IMAGERY IN VERTICAL DISTRIBUTION CHANNEL STRUCTURE: AN EMPIRICAL INVESTIGATION OF STEEL SERVICE CENTER IMAGES Thesis for the Degree of Ph. D. MICHIGAN STATE UNIVERSITY PETER MYLES BANTING I 9 71 l‘l‘i—I_-_--—-_-_ll"i n . ‘H 9 This is to certify that the thesis entitled IMAGERY IN VERTICAL DISTRIBUTION CHANNEL STRUCTURE: AN EMPIRICAL INVESTIGATION OF STEEL SERVICE CENTER IMAGES presented by Peter Myles Banting has been accepted towards fulfillment of the requirements for Ph . D . degree in Marketing ‘ ‘. “Cf/Urn \flgbk, Major professor Date January 11, 1971 0-7639 *‘i: LIB D 6 2 y Edda Y. .4 ‘d'4s. ABSTRACT IMAGERY IN VERTICAL DISTRIBUTION CHANNEL STRUCTURE: AN EMPIRICAL INVESTIGATION OF STEEL SERVICE CENTER IMAGES by Peter Myles Banting This thesis examines the images projected by United States steel service centers as they are per- ceived by basic steel mills, by the steel service centers themselves, and by the customers who buy from steel service centers. Similarities between the image steel service centers project and the images perceived by customers and basic mills are identified; key elements considered most representa- tive of elements in the image spectrum, ranging from unfavorable to favorable, are isolated; a basic operational tool for image measurement by steel service centers is developed; areas of greatest opportunity for steel service center image improve- ment are identified; and the relationship between Peter Myles Banting the image projected by steel service centers and the profits they earn is tested. In this study an image is defined as a composite of many evaluative elements, generated by all associations with the firm and abstracted into an independent final stable impression whose meaning is mediated by the individual's values and biases. The research was conducted using a mail questionnaire incorporating forty-four semantic differential scales of image elements to evaluate the ideal steel service center, an identical set of forty-four scales to evaluate the actual steel service center, and eight scales to evaluate the relative importance of various image elements. Comparison of ideal and actual mean valueson each of the forty-four scales provided a measurement of image congruity. Factor analysis of the variables indicated their conceptual associations in the views of the respondents. Multivariate regression of all the variables yielded a basic incongruity index consisting of six variables for the customers, seven Peter Myles Banting variables for steel service centers, and seven variables for the basic mills, which could be used to represent the information contained in the ninety— six variable questionnaire. Areas offering greatest opportunity for image improvement by steel service centers included management and planning, product quality, inventory position, communication of credit policies, delivery, product- and problem-oriented advertising, and sales management. Factor analysis indicated basic mills have a marketing channel orientation, steel service centers are sales oriented, and customers concentrate on immediate day-to-day problems. No relationship could be found between steel service center images and the profits they earn. The study recommends a number of areas in which further research might be undertaken. IMAGERY IN VERTICAL DISTRIBUTION CHANNEL STRUCTURE: AN EMPIRICAL INVESTIGATION OF STEEL SERVICE CENTER IMAGES by Peter Myles Banting A THESIS Submitted to Michigan State University in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY Department of Marketing and Transportation Administration 1971 CDCopyright by PETER MYLES BANTING 1971 ii ACKNOWLEDGMENTS The inspiration, encouragement, cooperation and assistance of many people contributed to this dissertation. My gratitude to them extends beyond that which can be acknowledged here. My dissertation committee, chaired by my faculty advisor, Dr. William Lazer, was outstanding in objective, constructive guidance and personal encouragement. The example set by Dr. Lazer's penetrating counsel has sharpened my awareness of the need for precision. Dr. William J.E. Crissy's advice helped me immeasurably in resolving the numerous vexing problems in data gathering and analysis. It is of great regret to me that Professor W. Lloyd Warner, who provided a pre- doctoral grant toward this study, did not live to see its completion. I am grateful to Dr. Donald Taylor, who replaced Professor Warner on my committee. iii The education committee of the Steel Service Center Institute provided generous financial support for this study. This work was considerably enhanced by the assistance of Mr. Robert Welch, President of the Steel Service Center Institute, who encouraged SSCI members to participate, and who offered helpful advice and criticism of the manuscript. My thanks also extend to those basic mill executives, steel service center executives, and steel buyers who participated in this study as respondents. At McMaster University, I was assisted by Dr. Paul Swingle and Dr. David Streiner, who intro- duced me to the complexities of factor analysis, and by Dr. M.L. Tiku, who guided my use of multi- variate regression techniques. Miss Diana Szymaszek cheerfully developed new programs and modified library programs for my use at the McMaster Computing Centre. Special thanks are owed to Dr. Isaiah Litvak, who inspired me to pursue a career in Marketing. Miss Beverley Carruthers not only spent many hours typing the manuscript, but also joined with my parents in encouraging me. iv The time, encouragement and support these people have given so generously, places me in their debt. I sincerely hope that my work, in some way, will repay that debt. TABLE OF CONTENTS LIST OF TABLES. o o o ooooooo o o o o o ooooooooo o o o o o o o 0 ix LIST OF FIGURES oooooooooooooooooooo o o o o o o o o o o o o Xii LIST OF APPENDICES. o o o o o ooooooo o o o a o o o o o o o o o o o oXiii CHAPTER I THE RESEARCH PROBLEM AND METHODOLOGY... 1 IntrOdUCtiOn. o o o o o o o o o o o o o o o o o o o o o o 1 Basic Assumptions........... ..... .. 5 The ResearCh PrOblemo o o o o o o o o o o o o o o 8 The Population and Sample.......... 10 The Research Instrument............ 15 Preliminary Study.................. 22 Research Implementation............ 26 Data Preparation................... 32 Technique of Analysis.............. 35 Limitations of the Study........... 38 II IMAGE THEORY AND APPLICATION........... 41 o o A Us) Image Theory................... Jean Piaget................. . 43 George Mead................... 49 Charles Osgood................ 51 Summary....................... 56 Image Application.................. 57 A Definition of Image......... 66 Implications....................... 67 Image Formation......... ..... ...... 74 vi III IMAGE PROFILES .............. . .......... 87 Basic Mill Profiles................ 88 Steel Service Center Profiles...... 92 Customer Profiles.................. 97 The Channel Viewpoint.............. 103 Importance Weighting.......... 106 IV FACTORANALYSISOOOOI.OOOOOOOOOOOOOOOOOO 109 Basic Mill Factors................. 113 Mill Concept of Ideal... ...... 113 Mill Concept of Actual........ 117 Steel Service Center Self-Image Factors.... 123 Steel Service Center Ideal Self-Image.... 123 Steel Service Center Actual Self-Image... 126 Customer Image Factors............. 130 Customer Concept of Ideal..... 130 Customer Concept of Actual.... 133 V A BASIC MODEL OF IMAGE................. 137 The Index of Incongruity........... 137 The Image-Profit Relationship...... 139 Operational Image Measurement...... 144 Reduced Variables Represent- ing Customer Image.. 146 Reduced Variables Represent- ing Steel Service Center Self—Image.. 149 Reduced Variables Represent- ing Basic Mill Image.. 151 Relative Complexity of Image Favorability.. 155 Summary............................ 158 vii VI SUMMARY OF FINDINGS AND CONCLUSIONS.... Summary of Results................. The Findings.. ..... ................ Factor Analysis Results............ An Operational Tool for Measuring Implications............ Image.. Short Run Recommendations..... Long Run Recommendations...... A Further Recommendation...... Limitations of the Study........... Suggestions for Further Research... BIBLIOGMPHYOOOOOOOOOOOOIOOOOOOOO000...... ..... APPENDICES. O O O O viii 160 165 166 169 173 175 175 179 183 183 187 190 201 TABLE 10 D1 D2 D3 E1 E2 LIST OF TABLES Responses to Questionnaire Survey.. Questionnaire Editing Results.... ...... Summary of Paired Difference Tests. Factor Analysis Parameters......... Summary of Factor Descriptions... Summary of Basic Mill Factors.... Summary of Steel Service Center Factors.. Summary of Customer Factors...... Rotated Factor Matrix of 7 SSC Variables... Rotated Factor Matrix of Mill Variables....... Basic Mills' Mean Responses on Image Variables. Steel Service Centers' Mean Responses on Image Variables. Customers' Mean Responses on Image Variables.... Paired Test of Significant Differ- ence on Basic Mill Variables.... Paired Test of Significant Differ- ence on Steel Service Center Variables.... ix PAGE 31 34 104 111 112 122 124 131 152 156 234 235 236 237 238 TABLE PAGE E3 Paired Test of Significant Differ- ence on Customer Variables..... 239 G1 Image Category Importance.............. 243 H Question Phraseology for Factor Analysis.. ...... 245 11 Factor Structure for the Mill Image of the Ideal Center.... 248 12 Factor Structure for the Mill Image of Actual Centers.... 249 13 Factor Structure of Steel Service Center Ideal Self-Image...... 250 I4 Factor Structure of Steel Service Center Actual Self-Image...... 251 IS Factor Structure for the Customer Image of the Ideal Center...... 252 I6 Factor Structure for the Customer Image of the Actual Centers...... 253 I7 Sample Factor Analysis Print-Out (SSC Actual)ooooooo 254 Jl Regression of 44 Customer Variables About Their Index of Incongruity.... 255 J2 Regression of 6 Customer Variables About Their Index of Incongruity..... 256 J3 Regression of 44 Steel Service Center Variables About Their Index of Incon- gruity.. 257 TABLE J4 J5 J6 PAGE Regression of 7 Steel Service Center Variables About Their Index of Incon- gruity... 258 Regression of 44 Basic Mill Variables About Their Index of Incongruity.. 259 Regression of 7 Basic Mill Variables About Their Index of Incongruity... 260 xi TABLE PAGE J4 Regression of 7 Steel Service Center Variables About Their Index of Incon- gruity... 258 J5 Regression of 44 Basic Mill Variables About Their Index of Incongruity.. 259 J6 Regression of 7 Basic Mill Variables About Their Index of Incongruity... 260 xi FIGURE F1 F2 F3 G2 LIST OF FIGURES Three Fields in Piaget's Operative Theory of Knowledge..... The Development of a Sign and an Assign....... The Relationship Between Image and Referral - in 20 Large Companies.... An Image-Decision Program............. Expected Image-Profit Relationship.... Basic Mill Profile of Steel Service Center Image... Steel Service Center Self-Image........ Customer Profile of Steel Service Center Image..... Profiles of Image Category Importance. xii PAGE 47 54 69 82 140 240 241 242 244 LIST OF APPENDICES APPENDIX . PAGE A Covering Letters...................... 201 B Questionnaires........................ 209 C Customer List Reply Form.............. 233 D Mean Responses on Image Variables..... 234 E Tests of Significant Difference....... 237 F Image Variable Profiles............... 240 G Image Category Importance............. 243 H Question Phraseology for Factor Analysis....... 245 I Rotated Factor Structures............. 248 J Regression of Variables About Their Index of Incongruity......... 255 xiii CHAPTER ONE THE RESEARCH PROBLEM AND METHODOLOGY INTRODUCTION The concept of image has been studied, dis- cussed and utilized by psychologists, philosophers, government officials and businessmen for many years. Some studies date back more than a hundred years. "Even a cursory survey of the psychological litera— ture reveals that there was a good deal of attention to images of all kinds during the first flowering of scientific psychology before and around the turn of the twentieth century."1 Political candidates, and even a national women's organization are concerned about their images. "The image of United States foreign policy has become no less important than the objective political, military, and economic realities. In lHolt, Robert R., "Imagery: The Return of the Ostracized," American Psychologist, 19 (March, 1964), p. 255. certain instances, it would be perhaps not too much to say that the image has become, indeed, the most important element."2 Image is no less important to the busi- nessman. Every business, no matter how big or small, projects its own distinctive image to the many and various groups with whom it comes into contact. "There are few business enterprises today without some sort of image they can claim exclu- sively. There are no successful corporations in existence without it. Even small organizations "3 The image a company projects may have images. attract some customers, while repelling other potential customers. "Probably one of the greatest obstacles to gaining a positive reaction on the part of potential customers is an unfortunate or debili— tating total image of a company or corporation 2Crespi, Leo P. "Some Observations on the Concept of Image," Public Opinion Quarterly, 25 (April, 1961), p. 116. 3Baker, Stephen, "The Art of Building a Corporate Identity," Public Relations Journal, 18 (January, 1962), p. 16. in the mind of the public. No matter how much money ‘is spent on advertising and public relations and other forms of marketing strategy, the products of that company will not be seriously considered by an alienated consumer. This overriding image carries forward to every element of a company's activities." To different people, the concept of image assumes different meanings. Yet every meaning con- tains a common element: the image is a mental re- presentation of some aspect of reality. To the businessman, this reality is usually a product, a brand, or the entire corporation. The image projected by a particular firm and its products is significant because of its influence in appealing to or repelling potential customers. Of crucial importance is the number and type of customers attracted to the firm. This can be seen in the way marketingis defined: "Marketing is the analyzing, organizing, planning 4Heidingsfield, Myron 8., "Building the Image--An Essential Marketing Stratagem," New Directions in Marketing, F.S. Webster, editor, Chicago: American Marketing Association, June, 1965, p. 134. and controlling of the firm's customer-impinging resources, policies, and activities with a View to satisfying the needs and wants of chosen customer groups at a profit."5 Customer selection is not haphazard. The marketer must determine the type and number of cus- tomers to whom he wishes to appeal. They become his chosen customer group. He then attempts to satisfy their needs and wants as fully as possible within the constraints set by his profit objectives. In- cluded in his customers' needs and wants is the desire to deal with a specific type of firm. The characteristics of this firm may not be clearly defined, but nevertheless represent an image of the "ideal" firm with which they would like to do busi- ness. One of the marketer's functions is to make his company approximate this "ideal" image, within the constraint of profitability. Thus, rather than simply allowing a firm's image to position itself, 5Kotler, Philip, Marketing Management, Englewood Cliffs, New Jersey: Prentice-Hall, Inc., 1967, p. 12. one of the priorities of the company's chief exe- cutives should be the effective management of cor- porate image. This dissertation will examine the image presented by steel service centers, and attempt to isolate the critical elements of image which best lend themselves to manipulation by management. BASIC ASSUMPTIONS In this dissertation, corporate image will be defined as a composite of many evaluative ele- ments, generated by all associations with the firm and abstracted into an independent final stable impression whose meaning has been mediated by the individual's values and biases. Although most studies report the corporate image from the perspective of the customer, it is important for the distributor or middleman to know what image he projects not only to his customer, but also to his supplier; for the distributor wishes sustained allegiance from both, and continually one of the priorities of the company's chief exe— cutives should be the effective management of cor- porate image. This dissertation will examine the image presented by steel service centers, and attempt to isolate the critical elements of image which best lend themselves to manipulation by management. BASIC ASSUMPTIONS In this dissertation, corporate image will be defined as a composite of many evaluative ele- ments, generated by all associations with the firm and abstracted into an independent final stable impression whose meaning has been mediated by the individual's values and biases. Although most studies report the corporate image from the perspective of the customer, it is important for the distributor or middleman to know what image he projects not only to his customer, but also to his supplier; for the distributor wishes sustained allegiance from both, and continually faces "the threat of potential competition from either end of the channel."6 Thus, the wise middleman "must avoid looking at problems strictly from the horizontal viewpoint of his particular stratum of distribution; he must be aware of the vertical VieWpoint, i.e., the manufacturer at the top and the consumer at the bottom, each striving "7 To obtain maximum to make his own best bargain. long-run profits, the channel must operate as a unit, minimizing conflicts and maximizing cOOpera- tion.8 For the middleman, image research back in 6Alderson, Wroe, Dynamic Marketing Behavior, Homewood: Richard D. Irwin, Inc., 1965, p. 41. 