CARLSON SCHOOL OF MANAGEMENT
MKTG 6051: Marketing Research
SMARTPHONE AND CARIBOU COFFEE
Jenny Hong Jiang, Joseph Nayquonabe, Nicole Newville,
Palka Sharma, Ning Yu
Fall 2009

TABLE OF CONTENTS
Executive Summary ................................................... Ошибка! Закладка не определена.
Introduction .............................................................. Ошибка! Закладка не определена.
Research design ........................................................ Ошибка! Закладка не определена.
Results ................................................................................................................................. 7
Recommendation ...................................................... Ошибка! Закладка не определена.
Appendix ........................................................................................................................... 14
#1 - Secondary data sources……………………………………………………………………………..16
#2 - Focus Group Questionnaire………………………………………………………………………..16
#3 - Survey…………………………………………………………………………………………………………17
#4 - Survey Research Objectives and Results …………………………………………………….22
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EXECUTIVE SUMMARY
Caribou coffee is the second largest coffee retailer in the world with a far reaching demographic of loyal customers. This combined with the accelerated growth and relevance of Smartphone usage in Caribou’s core markets and demographics has prompted this market research project. The project’s intent is to provide necessary analysis to Caribou for their use in making decisions regarding its future in the new Smartphone media.
The research design consisted of three core elements: Exploratory research, primarily by way of secondary sources; Qualitative research, primarily by way of a focus group with current
Smartphone users; and Quantitative research, primarily by way of a survey.
Smartphone usage is one of the fastest growing trends in America with over 63 million users with access to mobile web, 19 million of which use it on a weekly basis. These users expect to increase their use of the mobile web by up to 60 percent in the next two years, 22 percent are already being influenced by mobile web to make purchase decisions.
Users are interacting with their Smartphones in two main ways: Mobile websites or
Applications. Applications were found to be the most preferred method. Applications give users more control of the use and were also considered to be easier to use as well.
Within Applications there are typically many features. Features that were of most importance to respondents were: Store locator, coupon provider, menu, and order in advance capability. The coupon provider and order in advance features were positively correlated with statistics on customers that intended on visiting Caribou more frequently.
The explosion of Smartphones is largely driven by two main developers of new cell phone technologies and operating systems, Apple and Google. Our tests show that the iPhone, an
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Apple product, owns the largest share of the Smartphone market among users of the mobile web and particularly Applications. In fact, iPhone users’ average number of Applications downloaded was more than 12 greater than all other Smartphone types. Our research also suggests that
Google driven phones are the emerging products behind the iPhone.
Through the information summarized above, we were able to conclude on some distinct recommendation for Caribou to utilize in making its plans for the future in Smartphone involvement. It is recommended that Caribou:

Put a primary focus on developing an Application rather than a mobile website

Ensure development of the Application includes four key features: Store locator, coupon provider, menu, and order in advance capability

Put a primary focus on developing an Application for the Apple iPhone products

Put a secondary focus on developing an Application for the Google Android products
INTRODUCTION
Smartphone, once a device relegated to corporate executives, is experiencing rapid growth in the consumer market and is changing the landscape of information and media consumption.
4

