Computing Multimedia Case Study

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Computing Multimedia, a multimedia services company to medium and large sized business, has been a pioneer for over twelve years now providing multimedia-computing solutions to enterprises. However, after being recognized on a national level as a provider of high-end multi media applications, CMMi is facing the conflict of lack of customer retention. Although the industry as a whole is booming and CMMi continues to receive new customers, an abundance of previous customers have been noted to transferring their business to a rival competitor, Knights & Schoening.

In order to better understand the root of this problem, Noreen Kopf, the marketing director at CMMi has decided to issue a customer satisfaction survey to be taken by 81 clients to better understand what drives customer satisfaction and retention. The survey evaluates both the overall satisfaction of CMMi and Knights and Schoening, as well as rates the companies on a scale of one to five for eight independent variables including information provided with product, longevity of hardware, performance of products, features of products, price of products, ease of use of products, reliability of products, documentation provided with products, operating costs of products, delivery time of orders, response time of customer support and expertise of customer support.

Using the results from the customer survey, we can evaluate the importance of each of these variables, and determine which of these variables are valid and critical drivers of customer satisfaction and customer retention. The first step in understanding this is to run a regression analysis of the results to determine the R2 value, which is the measure of the validity of a regression model in predicting future outcomes.
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