7McNair, Malcolm P., "Significant Trends and Developments in the Postwar Period," Managerial Marketing, Lazer, William and Kelly, Eugene J., (eds.), Homewood: Richard D. Irwin, Inc., 1962, p. 501. 8Mallen, Bruce, "A Theory of Retailer-Supplier Conflict, Control and Cooperation," Journal of Retailing, 39 (Summer, 1963), pp. 24-32, 51. Ridgeway, Valentine F., "Administration of Manufacturer-Dealer Systems," Managerial Marketing, op. cit., pp. 479-482. Worthing, Parker Martin, "An Analysis of Perceived Competitive Advantages within Selected Manufacturer-Distributor Alignments," (unpublished Ph.D. dissertation, Michigan State University, 1968). the channel to his supplier, as well as forward to the customer, can provide information which will help him foster a cooperative relationship. This research study is designed to provide information about the middleman's image viewed from both ends of the channel of distribution. An attempt is made to appraise the actual image of the distribu- tive firm in comparison to a standard represented by the viewer's concept of the ideal image the distribu- tor should have. Two assumptions permeating this study are that: 1) A firm may win greater support and loyalty from its customers, hence dif- ferential competitive advantage over competitors, by achieving compatibility between the image the firm projects and the image customers desire. 2) A firm may win greater support and loyalty from its supplier by achieving compatibility between the image it pro- jects and the image the supplier desires. THE RESEARCH PROBLEM The overall research problem is to ascertain the image of steel service centers within the verti— cal channel of distribution for steel. Inherent in this problem are four principal areas of concern, or sub-problems: a) b) C) d) Is the image a distributor desires to project misinterpreted by other members of the channel because a diversity of influences impinge upon perceptions of image? Given the complex composition of an image, can the elements of an image which are most significant be deter- mined? Can the usual long, involved and ex- pensive image studies be simplified? Does action to improve images yield tangible positive results for distri- butors? This research study tests five hypotheses: l) 2) 3) 4) 5) That there are areas of similarity between the image distributors think they project, and the images perceived by customers and suppliers. That some key elements in the total com- posite of image elements are more repres- entative of the favorable-unfavorable image spectrum than others. That a basic operational tool for image measurement can be developed for use by businessmen. That certain areas offer the greatest opportunity for image improvement by distributive middlemen. That there is a relationship between the image distributors project and the profits they earn. 10 THE POPULATION AND SAMPLE To delimit the study, the membership of the Steel Service Center Institute was chosen for investi- gation. Approximately 20 per cent of the basic mills' steel output in the United States is handled through steel distributors--the steel service centers. A steel service center may be defined as an industrial distributor which facilitates the flow of steel from basic mill to end user. The steel service center carries an inventory of plates, bars, sheets, strips, and structural shapes, plus many related items. The firm's prime raison d'etre is to group customers' orders, too small for economical handling by basic mills, and buy in larger lots from the steel mills. In addition, the steel service center provides cer- tain pre-production services such as cutting, burning, slitting, shearing, levelling, pickling, grinding, edging, etc.; extends credit; offers technical in- formation and assistance to customers; and provides rapid delivery, frequently for large customer orders which mills cannot deliver due to scheduling require- ments. 11 As a marketing intermediary, the steel service center performs two roles: acting as the marketing arm of the basic mills on the one hand, and as the purchasing arm of its customers on the other. In 1969, domestic shipments to steel ser- vice centers accounted for 17.5 million tons of stee1--nineteen per cent of the total steel pro- 9 This was nearly duction of the United States. double the proportion of domestic output enjoyed by steel distributors thirty-five years ago. Most of the industrial steel service centers in the United States belong to the Steel Service Center Institute.10 The membership roster of this associ- ation constitutes the population of this study. Three groups of respondents were sampled to provide a comprehensive view of images perceived throughout the channel of distribution for steel. 91970-71 Roster of Members, Cleveland: Steel Service Center Institute, p. 4. 1°1bid., p. 5. 12 1) MILL SAMPLE: To generate data concerning images of steel service centers held at the manufacturers' level, two sub-groups of mills were selected. The first sub-group consisted of the ten largest basic integrated mills in the United States. This non- probability sample was chosen because these ten mills account for the bulk of steel tonnage produced in the United States. The second sub-group was a judgment sample of eleven smaller specialized mills selected by Robert G. Welch and John E. Doxsey, respectively President and Executive Secretary of the Steel Service Center Institute. These eleven mills were chosen because they were considered to be most representative of the diversified mix of small specialized mills from which steel service centers purchase materials. The members of the sample chosen were: Big 10 1. United States Steel Corporation 2. Bethlehem Steel Corporation 3. Republic Steel Corporation 4. National Steel Corporation 5. 6. 7. 8. 10. 9. 10. 11. 13 Armco Steel Corporation Jones and Laughlin Steel Corporation Inland Steel Company Youngstown Sheet and Tube Company Wheeling-Pittsburgh Steel Corporation Kaiser Steel Corporation Specialized ll The Babcock & Wilcox Company Bliss & Laughlin Steel Company Copperweld Steel - Bar Division Eastern Stainless Steel Company LaSalle Steel Company Michigan Seamless Tube Company North Star Steel Company Pacific Tube Company The Timken Roller Bearing Company Universal-Cyclops Specialty Steel Division Washington Steel Corporation At each mill, the top executive responsible for steel service centers was sent a package of six questionnaires. He was requested to respond to one l4 and return it. He was asked to select five outside mill representatives in the field who were most sea- soned in dealing with steel service centers and request that they independently fill in and return one questionnaire each. 2) STEEL SERVICE CENTER SAMPLE: At the inception of the research, the Steel Service Center Institute provided their total most up-to-date mailing list of active members, alphabetically arrayed. Using a randomly selected starting point, a systematic one-third sample of the population was drawn. In total, 391 steel service centers participated in the sample, representing all types of steel dis- tributors, all regions of the country, and serving all classes of customers. At each steel service center, the top exe- cutive was sent a package of six questionnaires. He was requested to respond to one and return it. He was asked to distribute the other questionnaires to five members of his executive group and request that they independently complete and return one question- naire each. It was recognized that some steel service 15 centers would have less than five in the executive group.- 3) CUSTOMER SAMPLE: The top executive of each steel service center was also asked to return a list of ten representative customers of his firm. Furthermore, he was asked for permission to use the name of his firm when these customers were contacted. Alternatively, if permission were not granted, he was assured anonymity. Care was taken to explain that this self-generated judgment sample of customers should be as representative as possible of the steel service center's customer mix. THE RESEARCH INSTRUMENT Meaning can be denotative or connotative. Denotative meaning is constant among people. It designates an object. Thus the word "steel" signi- fies a metal of known characteristics, including carbon content, ductility, color, and so on, to anyone who has experienced it, and is never confused with or mistaken for copper. l6 Connotative meaning has; 1) different meanings among people, developed through all their experiences with the object, and 2) variable mean- ing over time, based upon their most recent experi- ences with it. One person may consider the appear- ance of steel pleasing, another distasteful. A person may feel favorably inclined toward using steel in fabrication, then change his opinion after a bad production run. The connotative meaning is made of emotions, ideas, and images.11 The device originally conceived by Charles Osgood for measuring connotative meanings is the semantic differential.12 It measures the connota- tive meaning of a concept in a multidimensional semantic space. The semantic differential consists of a number of bipolar descriptive (usually adjective) scales against which a concept is evaluated. Pairs llGatty, Ronald, and Allais, Claude, The Semantic Differential Applied to Image ResearEHT New Brunswick, N.J.: Department of Agricultural Economics, Rutger's University, (no date), pp. 4-6. 12Osgood, Charles E., "The Nature and Measurement of Meaning," Psychological Bulletin,49 (May, 1952), pp. 197-237. 17 of polar descriptions (or adjectives) are usually separated by a seven-interval scale (although more or fewer intervals may be used). Respondents select the point on each interval scale that most closely indicates their feelings or attitudes about the concept along the scaled dimension. Because the specific elements of connotative meanings are often quite abstract and extremely dif— ficult to express, the use of a projective technique can be very helpful to the researcher. The semantic 13 differential fills this role admirably, and has 14 Among many other enjoyed unmatched popularity. things, it is useful in measuring differences in the way customer groups view a firm, in identifying 13Kelly, Robert F., and Stephenson, Ronald, "The Semantic Differential: An Information Source for Designing Retail Patronage Appeals," Journal of Marketing, 31 (October, 1967), P. 47. 14Green, Paul E., and Tull, Donald 8., Research for Marketing Decisions, Englewood Cliffs: Prentice-Hall, Inc., 1966, p. 202. Carter, Richard F., Ruggels, W. Lee, and Chaffee, Stephen H., "The Semantic Differential in Opinion Measurement," Public Opinion_guarter1y, 32 (Winter, 1968-1969), P. 666. 18 merchandising characteristics that are important to a target customer group, in identifying variables on which customers are basing their choices among 15 in comparing corporate images, competing outlets, both among suppliers, and against an "ideal" or standard image of what the respondents think a com- pany should be, in comparing products and services of competing firms, in determining attitudinal characteristics of purchasers, in analysing effec- tiveness of promotion on attitude change,16 in indicating where the firm and its competitors fall short in meeting customer expectations, and in pro- viding information about how to attract and keep customers who continually shift from one supplier to another.17 15Stephenson, P. Ronald, "Identifying Deter- minants of Retail Patronage," Journal of Marketing, 33 (July, 1969): P. 61. 16Green and Tull, loc. cit. 17Kelly and Stephenson, op. cit., p. 43. 19 As a research technique, the semantic dif- ferential is a quick and efficient quantifiable measure of opinions and attitudes, provides a com- prehensive picture of image, offers a standardized technique for measuring image factors, is easily repeatable and quite reliable, avoids stereotyped responses and allows individual frames of reference, and eliminates ambiguity and overlapping statements.18 Among its many advantages are ease and speed of administration, manifest numerical equivalences, reliability, sensitivity, versatility, and the fact it has passed a number of reliability tests.19 Its speed ranges between three and six seconds per scale, and even less as the number of scales in— creases . 2 0 18Mindak, William A., "Fitting the Semantic Differential to the Marketing Problem," Journal of Marketing, 25 (April, 1961), pp. 28, 29. 19Carter, Ruggels, and Chaffee, loc. cit. 20Gatty and Allais, op. cit., p. 17. 20 The semantic differential does have several limitations. It may not distinguish small enough differences in attitude. A halo effect may bias all attributes scaled if the respondent has a strong feeling about a particular attribute. And a one-to-one relationship between attitudes and 21 Mathe- patronage behavior cannot be expected. matical operations on scale data rest on assump- tions of equal intervals within a scale, equal intervals between scales, and similar placement of origins across scales. However, research findings indicate that these are not unrealistic 22 assumptions, and more than simply assumptions. The semantic differential "is a valid indicator 21Kelly and Stephenson, op. cit., p. 47. 22Messick, Samuel J., "Metric Properties of the Semantic Differential," Educational and Psychological Measurement, 17 (Summer, 1957), p. 206. UQ4V S. :- Paw n\v UH ‘ I- -I‘ -‘§ I“ ‘ I ‘u s d ‘4‘“: 21 of brand attitudes as inferred from purchasing be- havior."23 It has been favorably evaluated against the criteria of objectivity, reliability, validity, sensitivity, comparability, and utility.24 To improve the effectiveness of the semantic differential, several researchers have suggested modi- r’ )3} 9'1“" f' I fications of Osgood's original structure. Greater sensitivity to subtle distinctions in image may be obtained by using:~ 1) descriptive nouns and phrases, instead of just adjectives; 2) tailor-made scales rather than standardized lists resulting from Osgood's thesaurus search; 3) "connotative" and "non-polar" opposites; 4) built-in control concepts, such as "the ideal company;" and 5) mail question- naires rather than administration in personal interviews.25 The mail questionnaire is considered 23Barclay, William D., "The Semantic Differential as an Index of Brand Attitude", Journal of Advertising Research, 4 (March, 1964), p. 33. 24Osgood, op. cit., pp. 230, 231. 25Mindak, op. cit.,pp. 29, 30. Kelly and Stephenson, op. cit., p. 44. 22 a "superior" method because it avoids interviewer bias and is cheaper.26 In summary, the semantic differential offers numerous advantages and very few disadvantages to the image researcher. Thus this technique was cho- sen to measure the connotative meaning of steel service centers. PRELIMINARY STUDY In January, 1969 a preliminary study was conducted to test the semantic differential tech- nique as an image measurement instrument and to identify appropriate bipolar scales for later research. The test was carried out with partici- pants at the Steel Service Center Institute's Management Seminar at Michigan State University. Two sets of questionnaires with different scale sequence and order were used to avoid biases. Although the sample was small (only 47 respondents), valuable results were obtained. The scales did 26Berry, Leonard L., "The Components of Department Store Image: A Theoretical and Empirical Analysis," Journal of Retailing, 45 (Spring, 1969), p. 13. 