According to an AOL and Universal McCann report, in the US, there are currently over 63 million
Smartphone users with access to mobile web. Smartphone makes information delivery anywhere, anytime become a reality. The entrance of Apple and Google into the Smartphone market accelerated the development of mobile applications. Mobile applications provide companies such as Barnes & Noble, Target, and Whole Foods with a new way to reach their customers. “There is an app for it” becomes a popular slogan among tech enthusiasts.
Caribou Coffee, the second largest coffee retailer in the US, is considering strategies to better reach and serve its customers on smart phones. The company has a website that can be accessed on smart phones but it is not optimized to fit the screen size of smart phones. Starbucks,
Caribou’s largest competitor, recently launched an iPhone application which allows customers to locate stores and order on the phone. In response to competition, Caribou needs to decide whether it should launch a mobile website that is easy to navigate on smart phones or develop its own Smartphone application. What are the most important features to Smartphone users? As the
Smartphone platform competition intensifies, Caribou also needs to decide if it should focus its resources to develop the application for one platform or multiple platforms such as iPhone,
Android and Blackberry. Marketing research is needed to provide the necessary information for managerial decisions. Some other issues such as the infrastructure, logistic changes needed and associated costs to implement the new service on smart phones, though important to the marketing decisions, are not addressed in this research.
RESEARCH DESIGN
Many sources of exploratory research were reviewed to understand the scope of the marketing research project (Appendix # 1). Of the 63 million mobile web subscribers cited from
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the AOL and Universal McCann report, 19 million access mobile web on a weekly basis. This report indicates how Smartphone usage influences the American lifestyle and media consumption. Smartphone users expect their mobile internet usage to increase significantly over the next 2 years by almost 60%. More than 22% of consumers are being influence by mobile web to make purchasing decisions. All this secondary data indicates a promising market for mobile web applications, and also signifies the competitive nature of advertising via mobile applications and the internet. This presents a strong case for Caribou Coffee to expand its installed base via reaching out to customers through a mobile application.
In order to support the secondary data, the team conducted a focus group of five respondents. The respondents had to own a Smartphone; this was a criterion since it was assumed that we would get beneficial feedback from consumers proficient with application downloads on their smart phones. We also invited respondents that used different platforms- three iPhone users, one respondent had a Palm Pre and one had a Google MyTouch phone.
The questions for the focus group discussion (Appendix #2) were divided into two sections: The first section aimed at understanding Smartphone usage and preferences in using mobile webpage versus using mobile web applications. The second section aimed at understanding consumer preferences on features for a Caribou Coffee mobile application. Some of the key takeaways from the focus group discussion included the widespread preference for a free downloadable application, information of current new applications via friends and application advertisements, frequency of time respondents’ spend using the internet (~ 2-5 hours a day), and finally, caribou coffee features that would be desired for the application. For example, they had expressed interest in being able to order in advance, find caribou coffee locations in
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their neighborhood, and receive customer loyalty reward messages via the application. All these insights were valuable in designing a survey, which would substantiate the results needed for the research.
Due to the time constraints of the project and in order to gain maximum response rate, it was decided that the best method for conducting a survey was through Zoomerang, an online survey tool. The questions in the survey were designed to understand consumers’ a)
Smartphone usage b) Preferences for Smartphone application versus mobile web c) Coffee preferences d) Current coffee smart phone usage such as the Starbucks application and e)
Demographic information. The questions used all types of measurements scales including nominal, interval, and ordinal as well as semantic differentials scales. The survey was sent to about 65 participants, of which 53 responded (~82% response rate). An important assumption was that the sample is representative of the entire population, and that local participants would exhibit same preferences nationwide. Since most of the questions in the survey were asked in an open-ended manner via the focus group, a pretest was not conducted.
The survey was sent to people who owned a Smartphone, as well as non-Smartphone owners. The idea for this random selection was to gain perspective from potential as well as current Smartphone users. The sampling frame for the survey included a list of friends and coworkers. The sampling design used for the survey was a non-probability convenience sample, based on time constraints and accessibility to respondents.
RESULTS
To create the best user experience for Caribou customers several tests were conducted using the survey results. This section will identify the best mobile platform (web vs.
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application), the most important features, and examine any differences in mobile usages between handset types. Additional tests were conducted to determine how the availability of a mobile tool would influence customer behavior.
The first research objective is to identify if a mobile web site or a Smartphone application, is better in serving Caribou customers on smart phones. Two questions were provided in the survey to ask respondents’ experience in finding information on mobile web site and Smartphone applications using a five-value interval scale from Very Easy (code as 2) to
Very Difficult (code as -2). A T-test was done to identify if there is statistical difference between the average difficulty in finding information through the mobile web and finding information through the Smartphone applications. phone type web/app
Mean
All phones web
0.44
App
0.72 iPhone web
