1 BUS 562 Marketing Research The assignment for this report was to analyze the results of a survey (which was developed by the entire class) of the food habits of MBA students. Furthermore, we had to evaluate the possibility of a opening a new type of restaurant (or other type of food source) close to the NCSU College of Management.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
1
BUS 562 Marketing Research
The assignment for this report was to analyze the results of a survey (which was developed by the entire
class) of the food habits of MBA students. Furthermore, we had to evaluate the possibility of a opening a new type of restaurant (or other type of
food source) close to the NCSU College of Management.
2
BUS 562 Marketing Research
Analysis of Preferences, Habits and Alterative Food Sources for North Carolina State University
Evaluation of Alternatives (Pros and Cons) . 33Data Cleaning Procedure . . 34Survey . . . . 35
4
BUS 562 Marketing Research Executive Summary
Survey Uncovered Dissatisfaction, Provided Guidance For Improvement And Quantified Market Size
Survey Uncovered Dissatisfaction, Provided Guidance For Improvement And Quantified Market Size
Research Objectives
Method Overview
Summary Of Findings
Started With Focus Group To Uncover Issues
Designed 17 Question Survey To Quantify Issues
Received 66 Out Of 220 MBAs (Census Sample)
High Degree Of Dissatisfaction
Two Distinct Groups In MBA Program - Snackers and The Health Conscience
Two Of Three Alternative Options Positively Perceived
Evening MBA Food Market Is $1100/wk
Understand Food Purchase Preferences And Habits Of Evening MBA Students
Discover The Demand For Food
Evaluate Preferences Of Three Food Alternatives
Overall Satisfaction
3%
17% 20%
38%
10%
0%
20%
40%
60%
VerySatisfied
Satisfied Neutral Dis-Satisfied
Very Dis-Satistfied
48% Not Happy
5
BUS 562 Marketing Research Introduction
Tackled A Real World Problem To Learn Marketing Research Tools Tackled A Real World Problem To Learn Marketing Research Tools
Situation
Dr. Zahay Was Amazed To Find Students Unaware Of University Towers Cafeteria
In-class Focus Group Uncovered:
BUS 562 MBA Students Too Busy To Eat Arrive “JIT”
Eat Snacks
Many Eat After They Get Home
Not Satisfied With Current Food Options
Felt Most Other MBA’s Behaved In The Same Way
BUS 562 May Not Be Representative Need Survey To Verify And Quantify
Call To Action!
• Apply Marketing Research Tools To Quantify Preferences, Habits And Opinions
• Lay Groundwork For Potential Improvements For Food Options
6
BUS 562 Marketing Research
Food Establishments within Walking Distance of Nelson Hall
Introduction
vv
v
University Towers: Cafeteria, $5-6 per
dinner
Sakura Express: Japanese, $5-6
dinners, eat-in or take-out
East Village: American cuisine, $5-
8 dinners, eat-in
PizzAmerica: Italian, $6-8 dinners, eat-in,
take out
Subway: Sandwiches, $3-6, eat-in, take out
WolfMart: Snacks
College of Management (Nelson Hall):
2 soda machines and 1 candy/chips machine
200 Feet
Seven Options Within 400 Feet Of Nelson HallSeven Options Within 400 Feet Of Nelson Hall
http://www.ncsu.edu/campus_map/north.htm
7
BUS 562 Marketing Research Research Method
Used Structured Disciplined Approach To Solve A Real World Problem Used Structured Disciplined Approach To Solve A Real World Problem
Exploratory: Focus Group (Qualitative)
Exploratory
Survey Design
Survey Procedures
Analysis
Conclusions and Recommendations
Survey Design 17 Questions Developed In ClassAnswer Key Questions
Survey Procedure E-Mailed To All 220 MBA Students on 4/7/2003Responses Collected From 4/7/2003-4/21/2003 Offered $50 Gift Certificates As Incentives Generated 30% Response Rate (66/220)
Analysis (Quantitative) Cleaned Data Simple Descriptive Statistics, Factor Analysis Answer Key Questions Using Anova, Cluster and Regression
What Is The Potential Market Size? What Drives Satisfaction? What Are Frequency and Dollar Spending Patterns? Evaluate Alternatives