23 differentiate between "ideal" and "actual" images of steel service centers. Personal in-depth inter- views with 12 of the respondents aided in clarifying the scale statements and modifying the instrument. The results of the preliminary study led to revision and elimination of many of the scales, and suggested that eight major categories for building a composite image of steel service centers would be satisfactory. These categories are: - Organization - Management - Products - Inventory - Credit and Delivery - Prices - Advertising - Salesmen. The research instrument used in this study is a modification of Osgood's original format for the semantic differential, incorporating many of the refinements outlined in the preceding section. A seven-interval scale is used, the intervals from 24 one extreme to the other identified as: Disagree Strongly, Disagree Moderately, Disagree Slightly, Neither Agree Nor Disagree, Agree Slightly, Agree Moderately, Agree Strongly. The verbal format has been shown to be preferred to a non-verbal format when the investigator plans to View his results in other than relative terms, and when respondents are not adept at abstractions.27 In addition, each interval is numbered 1 to 7 respectively with a headnote reminder—-"Note: the higher the number, the more you agree." To increase speed of administration, the scales are identified descriptively at one extreme only, and the other extreme of the bipolar rating is in most cases inferred. In addition to the descriptive adjectives such as "1arge--small," 27Wells, William D., and Smith, Georgianna, "Four Semantic Rating Scales Compared," Journal of Applied Psychology, 44 (December, 1960), p. 397. 25 connotative phrases such as "plans thoroughly for the future" are used.28 The previously mentioned eight major cate— gories contain 44 semantic differential scales. The built-in control concept of an "ideal" steel service center is used for comparative purposes with the "actual" steel service center image.29 The physical research instrument is an eight-page mail questionnaire, divided into four parts. The first page contains instructions to respondents, and a seven-digit identification code. Part One contains the 44 scales against which the "ideal" steel service center is evaluated. Part Two repeats the same 44 scales, this time rating the "actual" steel service center. Part Three uses eight semantic differential scales with polar des- criptions "unimportant-~important" to rate the eight major categories under which the 88 preceding scales 28Mindak, op. cit., p. 30. 29Ibid. 26 have been classified. Part Four contains several classification questions concerning the respondent. Three sets of questionnaires were used to assess steel service center image as viewed by the three samples of respondents. They were identical except for the classification questions in Part Four, and were color-coded for ease in mailing, sorting, etc. The mill set is green; the steel service center set, pink; and the customer set, white. Sample questionnaires appear in Appendix B. RE SEARC H IMPLEMENTAT I ON Two waves of mailings were made. The ini- tial mailing went to 21 mills and 391 steel service centers, each packet containing six questionnaires, with the steel service center set also containing a reply form for the customer list. A sample customer list reply form appears in Appendix C. The first wave was mailed between November 6 and 10, 1969. Each packet contained six self- addressed, stamped, reply envelopes. Postage stamps 27 were used in all mailings and reply envelopes, rather than metered postal permits, to increase the rate of return.30 In addition, the covering letter was personally addressed to the respondent, rather than "Dear Sir," and was signed by hand in ink. Samples of covering letters appear in Appendix A. Due to the Christmas mail rush, the second wave was delayed until after the holiday season. Between January 9 and 11, the second wave of identi- cal packets was mailed to sample members who had not responded, with a covering letter urging their participation. To break down psychological barriers or resentment, this letter suggested that the first packet might have been lost in the mail, and reit- erated that the confidential nature of the responses would be respected. This covering letter is included in Appendix A. 30Kimball, Andrew E., "Increasing the Rate of Return in Mail Surveys," Journal of Marketing, 25 (October, 1961), pp. 63, 64} 28 On January 22, 1970, Robert G. Welch, President of the Steel Service Center Institute, wrote to members of the sample who had not re- sponded, urging their cooperation, and reassuring them of the confidential nature of any information they supplied. This letter aided considerably in increas- ing the average number of questionnaires per firm returned, and the customer list response rate. Mr. Welch's letter is reproduced in Appendix A. Meanwhile, steel service centers were re- turning their yellow lists of ten representative customers. As each arrived, the customer question- naire and covering letter were mailed. In this case, there were two types of covering letter. The first stated that the customer's name had been pro- vided by such and such a steel service center as one of the firm's valued customers. Where the steel service center did not wish to be identified, the second type of customer letter with no indica- tion of referral was used. In both cases, the letters were personally addressed to an individual 29 in the customer firm, were signed by hand in ink, and both the packet and return envelope were stamped rather than metered. Three to four weeks after an initial customer contact was made, a second identical packet was mailed to non-responding customers in the sample. Covering letters appear in Appendix A. The first set of customer packets was mailed on November 19, 1969 and customer mailings were continuous throughout a five-and-one-half month period, with the last follow-up being mailed on April 28th, 1970. At all three levels, a grand total of 4,953 questionnaires and 598 yellow customer lists were mailed to contact 21 mills, 391 steel service centers, and 731 customers. Nine out of ten mills, six out of ten steel service centers, and five and a half out of ten customers responded. For those mills which responded, an average of 4.8 questionnaires per mill was returned. For the responding steel service centers, an average of 1.9 questionnaires was returned. Approximately one in every three 30 responding steel service centers also returned a complete list of representative customers. Table 1 provides details of the response patterns. It is interesting to note the effect of referral on customer response rates. On the form supplied to the steel service centers for listing ten representative customers, the final question was: "May we use your name to introduce ourselves to these people? . . . . Yes . . . . No . . . . Have no preference." When steel service centers checked "Yes" or "Have no preference," the covering letter to the customer stated: "Your name was suggested to us by Mr. John Doe, XYZ Steel Service Center, as one of the firm's valued customers." Where the steel service center checked "No" or left all alternatives blank, there ‘was no referral paragraph. A total of 47 steel service centers checked '"Yes" or "Have no preference," and supplied a total (Df 458 customer names. The remaining 28 firms did not wish to be identified as providing their customer .-—I--'-:-A.—n ...\/VI!D ..I’. I (Exhtn d .m- u.) A p... kn.- .. VGA ~- .~\- 31 o.mm mow m.am oma m.vm Nmm pm>fimomm mmuamccoflummso amp mpv amp pmawmz mmuflmccoflummso mmmzoamao «.ma mu v.>a mm o.oa mm co>floomm woman uwsoumso Ham pom Ham coaflmz mumaq uoaoumsu o.mH mmq m.ma oam m.oa mvm co>woomm mouflmccowumoso mem.m mvN.H ovm.~ omaamz mmuflmscOAummso p.mp ppm o.m~ om H.sv «ma mcflpcommmm manna Ham pom Ham wouomusou mauwh mmmezmu mUH>mmm 493% «.mb Hm 0.0m ma m.om on co>fimomm mwuwmcGOAumosa oma om oNH cmafimz mmuflmccoflumoao m.om ma 0.00 m «.05 pa maflpcommmm means AN m Hm couomucoo mahwm mead; w ESwadz w umnadz 4% w umnfisz Hmuoa m>m3 ccoomw = o>m3 umuflm HES fiézzogmmoa cs mmmzommmm H mange gas-- a .— “‘00" p A D R b V I U. 1 gm '1 'V‘Ju . "a. 13" (7‘ x 32 names, and supplied 273 customer names. The number of customers responding to the first mailing con- taining a covering letter naming their supplier was 183, while those responding to the first mailing with no reference to their supplier numbered 69. Proportionately, questionnaires with an identified referral in the covering letter drew a response rate of 40.0 per cent, while those with no referral drew a response rate of only 25.3 per cent. It may be concluded that a request for cooperation in completing a mail questionnaire is vastly enhanced if it is accompanied by an intro— duction or referral from an individual or firm with ‘whom the respondent is doing business, rather than lbeing identified solely with an educational research IProject or impersonal research organization. DATA PREPARATION Prior to analysis, the returned question- naires were carefully edited and coded. A total of 64 questionnaires had to be discarded on the grounds that the respondents did not understand the task or FRI! “Utah A I '«Uul s diva A! y Vet. c .‘N I‘Hu -‘V' cm... “:5“; “Von o (I) (I) ’1 (D U? 33 were not attending to it. Rejection criteria were three-fold: a) respondents who did not answer all scales or who omitted classification data; b) res— pondents whose answers followed systematic patterns, such as all checkmarks in one column, checkmarks in only two or three columns with a consistent design, checkmarks identical over all scales on Parts one and two, or checkmarks identical between two or more respondents from the same firm; and c) res- pondents who gave inconsistent responses, such as several scales containing more than one checkmark. Table 2 reflects the results of editing the question- naires. After editing and coding, all questionnaire response data were punched on standard IBM data cards. Data analyses were performed with a CDC 6400 computer operated by the McMaster University Computing Center, using modifications of programs developed by 'the Health Sciences Computing Facilities of the Uni- Versity of California at Los Angeles, plus some sPecially prepared programs developed by McMaster Urliversity programmers under the direction of the author. Tn. — ”h woomm ucmo mom IGOfluwmso IGOHummso mmuwmc cmuomnwm mango: ICOfiummso 94808 mmZOBMDU mmazmu mUH>Mmm qmmfim AAHZ MBADMWM UZHBHQm HMHdzZOHBwWDO N mgmdfi pyg- U. 4' a - .-%I Add.“ Dun: vav‘. ‘n‘ 5“ . ‘I . $1.: 35 TECHNIQUE OF ANALYSIS The semantic differential is an ordinal or ranking scale of measurement, having the formal properties of being irreflexive, asymmetrical, and transitive. The ordinal scale is unique up to a monotonic transformation. Thus, arithmetic opera— tions on the data, such as calculation of means and use of parametric statistics, are in error to the extent that the successive intervals on the scale are not equal, and that the structure of the method of collecting the data is not isomorphic to arithmetic.31 However, since research shows that assumptions stronger than those about an ordinal scale are not unrealistic when applied to the semantic differential,32 and since the common prac- tice inmtheeworld of business is to apply parametric analyses to semantic differential data, this study 31Siegel, Sidney, Nonparametric Statistics EEEE the Behavioral Sciences, New York: McGraw-Hill Book Company, 1956, pp. 22-30. 32 Messick, loc. cit. ‘——‘ 36 will report mean values, and apply certain arith- metic manipulations to the data“ It is neverthe- less recognized that such operations may be in error, and consequently the results may not be viewed as exact, but rather as approximations. One technique which has found widespread application in analysis of semantic differential data, and particularly in image measurement studies, is factor analysis. "The dimensions derived from factor analysis appear to be meaningful perceptual units for the study of a corporate image."33 Another researcher suggests: "The most systematic method for cleaning up the difficulties in corporate- image research would be a thorough-going factor ana- lysis of data from a reasonably large, national sample of respondents who have rated fifteen or 33Spector, Aaron J., "Basic Dimensions of the Corporate Image," Journal of Marketing, 25 (October, 1961): P 51 37 twenty diverse corporations on fifty or sixty apparently distinct traits."34 In factor analysis, correlations are run between each pair of semantic differential scales. The factor analysis program then identifies clus- ters of scales which intercorrelate highly with each other, but relatively poorly with the scales of other clusters or factors. For every cluster of scales, a vector is eStablished and each scale is then correlated with the reference vector of every factor. A scale's correlation with a refer- ence vector is called its loading on that factor. A scale is assigned to a particular factor when its loading on that factor is relatively high and its loading on the other factors is relatively low. Scales whose factor loadings are too low or whose loadings are fairly equivalent on all factors are considered ambiguous and are discarded. Scales 34Tucker, W.T., "How Much of the Corporate JImage is Stereotype?" Journal of Marketing, 25 (January, 1961), p. 65. H 38 retained have a relatively high and pure loading on a particular factor. This factor loading is generally accepted as a measure of the strength of association between the scale and the factor. The number of factors extracted depends to a large extent on the nature of the data. Usually, only those factors which reduce residual correla- tions substantially are retained. The result of this type of analysis is a set of several factors, each of which is measured by a number of scales. The factors are considered to represent dimensions of meaning in a semantic space. LIMITATIONS OF THE STUDY Although the use of a mail questionnaire eliminates the problem of interviewer bias, the instrument nevertheless can be criticized as limit- ing the range of response open to the respondent, and as introducing semantic difficulties. The respondent also is free to go back over scales and <=hange responses. Furthermore, it is difficult to determine the nature of non-respondents. Some of 39 the first limitation was reduced by asking respond- ents to comment on the last page of the'question- naire, and many did. Secondly, respondents were asked to work rapidly and not go back. Thirdly, the follow-up mailing, and high rates of response, suggest that the non-respondent problem was small. The ordinal nature of the semantic differ- ential instrument, as previously mentioned, limits the range and type of mathematical and statistical operations which may be applied to the data. There is evidence that this may not be a serious limita- tion. However, it would be foolhardy to infer that the conclusions of this study are more precise than broad generalizations and approximations. The interpretation of factor analysis has loeen and will continue to be the object of much diebate. It is possible to interpret factors in rnore than one way. Unlike research in the physical ssciences, measurements of individual perceptions JTarely can be made with a high level of accuracy tinder precisely controlled conditions. Neverthe- 1Jess, useful information can be obtained, parti- <2lllarly when the interpreter is aware of the 40 potential hazards, and is conversant with under— lying operational relationships that have provided data for factor analysis. Keeping these limitations in mind, the following chapters will provide some insights into the motivations and expectations which exist in the distribution channel relationships of steel service centers. ‘I CHAPTER TWO IMAGE THEORY AND APPLICATION To describe images in the channel of dis- tribution for steel implies the choice of what elements of channel relationships have been ob- served, and what measurements or classifications have been used in the observations. These decisions are based, either implicitly or explicitly, on a theory or set of theories that explain what it is important to observe and describe about marketing image phenomena.1 In this chapter, three major theories which Eire most relevant to images projected by business ifirms are outlined. These theoretical constructs EDISOVide an intellectual and philosophical basis 1Ehysiological theory, neural or psychophysiological tzheory, and linguistic imagery. A secondary selec- t:ion criterion applied to the remaining materials VVEis their pertinence to the specific research ques— tszons examined in this dissertation. The theories, <=<>Imcepts and materials retained after this selection 531?:3cess form the remainder of this chapter. ‘—_‘ 43 IMAGE THEORY JEAN PIAGET Important to image theory is Jean Piaget's biological-development theory of intelligence. In this theory, mental activity develops, from per- ception to symbolic behavior, as a function of the assimilation--accommodation equilibrium called in- tellectual adaptation. Adaptation is the result of environment-organism interaction. It is composed of: l) assimilation, where external objects are incorporated into the organism's organized patterns of behavior, and 2) accommodation, where the organism adjusts its organized frame of reference and actions to surrounding pressures Or stimuli. In purchasing behavior,-a buyer, through eassimilation, may deal with an outlet which meets llis expectations. However, through accommodation, (Zeutain aspects of the outlet's operations, such as (iéalivery speed, may require him to alter his pur- czllasing behavior, say from ordering once a week to EDJLEicing biweekly orders. Thus through assimilation EirlliILuayed by mental image, Piaget states: ”If the 'iJTLage is not an element of thought, it nevertheless Serves on a par with language as a symbolic instru- “152rm.to signify the content of the cognitive signi- fications; for spatial concepts the effectiveness of the image is particularly evident."4 ' 3Piaget, Jean, "La formation du symbole chez l enfant," Neuch’atel: Delachaux et Niestlé, 1946 (flay, Dreams and Imitation in Childhood, New York: N rton, 1961), p. 68. 