Video Case 4.1
Subaru: “Mr. Survey” Monitors Customer Satisfaction
1.
Marketing research can play an important role in helping Subaru understand the devotion
of consumers to its brand. It can help them understand the motivations, perceptions, and
preferences of consumers in their market. It can also provide them with a profile of their loyal
customers.
2.
Management Decision Problem:
What can Subaru do to improve customer loyalty?
3.
The marketing research problem is to determine customer preferences for automobiles
and discover what things create loyalty among these customers. More specifically:
a.
What criteria do consumers use for evaluating automobiles?
b.
How do consumers evaluate Subaru and competing brands on the identified
criteria?
c.
What is the demographic and psychographic profile of customers loyal to Subaru?
d.
What characteristics differentiate Subaru loyalists from consumers loyal to other
brands?
4.
The Census 2000 data could be a valuable source of secondary data for Subaru. It could
help them realize the size and demographics of the US market; however, it would not give them
specific information that would relate motivations, perceptions, and preferences to customer
characteristics. This could be overcome through other available secondary data or through
primary data collection.
5.
Syndicate marketing research firms could provide objective and highly detailed analyses
of consumers’ car buying habits and relevant psychographic and lifestyle information. Specific
car buying information is available from syndicated firms such as J. D. Power and Associates
(www.jdpa.com).
6.
Qualitative research would help Subaru define the problem and set up an approach to
improving customer loyalty. Focus groups and depth interviews would be the most useful
techniques.
7.
Since complex questions and a diversity of questions will probably be asked, personal
interviews will be effect. Of the three personal methods, mall intercepts will be the most
efficient in terms of cost and speed.
8.
Ordinal Scale
Please rank order the following automobile brands in terms of your preference. Assign the rank
of 1 to the most preferred and the rank of 10 to the least preferred brand.
Brand
Rank
a. GM
_____
b. Ford
_____
c. Subaru
_____
.
.
j. Honda
_____
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Interval Scale
Please rate the following automobile brands in terms of your preference using the seven-point
scale, where 1 = no preference, and 7 = strong preference.
No Preference
Strong Preference
a. GM
1
2
3
4
5
6
7
b. Ford
1
2
3
4
5
6
7
c. Subaru
1
2
3
4
5
6
7
.
.
j. Honda
1
2
3
4
5
6
7
Ratio Scale
How many dollars did you spend in the last ten years on the following automobile brands?
Brand
Dollars Spent
a. GM
_____
b. Ford
_____
c. Subaru
_____
.
.
j. Honda
_____
AUTOMOBILE QUESTIONAIRE
PART A
Q1:
Are you familiar with Subaru’s automobiles?
a. Yes _____
b. No _____
If you answered No to this question, please do not answer any additional questions.
Thank you for your time.
Q2:
Have you ever purchased a Subaru?
a. Yes
_____
b. No
_____ (If No, skip to Question 5)
Q3.
Which brand of Subaru did you purchase? Please check all that apply.
a.
Outback
_____
b.
Forester
_____
c.
Legacy
_____
d.
Impreza
_____
e.
Baja
_____
Q4:
Are you likely to buy a Subaru brand again when you are in the market for an
automobile?
a. Yes _____
b. No _____
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Q5.
a.
b.
c.
d.
e.
f.
g.
Q6.
a.
b.
c.
d.
e.
f.
g.
Q7.
a.
b.
c.
d.
e.
f.
g.
Q8.
a.
b.
c.
d.
e.
f.
g.
Q9.
a.
b.
c.
How important are the following factors in your decision to purchase an automobile
brand?