Survey Method Chosen As Research Tool Need To Answer Who, What, Where, When And How About The Target Population
Data Must Allow For Identifying Relationships, Establishing The Existence Of Differences, And Verifying Validity Of Relationships
Desire To Collect Substantial Amounts Of Measurable Information From Population
Low Distribution Cost
8
BUS 562 Marketing Research Objectives and Hypothesis
Marketing Research Process Will Address Research Objectives And Test Hypotheses
Marketing Research Process Will Address Research Objectives And Test Hypotheses
Research Objectives Hypotheses
Students Are Generally Dissatisfied With Current Options
Students Likely To Frequent University Towers And Nelson Express
Time Is A Prohibitive Factor
Part Time Students Will Spend More And Will Be More Likely To Frequent One Of The Three Alternatives Than Full Time Students
Everyone Eats Something Before Class
Snacking Is A Major Component Of Food Options
University Towers: Full Service Cafeteria
Expanded Nelson Hall Vending Machines: Prepackaged Microwave-able Items
Nelson Express: Kiosk In Nelson Hall (Deli Sandwiches, Hot Dogs, Snacks, Fresh Fruit)
Understand Food Purchase Preferences And Habits Of Evening MBA Students
Estimate Market Demand
Evaluate Three Alternative Food Choices
9
BUS 562 Marketing Research Descriptive Interpretations
Overall Satisfaction
48% Of Students Not Satisfied With Current Food Options 48% Of Students Not Satisfied With Current Food Options
3%
17% 20%
38%
10%
0%
20%
40%
60%
VerySatisfied
Satisfied Neutral Dis-Satisfied
Very Dis-Satistfied
48% Not Happy
10
BUS 562 Marketing Research Purchase Habits
Most Students Making Purchases Before ClassMost Students Making Purchases Before Class
85% Buy At Least Once A Week
# Of Purchases Per Week
15%
30%
49%
6%
0%
20%
40%
60%
0 1 2 3
15% 14% 5%
65%
0%
25%
50%
75%
100%
0 0.5 0.75 1
% Purchases Per Class Per Week
65% Buy Every Class
11
BUS 562 Marketing Research
0%
25%
50%
75%
100%
1 2 3 4 5 Total
Satisfaction Level
Other
Sakura
Nelson
Univ Towers
East Vill
PizzAmer.
SubWay
WolfMart
Purchase Habits
WolfMart Leads The Pack With 33% Food Purchases (# Basis)WolfMart Leads The Pack With 33% Food Purchases (# Basis)
Fast Food9%
American18%
Chinese23%Japanese
9%
Mexican26%
Italian15%
Food Type Preferences
Most Prefer Mexican, American and Chinese
Food Provider Market Share By Satisfaction Level
Ma
rke
t S
ha
re –
Of
Vis
its
B
y S
ati
sfa
cti
on
Le
ve
l How To Read: Of The Very Satisfied People, 10% Visit WolfMart
Dissatisfied People Visit Subway
Satisfied People Visit “Other” and East Village
WolfMart Has Largest Market Share At 33% Of All Purchases
12
BUS 562 Marketing Research Purchase Habits
Avg Purchase AmountFood Provider # of Visits/Month
Wolf Mart 2.1
Nelson Vending
1.3
Subway 0.9
East Village 0.6
11%
3%
15%
24%
12%
18%
9%6%
2.00%0%
10%
20%
30%
$0.0
0$1
.00
$2.0
0$3
.00
$4.0
0$5
.00
$6.0
0$7
.00
$8.0
0
58% of Purchases <=$4.00
… Because They Don’t Have Time
Snack Providers Dominate
11%6%
14%
32% 38%
0%
20%
40%
60%
Before 5pm 5pm to 5:15 5:15-5:30 5:30-5:45 5:45-6:00
Arrival Time
Students Buying Lots Of Snacks…
38% Arrive Within 15 Minutes of Class
13
BUS 562 Marketing Research MBA Student Profile
MBA Student Demographics
70% Part Time Students 70% Work Full Time 67% Male Average Age 31 Years 75% Have Two Classes Per Week
MBA Students Have Strong Feelings…
Feel Rushed Before Class 65% 11%
Prefer Nutritious Meal 52% 11%
Usually Have Chips and Soda 26% 40%
Eat From Vending Machines 26% 47%
Like FF Combo Meals 18% 52%
Late for class 9% 59%
% Strongly Agree, Agree
% Strongly Disagree, Disagree
Want To Eat Right and (Say) They Want To Avoid Fast Food
Want To Eat Right and (Say) They Want To Avoid Fast Food
“Average Student” Is 31 years Old Male, Employed, Part Time Student
Closely Matches Published ProfileImplies Survey Responders
Representative Of MBA’s
“Average Student” Is 31 years Old Male, Employed, Part Time Student