4Piaget, J., and Inhelder, B., "L'image mental c\hez l'enfant: Etude sur le développement des repres— Elygations imagées, Paris: Presses Universitaires de rance, 1966, p. 446. 49 G EORGE MEAD Another major contributor to image theory i S George H. Mead. His theory may be described as an interactionist perspective. Meaning is a function 0 f the interaction of the individual with his en- vironment. The content of the mind develops from and is a product of social interaction. The in- dividual internalizes the social processes of eXperience and behavior. Mead distinguishes between physical sensa- t-ions and self-consciousness. Only through empathy with the attitudes of other individuals, social groups, and the community as a whole can the individual experience self-consciousness. This is a<2complished through the "conversation of signifi— cant gestures." A gesture may be verbal or symbolic: a. word, a glance of the eye, a motion of the head, or a pointed finger. It becomes significant when communication exists, when the response that such a gesture arouses in another individual is closely Similar to that in the individual who made the ges- ture. Otherwise the gesture is merely a physical 50 sensation. Through the significant gesture the individual communicates meaning, both to himself and to others. Human behavior results from impulses. Mead de fines an impulse as " . . . a congenital tendency t1<=> react in a specific manner to a certain sort of Stalmulus under certain organic conditions. Hunger and anger are illustrations of such impulses."5 BO th the biological and psychological state of the individual govern impulse intensity, and as a result, which stimuli the individual will react to. Image Plays an important role in determining the selec- tion of appropriate stimuli to satisfy the impulse. Thus impulse intensity and image type govern the Selective perception of stimuli. Imagery originates in past experiences, but its primary reference is to the future. An image Will develop covering a wide range of past experi- ences, then will be generalized on a wider scale, 5Mead, George H., Mind, Self and Society, Chicago: University of Chicago Press, 1934, p. 337. 51 anadi act as a reference point for future actions. Once established, an image maintains continuity as time passes. Even though the objects to which it. J:‘efers are absent, the image is not lessened. THILJHES inmges are a function of the environment. 131633;? are symbols obtained from past experience, atrt::i.tudes and environmental conditions, are socially derived, and act as benchmarks for future action. CHARLES OSGOOD A third major theory of image is derived frCDITl the work of Charles Osgood. Extending the 6 Ideas of C.K. Ogden and LA. Richards, and Charles M . . . . Ok‘ZC‘ZLs,7 Osgood, SuCi and Tannenbaum8 build their \ 0f 6Ogden, C.K., and Richards, I.A., The Meaning W, New York: Harcourt, Brace, 1923. Ne 7Morris, C.W., Signs, Language and Behavior, W York: Prentice-Hall, 1946. Eir; 8Osgood, Charles E., Suci, George J. b4 di- Tannenbaum, Percy H., The Measurement of m, Urbana: University of Illinois Press, 9 S 7. 52 tlaeacmy'of image on the basis of symbolic mediation. fideaéasning is viewed as a mediation process. A significate (s) is defined as any object (>1: stimulus which, in a given situation, regularly and reliably produces a predictable pattern of behavior (RT). If the situation is hunger, the Obj ect food is a significate triggering the pattern C315’ lbehavior known as eating which includes saliva- tiOn, swallowing, etc. If some stimulus other than the significate is near the significate, it will acquire some associa- tion with part of' the behavior the significate e1 icits. For example, a sign [E] is any stimulus which has come to represent the significate, e.g., t7]:l<3: printed or verbal word "food," a picture of EQQd, etc. The meaning of the sign depends on the r1‘3L1:ure of behavior occurring while the sign is bQing established. Many signs have constant meaning ‘t;<3 a large number of people, e.g., food objects. LI(Dwever, individual experiences may create vastly (sniffering connotations for the signs, e.g., the ‘Ileaning of the sign "father" to the son of an Eiuthoritarian parent versus an indulgent parent. ’0 .4 VI ps- U. 1, H!- (I) 't 53 Most signs are really assigns /S/ because t11£3:1r meaning is "assigned" to them through associa- tion with other signs rather than via association directly with the significate itself. The word zebra, for example, is an assign because the meaning C>if the word is learned through pictures and des- C=Iruj.ptions of "horses with stripes," rather than dj—Z:‘ect contact with the object. The process through which a sign elicits ESJLIttilar behavior (Rx) to that stimulated by the Si—SJnificate contains two elements. The disposition t0 respond in a similar way to RT is represented by 1311'. The self-stimulation to react with instrumental acts (Rx) is designated sm--the mediational part of the process. Osgood et a1. represent the total process Q3 developing signs as shown in Figure 2. Thus the Pavlovian Stimulus-Response model '3‘53 developed into a two stage paradigm. The first $3”itage, called decoding, is the association of signs ‘N’ith representational mediators, or put another way, tlhe interpretation of an idea. The second stage, 54 Development of a Sign S E r _ _ s R 1 [ml 3 ml '9 X1 I / Ir 3 82 9"Im2—_—_> m2——->RX2 I I/ )l I Ir 5 R S I] , _ _ 11 9”, ,mn —€>' mn ——-—€>' xn r s R /S/ —E>-ma — — — — —e>» ma ————e>- xa Development of an Assign $3 _ . 'f' t I§_ - a Slgnl 1ca e Source: Osgood, fit, = a behavior pattern pro- Suci and duced by the significate Tannenbaum, The Measurement of Meaning, p. 7. = the response disposition = the self—stimulation = the instrumental acts 'similar to RT E = the sign 1: In $3 nx Fix «’8/ = an assign Figure 2--The development of a sign and an assign 55 .laikDelled encoding, is "the association of mediated sseall.f-stimulation with overt instrumental sequences," ()1: , more simply, the expression of ideas. The first stage may be called semantic meaning, and the second, pragmatic meaning. Thereby, Osgood et a1. define the meaning C313 "meaning" in the psychological sense as "that Process or state in the behavior of a sign-using Organism (rmfix> sm) which is assumed to be a he<=essary consequence of the reception of sign— re Sponses. "9 To get at the meaning of the stimulus sign, OSgood developed a test for the selection of succes- sive alternative descriptions which gradually eli— n1:ifirlates the uncertainty about the object being thOught of. The concept is differentiated through ea““"Eiluation on a set of bipolar descriptive seven- $31t42p scales which indicate both the direction and itltensity of controlled association with the concept. Thereby the symbolic processes which mediate behavior 9Ibid., p. 9, author's insert in brackets. 56 responses to the sign are exposed. The symbolic image is defined by the location of a concept in 51 ssemantic space. This research study will use Osgood's semantic differential to study the image Of steel service centers in the United States. S UMMARY These three major theories of image provide 51 loasis upon which the researcher may build. Piaget SL‘lCJgests that all thought is accompanied by images, 1:’1'?lS=It authors view the concept of image from a Slightly variant perspective. At first this may appear to be an insurmountable problem. Neverthe— 1e33, there is good reason for so many differing pQints of view. The fact is, "All objects we use tLEiflke on meanings which are not inherent in the C>l=>ject itself and can only be discovered by ex- 9 loring people's minds. "11 There is general agreement that all busi- Iuvfiesses, no matter what their size, project a unique loHeidingsfield, M.S., "Building the Image—- ‘I\n Essential Marketing Stratagem," New Directions in Egarketing, ed. F.S. Webster, Chicago: American bdarketing Association, 1965, p. 133. llGardner, Burleigh B., "Behavioral Sciences (as Related to Image—Building," New Directions in {Marketing, ed. F.S. Webster, Chicago: American .Marketing Association, 1965, p. 146. LII 0 (u L1 1 n 58 12 anti distinctive image of themselves. There is also unanimity on the variegated composition of image. The number of elements grouped to construct - . . . 13 311 .erage are variously described as a comp031te, 12Baker, Stephen, "The Art of Building a Corporate Identity," Public Relations Journal, 18 (Crairruary, 1962), p. 16. tli Christian, Richard C., "How Important is (C)€i Corporate Image," Journal of Marketing, 24 Qtober, 1959), p. 80. th; Martineau, Pierre, "Sharper Focus for (EJEE Corporate Image," Harvard Business Review, 36 (:Vvember—December, 1958), p. 51. 13Baker, loc. cit., Sea_ , Crissy, W.J.E., and Kaplan, Robert M., Efi§;£3:esmanship--The Personal Force in Marketing, ‘hv York: John Wiley & Sons, Inc., 1969, p. 354. I Nelson, Bardin H., "Seven Principles in 1fggjeage Formation," Journal of Marketing, 26 (January, 62) , p. 68. C) . Wiebe, Gerhart D., "The Social Dynamics aafEE Corporation-Public Relationships: A Model and cr ZParable," The Corporation and Its Publics, ed. 1E'~'W: Riley, Jr., New York: John Wiley & Sons, ‘ilc., 1963, p. 13. 59 a ka..'|.eidoscope,l4 a mosaic,15 a complex,16 a coliLeaction,l7 a set, cluster or infinite number, l4Berkwitt, George, "Does the Corporate Image Sealiglly Change?," Dun's Review, 95 (January, 1970), o O. I 15Carlson, Robert O., "The Nature of Corporate fiT£1§J€as," The Corporation and Its Publics, ed. J.W. le—Eiig, Jr., New York: John Wiley & Sons, Inc., 1963, o 8. C0r1 16Crespi, Leo P., "Some Observations on the (A. <3usness of sensory material which does not blend irltZCD the perceptual situation, but maintains, 80 t0 SF’EEEik, a semi-independent existence of its own. . ."35 The meaning of such an image is ". . . more complete alldi satisfactory than the meaning possessed by the pen1‘<:ept,"36 and is deceptive.37 This freedom of 32Hill, loc. cit. I Martineau, "Sharper Focus for the Corporate :nnLiage," p. 51 33Ferber, Blankertz and Hollander, loc. cit. Martineau, "Sharper Focus for the Corporate image," p. 51. 34Berry, loc. cit. Heidingsfield, loc. cit. 35Rosenow, op. cit., p. 299. 36Colvin, op. cit., p. 167. 37Ibid., p. 159. vv‘n. 19% A .606. r: ‘I' ‘I v;- 5 v ‘f-v my“ . 'l” o 'l’ l I”) v‘. ‘u 63 image leaves a final impression that may not be faiczrtual.38 It may be irrational,39 self- C2c>11'tradictory,40 false,41 erroneous,42 and grossly ina ccurate . 43 An image may be contrary to fact. The reason is partially due to the "tricks" of perception. No th> people can give an exact and identical descrip- tion of the facts of an automobile accident. Further- !“CDJCEs, selective perception by an individual tends to E> 0 38Ferber, Blankertz and Hollander, op. cit. ‘ 5 8. 39Nelson, op. cit., pp. 68, 69. E> 4OStephenson, William, "Public Images of IClblic Utilities," Journal of Advertising Research, :3 (December, 1963), p. 35. 41Drummond, Margaret, "The Nature of Images," I§E§§itish Journal of Psychology, 17 (July, 1926), p. 19. Boulding, K.E., The Image, Ann Arbor: tlhtuiversity of Michigan Press, 1963, pp. 164-175. Martineau, "Sharper Focus for the Corporate jttnage," p. 53. 42Crespi, op. cit. p. 119. 43Gardner, op. cit. p. 145. N i (It UV (1' O I, vol 'u be 1 '1 64 .isscslate and emphasize certain features which another Eaeazrson may de-emphasize. What a person looks for, Iless psychological set, depends on his motivations Etrlci values. "Imagery is what one feels about a F>€Barson, idea, product, or institution in relation t1C3 one's own ego or self-involving motives."44 " - . . erroneous images can be tenaciously held €3‘feen in the face of correct information, because of t311£2 infusion in images of one's values and purposes."45 Once a corporate image has been established :14r1 the mind of a supplier or customer, whether it is Eafitd accurate representation of the firm or not, jETKthher impressions of or contacts with that firm ‘:¥€end to be colored by the established image. It 1:11hus becomes difficult to change the image. "Image jL.s inferred from people's impressions of the firm, JCTegardless of the firm's actual behavior."46 44Stephenson, William, op. cit. p. 35. 45Crespi, loc. cit. 46Easton, op. cit., p. 168. 'n UV A" v.6 . 5k ‘3 UN or 'II In 65 "Facts or no facts, these images cause us t:c> reject what we do not agree with. On the other flailnd, we allow agreeable material to pour in un- Czliiallenged. The good image has a halo effect, so that it gets credit for all sorts of good things '“7llixflindght be quite contrary to truth."47 Having fECDInned an image of the firm, " . . . we then tend t3<> sort and classify any additional impressions 5‘53 they relate to this abstraction: favorable lx‘fiissages we accept as being correct; unfavorable 1T1eessages we reject as being incorrect."48 A related phenomenon has been called it:¥he "source" effect: " . . . the audience's jETeelings about the credibility of the message Sisource help determine the persuasive effective- Jr‘1ess of the message itself. The greater the 'I;restige or the more believable the message :source, the more likely that it will influence ‘the audience in the direction advocated by 47Martineau, "Sharper Focus for the Corporate Image," p. 53. 48Hill, op. cit., p. 73. 66 the message. The less prestigeful or believable the source, the less likely that it will influence the audience in the direction advocated by the ruessage."49 Additional evidence indicates that nieassages are interpreted by the individual, and always move toward congruence with his own taste.50 A DEFINITION OF IMAGE In summary, every organization has a unique c3C>:I:‘porate image. Image may be defined as being composed of many evaluative elements, generated by EiJ~3L associations with the firm and abstracted into Eirl- independent final stable impression, whose meaning rLElss been mediated by the individual's values and bieses. 49Levitt, Theodore, "Communications and Industrial Selling," Journal of Marketing, 31 (April, 1967), p. 16. 50Osgood and Tannenbaum, op. cit., p. 42-55. (1" U) 67 IMPLICATIONS In 1958, it was estimated that United States laiisiness firms spent a total of one billion dollars 51 Ipear year to improve their image. The reason for ESJJCh expenditures is that "The image plays an in- czzneasingly vital part in the fortunes of business."52 JIInagery is important to the business executive be- cause it may: - predispose potential customers to buy - elicit testimonial recommendations to potential customers - influence initial purchasing behavior - increase sales to current customers - improve profits - differentiate the firm from competitors - assist management in developing objectives, strategies, and policies. The image performs a "gate keeper" function—- increasing the proportion of potential customers in a 51Martineau, "Sharper Focus for the Corporate Image," p. 49. 52Martineau, "The Personality of the Retail Store," p. 53. See also Harris, op. cit., p. 62. 68 istate of being ready, willing, and able to buy.5_3 1ft serves as a latent guiding force, but needs a Lpirecipitating circumstance to trigger action. The .iJnage is seen as a key opening doors separating cziistomers' minds from buying action.54 One author Eszpeaks of capturing a "Share of Mind" as well as a rhearket share.55 To a large extent, image governs customers' 1311§fing behavior.56 A favorable image also may in- <3J?€ease the likelihood that customers will recommend t:}163 firm's products to others.57 (See Figure 3). 53Fisk, George, "A Conceptual Model for S"Cudying Customer Image," Journal of Retailing, 3'7 (Winter, 1961—1962), pp. 1, 3. 54Harris, op. cit., p. 61 55Christian, op. cit., p. 80. 56Stephenson, T.E., "The Prismatic Image of 'tlae Organization," California Management Review, 68. (Spring, 1963)! P. "Sharper Focus for the Corporate Martineau, Image," p. 53. Gardner, op. cit., p. 145. 57Goeke, Joseph R., and Skibbins, Gerald J., "Measuring Corporate Images," Art Direction, 10 (January, 1959), p. 73. Robinson and Barlow, op. cit., p. 12. ’L’ m ' 1 a nil". I\" Inca 9-. run... fl I 7" V’v’a . t. 1): (I) (T) r. 1“ 69 54% Per Cent of Res- IPCDndents 46% 90110 Have Recom- Eggéed 35% IPEiIIy'S Products 5111 the leéisst 21% YEiéar 13% LEAST MOST Favorable Favorable Image Image Source: Robinson, Claude, and Barlow, Walter, "Corporate Image - Fad, Or the Real McCoy?" Public Relations Journal, 15 (September, 1959), p. 12. Figure 3--The Relationship Between Image and Referral - in 20 large companies. 