Not Important
Neutral
Very Important
Reliability
1
2
3
4
5
Performance
1
2
3
4
5
Gas Mileage
1
2
3
4
5
Repair & Maintenance
1
2
3
4
5
Price
1
2
3
4
5
Image
1
2
3
4
5
Features
1
2
3
4
5
Please evaluate Subaru brands on the following:
Very Poor
Neutral
Reliability
1
2
3
4
Performance
1
2
3
4
Gas Mileage
1
2
3
4
Repair & Maintenance
1
2
3
4
Price
1
2
3
4
Image
1
2
3
4
Features
1
2
3
4
Very Good
5
5
5
5
5
5
5
Please evaluate Toyota brands on the following:
Very Poor
Neutral
Reliability
1
2
3
4
Performance
1
2
3
4
Gas Mileage
1
2
3
4
Repair & Maintenance
1
2
3
4
Price
1
2
3
4
Image
1
2
3
4
Features
1
2
3
4
Very Good
5
5
5
5
5
5
5
Please evaluate Honda brands on the following:
Very Poor
Neutral
Reliability
1
2
3
4
Performance
1
2
3
4
Gas Mileage
1
2
3
4
Repair & Maintenance
1
2
3
4
Price
1
2
3
4
Image
1
2
3
4
Features
1
2
3
4
Very Good
5
5
5
5
5
5
5
Please evaluate Nissan brands on the following:
Very Poor
Neutral
Reliability
1
2
3
4
Performance
1
2
3
4
Gas Mileage
1
2
3
4
Very Good
5
5
5
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d.
e.
f.
g.
Repair & Maintenance
Price
Image
Features
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
10)
What is your gender?
_____Male
_____Female
11)
What age group are you in?
_____18-24
_____25-29
_____30-34
_____35-44
_____45-64
_____65 and over
12)
What category of income do you fit into?
_____0-$20,000
_____$20,001-$35,000
_____$35,001-$50,000
_____$50,001-$100,000
_____$100,001 and above
13)
What is your marital status?
_____Married
_____Single
14)
If you were ever married, how many children do you have?
_____None
_____One
_____Two
_____Three
_____Four or more
5
5
5
5
PART II
Thank you for your time. Your assistance will help us in better meeting your automobile needs.
________________________________________________________________
9.
Target population: US population age 16 and older that own a car
Sampling frame: People at malls across the US
Sampling unit: Individual consumers at malls
Sampling technique: Quota sampling
Sample size: 1000
Execution: Select specific shopping malls based on the judgment of the researcher. Set
quotas by age and gender. Use quota sampling to select mall patrons and interview them.
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10.
a.
The simple correlation coefficient can be estimated between the willingness to
purchase an automobile brand and each of the seven independent variables. One could
also run seven bivariate regressions. In these regressions, the dependent variable will be
the willingness to purchase an automobile brand and each of the seven independent
variables will serve as the predictor variable. These analyses will be conducted across
the four automobile brands.
b.
A multiple regression should be estimated. The dependent variable will be the
willingness to purchase an automobile brand and the seven independent variables should be
considered simultaneously in the regression. This analysis will be conducted across the four
automobile brands.
c.
A paired samples t test should be conducted with Subaru’s ratings on reliability
and image as the two variables.
d.
A paired samples t test should be conducted with the Toyota’s rating on reliability
and Subaru’s ratings on reliability serving as the two variables.
e.
Seven independent samples t tests should be conducted with each independent
variable serving as the test variable. The grouping variable will be those who have purchased
and those who have not purchased a Subaru automobile.
f.
An independent samples t test should be conducted with willingness to purchase
Subaru brands as the test variable and gender as the grouping variable.
g.
A one-way ANOVA should be conducted with the four groups as the factor and
willingness to purchase Subaru brands as the dependent variable.
h.
A cross-tabulation should be conducted with the four age groups as the
independent variable and willingness to purchase Toyota brands as the dependent variable.
i.
A one-way ANOVA should be conducted with the three marital status groups as
the factor and willingness to purchase Subaru brands as the dependent variable.
j.
A cross-tabulation should be conducted with the three marital status groups as the
independent variable and willingness to purchase Toyota brands as the dependent variable.
11.