Closely Matches Published ProfileImplies Survey Responders
Representative Of MBA’s
… And Many Important Factors
Sanitation 86% 0% Speed 85% 0% Taste 81% 2% Parking 70% 2% Close to Nelson Hall 71% 3% Take Out 68% 8% Variety 41% 2% Atmosphere 30% 8% Decor 7% 31% TV 9% 64%
% Ext. Imp., Important
% Not Important
Demanding Crowd… But Speed and Convenience Dominate
Demanding Crowd… But Speed and Convenience Dominate
14
BUS 562 Marketing Research MBA Student Profile
Observations – Supported By Anova Analysis
BUS 562 Class 40% “Strong Snackers” VS. 20% Of MBA Population
Lack Of Differences Among Demographics InterestingLack Of Differences Among Demographics Interesting
Bus562 Class vs. All MBA’s
The Longer You’ve Been In Program The Later You Arrive Health Conscience Arrive Later Part Times Arrive Later
Arrival Time
Females Take Fewer Classes (2 For Males Vs 1.75 Females) Males Are More Snack Oriented, Females More Health Conscience Females More Concerned With Speed/Convenience Than Males No Differences In Spending Amount Freq Or Locations
Gender
Part Times Spend Less Than Full Timers
Full vs Part Time
15
BUS 562 Marketing Research What Are MBA Student’s Likely To Patronize?
Nelson Express Had Most Positive Response Nelson Express Had Most Positive Response
2%9%
19% 17%22%
31%
0%
20%
40%
V. Likely Likely SomewhatLikely
SomewhatUnlikely
Unlikely V. Unlikely
2%
25%
16% 17%22% 19%
0%
20%
40%
V. Likely Likely SomewhatLikely
SomewhatUnlikely
Unlikely V. Unlikely
Not Likely
(11% Likely +)
Not Likely
(11% Likely +)
28%35%
26%
5% 2% 5%
0%
20%
40%
V. Likely Likely SomewhatLikely
SomewhatUnlikely
Unlikely V. Unlikely
University Towers:
Cafeteria
Somewhat Likely
(27% Likely+)
Somewhat Likely
(27% Likely+)
Expanded Nelson Hall Vending
Machines
Nelson Express: Food Kiosk Most Likely
(62% Likely+)
Most Likely
(62% Likely+)
16
BUS 562 Marketing Research Correlations
Significant Correlations
Employment Status (1= Full Time 2 = Part Time
Arrival Time 1=Early, 5=Later)
Avg Amount
Avg Num Of Purchases
Student Status (1=Part Time, 2=Full Time)
Employment Status (1=Full Time, 2 Part Time)
East Village Visits
Avg Number Of Classes
Correlation Coefficient
-0.81
0.52
-0.55
-0.51
Very Few Significant Relationships (Correlation Coefficient)Very Few Significant Relationships (Correlation Coefficient)
17
BUS 562 Marketing Research Understanding Basic Needs
Factor Analysis Reduced 32 Individual Questions To Five Factors Factor Analysis Reduced 32 Individual Questions To Five Factors
Two Food Attitude Factors
Factor Analysis Is Data Reduction Tool That Finds Commonalities In Data
Fast Food Junkies ~25-30%
Health Conscience ~50-60%
Three Restaurant Characteristics Factors
Dining Experience ~20-30%
Speed/Convenience ~70-80%
Food Quality ~50-70%
Explain 28% of Variance
% Of Students
% Of Students
Explain 54% of Variance
18
BUS 562 Marketing Research
Fast Food Junkies Tend To Be:
Health Conscience Tend To Be Eat Nutritious Balanced Meals Pay More For Healthy Food
Eat Fast Food Feel Rushed Before Class Buy From Vending Machines Buy Soda And Chips 562 has 2.5x more FF Junkies than
average
Dining Experience
Factor Details
Speed/Convenient
Food Quality:
Dish Presentation Decor Atmosphere
Close to Nelson Hall Take-Out Good Parking
Taste Variety
Factors Not Surprising Factors Not Surprising
19
BUS 562 Marketing Research Factor Analysis Table
MBA’s Concerned With Dining Experience, Speed/Convenience and Food Quality MBA’s Concerned With Dining Experience, Speed/Convenience and Food Quality
“Dining Experience”
“Speed/Convenience”
Factor Analysis On Important Restaurant Characteristics Found Three Factors
“Other” Does Not Explain Significant Variance And Is Difficult to Interpret
Model Explains 25% of Variance Model Explains 25% of Variance
Also Tried Logistic Regression On Satisfaction. Response Defined As Values 1 Ad 2 (Strongly Agree, Agree) Of Satisfaction Question. Non Response Defined As Values 3, 4 And 5.