0.78 app
1.04
Other phones web
0.08 app
0.41
P value 0.032 0.13 0.044
Table 1: Average user experience in finding information on the Smartphone
From the results above, we can conclude that for all Smartphone users, it is easier to find information through Smartphone applications than through mobile webs. The Smartphone applications give user more control and provide information in a more structured way so it is easier to navigate. However, for iPhone users, the difference between mobile web and application is not statistically significant. It is obvious that iPhone users have fewer difficulties finding information on their phones than other Smartphone users. The likely reason for this response is that iPhone’s superior web browser with multi-touch technology enables users to zoom and easily navigate the mobile web with their fingers.
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The second research objective was to identify which features should be included in the
Caribou mobile web experience. Respondents were asked to rank a list of features and then were asked whether they are likely to consider shopping more at Caribou if the features are provided. The importance of each feature was then analyzed to compare the response between those who are likely to shop more at Caribou and those who are not. The test results indicate that the store locator is the most important feature, followed by coupon, store menu and order in advance. The respondents generally think games and links to other applications such as iTunes or Facebook are not important. Further analysis indicates that there are statistically significant differences in response between those who are likely to visit Caribou more and those who are not regarding menu, coupon and order in advance features (as shown in Table
2).
Features Store Locator Menu Coupon
Order In
Advance
Mean for all samples 1.581395349 2.11627907 1.744186047 2.348837209
Likely to shop more at Caribou No Yes No Yes No Yes No Yes mean 1.54 1.59 1.54 2.31 2.09 1.62 2.91 2.16 p value 0.426388006 0.035652488 0.045789392 0.027943407
Very Import = 1, Import = 2, Neutral = 3, Not very important = 4, Not at all important = 5
Table 2: Feature evaluation
The Store Locator is deemed the most important feature among the respondents; however, there is no statistical difference between the two groups. This is probably because the feature is so essential and common in applications that people tend to take it for granted. The results also show that people who are likely to shop more at Caribou tend to put more importance on Coupon and Order In Advance features than those who are unlikely to shop more at Caribou. It is puzzling, though, that people who are unlikely to shop more at Caribou
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seem to give Menu more importance. Even though the difference is statistically significant, it does not indicate a causal relationship. One of the reasons could be that the non-loyal customers who are less likely to visit the store give more importance to menus as they are less familiar with what Caribou offers.
Based on the results of the first two tests it is clear that Caribou should develop a mobile application instead of a mobile web experience. An application provides a better user experience for a wider range of mobile devices. Additionally mobile applications are able to take advantage of native handset features like GPS which allow users to map a route to the nearest store based on their current location.
The third research objective was to determine if mobile application usage is the same across all handset types, in order to determine which to develop an application for first. There are five primary Smartphone operating systems (OS) and currently there is no standard interface that allows an application to run across different OS so developing an application for each OS will incur an incremental cost.
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Table 3: Survey respondents by type of Smartphone
Because 57% of respondents indicated they owned an iPhone handset we elected to test the iPhone application usage against all other Smartphone handsets. For this test we examined the number of applications downloaded and installed based on handset type. A Ttest was used to compare the iPhone users to other Smartphone users.
Mean iPhone: # apps installed
18.94
Other Smartphone: # apps installed
6.35
P(T<=t) two-tail 0.00066365
Table 4: Average applications installed on iPhone compared to other Smartphone handsets
The results indicate that the average iPhone user downloads 12 more applications than other Smartphone users. Based on the heavier application usage of the iPhone users we conclude that the first version of the mobile application should be created using the iPhone development package.
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In reviewing the features to include in the iPhone application, one requires that store locations update their POS systems to support mobile ordering. Due to the incremental cost associated with this installation we created a test to determine if iPhone users are more likely than other handset users to order Caribou products using their mobile device. We conducted a
Chi-Square Test to determine if there was a statistically dependent relationship between the handset type and the likelihood of ordering coffee on their mobile device.
Actual
Very Likely
Likely
Neither Likely nor Unlikely
Unlikely
Very Unlikely
Column Totals iPhone
11
2
3
25
2
7
NoniPhone
3
11
0
24
8
2
Row
Totals Expected
5 Very Likely
18 Likely
19 Neither Likely nor Unlikely
4 Unlikely
3 Very Unlikely
49 Column Totals iPhone
2.55
9.18
9.69
2.04
1.53
25
NoniPhone
2.45
8.82
9.31
1.96
1.47
24
Row
Totals
5
18
19
4
3
49
Chi Test 0.337355
Table 5: Relationship between likelihood of ordering coffee using a mobile device and handset type
This test revealed that owning an iPhone handset does not make a person more likely to order coffee using their mobile phone. If the incremental costs associated with adding this feature to the mobile application exceed our budget for Phase I, consider issuing an application software update with this feature in the future when funds become available.
The second set of tests was designed to evaluate the potential impact of the
Smartphone application on Caribou customers. Our fourth research objective was to determine how the ordering feature of the application would affect loyal vs. non-loyal Caribou customers.
The analysis of the test results indicates that loyal Caribou customers are more likely to order coffee on smart phones than non-loyal Caribou customers (results shown in Table 3).