Subaru needs to address differences in the lifestyle/pastime (autobahn) and popular sports
(soccer) in their marketing research. They also need to consider other socio-cultural factors such
as environmental friendliness and research methodology in Germany. In addition,
economical/infra-structural factors, marketing environment, government environment, legal
environment, and information and technological environment should be considered as well.
12.
With regard to the general public, ethical concerns revolve primarily around the methods
of generating and reporting research results. It is the joint responsibility of the researcher and the
client to ensure that the research findings are being disseminated accurately. In particular, care
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should be taken by both the market researcher and the client to avoid incomplete reporting,
misleading reporting, and biased research.
It is the marketing researcher’s responsibility to protect the respondents from unethical
research practices. Two issues deserve special attention: conducting a survey as a guise to sell
products, and the invasion of the privacy of the respondent.
Given the complexity involved, it is not surprising that the ethical issues surrounding the
researcher-client relationship are somewhat numerous. Areas that deserve special attention from
an ethical standpoint are: abuse of position arising from specialized knowledge, unnecessary
research, an unqualified researcher, disclosure of identity, treating data as nonconfidential, and
misleading presentation of data.
The researcher (or the research firm) has the right to be treated ethically as well. Ethical
treatment by clients involves several issues: improper solicitation of proposals, disclosure of
proprietary techniques, and misrepresentation of findings.
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Video Case 4.2
Marriott: Marketing Research Leads to Expanded Offerings
1.
Marketing research has played a crucial role in helping Marriott segment the market and
develop its line of hotels. Marketing research is needed if Marriott is to keep track of changing
consumer and business customer needs, identify new opportunities in the hotel market, further
develop and differentiate its various brands, and develop strong equity.
2.
The management decision problem is: “To what degree and in what way should Marriott
further penetrate the non-business travelers segment in the United States?” This statement is
action-oriented and asks what the decision maker should do in regards to Marriott presence in the
target market.
3.
The marketing research problem is to determine non-business travelers’ preferences for
hotels and to assess their evaluations of Marriott and its competitors. Specifically,
1)
What attitudes and perceptions non-business travelers have about hotels in the
United States?
2)
What criteria do non-business travelers use in selecting a hotel?
3)
How do non-business travelers evaluate the existing Marriott and competitors’
hotels in the target area?
4)
What is the demographic and psychographic profile of Marriott non-business
customers and does it differ from the profile of non-business travelers who
patronize competing hotels?
4.
An appropriate research design would be to begin with exploratory research followed by
descriptive research. The objective of exploratory research is to identify the relevant factors that
business and non-business travelers use in evaluating hotels. Exploratory research should
involve the analysis of secondary data and qualitative research in the form of focus groups. The
objective of descriptive research would be to quantitatively measure the preferences for Marriott
and competing hotels. Cross-sectional descriptive surveys are recommended for this purpose.
5.
In order to obtain the required information, three types of online searches can be utilized.
First, key words should be entered in standard search engines like www.google.com and
www.yahoo.com. The keywords should be descriptive of the type of information and attempt to
restrict the number of responses. Some of the keywords that could be used are: “hotels and
market share”, “Marriott and market share” and “Hilton and market share,” etc.
The second type of search that can be used is a database search. Through the library Web
site, students can search for articles in magazines, papers and periodicals like New York Times
and News Week concerning market share in the hotel industry. In addition, Lexis-Nexis
Academic Universe business and industry news database can be used to search for market share
statistics.
Finally, the Web sites of major hotels should be visited looking for press releases that
may contain the information needed.
6.
Marriott has a marketing research department within the organization. They collect a lot
of secondary data on an ongoing basis and in response to specific marketing problems and
opportunities. These data can provide valuable information such as: the number of non-business
travelers staying at each of the Marriott’s hotels over time, the relative occupancy by nonbusiness versus business travelers over time by specific Marriott brands, average length of stay
by non-business travelers, etc. These data can provide an understanding of the non-business
traveler segment and how this segment selects a hotel.