70 Whether a favorable image is worth working txbward depends upon whether efforts to attain a favorable image will improve profits. It is as- serted that a favorable image is an all pervading :Eeactor which will directly affect financial success. Efret, there is a "lacuna in research data testing 111115 crucial proposition."59 It is true that friendly feelings toward a corporation are not earlough. Fortunately, some studies have been done. III: one study, it was found that a favorable cor- E><>rate image may influence people to buy a parti- C=111ar product even though they admit that it lacks 60 'QIIJalities they usually look for in the product. there are survey-research data which 2%2130, " . . iGladicate that favorable corporate attitudes are if<3und with highest frequency among regular users C>f a firm's products." 58Christian, loc. cit. Heidingsfield, op. cit., p. 134. 59Carlson, op. cit., p. 42. 60Carlson, Ibid., p. 43. 61Carlson, Ibid. 71 In a more recent research study, a positive cuorrelation was found between a good image and pur- czliases of a company's products.62 Further, over £111 interval of two years, it was discovered that Vviaen image improved, more products were bought, Eirid vice versa; and that change in purchasing be- llervior was preceded (and probably caused) by the change in image. As well as incurring more favor- able attitudes toward a firm, increasing sales, Eirlci improving profits, corporate imagery serves Seweral other functions. One of the accepted marketing strategies for j~Irpproving a firm's competitive position in the market— E>Il.ace is differentiation.63 " . . . nearly all the Products and services in industry and trade involve 53Llsly generated image may do the organization a Sflreat deal of harm. Consequently, it is imperative tE}1at.the image be fashioned to insure that its ea:fffects are beneficial to the firm. A good image C'1<:>es not occur by accident. It is the result of "iEDlanned and sustained efforts." Indeed, one Eiiathor propounds that a "key purpose" of the or— ‘Qléanization should be to successfully project the “1iillal. 50. (7 ire more personal, I" ,: ,) (3 than busmess- 1: ~ ’ l 51. ( ' ‘ in product l; 52. l .‘.C n product l.- 53. 9 w . ..mv-up on f . Disagree Strongly ..................... ..................... ..................... .................... .................... ..................... ..................... ..................... ..................... .................... ..................... ..................... ..................... .................... ..................... ..................... .................... oooooooooooooooooooo ssssssssssssssssssss .................... .................... Note: The higher the number, the more you agree. Disagree Disagree Moderately Slightly ..................... .................... ..................... ..................... .................... ..................... ..................... ..................... ................... ..................... -------------------- --------------------- ..................... ssssssssssssssssssss ooooooooooooooooooooo ooooooooooooooooooooo .................... -------------------- ssssssssssssssssssss .................... .................. .................... ..................... .................... ..................... -------------------- .................... .................... ..................... ..................... ..................... .................... ..................... sssssssssssssssssssss -------------------- .................... .................... ..................... ..................... Neither Agree nor Disagree .................... ..................... .................... ..................... ..................... ooooooooooooooooooooo ..................... ..................... .................... ..................... ..................... oooooooooooooooooooo .................... oooooooooooooooooooo ..................... ssssssssssssssssssss eeeeeeeeeeeeeeeeeeee uuuuuuuuuuuuuuuuuuuuu ..................... oooooooooooooooooooo Agree Slightly .................... .................... .................... -------------------- ..................... .................... sssssssssssssssssssss ooooooooooooooooooooo ..................... .................... --------------------- ..................... .................... ..................... oooooooooooooooooooo ssssssssssssssssssss oooooooooooooooooooo --------------------- .................... sssssssssssssssssssss oooooooooooooooooooo ssssssssssssssssssss oooooooooooooooooooo Agree Agree Moderately Strongly .................... .................... .................... .................... .................... ooooooooooooooooooooo .................... ..................... .................... .................... .................... ssssssssssssssssssss .................... sssssssssssssssssssss .................... .................... ssssssssssssssssssss .................... .................... .................... ..................... ssssssssssssssssssss .................... oooooooooooooooooooo ..................... uuuuuuuuuuuuuuuuuuuu .................... ooooooooooooooooooo .................... sssssssssssssssssssss ssssssssssssssssssss ssssssssssssssssssss sssssssssssssssssssss eeeeeeeeeeeeeeeeeeee ssssssssssssssssssss ssssssssssssssssssss .................... I2” I H L 1 2 PART TWO Please indicate the position on each of the following scales which represents your view of YOUR ACTUAL STEEL SERVICE CENTER Note: The higher the number, the more you agree. Neither Disagree Disagree Disagree Agree nor Agree Agree Agree Strongly Moderately Slightly Disagree Slightly Moderately Strongly Organization: 10. Is Large .................... : .................... : .................... : .................... : .................... : .................... : ......... ..... l 2 3 4 5 6 7 ll. Concentrates on imported metals .................... : ........................................................................................................................... 1 2 3 4 S 6 7 12. Earns large profits .................................................................................................................................................. l 2 3 4 S 6 7 13. Provides only limited emergency source of supply rather than serving total customer needs .................... : .................... : .................................................................................... l 2 3 4 5 6 7 14. Operates branches in large number of States ................................................................................................................................................. l 2 3 4 5 6 7 Management: 15. Is poorly managed .................... : ......................................................................................................... l 2 3 4 5 6 7 16. Plans thoroughly for future ............................................................................................................................. 1 2 3 4 5 6 7 l7. Policies are independent of basic mills’ policies .................................................................................................................................................. l 2 3 4 5 6 7 18. Does not have well defined formal policies .................... : .................... : ................................................................................... l 2 3 4 5 6 7 19. Acts more as a purchasing agent for customers than as a sales agent for mill .................... : .................... : .................... : .................... : .......................................... l 2 3 4 5 6 7 Products: 20. Carries a narrow range of product lines .................... : .................... : .................... : .................... : .................... : .................... : l 2 3 4 5 6 7 21. Offers a wide range of quality choice .................... : .................... : .................... : .................... : .................... : .................... : l 2 3 4 5 6 7 22. Quality consistency is variable .................... : .................... : .................... : .................... : .................... : .................... : 1 2 3 4 5 6 7 23. Quality exceeds customers’ needs .................... : .................... : .................... : .................... : .................... : .................... : I 2 3 4 5 6 7 24. Offers few pre-production services (slitting, heat-treating, etc.) .................... : .................... : .................... : .................... : .................... : .................... : l 2 3 4 5 6 7 Inventory: 25. Carries a wide variety of sizes, grades, shapes, qualities or steel .................... z .................... : .................... : .................... : .................... : .................... 2 1 2 3 4 5 6 7 26. Carries broad range of metals and non-metals .................... : .................... : .................... : .................... : .................... : .................... : ....... 1 2 3 4 5 6 7 27. Is frequently out of stock in some items .................... : .................... : .................... : .................... : .................... : .................... : 1 2 3 4 5 6 7 28. Permits cur w .- w ":ce inventory .................... : .................... : ................... : .................... : ................... : ..................... 1 9 1‘ A = A Credit and Delivery: 29. 30. 31. 32. 33. Communicates details of credit poli- c1es to customer Credit difficult to obtain Delivery is too slow Delivery is unreasonably long Consistently meets delivery promises Prices : 34. to) 'J\ ‘ 37. 38. Prices are usually low Prices fluctuate frequently with little apparent reason Prices are fixed, never increase foi “unusual” occasmns (e.g. rush Job) Frequently offers “specials” Prices usually seem “fair” Advertising: 39. 40. 41. 42. 43. Advertises heavily Uses direct mail advertising more than magazine advertismg Provides much product service infor- mation in advertisements Communicates large amount of spe- cific problem-oriented information Advertising is of little help to customer Salesmen: 44. 45. 46. 47. 49. 51. 52. Outside salesmen call frequently Inside salesmen telephone frequently Salesmen act more as an extension of the basic mills’ sales force than as service center representatives Salesmen provide up-to-date technical information, advice and analysis of customer needs rather than simply taking orders Inside and outside salesmen are co- (iV‘r'li'ITIIt’fl 35 a team ] ‘smen are more personal, : H1 soc1able than busmess- I . wiessional. ( , mm are more personal, - 1‘ : "lable than business- ssional -n are weak in product “weak in product —'.lp on Disagree Strongly .................... .................... .................... ..................... .................... ..................... ..................... --------------------- ..................... .................... .................... nnnnnnnnnnnnnnnnnnnn .................... ..................... ..................... ssssssssssssssssssss oooooooooooooooooooo ..................... -------------------- ..................... .................... .................... ..................... Note: The higher the number, the more you agree. Disagree Disagree Moderately Slightly oooooooooooooooooooo .................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ooooooooooooooooooooo ..................... ..................... ..................... ssssssssssssssssssss ssssssssssssssssssss -------------------- ..................... ..................... .................... ..................... .................... -------------------- ..................... --------------------- .................... .................... .................... .................... ..................... ..................... sssssssssssssssssssss .................... .................... .................... sssssssssssssssssssss oooooooooooooooooooo .................... .................... ..................... .................... .................... ........ Neither Agree nor Disagree nnnnnnnnnnnnnnnnnnnn -------------------- ..................... ..................... .................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... .................... .................... ssssssssssssssssssss .................... .................... ..................... ..................... .................... .................... Agree Slightly ooooooooooooooooooooo .................... ..................... ..................... -------------------- ..................... .................... ..................... ooooooooooooooooooooo ..................... .................... .................... sssssssssssssssssssss ooooooooooooooooooooo ssssssssssssssssssss .................... .................... .................... Agree Moderately --------------------- ..................... ................... oooooooooooooooooooo .................... sssssssssssssssssssss ..................... ..................... ooooooooooooooooooooo ..................... ..................... ooooooooooooooooooooo --------------------- .................... .................... ooooooooooooooooooooo ooooooooooooooooooooo ssssssssssssssssssss .................... .................... oooooooooooooooooooo .................... Agree Strongly .................... -------------------- ..................... ooooooooooooooooooooo ..................... .................... ..................... ..................... .................... ..................... ..................... .................... .................... ..................... sssssssssssssssssssss .................... ..................... .................... .................... .................... 54. SS. 56. 57. 58. S9. 61. PART THREE You have rated Steel Service Centers under eight major cate- gories. Would you please indicate the degree of importance each of these categories has for you. Unimportant ......... .1. ......... : Unimportant ......... .l. ......... : Unimportant ......... .1. ......... : Unimportant ......... .1. ......... : Unimportant .................... : Unimportant .................... : l Unimportant ..................... I Unimportant ......... .1. ......... Note: The higher the number, the more the importance. ..................... ..................... .................... ..................... ..................... ..................... ORGANIZATION ......... 3W 4 5 MANAGEMENT ......... 3W 4 5 PRODUCTS ......... 3W 4 5 INVENTORY ......... 3......m. 4 5 .................... 3 4 S PRICES ......... 3W. 4 5 ADVERTISING ......... 3...”... . 4 . 5 SALESMEN ......... 3W 4 5 .................... .................... ..................... .................... ..................... ..................... .................... .................... .................... .................... ' Important Important ' Important ' Important ..................... ° Important ..................... - Important - Important ..................... - Important PART FOUR Thank you for your c00peration. Your answers will be grouped with all the others to obtain a total profile of steel service centers. Of course, individual replies will be held strictly confidential, and after the information has been categorized in the computer, your answer sheets will be destroyed to insure that no-one will see them. The categories into which the information will be grouped form this part of the questionnaire. Would you please indicate, for your branch or location 62. Your position: Chief Executive Officer or General Manager Member of Executive group 63. Geographic Region (as specified by SSCI 1969-70 Roster of Members) 64. Company Size (for your branch) Atlantic States Region Great Lakes States Region Central States Region Southern States Region Rocky Mountain States Region Pacific States Region Sales less than $1 million Sales $1-$4.9 million Sales $5—$9.9 million Sales $10-$24.9 million Sales $25 million or more 65. Company Type by Source of Income Major Source of Income Steel 90-10070 Steel 50-899’0 Steel 50-89% Steel 50-89‘70 Fabricating 50-89% \Vholesale and Hardware Merchant Products 50-89% Non-ferrous Metals and Misc. 50-89% 66. Amount of Processing Second Most Important Source of Income — Fabricating 0-499’0 — W'holesale Hardware and Merchant Products 049% — Non-ferrous 0-49% — Steel 0-49% — Steel 0-49% — Steel 0-49% 0-25% 26—50% 51-75% More than 76% ................................................................................................................................................................ 