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Mean loyal Caribou customers
0.833333333 non-loyal Caribou customers
0.096774194
P value 0.005403418
Very Unlikely = -2, Unlikely = -1, Neither Likely nor Unlikely = 0, Likely = 1, Very Likely = 2
Table 6: Loyal Caribou Customers vs. Non-loyal Caribou Customers.
Based on this test it is clear that the application will benefit loyal Caribou customers but it is not likely to attract non-loyal Caribou customers.
Finally we reviewed the new application’s order feature and the likelihood of it increasing Caribou customer shopping frequency. We conducted another Chi-Square Test to determine if there was a statistical relationship between these two variables.
Actual
Very Likely
Likely
Neither Likely nor Unlikely
Unlikely
Very Unlikely
Column Totals
App Will
Increase
Caribou
Shopping
Frequency
4
14
11
3
0
32
App Will Not
Increase
Caribou
Shopping
Frequency
3
12
3
5
1
0
Row Totals Expected
4 Very Likely
17
16
4
3
44
Likely
Neither Likely nor Unlikely
Unlikely
Very Unlikely
Column Totals
App Will
Increase
Caribou
Shopping
Frequency
2.91
App Will Not
Increase Caribou
Shopping
Frequency
1.09
Row Totals
4
12.36
11.64
2.91
2.18
32
4.64
4.36
1.09
0.82
12
17
16
4
3
44
Chi Test 0.033744714
Table 7: Relationship between likelihood of using new order feature and Caribou Shopping Frequency
Our research indicates that there is a statistical relationship between people who would use the order feature and an increase in their shopping frequency. Based on the results of the final two tests the benefit of adding the order feature would be better servicing loyal Caribou customers and also increasing overall frequency of customer visits.
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RECOMMENDATION
The number of US mobile Internet users has grown from 37 million to 63 million from
2008 to 2009 with 107% year over year growth rate. The rapid growth of mobile internet and application users presents great market potential to the retailers. The Smartphone technology has also matured to allow users to perform online transaction at anytime and anywhere.
Caribou’s major competitor, Starbucks, is trying to seize this market opportunity and has launched two mobile web applications, “myStarbucks” and “Card Mobile”, to allow their customers to order online, locate the store, and virtually pay for their drinks from their smartphones.
Facing both the market opportunity presented by Smartphone users and the threat by
Starbuck, Caribou can’t afford to ignore the smartphone users’ needs. Based on the marketing research study conducted, we recommend Caribou develop a smartphone application to address users’ needs in two phases. The purpose of the recommendation is to improve the customer experience and increase visit to the stores.
1.1
Phase I – Standalone iPhone Based Application
During phase I, we recommend Caribou develop and launch a smartphone application on the iPhone platform within six months. Our survey results indicated that the average iPhone user downloads 12 more applications than other Smartphone users within a one month period.
Since iPhone users tend to use more applications than the other smartphone users, the first version of Caribou’s mobile application should be developed on the iPhone platform. The data collected in both the focus group and survey indicates that user feel that it’s easier to find
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information through applications than the mobile website. Therefore, Caribou should launch the standalone mobile application to deliver the customer services via smartphone.
The following four major features are the high priority features which should be included in the phase I development:
Store Locator: The store locator is deemed as the most important feature among the survey respondents. The store locator needs to be integrated with the iPhone's GPS to detect any
Caribou’s location and provide customers with directions to Caribou’s store. It should also allow the customers to contact the store through a “one-button” push.
Order in Advance: According to the survey results, this feature will have more impact on existing loyal Caribou customers than the non-loyal Caribou customers. The order in advance feature will allow the smartphone users to order drinks via the application before they arrive at the store. This will reduce customer waiting time and improve customers satisfaction.
Mobile Coupons : Based on the survey results, the mobile coupon is another very attractive feature to customers. The program aims to increase customers visits and recognize and reward the loyalty of Caribous' regulars. The coupons will be delivered to user’s smartphone and the user will use the smartphone to scan the coupons. The main purpose of this feature is to reward loyal Caribou customers with discount and prizes and attract the new customers to Caribou.
Online Menu: Even though the survey results revealed that the online menu is more important to the customers who are unlikely to shop at Caribou; overall, menu is still an important feature.
Online menu will be a big convenience for customers who order on their smartphone and as many smartphone users share their application experience with their friends, it is likely that there
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will be some influence such that people who are less familiar with Caribou may end up visiting
Caribou to try something on the menu.
1.2
Phase II – Standalone Android Based Application
Depending on the success of the first app in trial cities, the company will decide whether or not to expand the service to other markets. Based on the feedback from the phase I launch,
Caribou should consider conducting a second marketing research study to focus on Android smartphone users. Since the Android platform was just launched less than a year ago, there is not enough data to indicate whether the platform will be widely adopted yet. But it is worth to monitor the Android smartphone usage as there is some early indication of momentum.
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APPENDIX #1 – Secondary Data Sources
1.
Universal McCann and AOL Report: AOLMcCann_SmartPhoneLeaveBehind5_7b.pdf
2.
AdMob Mobile Metrics Report: AdMob-Mobile-Metrics-July-09.pdf
3.
BrightKite Mobile Advertising Report: BrightKiteStudy_Q1_2009.pdf
4.
Google Mobile Ads: GoogleMobileOverview_072909.ppt
5.
Insight Express Mobile Research on Research:
InsightExpress_Mobile_Research_on_Research4.ppt
6.
JiWire Mobile Audience Insights Report: JiWire_MobileAudienceInsights_1H09.pdf
APPENDIX #2 – Focus Group Questionnaire