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7.
Syndicated surveys would be useful. Specifically, hotel habits and practices as a part of
Psychographic and Lifestyle surveys should provide relevant information. Nielsen Television
Index (NTI) provides information on who was watching which program, so that audience size
and demographic characteristics can be calculated. In addition, syndicated industry services can
provide valuable information on the hotel industry.
8.
It is the role of qualitative research to provide Marriott with relevant information that will
help better define the problem of further penetrating the non-business travelers segment. It can
aid the development of an approach to the problem via the generation of better hypothesis and
the inclusion of variables, which are not intuitive. It should be noted that qualitative research is
an unstructured and non-statistical technique and its results would be misused if Marriott uses
them to draw generalizations about the greater population or regard them as conclusive.
Focus groups could provide impressions of new hotel products, pricing and ideas about
older brands. All this is valuable information for a company thinking about expanding further in
a market. Besides, this information would lead to better marketing research further down the
line by defining the problem more precisely, generating alternative courses of action, developing
better approaches to the problem, designing questionnaires, and interpreting statistical results.
Depth interviews could play a role in the Marriott case study even though their need is
debatable because the insight and understanding sought can easily come from focus groups.
Depth interviews would be used to discuss confidential, sensitive and embarrassing topics such
as personal finances, spending habits, and eating habits. Deeper probing for the moods and
emotions during a hotel stay would be obtained this way.
Projective techniques are complicated, subjective to a certain degree and have nothing
more to offer in this case. Information of the Marriott problem can be obtained easily from the
direct qualitative method, thus making the use of projective techniques unnecessary.
9.
Mall-intercept personal interviews would be appropriate because brochures of the
new hotel package may have to be shown and the concept explained to the respondents in order
to obtain meaningful responses. In addition, there will be good sample control as the profile of
the mall shoppers closely matches the profile of the non-business travelers. This method offers
flexibility and the quantity of data that can be collected, and the response rates are good. The
control of the field force is not a problem as the interviews are conducted in a central location.
Since the issue is not sensitive, social desirability bias and the need for perceived anonymity are
not salient. The speed and cost of data collection are reasonable.
10.
Likert scale:
Strongly Disagree Neutral Agree Strongly
Disagree
Agree
I prefer Marriott hotel
1
2
3
4
5
Semantic differential scale: My preference for Marriott hotel is:
Strong -- -- -- -- -- -- -Weak
Stapel scale:
My preference for Marriott hotel is:
+5
+4
+3
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+2
+1
Preference
-1
-2
-3
-4
-5
11.
See the Marriott questionnaire in the following.
HOTEL QUESTIONNAIRE
PART A
Q1. How often do you stay in a hotel?
a. Less than once a year
____
b. Once a year
____
c. 2 or 3 times a year
____
d. Four or more times a year
____
Q2. Which meals do you typically eat in a hotel when staying there? Please check all that apply.
a. Breakfast
____
b. Lunch
____
c. Dinner
____
d. Other (Please specify)
____
e. Do not eat in a hotel
____
Q3. Please rate the importance of the following factors in your selection of a hotel?
Not at all
Very
Important
Important
a. Quality
1
2
3
4
5
6
7
b. Amenities
1
2
3
4
5
6
7
c. Service
1
2
3
4
5
6
7
d. Price
1
2
3
4
5
6
7
e. Comfort
1
2
3
4
5
6
7
f. Convenience of location
1
2
3
4
5
6
7
Q4. Please rate your preference for the following hotels.
Not at all
Preferred
a. Quality
1
2
b. Amenities
1
2
c. Service
1
2
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3
3
3
4
4
4
5
5
5
Very Much
Preferred
6
7
67
6
7
d. Price
e. Comfort
f. Convenience of location
1
1
1
2
2
2
3
3
3
4
4
4
5
5
5
6
6
6
7
7
7
Q5. Please rate the following hotels in terms of Quality.