Same Results As Above Tried Logistic On Dissatisfaction With Same Results As Above
23
BUS 562 Marketing Research What Are Spending Habits?
76% of Market Are Snackers and Cheap Diners 76% of Market Are Snackers and Cheap Diners
Used Average Expenditure and the Prob of Purchasing A Snack Before Class (Q8/Q6)
Found Four Identifiable Segments
Cluster Analysis
13%
11%
32%44%
0
0.5
1
1.5
0 2 4 6 8Average $P
(Bu
y)
Indifferent
Snackers Cheap Diners
Elite Diners
Indifferent Snackers Cheap Diners Elite Diners
Goal: Find Buying Habit Segments
Avg Purchase:Purchase Freq:
Avg. Sat (Low=Good):Market Share:
LowLow 2.6
13%
Low High3.9
44%
Moderate High3.2
32%
High High3.2
11%
24
BUS 562 Marketing Research Market Size
Demographics Not Driving Spending Habits Demographics Not Driving Spending Habits
Market Size: Average Spending
X Frequency Of Purchase
= Total Spending/Week
X 220 MBA Students
= Market Size/Week
$3.34
1.5/week
$5.01
220
$1102
What Drives Total Spending, Average Purchase Amount and Frequency Of Purchase?
Number of Classes (Q6) How Many Times You Buy (Q8) Correlation Coefficient = .66
What’s Interesting Is What’s Not Here:
Goal: Determine Market Size and Understand Drivers of Consumption
Reliability Analysis Is Used To Assess Reliability of Using Multiple Questions To Create A Scale
Questions 12 and 14 Can Be Reliably Used to Create Scales Questions 12 and 14 Can Be Reliably Used to Create Scales
29
BUS 562 Marketing Research
Students Are Generally Dissatisfied With Current Options
Students Likely To Frequent University Towers And Nelson Express
Time Is A Prohibitive Factor
Part Time Students Will Spend More And Will Be More Likely To Frequent One Of The Three Alternatives
Everyone Eats Something Before Class
Snacking Is A Major Component Of Food Options
Hypothesis Result
True
More Likely to Frequent Nelson Express, Less Likely to Frequent University Towers
True
False, Part Time Spend More And They Are No More Likely To Freq One Of The Three Alternatives
True
True
Hypotheses Results
Most Hypotheses Turned Out To Be True Most Hypotheses Turned Out To Be True
All Conclusions Supported With ANOVA Analysis
30
BUS 562 Marketing Research Conclusions/Recommendations
MBA Students Dissatisfied, Something Should Be Done
Be Viable On A Percentage of $1100/Week Address Health Conscience And Junkies NeedsRecognize Most People Spending $3-$5 Fast and Convenient
Next Steps: Share Findings With MBA OfficeGenerate Specific ProposalsThink Through Pros And Cons of Options
Survey Suggests MBA Evening Solution Should:
Survey Uncovered Dissatisfaction, Provided Guidance For Improvement And Quantified Market Size
Survey Uncovered Dissatisfaction, Provided Guidance For Improvement And Quantified Market Size
MBA Evening Market Size ~ $1100 /Week
Nelson Express And Expanded Vending Are Preferred Alternatives
Balance Student Needs Within University Constraints
Expanded Vending Seems Most Viable
UT Not Viable
Nelson Express – MBA Evening Market Not Big Enough… But Adding Prof., MAC, Econ, and Undergrads Could Help Justify
31
BUS 562 Marketing Research
Low Response Rate May Introduce Bias Low Response Rate May Introduce Bias
Limitations
Q10-1 To Q10-8
• Missing Responses Greater Than 5%
• Obvious Misunderstanding Of Instructions
• Missing Responses Are Most Likely “Zero” Visits
Q14-13: Misunderstanding Of Instructions 68% Did Not Answer This Question
Response Rates Lower Than Face-to-face Interviews
Inaccuracies In Construct Development, Scale Measurements, And Questionnaire
