Business Statistics
Business statistics
Executive Summary
It is prudent to note that the amazon.com from which the data to be used in this paper will be obtained is one of the leading web based retailer of products. Various products and services are advertised in this site since it is one of the most visited sites across the world. Furthermore, the site enables various business organizations to acquire relevant information on how they can modify their products so as to fit the needs of the consumer.
Amazon.com is Avery popular website. This is because of its ability to accommodate large information from different business organizations across the world. The fact that potential customers are able to intensively search, then collect and evaluate information about the available products at various retail shops before deciding on which product to purchase has made it to be a popular website across the world. It is important to note that the amazon.com do provide two fundamental types of information on the products that are posted on the website. That is product ratings and the product reviews.
Product reviews are the feedback obtained from the clients who had purchased particular products before. Reviews can be a useful source of information especially to the manager. This is because; such feedback can be used to modify the products in order to meet the requirements of various customers. On the other hand, product rating can be defined as the degree of quality of a given product according to a particular client. It is meant to rate the products so as to find out the class to which various clients put a product in. The ratings are numbered from 1star to 5star with five star being the highest rating a product can be classified. Therefore, in this paper, various data relating to a particular department brand shall be collected and then analysed. The data will be placed in an excel sheet from which the products mentioned shall be classified right from rating one to rating five. In other words, a given product will be obtained randomly from the department brand selected after which analysis shall be carried out on how many clients rated the product as belonging to any of the ratings mentioned above.
The amazon.com is renowned for organizing its products under various departments. For instance, the products can be organized into books, baby beauty among others. In order to collect the data that is available in the excel file. I went to the amazon.com webpage where I got the data. However, to be specific on where I obtained the data used for this study, I first open the website, and then I selected books department after which I clicked on the go button from which various brands of books were selected.
After various brands of books had been brought, I randomly selected 50 products that had customer’s ratings of not less than thirty. The fifty products then became my sample size. I searched for the customer ratings in terms of first star, second star and third star in that order up to five stars. I collected the number of customers who gave out various ratings. Not to forget, I also collected the prices relative to the products sampled.
Statistical analysis
This chapter shall analyse the data sets: customer ratings and price. The section also describes the data including the following information at minimum: the data type (nominal, ordinal, interval or ratio.
Customer Ratings.
Customer rating can be defined as the degree of quality of a given product according to a particular client. Considering the rating pattern, it is not easy to tell whether price of the product has any influence on the number of reviews accorded to a particular product. This is because, some products with higher ratings are lowly priced while some with lower ratings also have almost the same price. This therefore implies that the customer’s ratings may not have been influenced by the product price. However, we can say that the products with higher reviews are of higher quality and that is why they are reviewed frequently by the clients. For instance, from the data collected, we can deduce that if the ratings of a given product as five are higher than second star, then the product is of higher quality.
We can also say that the books which were accorded higher number of reviews are the most liked and read books across the world. It is therefore worth noting that going with the data collected, price of the product has no relationship with the number of reviews accorded to the same product.
Price
Price can be defined as the cost attributed to a given product. It is prudent to note that the product ratings have no relationship with the price attributed to a particular product. This is because from the excel file, we can see that some products have higher ratings yet they are lowly priced while others have lower ratings yet they are highly priced. This therefore, implies that the number of ratings attributed to a given product have no relationship whatsoever on the price attributed to such a product. The next paragraphs shall describe the type of data that was analysed in the excel file.
The data type that can be exhibited by the information which is available in the excel file include: The ordinal and the nominal types of data.
The nominal data type
The nominal data type is where the data does not necessarily scale the objects along any dimension. Instead, the data collected are simply labelled using numbers. This data type have been applied in the excel file. Some data collected are simply arranged in order. For instance, the books which were randomly sampled have been arranged using numbers 1-50. This does not necessarily mean that some books are better than others. The numbers simply represents the books but with no meaning.
The ordinal data type
The ordinal data types are the types of data in which various numbers are used to place the objects in order. However, there is no information which shows the difference between the points on the scale. For instance, in the excel file. The data collected have been arranged in order from number one to fifty. This just shows the arrangement of the data. However, it does not show the difference between the scales existing between the points on the scale.
PRODUCTS RATING (1, 2, 3, 4 and 5 Star)
KEY
R-percentage of the products rated 1,2,3,4 and 5 Stars respectively.
Calculations
Total number of reviews of the products sampled = 4586
1 star= 190
= (190/4586) × 100
=4.14%
2 star= 144
= (144/4586) ×100
=3.14%
3 star=275
= (275/4586) × 100
6%
4 star =697
= (697/4586) × 100
=15.20%
5star =3280
= (3280/4586) × 100
= 71.52%.
Four star was the second highest reviewed by the clients. Since five star four is associated with high quality, we can further confirm that the customers gave out a positive feedback about the products they purchased through the website. May be, the existence of high quality products sold through this site could be the reason why it is the most visited site in the world. This can further confirm the reason why it is also the most popular website in the website. The fewer number of the products rated 1 star further confirm that most of the products were of high quality.
Conclusion
In conclusion, I would like to emphasise the fact that amazon.com is currently the most popular web based retailer of products. It has a wide variety of products which are sold worldwide to customers. However, the main reason why it is classified as the most popular web site for products and services sold across the world is because the customers are able to collect information, compare and then evaluate the product before they purchase the items. This ensures that the clients purchase only the products that satisfy all their needs. I therefore recommend and advice customers across the world to purchase their products through the amazon.com.
References
Amazon.com. (2013). Retrieved on Feb. 21st 2013 from http://www.amazon.com/b/ref=sr_aj?node=283155&ajr=0 on
McBurney, D.H White, T.L (2012). Research Methods.U.S.A: Cengage Learning.