Poor
a. Holiday Inn
1
2
b. Marriott
1
2
c. Sheraton
1
2
d. Doubletree
1
2
e. Wyndham
1
2
f. Best Western
1
2
3
3
3
3
3
3
4
4
4
4
4
4
5
5
5
5
5
5
Excellent
6
7
6
7
6
7
6
7
6
7
6
7
Q6. Please rate the following hotels in terms of Amenities.
Poor
a. Holiday Inn
1
2
b. Marriott
1
2
c. Sheraton
1
2
d. Doubletree
1
2
e. Wyndham
1
2
f. Best Western
1
2
3
3
3
3
3
3
4
4
4
4
4
4
5
5
5
5
5
5
Excellent
6
7
6
7
6
7
6
7
6
7
6
7
Q7. Please rate the following hotels in terms of Service.
Poor
a. Holiday Inn
1
2
b. Marriott
1
2
c. Sheraton
1
2
d. Doubletree
1
2
e. Wyndham
1
2
f. Best Western
1
2
3
3
3
3
3
3
4
4
4
4
4
4
5
5
5
5
5
5
Excellent
6
7
6
7
6
7
6
7
6
7
6
7
Q8. Please rate the following hotels in terms of a value Price.
Poor
a. Holiday Inn
1
2
3
b. Marriott
1
2
3
c. Sheraton
1
2
3
d. Doubletree
1
2
3
e. Wyndham
1
2
3
f. Best Western
1
2
3
4
4
4
4
4
4
5
5
5
5
5
5
Excellent
6
7
6
7
6
7
6
7
6
7
6
7
5
5
5
Excellent
6
7
6
7
6
7
Q9. Please rate the following hotels in terms of Comfort.
Poor
a. Holiday Inn
1
2
b. Marriott
1
2
c. Sheraton
1
2
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3
3
3
4
4
4
d. Doubletree
e. Wyndham
f. Best Western
1
1
1
2
2
2
3
3
3
4
4
4
5
5
5
Q10. Please rate the following hotels in terms of Convenience of Location.
Poor
a. Holiday Inn
1
2
3
4
5
b. Marriott
1
2
3
4
5
c. Sheraton
1
2
3
4
5
d. Doubletree
1
2
3
4
5
e. Wyndham
1
2
3
4
5
f. Best Western
1
2
3
4
5
PART B
In this part, we would like to ask you some questions for classification purposes.
Q11.
Your Gender:
1. Male
2. Female
_____
_____
Q12.
Marital Status:
1. Married
_____
2. Never Married
_____
3. Divorced/Separated/Widowed _____
Q13.
Family Size:
1. One
2. Two
3. Three
4. Four
5. Five or more
_____
_____
_____
_____
_____
Q14. Your Age:
1. 18-24
2. 25-40
3. 41-60
4. 60+
_____
_____
_____
_____
Q15. Your Formal Education
1. Less than High School
2. High School Graduate
3. Some College
4. College Graduate
_____
_____
_____
_____
Q16. What is Your Occupation?
____________________
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6
6
6
7
7
7
Excellent
6
7
6
7
6
7
6
7
6
7
6
7
Q17. What is the approximate combined annual income of your household before taxes?
1.
2.
3.
4.
5.
6.
$30,000 or less
$30,001 to 50,000
$50,001 to 75,000
$75,001 to 100,000
$100,001 to 150,000
$150,001 and over
_____
_____
_____
_____
_____
_____
Thank you for your participation.
____________________________________________________________________________
12.
Convenience sampling could be used for mall-intercept interviews
Target population: Mall shoppers in the United States in the current year
Sampling frame: Malls in the United States
Sampling unit: Malls and then shoppers
Sampling technique: Mall-intercept interviews (Convenience sampling)
Sample size: 500
Execution: Interview shoppers in the selected malls by intercepting them in key locations in the
mall. Note that imposing quotas is not necessary since the profile of the mall shoppers closely matches
that of target population.
