CASE STUDY 2 SMITH & WOLLENSKY By; Jan Robert M. Inocencio THE COMPANY YOUR LOGO Since its establishment in 1977 as America’s classic steakhouse, Smith & Wollensky has been committed to delivering unparalleled hospitality and the best USDA Prime steaks, dry-aged for tenderness and flavour and hand butchered on site daily. The acclaimed wine list, rich ambiance, and exceptional service are designed to provide guests with a truly memorable steakhouse experience. Smith & Wollensky Restaurant Group headquarters is located in Boston. SMITH & WOLLENSKY SPECIALTY PRICE RATING Smith & Wollensky specializes in fresh steak and seafood cuisines served in an authentic American-style ambience. Smith & Wollensky has prices ranging from $50 to $80 per quality serving. Smith & Wollensky has a general average of 3.9/5 stars in terms of food, service, value, and atmosphere. CASE STUDY CASE STUDY CASE STUDY CASE STUDY 01 APPROACH Comment on the research approach. Do you feel it was an appropriate choice? QUESTION 02 ETHICS David did not inform these respondents that he was doing marketing research during these conversations. Why do you think he withheld this information and was it appropriate to do so? 03 INTERNET Using the Internet, try to identify at least three restaurants that Smith and Wollensky competes with and three with whom the new S&W grill may compete. 04 INTERPRET 05 RESULT Try to interpret the discussions above. You may use one of the approaches discussed in the text. What is the result of this research? What should David report back to the restaurant group? QUESTION 01 APPROACH Comment on the research approach. Do you feel it was an appropriate choice? I believe that the qualitative research approach is suitable to the case study. Qualitative research is a tool used to observe, understand, and interpret the research objects. Since the data needed by David are generally immeasurable (e.g. behaviour, etc.), quantitative research will not be able to yield the ideal results for the study. The unstructured and free-form characteristics of qualitative research will provide David various insights from respondents to better understand the problem. Thus, qualitative research is the appropriate choice for the study. Phenomenological - Conversational approach also suits well as the research framework. Since the approach is relatively less formal, it will help David acquire genuine behaviour and unique perceptions of the respondents towards the problem. The approach specifically aims to describe and interpret the experiences of the respondents, which are the data David needs. In addition, the approach is highly advantageous yet cheaper over focus group and depth interviews. QUESTION 02 ETHICS David did not inform these respondents that he was doing marketing research during these conversations. Why do you think he withheld this information and was it appropriate to do so? I believe that withholding the information of conducting marketing research to the respondents is appropriate but unethical. It is appropriate for the research study because it effectively removes the interviewer bias in the situation. The notion of being interviewed may result to the distortion of responses and may interfere with the objectivity of the respondents. Even worse, the so-called demand effect may also be triggered. Demand effect refers to the subconscious change in the respondent’s behaviour that fits the purpose of the research. David does not want these phenomena to happen as these may deviate results to the reality of the study. However, it is highly unethical to not disclose this information to the respondents. David should have informed these people that the data he gathered from them will be used for marketing research. Every data acquired from respondents should have their consent for it to be legally usable to the study. David may be sued for his irresponsible actions which may affect the timeliness of the study. My suggestion is to disclose this information only after the conversation. Explain the intentions and objectives of the research study to the respondents. Ask for permission to use the gathered data and ensure the confidentiality of the respondents. QUESTION HIGH-END RESTAURANTS 03 INTERNET Using the Internet, try to identify at least three restaurants that Smith & Wollensky competes with and three with whom the new S&W grill may compete. SMITH & WOLLENSKY RUTH’S CHRIS STEAK HOUSE Specialty | Steak & Seafood Price | $50 - $80 Rating | 3.9 out of 5 stars Specialty | Steak, Seafood, & Desserts Price | $50 ave. Rating | 4.4 out of 5 stars MORTON’S THE STEAKHOUSE DOUBLE EAGLE STEAK HOUSE Specialty | Steak, Seafood & Barbecue Price | $50 - $80 Rating: 4 out of 5 stars Specialty | Steak & Alcohol Price | $40 - $90 Rating | 4 out of 5 stars QUESTION LOW-END RESTAURANTS 03 INTERNET Using the Internet, try to identify at least three restaurants that Smith & Wollensky competes with and three with whom the new S&W grill may compete. WOLLENSKY’S GRILL (NEW S&W GRILL) THE LITTLE OWL Specialty | Steak & Burger Price | $30 ave. Rating | 4.6 out of 5 stars Specialty | Steak & Burger Price | $30 - &40 Rating | 4.6 out of 5 stars K RICO SOUTH AMERICAN STEAKHOUSE THE BIG STEER Specialty | Steak Price | $15 - $50 Rating: 4.6 out of 5 stars Specialty | Steak, Burger & Dessert Price | $20 ave. Rating | 4.1 out of 5 stars QUESTION 04 INTERPRET Try to interpret the discussions above. You may use one of the approaches discussed in the text. Here are the raw, verbatim, and significant data gathered from the respondents: JOE ○ “Well, wine doesn’t have to be expensive to be good.” ○ “I don’t mind paying for something that’s unique – even though it might not be my cup of tea.” SALLY ○ “I like things to be genuine.” ○ “I love old neighbourhood Italian restaurants. They aren’t always expensive. But, they have character.” HEBERT ○ “You know, you can buy cheap things and get cheated too.” ○ “When I buy something nice, I want it to be real.” ANGELA ○ “You have to be willing to pay more for people that care so much about what they do.” ○ “When I drink wine, I think about where it comes from too.” BURT ○ “It’s okay for something to be cheap, even fake! As long as I know it’s fake.” ○ “When you spend $100 for a bottle, you want real stuff. But if you spend $10 for a bottle of wine in a restaurant, who the hell cares? You didn’t pay for it to be real.” QUESTION 04 INTERPRET Try to interpret the discussions above. You may use one of the approaches discussed in the text. The possible themes coded from the data are: ○ The quality of the total dining experience is directly related to the price. Restaurants should only be expensive if it can offer a unique value for the customer’s money. ○ The authenticity of the total dining experience is an important factor for the customers. People generally value genuine things regardless of price. ○ Lower prices are not necessarily disadvantageous as long as the price-to-quality relationship is justifiable. Restaurants do not have to be expensive for it to be good. The themes that occur most frequently are: QUALITY AUTHENTICITY PRICE REASONABILITY QUESTION 05 RESULT What is the result of this research? What should David report back to the restaurant group? The result of the research suggests that David should offer an authentic quality of food, service, and atmosphere regardless of the price. Should David want to have a competitive advantage against Smith & Wollensky (S&W), he must develop an idea that will at least match the quality of overall dining experience of S&W at a lower price without sacrificing the authenticity. David can also opt to offer higher price range only if it will significantly outmatch the quality of overall dining experience of S&W. People expect premium product and service in exchange for premium price. Reports: ○ Customers of high-end restaurants like quality products that offer them a unique experience. ○ At the very least, the price should stay true to the quality of product and service. ○ People do not mind spending high prices for their meals so long that it is justifiable. ○ Store atmosphere plays a role in the overall dining experience. THANKS Does anyone have any questions? jminocencio@up.edu.ph +63 945 407 3030 linkedin.com/jminocencio CREDITS This is where you give credit to the ones who are part of this project. ◂ ◂ ◂ ◂ ◂ ◂ Presentation template by Slidesgo Icons by Flaticon Infographics by Freepik Images created by Freepik - Freepik Author introduction slide photo created by Freepik Text & Image slide photo created by Freepik.com
