# Abb Case Essay

1967 Words Mar 22nd, 2016 8 Pages
ABB Electric Segmentation - Group Case Analysis
Team Members:
Emeka Ejika
John Marceaux
Brandon McNabb
Todd Teepell
Brandon Woods
Suppose you are the regional sales manager for ABB Electric, and you have been given a budget for a supplementary direct marketing campaign aimed at 20% of the companies in your region 1. At present, you have information on the Descriptor Data Tab of the ABB Electric Data (Customer Choice).xls spreadsheet about the location of customers (districts 1, 2, and 3) and the sales potential of each account of prospect. Based on this information alone, to what companies would you direct the new direct marketing program? Specify the accounts and customer or prospect types.
In order to determine which
Use the choice modeling approach based on the responses provided by 88 firms in your region. The data consists of the evaluation of ABB Electric and the three main competitors on eight variables: 1.) Price, 2.) Energy Losses, 3.) Maintenance Requirements, 4.) Warranty, 5.) Availability of Spare Parts, 6.) Ease of Installation, 7.) Salesperson problem solving support and 8.) Perceived product quality. Perform a customer-loyalty-based segmentation for your customers and prospects.

Which variables are the key drivers of choice in this market?
The key drivers of choice listed in order of importance are:
1. Energy Loss
2. Quality
3. Price
4. Problem Solving Sales Personnel
5. Warranty
6. Ease of Installation. Variables / Coefficient estimates | Coefficient estimates | Standard deviation | t-statistic | Energy Loss | 2.655609373 | 0.673705707 | 3.941794387 | Quality | 2.639411874 | 0.687749269 | 3.837753079 | Price | 2.180581123 | 0.586578426 | 3.717458784 | Prob Solver | 2.032180072 | 0.54967581 | 3.697052037 | Warranty | 1.140702152 | 0.330994613 | 3.446286152 | Ease of Install | 0.520022504 |

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