13.
This sample size of 500 was selected based on qualitative considerations, such as the importance
of the decision, nature of the research, statistical analyses that would be required, resource constraint,
and the sample sizes used in similar studies Marriott had conducted in the past.
14.
Training is needed in the following areas:
*
Making the initial contact - The initial contact is important to gain the
confidentiality and trust of respondents. Practice in approaching people should be
a part of the training, including an opening line.
*
Asking Questions - As always, field workers must ask the questions exactly as
worded in order to prevent interviewer bias. Field workers should be instructed to
abide by the guidelines listed in the text.
*
Probing - When respondents do not sufficiently answer the question, it is
necessary to motivate them to respond or clarify their answers. Training should
cover different techniques of probing so that field workers are comfortable with at
least one technique.
*
Recording answers - Field workers should be familiar with the survey form and
know how to mark responses on the form. The entire form should be reviewed in
detail. Recording answers to unstructured questions should be reviewed as well.
The guidelines listed in the text should be followed.
*
Terminating the interview - Field workers should be instructed to close each
interview in a polite and gracious manner after all the information has been
obtained. Supervision of field workers will be important. Quality control and
editing is needed regardless of the mode of data collection. Sampling control
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should not be a significant problem since the interviews are taking place in a mall,
yet supervisors should keep daily records on the number of contacts made,
refusals, and completed interviews. Control over interviewer cheating should not
be a problem since all the interviews will take place in a mall. Finally, central
office controls are also needed, such as checking quota variables, demographic
characteristics, and answers to key variables.
15.
a.
Correlation between preference rating and each of six independent variables
Dependent variable: preference rating
Independent variable: product quality, price, service, facilities, staffing, or
uniqueness. A positive relationship is expected.
b.
Multiple regression between preference rating and all six independent variables.
dependent variable: preference rating
Six independent variables: product quality, price, service, facilities, staffing, and
uniqueness.
c.
Hypothesis testing using t-test for paired samples (paired variables: product
quality and price).
d.
Hypothesis testing using t-test for two independent samples (patrons and nonpatrons).
e.
ANOVA
Dependent variable: Preference for Marriott
Independent variable: Product usage (heavy, medium, and light users).
f.
Since 13 per cent represents a large number of cases, throwing out these
respondents (i.e., casewise deletion) is not an attractive option. Pairwise deletion
and substitution of the missing values with the variable mean should be tried.
g.
Each hotel will coded as a 1 of the respondent had stayed there and 0 otherwise.
16.
Pie Charts can be used to present percentage estimates. Histograms and bar charts, since
frequency counts, will be obtained for most of interval scaled variables. Line charts will not be
used since the data are cross-sectional and pertain to a single point in time.
17.
The difference in the environments of countries, cultural units, or foreign markets should
be considered while conducting international marketing research. These differences may arise in
the marketing environment, government environment, legal environment, economic
environment, structural environment, informational and technological environment, and
sociocultural environment.
18.
With regard to the general public, ethical concerns revolve primarily around the methods
of generating and reporting research results. It is the joint responsibility of the researcher and the
client to ensure that the research findings are being disseminated accurately. Incomplete
reporting, misleading reporting, and biased research should not take place.
It is to the marketing researcher’s advantage to protect the respondents from unethical
research practices. Two of these deserve special attention: conducting a survey as a guise to sell
products, and the invasion of the respondent’s privacy.
The ethical issues surrounding the researcher-client relationship are: abuse of position
arising from specialized knowledge; unnecessary research; an unqualified researcher; disclosure
of identity; treating data as nonconfidential; and misleading presentation of data.
VC4 - 13
The researcher (or the research firm) has the right to be treated ethically as well. Ethical
treatment by clients involves several issues: improper solicitation of proposals, disclosure of
proprietary techniques, and misrepresentation of findings.
VC4 - 14