Introduction of Moderator

Purpose of Focus Group – Project Introductions
Researching how Caribou Coffee can best serve customers on mobile phones
Interested in your ideas for mobile web or application features
 Introduction of Focus Group Participants
Names
Type of Phone
Favorite Features
Favorite Activities to do on Phone
 Section 1: Mobile Web vs Applications
What activities do you do most often on the mobile web?
What applications do you have on your phone? Do you like them? Do you download them frequently
How much time do you spend using the features on your phone
 Section 2: Features
What features would you expect when using a Caribou App or Mobile Web Site?
(see what people volunteer)
Discuss specific features (would you use it?)

Nutritional Information

Maps – Store locations (pick and choose stores with WIFI, drive thru, meeting rooms)

Pairings (this coffee and this muffin etc)

Photos of how the coffee is harvested

Txt alerts for deals at your favorite locations

Question of the day? (the little question on the board you can answer and get 10 cents off your drink)

Coupon Bar Code or Reward Codes
 Payment Bar Code
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
Wrap-Up

Customer Review Module – Manage your account
 Register and reload your card
 Ability to order in advance? For yourself or office?
 Ability to store your favorite drinks?
 Link to iTunes for music that’s playing in the store?
 Links to Facebook or Twitter or ability to send invites out to friends?

Other?
Rank three of your favorite features for a Caribou App
Thanks for coming!
APPENDIX #3 – Survey
Serve Customers via Smart Phones
Hello there!
Do you drink coffee? Do you use smart phone? Have you downloaded applications to your smart phone?
If yes, your opinion is very valuable to us! We are MBA students at the University of Minnesota and are doing a research project on how Caribou Coffee can best serve its customers on smart phones. It only takes you less than 10 minutes to finish this survey. Your help is greatly appreciated!
Section 1: Smart Phone
1.
Do you have a smart phone?

Yes (check the type of phone that you have) iPhone _________
Blackberry_________
Android platform (Motorola, LG, Dell, etc) _________
 No
Palm Pre_________
Other (Specify__________ ______)
2.
If you don’t have a smart phone, are you considering a smart phone purchase in the next six months?
Which device are you thinking about buying?
 Yes, Plan to buy _________
 No ( You are done with the survey. Thank you!
)
3.
How often do you use your smart phone to:
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Daily
4 – 6 times per week
1 - 3 times per week
1 -3 times per month Never
Check email
View web pages
Text message
Locate using GPS/Map
Social Networking
Purchase online
Online banking
Play games
4.
Please rank the following smart phone features with “1” indicating the most favorite feature?
________ Check Email
________View Web Pages
________Test Message
________Locate using GPS/Map
________Social Networking
________Purchase online
________Banking Online
________Play Games
Section Two: Smart Phone Applications and Mobile Web
5.
What’s your general experience in finding things in the mobile ‘webpage’ on your smart phone?

