ASSIGNMENT 2
Correlation and Regression Analysis
Introduction
This assignment uses data from an online survey conducted for DELL by a UM research team on online
relationships. Ever since DELL started selling PC systems through its website in 1996, online relationships
with its customers have been pivotal to its marketing strategy. Therefore, the company wants to get
insight into the predictors of relationship commitment.
Description dataset
The SPSS data file Assignment2.sav contains 669 respondents from the 2020 DELL Online Relationship
study. The goal of the survey is thus assessing whether familiarity (FAM), situational normality (SN),
structural assurance (SA), and trust (TR) positively influence relationship commitment (RC). The table
below gives an overview of how these variables were questioned in the survey:
MEASUREMENT INSTRUMENTS
FAMILIARITY a
FAM01 I am familiar with DELL through the press.
FAM02 I am familiar with DELL by visiting the DELL website.
FAM03 I am familiar with DELL by purchasing online on the DELL website.
SITUATIONAL NORMALITY a
SN01 The steps required for ordering on the DELL website are typical of other similar websites.
SN02 The information requested from me while ordering on the DELL website is typical of other
similar websites.
SN03 The nature of the interaction with the DELL website is typical of other similar websites.
SN04 The payment process on the DELL website is typical of other similar websites.
STRUCTURAL ASSURANCE a
SA01 I feel safe conducting online transactions with DELL because of its privacy policy.
SA02 I feel safe conducting online transactions with DELL because it provides a toll-free
telephone number for customer contacts.
SA03 I feel safe conducting online transactions with DELL because of its warranty policy.
SA04 I feel safe conducting online transactions with DELL because of its customer support
policy
TRUST a
TR01 Based on my previous experience with DELL I feel that it is honest.
TR02 DELL cares about its customers.
TR03 I can trust DELL as a customer.
TR04 DELL will not behave opportunistically.
RELATIONSHIP COMMITMENT a
RC01 I feel emotionally attached to DELL.
RC02 DELL has great personal meaning for me.
2
RC03 I feel like part of the “DELL family.”
RC04 DELL means a lot to me.
* all measured on an 7-point Likert scale ranging from 1: totally disagree to 7:totally agree.
DEMOGRAPHICS
GENDER Male (1)
Female (2)
AGE _____ years old
EDUCATION (1) Some high school or less
(2) High school graduate
(3) Some College/Technical School
(4) College graduate or higher
INCOME Gross yearly income: $ _____
LENGTH OF RELATIONSHIP _____ years
Questions
1. Calculate a mean score for FAM, SN, SA, RC, and TR. Specifically, for each of the variables, take the
mean of the associated scale items. State whether these resulting mean scores are categorical or
metric variables.
2. Explore the bivariate correlations among FAM, SN, SA, TR, versus RC. Generally formulate all
hypotheses (H0 and H1), conduct the appropriate statistical tests, visually assess the assumptions of
linearity (using a scatterplot – HINT: use graphs>chart builder>scatterplot>scatterplot matrix) and
normality (using histograms and P-P plots), check for outliers (using boxplots) and interpret the SPSS
output with respect to the hypotheses. What are the implications of these results for the study?
3. Briefly state if you would conduct the same statistical test as in question 2 to assess the bivariate
relation between education and RC? If not, what other test would you choose and why? You do not
need to report the output.
4. Conduct a simple regression with relationship commitment (RC) as dependent variable and trust
(TR) as independent variable:
‒ Formulate the hypotheses (H0 and H1)
‒ Conduct the appropriate test
‒ Evaluate model fit. Discuss—in your own words--the rationale behind the R² and the F-
statistic.
‒ Assess the assumptions of homoscedasticity (plot standardized predicted values against
standardized residuals) and normally distributed errors (look at the histogram and P-P plot
for the residuals).
‒ Interpret the SPSS output on the individual predictor. What happens to RC if TR increases
with 1 scale point?
3
‒ Visualize the relation in a scatter plot. Do you think that there are extreme scores might be
affecting your results (HINT: use “casewise diagnostics”).
What are the implications of these results for the study?
5. The principal researcher of the team suggests that familiarity (FAM), situational normality (SN) and
structural assurances (SA) might be added as independent variables to the model in question 4. Is
the explanatory power of the model significantly increased by adding familiarity (FAM), situational
normality (SN) and structural assurances (SA) to the model?
Furthermore, please do the following:
‒ Formulate the hypotheses (H0 and H1)
‒ Conduct the appropriate test
‒ Report the descriptive statistics
‒ Evaluate model fit.
‒ Assess the assumptions of homoscedasticity (plot standardized predicted values against
standardized residuals), normally distributed errors (look at the histogram and P-P plot for
the residuals), and linearity (retrieve all partial plots).
‒ Interpret the SPSS output on the individual predictors.
What are the implications of these results for the study?
6. Could multicollinearity potentially affect the results in question 5? Explain the concept of
multicollinearity for OLS regression analysis, how it potentially could affect your findings and how it
can be diagnosed?
7. Summarize the main findings of the above analysis for the senior management of DELL and provide
your recommendations.