in your perspective and opinions. This survey is posted at: http://surveypearsonhighered.comlmalhotra The Web site will be available to you for the next several weeks-from We look forward to your feedback. today (1I.-1ay8, 2008) through Friday, June 27, 2008. ., QUALIFICATION 1. Please select that option that best describes your role within your company. (Please select one to continue.) (Ql) o IT Decision o o o cro, Maker (e.g., CI0. VP ofITj-executive with primary authority and decision-making responsibility over you!' company's IT and the high level relationship with IT vendors IT Influencer (e.g, IT Director, Manager)-manager, with decision-matd% responsibility, who is responsible for the planning, design, and implementation of your company's IT and/or who manages the organizations that operate and maintain your company's IT IT Staff"--'staff member responsible fer designing or maintaining the operations of your company's IT andtroubleshooting problems ' Don't K..'10W (1) (2) (3) (9) IF NOT Al"iSWERED:. "You must answer this question to qualify for the survey." IF DON'T Ki\\lOW: "You must be an IT Decision Maker, Influencer, or Staff to continue the survey." ALLOW RESPONDENT TO GO BACK AJ.'\\lDCHANGE AJ.'\\lSWER; IF STILL NOT AJ.'\\lSWERED OR DON'T KNOW, TERivlL.l\\fATE SURVEY. 2. How many employees are there in. your organization? (Q2) o o o 1-49 50-99 100-499 0500-999 o 1,000-4,999 o 5,000-9,999 o 10,000or more o Don'tKnow (99) IF DON'T KNOW OR NOT ANSWERED: "You must answer this question to qualify for the survey." ALLOW RESPONl)El\\TT TO GO BACK AND CHANGE A.l"ISWER; IF STILL NOT ANSWERED OR DON'T KNOW, TERrvllNATE SURVEY. 294 CASE: IBM: THE WORLD'S TOP PROVIDER OF COMPUTER HARDWARE, SOFTWARE, AND SERVICES OVERALL lVtEASURES 3. Please select one of the following vendors that you want to evaluate. (Select one only) (Q3) Hyperion IBM Intel JD Edwards Linksys Lucent Maxtor McAfee MetaSolv Microsoft Netgear Nortel Novell Onyx Oracle Peoplesoft Peregrine Systems Quantum SAP Seagate SMC Sun Microsystems Sybase Symantec Tivoli Systems Toshiba ADtC Alcatel 3Com Adaptec ADC Adobe Adtran Apple Ariba Belkin Black Box CabletronJEnterasys Cisco Compaq/Hew lett -Packard Computer Associates Corel Corporation Datalink Dell E.piphany EMC Exabyte Extreme Fluke Networks Gateway Great Plains Hitachi 4. How would you rate your overall satisfaction of the selected company? (Q4) Very Satisfied 5 Company Selected o Satisfied 4 o Neutral 3 o Dissatisfied Very, Dissatisfied 2 1 o C5 Don't Know 9 o 5. Considering your own experiences and what you may have read or heard, how would you rate the overall quality of the products, . services, and support provided by the selected company? (Q5) Excellent 5 Company Selected 6. o Very Good 4 Good 3 0 0 Fair 2 o Poor 1 o Don't Know 9 o Please evaluate the total cost of ownership for the company including acquisition costs as well as on-going costs. (Q6) Company Selected Very High 5 High 4 Moderate 3 Low ,?-2.-_ Very Low 1 Don't Know 9 0 0 0 0 0 0 7. Considering the overall quality of the company in relation to its prices, how would you rate the value offered? (Q7) Company Selected Excellent 5 Very Good 4 Good 3 Marginal 2 0 0 0 0 Poor 1 O~_/ Don't Know 9 o IMAGE For each of the following statements, please indicate your level of agreement. 8. This company seems to care about the community and society. (Q8) Company Selected Strongly Agree 5 Agree 4 Neither Agree Nor Disagree 3 0 0 0 Disagree 2 o Strongly Disagree 1 o Don't Know 9 o 295 CASE: IBM: THE WORLD'S TOP PROVIDER OF COMPUTER HARDWARE, SOFTWARE, AND SERVICES 9. This company is a highly ethical company. (Q9) Strongly Agree 5 Agree 4 0 Company Selected 0 Neither Agree Nor Disagree 3 I 0 Strongly Disagree 1 Disagree 2 0 Don't Know 9 0 0 Stt;Qngly Disagree I Don't Know 9 0 0 10. This company is a leader in the IT industry. (QlO) Strongly Agree 5 Neither Agree Nor Disagree 3 0 0 0 Company Selected II. Agree 4 Disagree 2 0 This company is an innovative company. (Ql l ) Strongly Agree 5 Company Selected Agree 4 Neither Agree Nor Disagree 3 0 0 '0 Strongly Disagree 1 Disagree 2 0 0 Don't Know 9 0 12. This company has strong capable senior leaders. (Q12) Strongly Agree 5 ./] Agree 4 Neither Agree Nor Disagree 3 0 0 0 Company Selected Strongly Disagree I Disagree 2 0 0 Don't Know 9 0 13. This company is a financially sound company. (QI3) Strongly Agree 5 Agree 4 Neither Agree Nor Disagree 3 0 0 Agree 4 Neither Agree Nor Disagree 3 0 0 0 Company Selected Strongly Disagree 1 Disagree 2 0 0 Don't Know 9 0 14. This company is a company I can trust. (QI4) Strongly Agree 5 Company Selected 0 Strongly" Disagree 1 Disagree 2 0 . Don'tKnow 9 0 0 Strongly Disagree1 Don't Know 0 0 15. This company has advertising I really like. (QI5) Strongly Agree Company Selected 5 Agree 4 0 0 Neither Agree Nor Disagree 3 0 Disagree 2 0 9 16. This company is wen known for treating its employees well. (Q16) Strongly Agree Company Selected 5 Agree 4 0 0 Neither Agree Nor Disagree 3 0 Strongly Disagree 1 Disagree 2 0 0 17. Compared to other companies, this company does its fair share to help the community and so~ie~ Strongly Agree Company Selected LIKELmOOD 5 Agree 4 0 0 Neither Agree Nor Disagree 3 ' Disagree 2 ~ Don't Know 9 0 (Q 17) Strongly Disagree Don't Know 1 9 0 0 Not At All Likely Don't Know 3 Not Very Likely 2 1 9 0r- 0 0 0 0 0 OF PURCHASE 18. How likely are you to continue purchasing from this company during the next year? (QI8) Extremely Likely Company Selected 5 Very Likely 4 0 0 Somewhat Likely 296 .;. , ....