Very difficult

Difficult

Neither difficult nor easy

Easy

Very easy
Comments _________________
6.
What’s your general experience in finding things using a mobile ‘application’ on your smart phone?

Very difficult

Difficult

Neither difficult nor easy

Very easy

Neutral
Comments _________________
7.
How many applications have you downloaded onto your smart phone in the past month?
 0 to 5
 6 to 10
 10 to 20
 20 to 50
 Over 50
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8.
How do you find out about new mobile phone features or applications?

Friends

Television commercial
 iTunes/Application Store

Blog
 Other, please specify __________________
9.
How much are you willing to pay for a smart phone application?
 Zero
 Less than one dollar
 one dollar to three dollars
 four dollars to seven dollars
 seven dollars to ten dollars
 Other, please specify __________________
Section Three: Coffee Preference
10.
How many times per week do you visit a coffee shop?
 None
 1 – 3 times
 4 – 6 times

More than 6 times
 Other (please specify the frequency _________________)
11.
Please rank the importance of the following factors in affecting your choice of coffee shops, with 1 indicating the most important factor.
_____ Price
_____ Location
_____ Store environment
_____ Speed of service
_____ Selections of coffee, drink and food
_____ Other
12.
What do you usually do at the coffee shop? Please check all that apply.

Buy coffee or food and leave

Sit down and read/write

Sit down and use WiFi for internet

Conduct business meetings

Socialize with friends

Other (please specify _________________)
13.
When you buy food or drink in the coffee shop, how often do you check the nutritional information of your purchase?

Never

Sometimes

Most of the time

Always
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14.
When you order food or drink that you have never had before, how important is the customer service to you?

Not at all important

Unimportant

Neither unimportant nor important
 Important
 Very important
Section 5: Coffee Smart Phone Service
15.
Do you currently use smart phone service provided by Starbucks?

Yes

No
16.
If answer “Yes” in question 15, please specify three things you like about Starbucks smart phone application.
1._____________________________
2. _____________________________
3. _____________________________
17.
If answer “Yes” in question 15, please specify three things you don’t like about Starbucks smart phone application.
1._____________________________
2. _____________________________
3. _____________________________
18.
Do you consider yourself a loyal customer of the one of following coffee shop?

Starbuck

Dunn Bros

Caribou

Other, please specify___________
19.
If you are not a loyal Caribou customer, would you consider to shop more frequently at
Caribou if we provide the service via smart phone?

Yes

No
20.
If you join a loyalty program of a coffee shop, please rank the attractiveness of the following possible member benefits, with 1 indicating the most attractive one.
____ Special member coupon delivered to your phone
____ Frequently purchase tracker that records your coffee shop spending and rewards you with free coffee when certain amount is reached
____ Able to download one song that is playing in the coffee shop to your phone for free each week
____ A random prize drawing every month based on your phone number
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Other, please specify__________________________________________
21.
Which one of the following type of communication do you prefer when finding the weekly deals at your frequent visit Caribou?
 Text message
 Email
 Notification inside the app
 Deal feature inside the app where you can check the ongoing deals
 Mobile web page
22.
To reduce the amount of time you spend in line indicate how likely you would be to use the following features
Order in
Advance
Very Likely Likely
Neither likely or unlikely Unlikely Very Unlikely
Pay in
Advance
23.
Please indicate the importance of each of the following feature for a Caribou Coffee app.
Store locator/map
Promotion alert
Game
Very
Important Important
Neither likely or unlikely
Not Very
Important
Not at All
Important
Store menu
Question of the day (10 cent off if answer correctly)
Coupon/loyal customer award
Pay via the phone
Ability to order in advance
Link to iTunes to download songs being played in Store
Links to Facebook or
Twitter to invite friends
24.
Are there any additional features that would be of importance to you besides the ones listed in question 18?
Additional Feature 1__________________________________
Additional Feature 2__________________________________
22