67. Company Type by Product Line general line house specialty house Profit Category—branch or location 1968 profit as a percentage of sales after tax (or a representative average if 1968 was an unusually high or low profit year for your branch) loss 0-1.9% 2-2.9% 3—3.9% 4-5.9% More than 6.0% 69. Number of Employees in Your Branch Location: 70. O— 19 employees 20- 29 employees 30— 49 employees 50- 74 employees 75- 99 employees 100-199 employees 200-499 employees More than 500 employees Total Number of Service Center Branches or Locations Operated by your Company’s Head Office single location 2 locations 3-8 locations 9-15 locations 16 or more DEPARTMENT OF MARKETING AND TRANSPORTATION ADMINISTRATION GRADUATE SCHOOL OF BUSINESS ADMINISTRATION MICHIGAN STATE UNIVERSITY The number in the upper right hand corner of this page serves only as a guide for the research staff. Its only purpose is to tell us whether or not a particular questionnaire has been returned. This research is designed and conducted by the university. No names of individuals or firms will be identified in the text of the research report. The purpose of this study is to determine how your steel service center compares to what you would like to see in the ideal or perfect steel service center. Under headings such as Management and Price you are asked to make judgments about steel service centers against a series of descriptive scales. Your first judgments concern what you would expect of an ideal steel service center. Then, in part two, using the same descrip- tive scales, you are asked to position the steel service center with which you deal. Please make your judgment on the basis of what each factor means to you, checking the appro- priate position along each scale to indicate how strongly you agree or disagree with the statement. NOTE: 1. Place your check mark in the middle of the spaces, not in the dotted boundaries. 2. Do not omit any scale. 3. Do not put more than one check mark on any single space. You may at times feel you have answered the same item before. This is not the case, so do not look back and forth through the items or try to remember how you checked similar items earlier. Make each item a separate and independent judgment. Work at a fairly high speed. Do not worry or spend a great deal of time puzzling individual items. Your first impressions, your immediate feelings, are what is wanted. However, do not be careless either, because your true impressions are desired. PART ONE Please indicate the position on each of the following scales which represents your view of THE IDEAL STEEL SERVICE CENTER Organization: 10. 11. 12. 13. 14. Is Large Concentrates on imported metals Earns large profits Provides only limited emergency . source of supply rather than servmg total customer needs Operates branches in large number of States Management: 15. 16. 17. 18. 19. Is poorly managed Plans thoroughly for future Policies are independent of basic mills’ policies Does not have well defined formal policies Acts more as a purchasing agent for customers than as a sales agent for mill Products: 20. 21. 22. 23. Carries a narrow range of product lines Offers a wide range of quality choice Quality consistency is variable Quality exceeds customers' needs 24. Offers few pre-production services (slitting, heat-treating, etc.) Inventory: 25. Carries a wide variety of sizes, grades, 26. 27. shapes, qualities or steel Carries broad range of metals and non-metals ls frequently out of stock in some items 28. Permits customer to reduce inventory Disagree Strongly ..................... ..................... .................... ..................... ..................... oooooooooooooooooooo ..................... .................... nnnnnnnnnnnnnnnnnnnn -------------------- .................... .................... ..................... ..................... ..................... Note: The higher the number, the more you agree. Disagree Disagree Moderately Slightly .................... .................... .................... ..................... .................... ooooooooooooooooooooo .................... .................... .................... .................... .................... .................... .................... ..................... .................... .................... ..................... ..................... ..................... oooooooooooooooooooo ..................... ..................... --------------------- ..................... ..................... -------------------- .................... .................... ..................... Neither Agree nor Disagree .................... .................... ..................... oooooooooooooooooooo ..................... ..................... ooooooooooooooooooooo ..................... ..................... --------------------- ooooooooooooooooooooo ..................... ..................... .................... ..................... ..................... .............. Agree Slightly ..................... ..................... .................... .................... ..................... ..................... ..................... -------------------- ..................... ..................... ..................... --------------------- --------------------- ..................... ..................... .................... Agree Agree Moderately Strongly ..................... ..................... ..................... .................... ..................... ..................... ..................... ..................... .................... .n--.-.o.....-.-...- . ..................... ..................... ..................... ................... .................... ................... \I '. \I. K) ~13; ~13 \l: \l \I, redit and Delivery: ’. Communicates details of credit poli- cies to customer ). Credit difficult to obtain 1. Delivery is too slow 2- Delivery is unreasonably long 3. Consistently meets delivery promises 'rieeo: 4. Prices are usually low 5. Prices fluctuate frequently with little apparent reason 6. Prices are fixed, never increase f0i “unusual" occaswns (e.g. rush Job) 7. Frequently offers “specials" 8. Prices usually seem “fair” \dvertiaing: 39. Advertises heavily 0. Uses direct mail advertising more than magazine advertising :1. Provides much product service infor- mation in advertisements l2. Communicates large amount of spe- cific problem-oriented information 13. Advertising is of little help to customer Salesmen: l4. Outside salesmen call frequently la. Inside salesmen telephone frequently l6. Salesmen act more as an extension of the basic mills’ sales force than as service center representatives :7. Salesmen provide up-to-date technical information, advice and analysis of customer needs rather than simply taking orders *8. Inside and outside salesmen are co- ordinated as a team 39. Inside salesmen are more personal, friendly and sociable than business- like and professional. 30. Outside salesmen are more personal, friendly and sociable than business- like and professional El. Outside salesmen are weak in product knowledge 32. Inside salesmen are weak in product knowledge. 33. Salesmen consistently follow-up on customer requests Disagree Strongly .................... ..................... ..................... .................... ..................... .................... .................... .................... ..................... .................... ................ ..................... ..................... ..................... oooooooooooooooooooo oooooooooooooooooooo ..................... uuuuuuuuuuuuuuuuuuuu ..................... ooooooooooooooooooooo .................... .................... Note: The higher the number, the more you agree. Disagree Disagree Moderately Slightly .................... ooooooooooooooooooooo .................... .................... ..................... .................... .................... ................... ................... ..................... ..................... ..................... .................... ooooooooooooooooooooo uuuuuuuuuuuuuuuuuuuuu ..................... .................... .................... ..................... .................... .................... ..................... ..................... .................... .................... .................... ..................... ..................... .................... .................... oooooooooooooooooooo ooooooooooooooooooooo .................... .................... .................... .................... ..................... Neither Agree nor Disagree ..................... .................... .................... ..................... .................... .................... .................... ..................... .................... .................... .................... .................... ..................... ..................... ..................... ..................... .................... .................... ..................... oooooooooooooooooooo Agree Slightly .................... .................... .................... -------------------- .................... ..................... .................... .................... .................... .................... ooooooooooooooooooooo oooooooooooooooooooo oooooooooooooooooooo .................... ..................... oooooooooooooooooooo .................... .................... Agree Agree Moderately Strongly ..................... .................... ................... nnnnnnnnnnnnnnnnnnnn -------------------- .................... .................... .................... ..................... .................... ..................... .................... ..................... ..................... ooooooooooooooooooooo ooooooooooooooooooooo nnnnnnnnnnnnnnnnnnnn --------------------- ooooooooooooooooooooo oooooooooooooooooooo ooooooooooooooooooooo ooooooooooooooooooooo -------------------- .................... .................... .................... .................... ooooooooooooooooooooo .................... oooooooooooooooooooo .................... ooooooooooooooooooooo ooooooooooooooooooo oooooooooooooooooooo ..................... ooooooooooooooooooooo uuuuuuuuuuuuuuuuuuuu .................... oooooooooooooooooooo ooooooooooooooooooooo .................... .................... PART TWO Please indicate the position on each of the following scales which represents your view of YOUR ACTUAL STEEL SERVICE CENTER Note: The higher the number, the more you agree. . Neither Disagree Disagree Disagree Agree nor Strongly Moderately Slightly Disagree Organization: 10. Is Large .................... : .................... : .................... : ..................... ‘ l 2 3 4 11. Concentrates on imported metals .................... : ............................................................... l 2 3 4 12. Earns large profits .................... : ............................................................... l 2 3 4 l3. Provides only limited emergency source of supply rather than serving total customer needs .................... : .................... : .......................................... l 2 3 4 l4. Operates branches in large number of States .................................................................................... l 2 3 4 Management: 15. Is poorly managed ................................................................................... l 2 3 4 16. Plans thoroughly for future ................................................................................... 1 2 3 4 l7. Policies are independent of basic mills’ policies .................................................................................... 1 2 3 4 18. Does not have well defined formal policies .................... : .................... : .......................................... 1 2 3 4 19. Acts more as a purchasing agent for customers than as a sales agent for mill ................................................................................... 1 2 3 4 Products: 20. Carries a narrow range of product lines .................... : .................... : .................... : .................... : l 2 3 4 21. Offers a wide range of quality choice .................... z .................... : .................... : .................... : l 2 3 4 22. Quality consistency is variable .................... : .................... : .................... z .................... : 1 2 3 4 23. Quality exceeds customers’ needs .................... : .................... : .................... : .................... : I 2 3 4 24. Offers few pre-production services (slitting, heat-treating, etc.) .................... : .................... : .................... : .................... : 1 2 3 4 Inventory: 25. Carries a wide variety of sizes, grades, shapes, qualities or steel .................... : .................... : .................... : .................... : 1 2 3 4 26. Carries broad range of metals and non-metals .................... : .................... : .................... : .................... : l 2 3 4 27. Is frequently out of stock in some items .................... : .................... : .................... : .................... : 1 2 3 4 28. Permits customer to reduce inventory .................... : .................... : .................... : .................... : 1 2 3 4 Agree Slightly ..................... ..................... .................... ..................... .................... ..................... ..................... .................... .................... ..................... .................... .................... .................... ..................... .................... Agree Moderately .................... .................... ................... .................... ..................... .................... ..................... .................... ..................... ..................... ..................... .................... ................... .................... Agree Strongly “é \Ii \l. \I-j \I Indit and Delivery: 9. Communicates details of credit poli- cies to customer 0. Credit difficult to obtain i1. Delivery is too slow :2. Delivery is unreasonably long 13. Consistently meets delivery promises Prices: 34. Prices are usually low 55. Prices fluctuate frequently with little apparent reason 36. Prices are fixed, never increase fOi “unusual" occaSions (e.g. rusn Job) 37. Frequently offers “specials” 38. Prices usually seem “fair" Advertiaing: 39. Advertises heavily 40. Uses direct mail advertising more than magazine advertising 41. Provides much product service infor- mation in advertisements 42. Communicates large amount of spe- cific problem-oriented information 43. Advertising is of little help to customer Salesmen: 44. Outside salesmen call frequently 45. Inside salesmen telephone frequently 46. Salesmen act more as an extension of the basic mills’ sales force than as service center representatives 47. Salesmen provide up-to-date technical information, advice and analysis of customer needs rather than simply taking orders 48. Inside and outside salesmen are co- ordinated as a team 49. Inside salesmen are more personal, friendly and sociable than business- like and professional. 50. Outside salesmen are more personal, friendly and sociable than busmess- like and professional 51. Outside salesmen are weak in product knowledge 52. Inside salesmen are weak in product knowledge. 53. Salesmen consistently follow-up on customer requests Disagree Strongly ..................... ..................... ..................... ..................... ..................... ..................... ..................... .................... .................... uuuuuuuuuuuuuuuuuuuu .................... .................... .................... ..................... .................... ooooooooooooooooooooo .................... .................... ..................... ..................... Note: The higher the number, the more yOu agree. Disagree Disagree Moderately Slightly .................... .................... ..................... ..................... .................... ..................... ..................... ..................... .................... .................... ooooooooooooooooooooo .................... .................... .................... ..................... ..................... .................... ................... ..................... ..................... .................... ..................... .................... .................... ..................... ..................... .................... ..................... ..................... .................... ..................... .................... ..................... .................... ..................... --------------------- ..................... --------------------- ..................... .................... ..................... ..................... Neither Agree nor Disagree .................... ..................... .................... .................... ..................... .................... ..................... .................... ..................... ..................... ..................... ..................... .................... ..................... .................... ..................... .................... ..................... ooooooooooooooooooooo .................... .................... .................... .................... Agree Slightly ooooooooooooooooooooo .................... .................... .................... .................... .................... .................... ..................... ..................... ..................... ooooooooooooooooooooo -------------------- ..................... ..................... ..................... .................... .................... .................... Agree Agree Moderately Strongly -------------------- ooooooooooooooooooooo oooooooooooooooooooo oooooooooooooooooooo .................... ..................... .................... ooooooooooooooooooooo ..................... ..................... uuuuuuuuuuuuuuuuuuuu ..................... -------------------- ..................... ..................... ooooooooooooooooooooo .................... ..................... .................... ..................... ..................... ..................... .................... .................... ..................... .................... ..................... ..................... ..................... ..................... ..................... .................... ..................... ................... ..................... .................... .................... .................... .................... 