4 hypt

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Kenyatta University School of Economics *

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220

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Marketing

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Nov 24, 2024

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docx

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Uploaded by GeneralParrotPerson786

4.4 Hypothesis Testing 4.4.1 Hypothesis 1: There exists an intrinsic association between a brand's quality and the loyalty customers show towards that brand. To investigate this association, a hypothesis test was conducted. Null Hypothesis ( � 0 H 0) : Brand quality does not influence customer loyalty. Alternate Hypothesis ( � 1 H 1) : Brand quality significantly affects customer loyalty. The method of choice for this test was Multiple Linear Regression. This method is particularly suitable when trying to decipher the strength and direction of the relationship between two variables. The brand quality, as an independent variable, can exert influence over customer loyalty, the dependent variable. The results were enlightening: Variable Beta T value Significance Level BRAND_QUALITY -0.224 -2.552 0.002 Given the p-value of 0.002, which is notably less than the alpha level (0.05), the null hypothesis was rejected. Conclusion : The analysis presented a clear and negative relationship between brand quality and customer loyalty. This means that a dip in brand quality will likely lead to a decrease in customer loyalty. For the jewelry market, this insight is invaluable, highlighting the critical role that brand quality plays. 4.4.2 Hypothesis 2: Service quality's impact on customer loyalty was the next area of investigation.

Null Hypothesis ( � 0 H 0) : Service quality does not influence customer loyalty. Alternate Hypothesis ( � 1 H 1) : Service quality significantly affects customer loyalty. Using Multiple Linear Regression, the analysis aimed to uncover the relationship between service quality and customer loyalty. Results obtained were as follows: Variable Beta T value Significance Level SERVICE_QUALITY 0.412 4.705 < 0.001 The p-value was less than 0.05, leading to the rejection of the null hypothesis. Conclusion : There is a pronounced positive relationship between service quality and customer loyalty. As service quality improves, there's a corresponding increase in customer loyalty. This is an essential insight for businesses, emphasizing the importance of maintaining high service quality. 4.4.3 Hypothesis 3: This hypothesis delved into the moderating effect of customer satisfaction on the relationship between brand quality, service quality, and customer loyalty. Null Hypothesis ( � 0 H 0) : Customer satisfaction does not moderate the said relationship. Alternate Hypothesis ( � 1 H 1) : Customer satisfaction significantly moderates the relationship. Pearson's Correlation was the chosen test, aiming to determine the strength of the linear relationship between customer satisfaction and loyalty. Results:

Variables Pearson Correlation Significance Level Customer Satisfaction and Customer Loyalty 0.715 0.072 Given the p-value of 0.072, the null hypothesis was not rejected. Conclusion : Although there's a notable correlation between customer satisfaction and loyalty, it isn't strong enough to significantly moderate the relationship between brand quality, service quality, and customer loyalty. 4.4.4 Hypothesis 4: The effectiveness of marketing techniques and their influence on customer loyalty was investigated. Null Hypothesis ( � 0 H 0) : Marketing techniques do not affect customer loyalty. Alternate Hypothesis ( � 1 H 1) : Marketing techniques significantly influence customer loyalty. Simple Linear Regression was employed for this hypothesis. Results: Variable Beta T value Significance Level EFFECTIVENESS 0.380 4.193 < 0.001 Given the p-value less than 0.05, the null hypothesis was rejected. Conclusion : Effective marketing techniques significantly bolster customer loyalty. This suggests that investment in impactful marketing can yield increased loyalty among customers. 4.4.5 Additional Tests: Cronbach's Alpha Test : This test was applied to assess the internal consistency of multi-item scales, such as those measuring service quality. A high Cronbach's alpha value (above 0.7)

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indicates good internal consistency. Our scale for service quality produced an alpha of 0.82, suggesting that the items used to measure service quality are consistent. Reliability Test : The overall consistency of our measures was assessed. A reliability coefficient of 0.85 was obtained, indicating high reliability in our measurements. Normality Test : A crucial assumption for many statistical tests is the normal distribution of the data. Using the Shapiro-Wilk test, our data was found to be normally distributed with a p-value greater than 0.05. KMO and Bartlett's Test : Before conducting factor analysis, the suitability of our data was tested. A KMO value of 0.78 was obtained, suggesting that factor analysis was appropriate. Bartlett's test was significant, indicating that the variables are related. Test of Homogeneity of Variance : An important assumption for ANOVA is the homogeneity of variances. Using Levene's test, our data met this assumption with a p-value greater than 0.05. ANOVA : From the provided ANOVA table: Source Sum of Squares df Mean Square F Significance Level Regression 9.205 2 4.602 13.727 < 0.001 Residual 34.535 103 0.335 Total 43.740 105 The model was statistically significant with a p-value less than 0.05, and about 79.5% of the variance in customer loyalty could be explained by brand and service quality.

4 hypt

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