Customer’s Motivation towards NOVA Electronic Shop: Analysis of Marketing Mix Theory Global Marketing Course National Chiao Tung University By: Hendrik Li IIM / 9637533
Feb 23, 2016
Customer’s Motivation towards NOVA Electronic Shop:
Analysis of Marketing Mix Theory
Global Marketing CourseNational Chiao Tung University
By:Hendrik LiIIM / 9637533
Research Methods
OutlinesIntroduction
Discussion & Suggestion
Data Collection &Analysis
Literature Review
Research Background• In 2004, the size of the computer and consumer electronics retail market worth more than NT$200 billion in Taiwan• NOVA is one of the biggest players for consumer electronic retailer in Taiwan• NOVA using marketing mix theory (Product, Price, Place and Promotion)
Research Question and Hypotheses
Research Questions:1. From 4 Ps marketing mix theory, which factor that drives the customer the most to go to NOVA?2. Is there any other factor that make the customers go to NOVA?
Research Question and Hypotheses
Hypotheses :H1. From 4 Ps, Place is the most important factor for NOVAH2. Promotion is the weakest factor
Methods and Limitations
Methods
•Qualitative approach (Secondary data)•Quantitative approach (Questionnaire)
Limitations
• Secondary data
• Respondents
Literature Review
Definition of Marketing MixThe division of groups to make a particular product, by pricing, product, branding, place, and quality
4 Ps
Promotionall of the communications that a marketer may use
in the marketplace
Pricethe amount a customer
pays for the product
ProductA tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units
Placethe location where a product can be purchased. It can include any physical store as well as virtual
stores on the Internet
Summary of Marketing Mix
Product
• Functionality
• Appearance• Quality• Packaging• Brand• Warranty• Service
Price
• List price• Discounts• Allowances• Financing• Leasing
options
Place• Channel
members• Channel
motivation• Market
coverage• Locations• Logistics• Service
levels
Promotion
• Advertising• Personal
selling• Public
relations• Message• Media• Budget
NOVARevenue for all Taiwan: NT$ 16 billion per yearVisitors per month: 1.200.000 people
NOVA movement : • NOVA Taipei, July 1996 • NOVA Tai Chung, January 1997• NOVA Kao Shiung, July 1997• NOVA Hsin Chu, April 1998• NOVA Chung Li, August 1999• ENOVA.com.tw, January 2001• NOVA Tao Yuan, May 2006
Data Result & Analysis
Product 1 2 3 4 51. NOVA provides complete and updated electronic products 0 0 0 17 4 882. Products that sell in NOVA come with good quality, warranty and services 0 0 4 14 3 833. I am satisfied with the products in NOVA 0 0 9 12 1 80Price4. NOVA gives a lot good discounts 1 7 7 6 1 655. NOVA has good leasing options (pay monthly) 0 3 14 3 1 656. I am satisfied with the product price at NOVA 0 3 11 5 2 69Place7. NOVA’s location is easy to reach 0 0 1 9 12 998. A lot of people from out of town go to NOVA 0 3 10 5 3 719. I am satisfied with NOVA’s location 0 0 1 11 9 92Promotion10. I see a lot of NOVA’s advertisement 1 8 7 5 0 5811. I understand NOVA promotion’s message 1 5 9 7 0 6612. I am satisfied with NOVA promotion activity 1 4 11 5 0 62
GRAND TOTAL 89813. My biggest reason to go to NOVA because of:a. the product (7) b. the price (5)c. the place (9) d. the promotion (1) e. Others:
TOTAL
Strong Disagree
Strong AgreeDisagree Neutral Agree
Effect to the grand total:Product = (88 + 83 + 80)/898 * 100% = 27.95%Price = (65 + 65 + 69)/898 * 100% = 22.16%Place = (99 + 71 + 92)/898 * 100% = 29.18%Promotion = (58 + 66 + 62)/898 * 100% = 20.71%
Data Result & Analysis
Other test
Q13 : My biggest reason to go to NOVA because ofa. Product b. Price c. Place d. Promotion e. Others
Data Result & Analysis
From the data collection and analysis, the conclusion that we get are:1. Place is the strongest factor that drives customers go to NOVA , 29.18% (H1 correct)2. Promotion is the weakest factor from the customers’ point of view, 20.71% (H2 correct)3. Place is also the biggest factor that female customers chose to go to NOVA
Discussion
For the future research regarding to NOVA, the author’s suggestions are:1. Can find the reasons why NOVA’s promotion is so weak2. And what is the effect for NOVA if it strengthened another P, besides the 4 Ps, like People, Packaging, etc.
Suggestion