54. Unimportant ......... .1. ......... : 55, Unimportant ......... .1. ......... : 56, Unimportant ......... .1. ......... : 57. Unimportant .................... : S8. Unimportant .................... : 59. Unimportant .................... : l 60- Unimportant .................... l 61- Unimportant .................... PART THREE You have rated Steel Service Centers under eight major cate- gories. Would you please indicate the degree of importance each of these categories has for you. Note: The higher the number, the more the importance. ..................... ..................... ..................... .................... ..................... ..................... ORGANIZATION ......... 3W 4 5 MANAGEMENT ......... 3......“ . 4 . 5. PRODUCTS ......... 3....-.” 4 5 INVENTORY ......... 3W 4 5 ..................... 3 4 S PRICES ......... 3......“ 4 5 ADVERTISING ......... 3......... 4 . 5 SALESMEN ......... 3...”... 4 . 5 . ..................... .................... .................... ..................... ..................... .................... -------------------- ..................... .................... -------------------- ..................... .................... Important Important Important ° Important --------------------- - Important - Important - Important ; Important PART FOUR Thank you for your c00peration. Your answers will be grouped with all the others to obtain a total profile of steel service centers. Of course, individual replies will be held strictly confidential, and after the information has been categorized in the computer, your answer sheets will be destroyed to insure that no-one will see them. The following two questions are the categories under which your responses will be grouped. 62. My steel service center purchases are primarily: (a) production metal .................... l. (b) tool and die, maintenance and repair steel .................... 2. 63. The average number of factory or production workers in my plant is: O- 9 .................... 1. 10- 19 ................... 2. 20- 29 .................... 3. 30- 49 .................... 4. 50- 74 .................... 5. 75- 99 .................... 6. 100-199 .................... 7. 200—499 .................... 8. More than 500 .................... 9. Any additional personal observations or comments you may wish to make here would be appreciated. APPENDIX C CUSTOMER LIST REPLY FORM MICHIGAN STATE UNIVERSITY 233 APPENDIX C CUSTOMER LIST REPLY FORM l MW'W‘I’) suntan IOIOOL 0' m mmnou ”MW? 00 M AND WTAM LOW?!“ ' on." cam-Ia Please list the name and address of the person responsible for buying from your steel service center for each of the REPRESENTATIVE CUSTOMER GROUP 10 customer firms which you feel represents a cross-section of your customer list. Name Address . Name Address . Name Address . Name Address . Name Address . Name Address Name Address Name Address Name Address . Name Address May we use your name to introduce ourselves to these people? Company City Company City Company City Company City Company City Company City Company City Company City Company City Company City State State State State State State State State State State Yes No Have no preference Zip Zip Zip Zip Zip Zip Zip Zip Zip Zip APPENDIX D MEAN RESPONSES ON IMAGE VARIABLES 2334 APPENDIX Dl BASIC MILLS' MEAN RESPONSES ON IMAGE VARIABLES IDEAL IMAGE ACTUAL IMAGE Standard Standard Variable Ideal Standard Error of Actual Standard Error of Number Mean Deviation Mean Mean Deviation Mean 1 ‘35‘27 1055‘. 316“ ‘383115 103918 31575 ' 2' ‘I;339t-”’”‘“ITUEUI" ‘ .1130 2.5000 1.6380 .1800 3 4.5318 1.8583 .1970 3.0005 1.3201 .1723 ; 1.9333 1.3522 .1033 2.3037 1.5320 .1339 0350 3 1.3723 .1773 3.92 1.8 9 . 973 6 1.0331 1.1092 .1213 §obotg 175%T§" . 619 7 3.0099 1.5993 .1390 0.9383 1.5773 .1372 8 ' . - “ "“‘230063’“ .2121 096292 1.612 .1709 9 2.2135 7 2 303 3-5 53 .8 . 92 10 3.5503 $.139é 22310 0.7303 i.7125 .iaag “ 225506 37 9 a 82 '9 0 105 ‘ O 655 12 502360 i. 7%83 Gish: §.9‘.11""13T§35‘ 3:869 ‘3 1.9551 1.6453 .1532 3_g236 {.6290 .1727 10 359382 ‘"“1:67r7‘" .1772 32 169 .5375 .1302 15 206‘0‘ 1.7917 .1899 3.5 09 106727 01773 16 6.2251 1.0950 .1161 595 55 1.209 7 .1325 17 0.3933 1. 7190 .1319 sosas3 1.3775 .1773 18 2.3320 1. 6509 .1751 “3-‘7I‘ 135701 .1553 19 5.3202 1.9267 .1512 520292 1.0.03 91112 “20’0 “ ‘"s. 173213» '.1301 5.1385 1.3333 .1437 21 2.9775 1.5074 .1593 3.1011 1.0360 .1533 22 1.7303 1. 2132 .1286 2o8539 1.3310 ~1963 23 137753 1.0329 .1572 2.0157 1.3552 .1a31 26 3.2309 1. 3055 .133. 5626'1' “ . ' ' .1335 25 3.1011 1. 5370 .1361 3.3933 1.3395 .1579 '23 ' “:“YISTT “176 " ”.1735 * 2.7753 1 3797 4.32 27 336292 1:9965 .2116 398202 ‘37,.“ 33°31 23 2.9213 1.7071 .1310 3-3371 1.5307 .1373 29 3.2072 1.100. .1133 5.330. 1.1000 .1209 30 0.1091 1.5707 .1335 3:7528' 1%029?" .1723 31 5.0787 1.6330 .1551 3.5730 1.0e85 .1557 '32' ”5: . ’“““ .7585’ 0.258. 1. 51I5 .1302 33 5.0000 1.6969 .1801 3.8315 1.6113 .1708 30 9.0000 1.16;; .1870 306150 1.7 35 Q .1839 35 6. 22*? 1.115 .1102 5.3.27 1. 592 .1117 33 5.9101 1.2371 .1303 ‘s:tutt" “”'172220‘“ :1503 37 208027 1. 7510 .1353 2.3005 1.2570 . :00 ~33‘“ ‘576517--“'-1:3730- "grsz“ «.2297 1.60?1 . 709 39 3. 3371 1. 3051 .1383 5.3320 1. 2569 . 332 «0 3. 7973 1.3102 .1919 369880 1.5262 . 313 ‘1 3.3352 1.7201 .1323 3.3183 1.3339 .1525 0; $.2397 1.7729 .1332 ”-o “' . “ ""”": 92 “ -_"___ .2309 _fi_ 1 7 s _“__ 329 3.5109 1.752. 351 -00 ‘3. “113§3*“" 690‘ 0.9363 1.3389 2:051 2335 APPENDIX D2 STEEL SERVICE CENTERS' MEAN RESPONSES ON IMAGE VARIABLES IDEAL IMAGE ACTUAL IMAGE Standard Standard Variable Ideal Standard Error of Actual Standard Error of Number Mean Deviation Mean Mean Deviation Mean 1 0.7031 1.5381 .0780 0.0335 2.2189 .0937 ‘2*“““‘T:9027—“‘ "r7t073“——“'“‘70370“ 139151 .0727 3 0.3301 1.9573 .0937 .3995 1.8369 .0390 0 1.3307 1 531 .0703 33323 1.806 0 .0805 5 0.3093 1. 9565 .0937 3.0135 2.8060 .1172 6 1.5293 1. 3060 .0305 250353 1. 70t0 .0330 _7 3.0390 1. 59~2 .0703 0.9793 1.0073 .0866 8'”“'“*”570082—~7“7—r:8 "20392 5.1399 1.8398 .0381 9 2.1177 1.6233 .0777 3.2018 1.9735 .0905 ‘0 Q3339Q ,2§?8 91077 ‘01606 201955 31052 11 2.1193 1.5579 .0703 2.7913 2.0365 .0975 12 5.3000 1.9360 .0927 0:7110 ' W201029' .1023 13 2.0059 1,80?2 0790 2.0725 1 7928 0850 10 5373333 7* 1.8325“* 3 0.0161 1:8513 :0887 15 2.3328 1.9312 ~ 0909 3.3280 2 1060 .1029 13 3.1193 1. 3194 10330 5.5321 1'7950 .0300 17 0.32 1 1.939 0953 3.7385 2 2202 1063 18 2:33 3 .3333 :0902 3:7338' '738951 30907 19 3.1170 1.0.00 0390 5. 3257 1 197 0380 720 "37 “““““ ‘1; ' i 31” 50001“ 1:5893 :0761 21 2.7793 1. 5331 0709 3. 323 1. 333 0793 12 1.7110 1.3753 :0358 2; 073 1.8102 :0867 23 1.5298 1.1900 0572 2. 3303 1 3389 0785 :0 3.2933 1.3325 :0333 520359 ' '"1.7139 50821 5 2. $587 1.6535 .0792 3.1078 A 552‘ 01.3 ~23 - , 1. 3083 ~* ~"r23360- 7'“~ 30305 2.1032 1:537: :0722 17 .0390 2. 2332 1090 0 0033 2 2253 1066 28 3.1193 1.8503 :0883 2:8532 1:8033 :0860 29 .3853 .9530 0059 1510 1 799 0516 30 3.3950 1.6065 13733 313230 1:957? :0300 31 0.7003 1.3335 .0797 3.8370 2.1293 1020 -32—- ”0.3017 . ”--~~;0317~ 3.3073 2 .0205 :0933 33 0.5072 1.7503 .0300 3.0507 1.9200 .0920 3; 3.2723 1.8519 .0387 3.5917 1.8591 .0383 5.91 1.2953 0320 5 5082 1 0371 0712 33 0.900 1.7332 30305 * : “""7rf9335-"' 30912" 37 1.7383 1.1396 .0570 1.9771 1.3377 .0355 -39 - 371340~" . 775—7703527 590523 1.3155 .0339 39 3.0050 1.1180 .0535 5.3003 1.7051 .0830 80 4.0379 1.9080 .0901 3.5390 1.0390 .0331 2% 2.20:: 1.:0g2 .0930 3.8050 1.8011 00882 . 1. e .07 8 “3.2051‘ T.VEV9"" ‘70915 .. b 8 _‘g 51.3230“-_WW _i‘353 -__iu £19 2. 9332 1.3603 .0393 236 APPENDIX D3 CUSTOMERS' MEAN RESPONSES ON IMAGE VARIABLES IDEAL IMAGE ACTUAL IMAGE Standard Standard Variable Ideal Standard Error of Actual Standard Error of Number Mean Deviation Mean Mean Deviation Mean 1 0.7918 1.5515 .0812 0.6767 1.6289 .0853 2 2.2082 1.0696 .0769 2.2000 1.5339 .0803 3 3.5289 1.5750 .0827 3.6219 1.0693 .0769 0 2.1781 1.8601 .0970 2.7868 1.8779 .8983 5 0.0082 1.7008 .0913 3.8809 2.0630 .1080 ~-6- 1.6683 1:36670- -u.8715 2.1699 1.6912 .0885 7 6.0038 1.0966 .0783 5.2630 1.5080 .0810 8 0.8508 1.8082 .0967 0.6575 1.6758 .0877 9 2.6207 1.8069 .0967 3.0380 1.6931 .0886 10 0.6329 2.2193 .1162 <0.2855 2.8606 .1881 11 2.0270 1.5333 .0803 2.6270 1.6783 .0878 12 5.8160 1.6178 .8807 5.0767 1.6755 .0877 13 2.0110 1.5828 .0828 2.7836 1.7176 .0899 10 3.9671 1.9298 .1010 3.7123 1.6910 .0885 15 3.0795 2.1116 .1105 3.7836 1.9371 .1010 16 6.3096 1.1579 .0606 5.5836 1.5288 .8880 17 0.8027 1.9228 .1006 0.2329 1.9253 .1008 18 2.2192 1.7181 .8895 3.2575 1.7618 .0922 19 5.9530 1.5952 .0835 5.1507 1.7022 .0891 20 5.6270 1.5596 .0816 0.9370 1.5963 .0836 21 2.7178 1.6805 .0880 2.5659 1.5351 .0805 22 2.1507 1.7005 .0911 2.8207 1.8303 .8968 23 1.8137 1.5185 .0795 2.0207 1.6913 .0885 20 6.1973 1.0029 .8755- 5.2160 1.6967 .0888 25 0.5151 1.8629 .0975 3.9233 1.5897 .0832 26 2.0055 1.5082 .0789 2.0959 1.5686 .0823 27 0.8500 2.1801 .1103 0.0508 2.1152 .1107 28 3.8767 1.8308 .0960 3.8219 1.7220 .8982 29 5.9905 1.3687 .0717 5.7233 1.2978 .0679 38 3.5987 1.5658 .8821 3.3233 1.7010 .0912 31 0.3302 1.6368 .0857 3.8219 1.7786 .0931 32 0.5973 1.6656 .0872 3.6521 1.7370 .0909 33 0.7885 1.6087 .0860 3.7288 1.7130 .0897 30 3.9616 1.9183 .1000 0.1753 1.8611 .8970 35 0.9079 1.6919 .0886 0.9753 1.6207 .0850 36 3.3781 1.8680 .8970 3.1863 1.8571 .0972 37 2.5233 1.6198 .0808 2.7079 1.6660 .0872 38 5.8000 1.6328 .0855 0.7918 1.8309 .0958 39 6.1370 1.0110 .0700 5.2270 1.6659 .0872 08 0.0000 1.9129 .1001 8.8011 1.7618 .8922 01 0.1863 1.8922 .0990 0.1726 1.8082 .0906 02 2r1896 1.5588 .8816. 2.9715 1.7769 .0930 03 2.0658 1.5763 .0825 2.8038 1.7106 .0897 00 5.7018 1.7069 .0916 5.0000 1.3010 .0900 APPENDIX E TESTS OF SIGNIFICANT DIFFERENCE 237 APPENDIX El PAIRED TEST OF SIGNIFICANT DIFFERENCE ON BBIC MILL VARIABLES LEVEL OF VARIABLE SIGMA D SIGMA D so can SID DEV Z sxmzncmca 1 1.00000 107.00000 .01120 1.29201 .00202 n.s. 2 -95.00000 031.00000 -1.00702 1.93530 -5.20331 .0001 3 103.00000 027.00000 1.15730 1.07021 5.03702 .0001 4 -57.10000 257.00000 -.00005 1.50291 -3.01700 -001 5 7.00000 295.00000 .07005 1.02921 .00500 n.s. 6 -100.00000 330.00000 -1.12300 1.57200 -0.70020 .0001 7 90.00000 020.00000 1.05010 1.92000 5.17115 -0001 9 -102.00000 002.00000 ~1.10007 1.92200 -5.02519 -°°°‘ 9 -115.00000 593.00000 -1.29213 2.20723 ~5.02000 .0001 1° -105.00000 555.00000 -1.17970 2.21300 -5.02000 -°°°1 1‘ -32.00000 200.00000 -.35955 1.70050 -1.99001 '05 ‘2 27.00000 201.00000 .30337 1.09090 1.00055 “'5- 13 0100.00000 030.00000 -1.10050 1.09030 -5.03101 .0001 1‘ -7.00000 211.00000 -.07005 1.50000 -.07901 n.s. 15 -70.10000 000.00000 -.07000 2.10372 -3.70019 .001 16 50.00000 220.00000 .02921 1.00900 0.09002 .0001 17 -17.00000 339.00000 -.19101 1.95330 -.92250 n-s. 18 —97.00000 005.00000 -1.00909 2.02050 —5.00003 .0001 19 17.00000 111.00000 .19101 1.10055 1.02007 n... 20 03.00000 197.00000 .70707 1.31001 5.07000 .0001 21 -11.00000 207.00000 -.12300 1.00100 -.00719 n.s. 22 ~100.00000 310.00000 -1.12300 1.09000 o7.07300 .0001 23 -57.00000 357.00000 -.00005 1.90000 -3.10000 .01 24 90.00000 290.00000 1.01120 1.53307 0.22030 .0001 25 -20.00000 272.00000 -.29213 1.73330 -1.50990 0-9- 26 -55.00000 207.00000 -.01790 1.09502 o3.03020 .001 27 -17.00000 209.00000 -.19101 1.00200 91.00000 n... 20 -37.00000 225.00000 -.01573 1.50330 -2.50117 .05 29 50.00000 100.0000!) .60670 1.31095 0.36629 .0001 30 35.00000 179.00000 .39320 1.37029 2.70700 .01 31 05.00000 105.00000 .50502 1.35700 3.51290 .001 32 93.00000 293.00000 1.00090 1.09172 0.00000 .0001 33 100.00000 300.00000 1.10050 1.00705 7.01003 .0001 3‘ -55.00000 259.00000 -.01790 1.59905 ~3.00592 .001 35 30.00000 100.00000 .30202 1.02000 3.50550 .001 36 77.00000 200.00000 .00099 1.30051 5.05000 .0001 37 39.00000 215.00000 .03020 1.09900 2.75002 -01 38 127.00000 525.00000 1.02097 1.97050 0.01103 .0001 39 05.00000 217.00000 .95500 1.20230 7.25202 .0001 40 -17.00000 251.00000 -.19101 1.07791 -1.07395 n.s. 41 -03.00000 209.00000 c.00315 1.01002 -2.03u31 .o1 ‘2 -120.00000 000.00000 -1.03020 2.27010 -5.90097 .0001 ‘3 -110.00000 500.00000 ~1.23590 2.20032 -5.19070 .0001 44 95.00000 209.00000 1.00702 1.00000 0.09090 .0001 238 APPENDIX PAI RED TEST OF SIGNIFICANT DIFFERENCE (N STEEL SERVICE CENTER VARIABLES LEVEL OF VARIABLE 51050 0 SIGMA n so 0509 $70 DEV l sunurxcancs 1 130.00000 1920.00000 331121 2.0135; 1.12990 .01 2 13.00000 911.00000 .0297: 1.00519 .03031 n.0. 3 001.00050 2007.00000 1200002 2.00159 15.31999 .0001 4 -205.00000 1881.00000 -,00911 2.02605 -0.5357o .0001 s 210.00000 1000.00000 999920 2.00529 5.15272 -0001 5 o39a.ouooo 2170.nnuoo 9.91010 2.00000 .9.33005 .0001 7 687-00000 2507.00000 1311002 2.12255 10.97500 .ooo1 a -02.ooooo 1010.0.000 ogo9011 2.03522 -.90710 n.s . -075.ooonu 2001.00000 ~1900090 2.12270 -10.70900 .0001 10 79.00000 1753.00000 .10070 1.99097 1.09201 n_., 11 -290.00060 1002.00000 -g07277 1.90502 07.15570 .0001 12 270.00000 1039.00000 .03150 1.95105 0.70700 ‘0001 1, -1Hfl.ouono 1020.00000 -393021 1.75770 -5.11631 _0001 1. -92.00000 1000.00000 --10700 1.90002 -2.05757 .05 15 -2°1.ooooo 2507.00000 '366590 2.33300 -5.96°5° .0001 10 250.00000 1919.00000 058551 1.70269 701’323 .0001 17 257.00000 2175.00000 358510 2.15950 5.70010 .0001 la "95900000 26‘6000000 ~19130‘3 2010315 .10073966 _(11)01 19 129.00000 003.00000 329519 1.39200 0.93200 .0001 a, 205.00000 1107.00000 .05217 1.50010 9.00833 .0001 2, ~132.ooono 1300.00000 -g30200 1.70010 -3.70592 .00, 22 ~901.000oo 2109.00000 -1o10009 1.95099 .11.79309 .0001 23 -309.00000 1001.00000 -.79003 1.79339 -9.30910 .0001 24 530.00000 2099.03000 1.21201 1.79270 10.10253 .0001 35 -00.00000 1210.00000 -g19005 1.05900 -1.09992 n,._ 5. ~112.ouoou 1222.0.000 -.25029 1.05030 -3.23052 .0, 27 19.00000 1001.00000 309300 2.00550 .00003 n... 20 117.00000 1107.0:000 .20773 1.01393 3.00700 .001 29 102-00000 520.00000 323391 1.05930 0.57351 .nmu 10 3092000000 1572000000 057615 1.57022 9.72919 .0001 31 302.00000 2152.05000 .07010 2.00203 0.99099 .0001 32 539.ooono 2599.00000 1323301 2.10023 12.20109 .0001 33 002.00000 2696.00000 1.10297 2.20215 10.97031 .0001 30 -130.0oooo 1530.00000 .331121 1.00719 -3.52190 .001 35 100.00000 950.0.000 .30013 1.03900 5.33900 .0001 30 909-00000 1931.00000 1307323 1.00950 12.39830 .0001 37 -91.00000 007.0.ooo -.20020 1.30002 -3.23793 .01 10 007.00000 2003.05000 1911992 1.57950 12.39950 .0001 v1 000.00000 1002.05000 1309000 1.70991 13.92052 .ooo1 M) -30.00000 1270.00000 -go0005 1.70935 -.03950 n... 41 ~132.00000 1162.0-000 -030200 1.0092? ~5.93000 .0001 42 -530.ooooo 2330.00000 .1323112 1.95000 -13.10351 -°°°1 ‘3 -509.00000 2195.05000 al.15970 1.91593 -12.10195 .0001 44 353000000 1629.00000 350175 1.1550) 9.61537 .0001 239 APPENDIX E3 PAIRED TEST OF SIGNIFICANT DIFFERENCE ON CUSTmER VARIABLES LEVEL OF VARIABLE 510110 0 $1000 0 sq 00011 510 05v 2 s1mmcmca 1 02.00000 952.00000 .11002 1.01970 1.30200 n.s. 2 0.00000 010.00000 0.00000 1.09792 0.00000 n.s. 3 -30.00000 032.00000 0.09905 1.51000 01.20900 0.9- 0 -193.00000 1097.00000 -.53315 1.90510 -5.10190 .0001 5 195.00000 1013.00000 .53007 2.00301 5.01003 _0001 0 -205.00000 1307.00000 -.73200 1.75500 -7.93220 .0001 7 205.00000 1039.00000 .70729 1.03029 0.10027 .0001 8 70.00000 1500.00000 .20990 2.07210 1.92771 n-s- 9 -150.00000 1070.00000 -.02501 2.23023 -3.01020 .001 “I 153.00000 1593.00000 .02205 2.05757 3.90020 .001 11 -219.00000 1333.00000 -.00097 1.02300 -0.31190 _0001 12 270.00000 1722.00000 .70500 2.05237 0.91037 .0001 13 «200.00000 1030.00000 -.79550 1.02003 -0.27000 .0001 10 102.00000 1370.00000 .20177 1.93320 2.77301 .01 15 -1o0.00000 1502.00000 o.20729 2.00012 -2.05330 .01 10 205.00000 1125.00000 .73200 1.00592 0.07290 .0001 17 200.00000 1312.00000 .57059 1.01709 0.01500 .0001 19 -300.00000 1900.00000 61.00972 2.09000 -9.51939 .0001 19 293.00000 1225.00000 .00939 1.05021 9.30900 .0001 20 250.00000 1200.00000 .09001 1.00090 7.70090 _0001 21 59.00000 1077.00000 .10290 1.71952 1.00300 “.5 22 -207.00000 1005.00000 -.00232 1.00000 -0.90305 .0001 23 -223.00000 1175.00000 -.01002 1.09530 -0.91327 .0001 2. 