Limited Use Of Probing Questions
Intentions And Behaviors Are Often Different
Disadvantages of Survey Method:
Systematic (Nonsampling) Error:
30% Response Rate (66/220) May Cause Invalid Findings
Census Is Ideal For Populations Under 500
Respondents Were Self Selected, Which May Introduce Bias
Nonsystematic (Sampling) Error:
32
BUS 562 Marketing Research
Topics for Further Study
• Survey students in other curriculums, e.g., engineering, textiles, education, etc., who may be taking
• MBA classes to determine if they have similar views on purchasing food before evening classes
• Survey only full-time MBA students to determine if they have concerns about the availability or variety of food during lunch hours
• Survey professors, MAC, Econ and Undergraduates of the College of Management to determine if they have concerns about the availability or variety of food available within walking distance of Nelson Hall during lunch and dinner hours.
• Survey nearby buildings such as Kilgore, Scott, or Bostian Halls to see if other students and/or professors have concerns about lunch or evening meals (please see slide 5 for a map of nearby buildings)
• Conduct a survey to determine if there would be demand for meals or snacks from the NCSU food court during evening hours (it is within walking distance from Nelson Hall but closes at 3:30 pm)
Professors And Students From Other Disciplines Located Close To Nelson Hall Could Be Surveyed To See If They Have Similar Food Preferences. The Discovery Of Additional Segments
May Lessen The Risk Of Opening A New Food Venture In Or Near Nelson Hall
Professors And Students From Other Disciplines Located Close To Nelson Hall Could Be Surveyed To See If They Have Similar Food Preferences. The Discovery Of Additional Segments
May Lessen The Risk Of Opening A New Food Venture In Or Near Nelson Hall
Further Investigation
33
BUS 562 Marketing Research
APPENDIX
34
BUS 562 Marketing Research Evaluating Alternatives
Survey Is First Step In A Long Process To Address This Issue Survey Is First Step In A Long Process To Address This Issue
Expanded Vending
Pros:
Available 24x7
Fits Price Range
Minimal Financial Risk To University
Meets “Rushed”
Nelson Express
Cons:
Space Issues
Zoning (?)
Mess Factor
Would Not Be Perceived as Healthy
Pros:
62% Likely To Use
Better able to Offer Fresh Food
Cons:
Space Issues
Zoning
Mess Factor
Limited Availability
Financial Risk
May Be Out of Price Range
35
BUS 562 Marketing Research Data Cleaning
Special Coding of Missing Values Allowed for Customized Treatment Special Coding of Missing Values Allowed for Customized Treatment
What We Did Rationale
19 Attitude Questions (Q12_1 to Q12_19) One Missing Data in Factor Analysis Wipes Out the Entire Row of Data – Avoided Losing 10% of the Responders.
Missing 9 Values On 7 Different Responders Filled in with Average Value
Restaurant Characteristics Question Q14_13 One Missing Data in Factor Analysis Wipes Out the Entire Row of Data – Avoided Losing 10% of the Responders.
46 Missing Values Threw Question Out
12 Restaurant Characteristics Questions (Q14_1 to Q14_12) Missing 2 Value On 2 Different Responders Filled in with Average Value
One Missing Data in Factor Analysis Wipes Out the Entire Row of Data – Avoided Losing 13% of the Responders.
8 Frequency Of Visiting Restaurants Questions (Q10_1 to Q10_8)
60 Missing Values on 15 Different Responders
Assumed Missing Meant 0 Visits
36
BUS 562 Marketing Research
Would you like a chance to win a $50 gift certificate to PF Chang’s China Bistro?
