Analysis Of Repurchase Intentions In Furphy Brewery

Intention to Repurchase Descriptive Statistics

Establishing a business enterprise in a much dominated industry can prove to be very challenging. Hitting the ground running sometimes depends entirely on the approaches that the entrepreneur will employ. One of the major basics for such an enterprise is to understand its customer base and needs. Once a business understands its customers and their needs then the subsequent ingredients for take-off becomes easy to put together.

Furphy is a micro-brewery company that has its operations in Melbourne and Victoria in Australia. It has been in the business of producing pale ale beer for a period spanning about 15 years. It sells its products directly to customers or through retail pubs, bars and restaurants. In the recent past it has seen a tremendous growth in its production due to the ever growing demand for its products. This saw the company produce about 3 million liters of beer to satisfy its ever growing demand. The above good profile notwithstanding, the company has saw the need to conduct a survey to understand its customers more and their repurchase intentions so as to retain them due to the threatening competition that is posed by many other brewery companies that are springing up in the region. It is against this background that Furphy Brewery Company has contracted beautiful data, a market research company to conduct the survey for it.

Intention to repurchase descriptive statistics

The intention to repurchase was rated on a scale of between 1 to 10 with 1 meaning less intention to repurchase and 10 meaning high intention to repurchase. The descriptive analysis in the table above shows that the mean intention to repurchase rate was 7.66. Considering that this is far above 5 which is the average rate. It means that majority of the customers had intentions to repurchase products from Furphy company. The value of the mode also reinforces that most customers had high intention to repurchase. The mode value was 7.2 (the most repeated value in a data set).

Summary of whether one would recommend or not

From the graphical representation of whether or not a customer is willing to recommend another person to buy from Furphy, it can be observed that the number out of the 200 respondent 101 of them were willing to recommend Furphy products to other people. On the same note, 99 out of the 200 said they were not willing to recommend Furphy products to other people. In short half of the respondents are willing to recommend others while the other half is not willing to recommend others. This should be a cause to investigate since the unwilling proportion is not encouraging. The company should narrow down establishing the various reasons that would make this proportion not to be willing to recommend others.

Repurchasing intentions in this survey can be influenced by a number of variables. However, the extent to which these variables may influence the dependent variable repurchase intention will differ in strength. The survey is therefore interested in those variables that have a significant influence on the dependent variable “repurchase intention”. To establish these variables, a correlation test was conducted to determine the variables. The correlation test was between the dependent variable “repurchase intention” and the following independent variables;

• Beer quality
• Brand image
• Advertising
• Delivery speed
• Cost of Shipping

Summary of Whether One Would Recommend or Not

The correlation test tables are as seen below;

A correlation test between the variables “quality” and “repurchase intention” is as tabulated in table 2.1.1 above. The test shows that there is a significant correlation between the two variables. A correlation value of .43 does not only suggest a significant relationship but also a positive direction in correlation. This shows that customers value quality of the furphy beer so much before they consider repurchasing the product. Therefore the company should strive to improve on the quality of the beer if they are to retain customers and even broaden their customer base.

Table 2.1.2

A correlation test between the variables “advert” and “repurchase intention” is as tabulated in table 2.1.2 above. The test shows that there is a significant correlation between the two variables. A correlation value of .24 does not only suggest a significant relationship but also a positive direction in correlation. This shows that customers value advertisement done about furphy beer so much before they consider repurchasing the product. It can be assumed the advertisement instill a sense of confidence in customers since the advertisements usually inform the customers about the product prices, quantities, quality and discounts if there be. For this reason the company should strive to do more adverts of the beer if they are to retain customers and even broaden their customer base.

Table 2.1.3

A correlation test between the variables “brand image” and “repurchase intention” is as tabulated in table 2.1.3 above. The test shows that there is a significant correlation between the two variables. A correlation value of .33 does not only suggest a significant relationship but also a positive direction in correlation. This shows that customers value brand image of the furphy beer so much before they consider repurchasing the product. Therefore the company should strive to improve on the brand image of the beer if they are to retain customers and even broaden their customer base.

Table 2.1.4

A correlation test between the variables “shipping speed” and “repurchase intention” is as tabulated in table 2.1.4 above. The test shows that there is a significant correlation between the two variables. A correlation value of .43 does not only suggest a significant relationship but also a positive direction in correlation. This shows that customers value shipping about furphy beer so much before they consider repurchasing the product. It can be assumed the speed instill a sense of confidence in customers since they are assured of getting the product on time after placing an order. For this reason the company should improve even more the movement of their products from their premises to the customers for faster and efficient delivery of goods and services attract more customers.

The following variables may influence intention to buy pale ale beer. They include the following;

• Beer quality
• Brand image
• Advertising
• Delivery speed
• Cost of shipping

A multi-regression analysis is however important to establish how the above independent variables influence the intention to buy. With the multi-regression analysis, it can be deduced from the model the significant variables that do influence the dependent variable. 

Predicting Variables for Repurchase Intention

The multi-regression model above shows the relationship between the dependent variable “repurchase intention” and independent variables such as “quality”, “brand image”, “advert” and “shipping speed”. The analysis shows that the R square is 0.426. This indicates that only 42.6% variation in the dependent variable “repurchase intention” can be explained by the independent variables. The regression results also show that the coefficients of the independent variables differ. Advert has the least coefficient of -.03. It therefore insignificantly influences the dependent variable. Quality, brand image, and shipping speed had coefficients of .29, .26 and .37 respectively. From those coefficients, it means that the independent variable “shipping speed” significantly influences the repurchasing intention compared to the other two. It means that a unit change in the variable “shipping speed” causes a corresponding 37% change in the dependent variable “repurchase intention”.

The multi-regression model above shows the relationship between the dependent variable “repurchase intention” and independent variables such as “quality”, and “brand image”. The analysis shows that the R square is 0.5836. This indicates that only 58.36% variation in the dependent variable “repurchase intention” can be explained by the independent variables. The regression results also show that the coefficients of the independent variables differ. Quality and brand image had coefficients of .399 and .3115 respectively. From those coefficients, it means that the independent variable “quality” significantly influences the repurchasing intention compared to the other. It means that a unit change in the variable “quality” causes a corresponding 39.9% change in the dependent variable “repurchase intention”.

The multi-regression model above shows the relationship between the dependent variable “recommending” and independent variables “quality”, “brand image” and “advert”. The analysis shows that the R square is 0.2559. This indicates that only 25.6% variation in the dependent variable “recommending” can be explained by the independent variables. The regression results also show that the coefficients of the independent variables differ. Advert has the least coefficient of .009. It therefore insignificantly influences the dependent variable. Quality and brand image had coefficients of -.145 and -.16 respectively. From those coefficients, it means that none of the independent variables significantly explains the dependent variable “recommending”. In short this model cannot be used to predict recommendation. 

Conclusion

Intention to repurchase which was one of the main objectives of this research study was found to be influenced by aspects such as shipping speed of the product. This is normal because customers prefer the time between placing an order to delivery of the product to their premises to be as short as possible. The other aspect that influenced intention to buy was quality of the product. In the regression above, quality explained much of the variation in the dependent variable “repurchase intention”. It also came out that a good number of customers were not willing to recommend Furphy products to other people. A good 90 out of 200 respondents said they were not willing to recommend others. It is therefore upon the company’s management to carry out further research to investigate the reasons as to why such a worrying number was not willing to recommend Furphy products to others.  In conclusion, it can also be reported that the research went through a lot of challenges ranging from logistics to limited resources and time. There were also cases of respondents not willing to participate in the survey. Others went to the extent of asking for financial motivation for them to take part in the survey. 

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