303.00000 1009.00000 1.00270 1.90130 10.03002 .0001 :0 210.00000 1300.00000 .59110 1.00700 0.02105 .0001 20 -103.00000 1001.00000 -.50552 1.50030 -0.00300 .0001 27 107.00000 2112.00000 .39227 2.30005 3.12712 .01 28 310.00000 1530.00000 .07005 1.00129 0.97903 .0001 :9 99.00000 707.00000 .27300 1.03100 3.03007 .001 30 99.00000 1119.00000 .27300 1.73917 2.99100 .01 31 193.00000 1095.00000 .53315 1.90373 5.10500 -0001 3? 351.00000 1713.00000 .90901 1.90997 9.00072 -0001 33 392.00000 1030.00000 1.00207 1.97070 10.01203 ~0001 34 -00.00000 1000.00000 -.22099 2.09020 -2.00503 .05 35 -0.00000 950.00000 -.01105 1.02559 -.12933 n.s 30 75.00000 1157.00000 .20710 1.77019 2.21002 .05 27 -02.00000 1300.00000 -.22052 1.91013 -2.20920 .00 30 375.00000 1053.00000 1.03591 1.07159 .10.53090 .0001 39 333.00000 1305.00000 .91909 1.71209 10.22020 .0001 40 59.00000 901.00000 .10290 1.00037 1.09001 n-S- 01 9.00000 979.00000 .02000 1.00000 .20720 n-s 42 ~300.00000 1570.00000 -.00530 1.90592 -0.03007 .0001 43 -292.00000 1030.00000 -.00003 1.02500 -0.00903 .0001 04 200.00000 1700.00000 .70053 2.02033 7.35912 .ooo1 APPENDIX F IMAGE VARIABLE PROFILES QPPENDIX Fl BQSIC MILL PROFILE OF STEEL SERVICE CENTER IMQCE 240 6‘ SAILSIC! (OISIS‘I'IITIJ mun-1n (:01 cum-00¢- m3" 4 INSIDE. SALES!” A” VIM II PM man 62 OUTS“! SALES” AB an Ill rm mac: r ’ LX’I'SIII SALES” All! mu FEW, run-nu “D SKIMLE W BUSINESSLIKE AID IWSICIAL 60 INS!!! SUSICI‘ u! it)” FEW, mumu '0 — 503qu W ”IIDSLIU AID nonsumw. < ' 2 INS"! AID OUTS“! SALES” An MIMI“ A! \ A m 3. 30115109: 0301710: uv-m-mn 120311111201. "Ivonne-I. ‘ ‘ s - muc: A100 muvsxs at cm: um: um: 'nml ‘ ~ SIIOLY THING 0mm ‘ ‘ - . 5014:5105»: 0c:- 70):: u M 0mm: 0! 1m: WIC quJ' - ’ ’ 1011.5 mu m 03 00mm: an“ ummrnm 3‘ 111510: 00113101 nuns-z rm! 1 outs”: angst-m 0.1.1. run-191m: ‘ Q ‘ ‘ . J 0! murmur. 1.9 or unu um 1'0 030ml r " 1 mmunxnrzs unrz noun- or l'ICI'IC Inlan- ’ OIIKITID IN'ONTIW N < 4 M PROVIEIS DIUO‘ PDQ.“ SERVIC Im~TIa II AMKISKIZITS \ 4 USES DIAICI MIL ADVERTISING ”K m manna \ AMHISIW 30 mnuzs MIAVILY ‘ rum USUALLY sun 'VAII' WWII Off!” ‘sncxm‘ I nxczs u: nan. umn "It”! :00 “WOAL‘ occasmss 10.0. 01100 JO! I v 2| ZS PIICLS PW?! WY I!“ LITTLE ”PM ’ MC. .1 4 PUG—‘3 A]! USUALLY [ll 0 ‘ N CCISISMLY 01m “LIVE" 2mm .4 “LIVE" IS WWMLY m 111.1th I! 1'00 SUN 22 4 CREDIT DIHIL‘UL‘.‘ ID OUTAII 20 WICATLH MAILS 0? CEDI‘I' MIC!” 1'0 WI 1 PEMITS msrmca To sum I'M" I. 0 IS PWWLV LXJT 0’ 81‘” II m I?“ 4 CAIAIN IDAD W12 0' ‘TAIS MD Ion-mm 1‘ (Alum A not vuum'v or $1185, cums, nut”, QUALITIPA 0v STEIN. SERVICE CENTER QCTUQL IMQGE 0771".“ m VICE-l'm‘l’l" SINK“. (‘LIRIN. KIA?- TIILATIM, D‘CJ I6 . yuan" 01:11:30 (tutu-em" Inn: 4 wuxn 0000915110107 10 vuxuu I? OMIG A III m 0’ QUALITY OOOIG 4 CAKEES A NW ma; 0' PM LINE 1.0 AFTS KJR! A5 APmIKWMMMUM A5 A SALES Add? 700 III—L J ”5 NOT "AV! IIIJ. {I'I‘IID 70m “XVI" I . POLICIES m IIKPDM 0' MIC IIUJ' POLICIES J PLANS WWLY ’0! m“ ‘ 0 I5 PGDILT WARD II II V BQSIC MILL PROFILE OF STEEL BQSIC MILL PROFILE OF STEEL SERVICE CENTER IDEQL IMQGE 1 OPERATES DBMLMES "I um: ma 0! SIAM ‘ .- . 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'00009“ .10266 -.00769 .1661? .16990 .11015 .25160 -002376 .11561 ‘010031 .02653 .11766 .1962? .06719 .07259 .03651 .23225 .06690 .19651 .12735 ..0639' .06760 -I°27~~ .13759 .0393? -.0155? .0731? -.05365 .0679? .62603 .69360 .6216? .7026? .56365 .01505 .22063 -00‘390 .22966 .2165? .06115 '003150 .05699 .06709 '0.A~~q .6355? -.06192 .62366 -.15616 .67231 .15906 .36561 ’005910 .23630 .0086.‘ .05165 .15711 .06536 .1576? ..00122 -000,51 .06016 -.07?9? .00111 .03969 -.?1099 -.02131 .00765 -o°A~6. “026951 .03190 -.13795 .06366 -.0§576 .23121 ‘036’66 .0521? .02720 .09036 ‘000695 -.00096 -.09705 .11269 .06576 ..03166 -.03076 .0326? .06666 .0002? '0‘202, ”009951 .12703 ..01101 .06570 .22965 .0675? .12065 .25966 .16536 .0566? .00309 .25356 .01925 .10666 .06030 .07036 .51069 .25059 .00626 .2201? .11721 .06309 .0630? .01716 .13663 .02751 .30616 .12725 .02905 .09613 .09675 .22065 .0563? .1505? .02h56 .01516 .55199 .32100 .09316 .23210 .76??? .71196 .29031 .05676 .~?0?3 'c.6~3‘ .11211 .05766 .1066? -.05595 .01565 .1931? .0521? .07663 ‘000‘32 .36525 '006~~° .1296? .16665 “0‘3““; .1515? .27663 .10371 .30636 .09636 .16166 .07050 0.56063 06,1.6 .15776 -.h6996 .69626 '.00091 .02565 .06520 .00130 .09665 .2155. -.15069 .2515? .19971 .02179 .05269 -00559~ .10665 -.03590 .1911? -.0663? -00231' .35795 .06961 -0A2“57 .00351 .3320? .66934 ‘03206’ .65161 .06676 .1723? .11959 .6551? ’o°.33, .17933 -.06693 .00566 .0919? 015593 .01366 .03755 .01h65 .13616 .16316 -.03969 .0679? -.0000? .2705? -.03I19 '0363.’ ..02203 .02036 .16216 -033216 -002976 '.30?69 .1915. -.06?91 -.06?65 .0633h .0619? ‘002593 .10171 -.036§~ ~.10256 .0125? .13235 -.000?0 .0061? .12919 .00126 .05820 -.1?bb9 .12160 .01059 .201k2 .02310 .22360 ..0255? -.0?667 .1196? -.01312 .33936 -.05001 .0007? -.011?0 .05669 -.167?6 .06996 -.0320? -.0?172 .06931 .00709 -.00566 .06776 .06636 .06933 .0???6 .09113 .10756 .2061? .01939 .60701 -0035’. .12216 .0917? .07565 '.0§5°, .06556 .066?6 05136? .05??? .51971 035655 000510 .35319 -.10610 .17355 .09919 -.0661? -.09659 .63026 -0003“, -.005?6 .05069 .0259! .09216 .9311? .112I0 .03953 -.06636 .02599 .07669 ’051132 .1601? .11710 '.11916 -005‘03 003065 .0751? .15610 -.l??30 .11263 .16126 0.06616 .16071 .09536 -.05796 00~°03 .15193 -1332!” APPENDIX J REGRESSION OF VARIABLES ABOUT THEIR INDEX OF INCONGRUITY OR THE MULTIPLE SION 2555 APPENDIX J1 nucs F REGPES 0.F. 05 LINEAR “60.976?“ SOURCE OF VARIATION IS NOR NO. REGRESSION OF 44 CUSTOMER VARIABLES ABOUT THEIR INDEX OF INCONGRUITY ANALYSIS OF VARI (A VALUE) INIERCEPY 256k070292603009660176612“~61636025660300590 B1300620666106630477229125963602692119279101 1360051001?750703660010030031060000000506100 .000.“ U 6600 001 20000 100000 200000 00000000800000 .H00000000000000000000000000000000000000000000 PUocoo0.00000000000000000000...00000000000000. 0c VAR. PR . “73695611950216“6136000016061670250900167220 Q 219B6993612603376736963766512117767150901697 S 05726“6179911362600996928236.001656107290960 06156“12170675226“1521000266901&7339969923535 FE1360682606581631?61160026922569125016263660? 00000.0.0.000000000000000.0000.00000000000000. 0696739921063615633617EHIO339573392923973063an HA3663 0969114.““769335572533261.470019996105652 U 6933 091461537262726116352603222739231626130 S 6667 Z“ 56256602“6752079567905026711111699 1261 26 1639 6 213 1 52 21 3 76 3 3 5k 11 I I E L02976236063621625109776167707?960666076205699 Ann-69609615“666009060636306162686616.!657611993913 I 965k?69266519738“06829017176939?205661297662 T.061551030626200k6362233663065302621009936201 RRUUUUUIIUUUUU10100100000100000UUUUUUOUUOUOUUU Anne...cocoa-OOOOOOOOOOOOOOOOOI00000000000000. p0 ... . .o . . .... . ... . .. ... C .41231966927275926107636506051“26762716316169 .FB60046h917065350h090606273236022371166769366 GFU755663721168516115692170906.751665779166578 E640036226567264920066502602290093057667196636 R095560h57796336092295900502591992253679317060 c.000.00.000.00...00.006000...00.000.660.006. BI“6012.2261 75525211566616.3833611 020603.... ...11 . .1 .1....I.. . .1.. . . . N 059916.466202216660103993203013616.376511736512763 1509337“76621396501710061560626092173629995949 .117665065?103565639533SFO772696505?66h6115h351 0A3356 615806663662359033999'1526 30.116336366091036 T1656607567066769597665666551727777666666767761 SVOOOOOOOQOOOOOOOOOOOOOOOOOOO0.0000000000000000 EII1121111211111111111111112111111111111111116 0 h 1 767623977951716661699037QH327390110363686995“ 3710201970:51662179“95211fl9265563.076201656750603 33951551001030.613671937507357 66220052996539 97.366967622609792556721139803UO.319951WO:41¢76751 626603260260667522195092966073767191772019690 .....00......OOOOOCOOOOOOOOO.0.00.00.00.00... 92323zSR3§2523351*35“222532“:53333“~32h53“229Q: D 3 MEAN . 0123656769012365676901236567690123656769012365 N 11111111112222222222333333333396666“ VARIABLE 256 APPENDIX J2 REGRESSION OF 6 CUSTOMER VARIABLES ABOUT THEIR INDEX OF INCONGRUITY SAMPLE SIZE 362 NO. OF VARIABLES 7 DEPENDENT VARIABLE IS NOW NO. 45 COEFFICIENT OF DETERMINATION .2690 MULTIPLE CORR. COEFFICIENT .5187 SUM OF SQUARES ATTRIBUTABLE TO REGRESSION 2131787.68803 SUM OF SQUARES OF DEVIATION FROM REGRESSION S792869.17661 16317.94134 127.74170 VARIANCE OF ESTIMATE STD. ERROR OE ESTIMATE INTERCEPT (A VALUE) 429.60011 ANALYSIS OF VARIANCE FOR THE MULTIPLE LINEAR REGRESSION SOURCE OF VARIATION D.F. SUM OF MEAN SQUARES SQUARES DUE To REGRBSSION ................... 6 2131787.68803 355297.94800 DEVIATION ABOUT REGRESSION.... ...... 355 5792869.17661 16317.94134 TOTAL ..... .... 361 7924656.86464 VARIABLE MEAN STD. REG PARTIAL SUM op 59, no. DEVIATION COEFF. CORR. COEF. ADDED 6 2.39503 1.71074 10.88089 .12967 861327.21721 7 5.26519 1.55646 —12.583s7 -.13333 543737.37256 13 2.80387 1.73531 10.28452 .12618 248320.77705 18 3.25691 1.75911 8.47796 .10140 156055.89108 24 5.21547 1.69012 -14.08016 -.15182 217002.90297 39 5.24586 1.66196 —12.08565 -.13364 105343.52716 4s 309.01934 148.16193 F VALUE 21.7735 PROP. VAR. CUM. .10869 .06861 .03134 .01969 .02738 .01329 257 APPENDIX J3 REGRESSION OI" ‘4 STEEL SERVICE CENTER VARIABLES ABOUT THEIR INDEX OF INCOVGRUITY SAMPLE SIZE 436 NO. OF VARIABLES 45 DEPENDENT VARIABLE IS NOW NO. 45 COEFFICIENT OF DETERMINATION .0906 MULTIPLE CORR. COEFFICIENT .7005 SUM OF SQUARES ATTRIBUTABLE TO REGRESSION 5208844.95842 SUM OF SQUARES OP DEVIATION FRO! REGRESSIGV S407379.35350 VARIANCE OF ESTIMATE 13829.61471 STD. ERIDR OF ESTIMATE 117.59938 INTERCEPT (A VALUE) 438.83402 ANALYSIS OF VARIANCE FOR THE MULTIPLE LINEAR REGRESSION SOURCE OF VARIATION D.P. sun or MEAN P SQUARES SQUARES VALUE DUE To REGRESSION ................. 44 5208844 95842 118382.83996 8.5601 DEVIATION ABOUT REGRESSION........ 391 54o7379.35350 13829.61471 TOTAL ....... .... 435 10616224.31193 VARIABLE MEAN STD. REG. PARTIAL sun 0? SQ. PROP. VAR. N0. DEVIATION COEFF. CORR. C08. ADDED ‘ CUM. 1 4.42890 2.02217 4.23113 .06053 104021.13981 .00980 2 1.90826 1.51493 -.24399 -.oo301 131593.43413 .01240 3 3.38073 1.86239 -5.30128 -.o7606 80568.95000 .00759 4 2.33486 1.80492 .35212 .00474 740333.16804 .06974 5 3.81192 2.44788 -4.87419 -.08499 133101.23800 .01254 6 2.44266 1.74169 9.70046 .12313 960201.03367 .09045 7 4.97018 1.80715 -2.01933 -.02608 301560.53770 .02841 8 5.14908 1.82908 -6.47300 -.09294 61891.51821 .00583 9 3.20183 1.97353 ’ 1.42109 .01984 246496.01873 .02322 10 4.16972 2.19165 -2.28602 -.o4175 13806.80684 .00130 11 2.78670 2.03598 8.17561 .10984 204019.41149 .01922 12 4.70872 2.14423 —2.72826 -.04373 121875.94050 .01148 13 2.48165 1.78554 2.11172 .02790 177786.09533 .01675 14 4.02064 1.84629 ~1.49991 -.o2355 11020.12827 .00104 15 3.32339 2.14926 3.94454 .06763 8633.04027 .00081 16 5.53670 1.79425 .26209 .00331 26835.51159 .00253 17 3.74083 2.21786 -3.47818 -.05687 27742.52744 .00261 18 3.76376 1.89413 4.74982 .06647 198018.64241 .01865 19 5.82110 1.41912 -4.83115 -.05487 90613.29688 .00854 20 5.39908 1.58771 -6.46711 —.o7851 139353.43962 .01313 21 3.08257 1.66162 3.25443 .04376 39232.32161 .00370 22 2.81651 1.81141 13.91918 .12595 665640.72371 .06270 23 2.33486 1.63799 4.01077 .03437 5958.50004 .00056 24 5.07798 1.71226 -12.94695 -.14604 177551.85745 .01672 25 3.11468 1.54939 4.66017 .05754 19789.76937 .00186 26 2.10780 1.50702 -2.53310 -.02647 3262.76351 .00031 27 4.03440 2.22136 -2.72010 -.o4963 14618.82207 ' .00138 28 2.86009 1.80196 1.51668 .02192 1366.47610 .00013 29 6.14908 1.07565 .99580 .00792 274.99474 .00003 30 2.82110 1.75384 2.77902 .03461 4945.94260 .0004? 31 3.86239 2.12470 —1.44285 -.02423 39092.19887 .00368 32 3.60321 2.01549 -2.82159 -.0329o 67437.47410 .00635 33 3.46330 1.91930 -4.63381 -.05664 35697.13413 .00336 34 3.59404 1.85146 2.04878 .02921 9106.30328 .00086 35 5.54587 1.48563 .00229 .00003 16678.91954 .00157 36 3.91284 1.90141 -9.28326 -.12496 152529.05995 .01437 37 1.98165 1.36782 .79855 .00832 1923.92443 .00018 38 5.04817 1.81310 4.92359 .05561 1258.27169 .00012 39 5.34174 1.74335 -10.20829 -.11601 85045.60336 .00801 40 3.54587 1.83584 -2.77775 -.02768 6827.45753 .00064 41 3.80963 1.83654 6.69163 .06500 35721.29384 .00336 42 3.20872 1.90704 5.18067 .04932 36451.50764 .00343 43 2.99083 1.86188 1.70169 .01703 879.51430 .00008 44 5.43119 1.50931 3.57752 .03863 8082.24564 . .00076 45 339.62385 156.22136 258 APPENDIX J4 REGRESSION OF 7 STEEL SERVICE CENTER VARIABLES ABOUT THEIR INDEX OF INCONGRUITY SAMPLE SIZE 436 NO. OF VARIABLES 8 DEPENDENT VARIABLE IS NOW NO. 45 COEFFICIENT OF DETERMINATION .4300 MULTIPLE CORR. COEFFICIENT .6558 SUM OF SQUARES ATTRIBUTABLE TO REGRESSION 4565332.54482 SUM OF SQUARES OF DEVIATION FROM REGRESSION 6050891.76710 VARIANCE 0F ESTIMATE 14137.59759 STD. ERROR OF ESTIMATE 118.90163 INTERCEPT (A VALUE) 442.25816 ANALYSIS OF VARIANCE FOR THE MULTIPLE LINEAR REGRESSION SOURCE or VARIATION D.F. SUM OF MEAN F SQUARES SQUARES VALUE DUE To REGRESSION........ ...... ...... 7 4565332.54482 652190.36355 46.1316 DEVIATION ABOUT REGRESSION........... 428 6050891.76710 14137.59759 TOTAL............ 435 10616224.31193 VARIABLE MEAN STD. REG. PARTIAL SUM OF SQ. PROP. VAR. NO. DEVIATION COEFF. OORR. COE. ADDED CUM 6 2.44266 1.74169 15.26067 .19840 1655677.68257 .15596 11 2.78670 2.03598 13.81678 .22866 581728.22007 .05480 20 5.39908 1.58771 40.41651 -.13100 453860.18677 .04275 22 2.81651 1.81141 20.34283 .24326 1246920.09022 .11689 24 5.07798 1.71226 -14.79953 -.17437 241847.66416 .02278 36 3.91284 1.90141 -9.20999 -.12931 245445.89859 .02312 39 5.34174 1.74335 -12.78262 -.15342 145852.80244 .01374 45 339.62385 156.22136 259 NCE Foe THE MULTIPLE egaessrou APPENDIX J5 D LINEAR R SOURCE OF VARIATION DUE TO R ’11.03693 IS NON NO. “5 REGRESSION OF 44 BASIC MILL VARIABLES ABOUT THEIR INDEX OF INCONGRUITY ANALYSIS OF VARIA VARIANCE OF ST HAT 6 4 8 8 STD. ERROR OE ESTIMATE 121I3.313I2 INTERCEPT (A VALUE) DEVIATIO 5°11l4‘t. It-) 262°.19626“1596“78~6 “7092“02°09“M995007106753359626571AA309“6°95 09066407000599250310h“2269513312056212006061 80207110b000°B101n100001021000000030301300300 0000“ U5 U.O......IODCCODC......O............CCCOOCI.‘ VAR. - 6335690101707522A016719512666523595775h90593 0161AB65603155257507339121959269362395B2B27b0 HA3167BU315 070661?95085955B6h1k015653705117#7 U 75 “1719 569953 0725731200091711h0515777513 S 7 363 5 169333 32 6706236355241691295 0912 6 228 7 72 2 2 2 B2 5 5 16 1R1 11 I8272530536B3337353259559776100905135733760336 RROOOZIZU I UGL)) AR..IICIOIOOII...!COIIOIOCIOIQO...-ICODDOOIOOC Po - .. . .. .... . ...-g ... u . C 005809053155“12076736“76766069713353996563365 6E53667622059791ebk356585215557“03367510755872 “066915“9310187755“2M21792509“;17“9815596799“7 ca...0.8.0...-OOQOIIOIIQUOIIIO008.000.000.080 2512“95981.3296201269M730062Mc9 7192633661666 211 12. .21-21- .1- 21“....1 A 111211 1; - (L31 _ ... - ... . N 0361766021695212258195006965“,52306097MSMZSSQ7 SVcocoa-oautoaoconch-oalolnonooODIOOOIIOCOIctaO L L LL L LL 5 659M7“OIZMIOOSSI71192336562551336602922617590 “M67977263156565292519762220960~997197u738626 N 1646666950023665k1981359350702381721§h2687663 A 310020820313211937260516972345753190025850162 E 85“6“696579915555“6115“23753675256014239375q1 H to.onOCIOQOIQIOOOIIOIQOOOODOJ00.080.00.800... k232k2493h2h33354 2 Ski. 053h33h3 3 F L 8 A. IO1123M567O90123h567890123b56759U123k56789012355 9N 133333hbkhhh A V 260 APPENDIX J6 REGRESSION OF 7 BASIC MILL VARIABLES ABOUT THEIR INDEX OF INCONGRUITY SAMPLE SIZE 89 NO. OF VARIABLES 8 DEPENDENT VARIABLE IS NOW NO. 45 COEFFICIENT OF DETERMINATION .4368 MULTIPLE COOR. COEFFICIENT .6609 701249.67943 904217.96102 SUM OF SQUARES ATTRIBUTABLE TO REGRESSION SUM OF SQUARES OP DEVIATION FROM REGRESSION VARIANCE OF ESTIMATE 11163.18470 STD. ERROR OF ESTIMATE 105.65597 INTERCEPT (A VALUE) 77.51742 ANALYSIS OF VARIANCE FOR THE MULTIPLE LINEAR REGRESSION SOURCE OF VARIATION D.F. SUM OF MEAN F SQUARES SQUARES VALUE DUE TO REGRESSION ........ . ......... 7 701249.67943 100178.52563 8.9740 DEVIATION ABOUT REGRESSION ......... 81 904217.96102 11163.18470 TOTAL ......... 88 1605467.64045 VARIABLE MEAN STD. REG. PARTIAL SUM OF SQ. PROP. VAR. NO. DEVIATION COEFF. CORR. COB. ADDED can, 8 4.62921 1.61232 8.54245 .12729 87424.08569 .05445 13 3.12360 1.82942 19.62601 .26012 266248.17578 .16584 14 3.51685 1.56751 -18.27820 -.26042 29200.75594 .01819 23 2.41573 1.35520 17.34153 .19530 57543.72460 .03584 25 3.39326 1.48949 17.35460 .23018 81244.66273 .05060 34 3.61798 1.73536 10.04573 .15909 62604.43563 .03899 42 3.70787 1.78505 22.09171 .33846 116983.83907 .07287 45 333.12360 135.0701? "IWILEIWLLI‘E‘LLI