Dear NC State M.B.A. Student:
The students of BUS 562 (Marketing Research) are asking for your help. As part of their joint class project, we have decided to conduct a survey of the eating habits before classes of the students who have evening classes in Nelson Hall. We intend to present our results to fulfill our class requirements and also share them with the M.B.A. office. The questionnaire should take only 5-10 minutes to complete. All responses will be analyzed in aggregate and no individual response will be identified. Only aggregate reports will be shared with the M.B.A. office and all individual responses will remain strictly confidential. Please print out the questionnaire and fill it out by hand. When you have finished the survey, please return the survey to any of your evening or day professors. They will have a special envelope for the surveys to be returned to us. If you have any questions while completing the survey, please contact Glen Ridout at [email protected]
Thanks in advance for your help. We need your response before April 15.
Sincerely yours,
Spring '03 M.B.A. 562 class Only complete surveys that are turned in to your professor by April 15 will be eligible for the drawing. We will be giving away 2 gift certificates!
Please be sure to include Name/Email so you may be contacted if you are one of the winners! Name: ________________________E-Mail Address:_________________________
Survey
37
BUS 562 Marketing ResearchFirst, please provide us with some background information:
1) What is your student status?□ Part-time □ Full-time □ I am not currently taking classes. 2) In which year of the MBA program are you?□ Year 1 □ Year 2 □ Year 3 □ Greater than 3 Years
3) Are you currently employed and what is your status?□ I work part-time □ I work full-time □ I am not working at this time
4) What is your gender?□ Male □ Female
5) What is your age?□ < 21 years □ 21-25 □ 26-30 □ 31-35 □ 36-40 □ 41-45 □ 46-50 □ > 50
6) How many 6:00 PM Classes do you have per week?□ 0 □ 1 □ 2 □ 3 □ 4
7) What time do you usually arrive for your 6:00pm class in Nelson Hall?Before 5:00 ___ 5:00 to 5:15 ___5:15 to 5:30 ___ 5:30 to 5:45 ___5:45 to 6:00 ___
8) On average, how many times per week do you have a meal or snack before your evening class? □ 0 day per week□ 1 days per week□ 2 days per week□ 3 days per week□ 4 days per week□ More than 4 days per week
Survey (continued)
38
BUS 562 Marketing Research
9) How much do you spend, on average, for meals/snacks on nights you have class?Please place “X”.
$0 $1 $2 $3 $4 $5 $6 $7 >$7
10) Please indicate the number of times you have made purchases from the following establishments within walking distance of Nelson during the past month:
Zero One Two Three More than ThreeWolfmart � � � � � Subway � � � � � Pizza America � � � � � East Village � � � � � University Towers � � � � � Nelson Vending Machines � � � � � Sakura Express � � � � � Other � � � � �
11) Indicate the extent to which you agree with this statement:
I am generally satisfied with the choices of restaurants/snack food available within walking distance of Nelson. (circle one)1 = Strongly Agree 2=Agree 3 = Neutral 4=Disagree 5 = Strongly Disagree
Survey (continued)
39
BUS 562 Marketing Research
12) On a scale of 1 to 5, with 1 = Strongly Agree, 2 = Agree 3 = Somewhat Agree, 4= Somewhat Disagree, 5 =Disagree 6=Strongly Disagree , please check the number that best expresses the extent to which you agree or disagree with each of the following statements.
Survey (continued)
40
BUS 562 Marketing Research
13) What kind of cuisine do you enjoy the most? (Check Only One)□ Fast Food□ American (Family Restaurant)□ Chinese□ Japanese□ Mexican□ Italian□ Other (Specify) ___________________________________
14) How would you rate the following restaurant characteristics in determining your choice before class? Using a scale of 1 (Extremely important) to 5 (not at all important. Please Check.
Survey (continued)
41
BUS 562 Marketing Research
15) How likely are you to use Expanded Vending machines in Nelson? (vending machines containing microwave-ready prepackaged vending items and a microwave oven.) Please circle one.
16) How likely are you to visit University Towers Cafeteria, located across the street from Nelson Hall? For a reasonable price you can purchase a meal card or an individual meal with choices including a salad bar, sandwich line, and several hot meal selections. They serve dinner between 4PM and 7:30PM. Please circle one.
17) How likely are you to purchase deli sandwiches, hotdogs, snacks, and fresh fruit available at a food stand located in Nelson Hall? Please circle one.