Additional Feature 3__________________________________
Additional Feature 4__________________________________
Additional Feature 5__________________________________
25.
How will this new service affect the likelihood of you ordering Caribou products via Smartphone?
 Very likely
 Likely
 Neither likely nor unlikely
 Unlikely
 Very unlikely
Section 5: Consumer-related Questions
26.
What is your age?
 Under 18
 19 – 24
 25 – 34
 35 – 54
 55+
27.
Are you Male or Female?
 Male

Female
28.
Please specify your profession__________________________.
29.
Please specify your zip code____________________________.
Thank you for taking the time to complete this survey!
APPENDIX #4 – Survey Research Objectives and Results
Research Objective 1:
Determine if a mobile web site or a smartphone application, is better in serving Caribou customers on smartphones.
Survey Questions Used: 7 & 8
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Question 7 (Ease of using mobile web sites) by handset type
Question 8 (Ease of using mobile applications) by handset type
Hypothesis:
H
0
: The average difficult of finding information is the same between mobile web and mobile application.
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H a
: The average difficult of finding information is different between mobile web and mobile application.
Results:
All phone users: t-Test: Paired Two Sample for Means
Mean
Variance
Observations
Pearson Correlation
Hypothesized Mean
Difference
Df t Stat
P(T<=t) one-tail t Critical one-tail
P(T<=t) two-tail t Critical two-tail
Web App
0.44 0.72
1.149388 0.899592
50
0.464822
50
0
49
-1.88462
0.03271
1.676551
0.06542
2.009575 iPhone users: t-Test: Paired Two Sample for Means
Mean
Variance
Observations
Pearson Correlation
Hypothesized Mean
Difference
Df t Stat
P(T<=t) one-tail t Critical one-tail
P(T<=t) two-tail
0
26
-1.15804
0.128688
1.705618
0.257376
Web App
0.777778 1.037037
1.25641 0.883191
27 27
0.373232 t Critical two-tail
Other phone users:
2.055529 t-Test: Paired Two Sample for Means
Mean
Web App
0.083333 0.416667
25

Variance
Observations
Pearson Correlation
Hypothesized Mean
Difference
Df t Stat
P(T<=t) one-tail t Critical one-tail
P(T<=t) two-tail t Critical two-tail
0.775362 0.775362
24
0.457944
0
23
-1.78113
0.044052
1.713872
0.088104
2.068658
24
Conclusion:
Reject H
0
for all phone users and other phone users. Do not reject H
0
for iPhone users. For all phone users, mobile applications are statistically easier to find information than mobile webs.
However, for iPhone users, the difference is not statistically significant. Overall, iPhone users have much less difficulties finding information on their phones than other smartphone users.
Research Objective 2:
Identify which features should be included in the Caribou mobile experience.
Survey Questions Used: 23 & 24
26

Hypothesis:
For each feature:
H
0
: The average importance is the same between those who are likely to shop more at Caribou and those who are unlikely to shop more at Caribou.
H a
: The average importance is different between those who are likely to shop more at Caribou and those who are unlikely to shop more at Caribou.
Results:
Feature store locator
Mean for all samples 1.58 game
4.02 menu
2.12 trivia
2.74 coupon pay via phone order in advance
1.74 3.09 2.35 iTune
3.16
Facebook
3.35 response to Q24 No Yes No Yes No Yes No Yes No Yes No mean p value
Yes
1.55 1.59 4.64 3.81 1.55 2.30 3.09 2.62 2.09 1.63 3.55 2.94
0.42638 0.0062793 0.035652 0.15052 0.045789 0.073203
No
2.91
Yes No Yes No Yes
2.16 3.27 3.12 3.36 3.34
0.027943 0.36394
Conclusion:
The most important features are store locator, coupon, menu and order in advance. Game, link to iTune and link to Facebook are not important to most users. Store locator, even though the most important feature, does not show statistical difference in importance between the two groups. Those who are likely to shop more at Caribou tend to put more importance on coupon and order in advance feature than those who are unlikely to shop more at Caribou. It is puzzling that those who are unlikely to shop more at Caribou put more importance on menu. This could
0.48245
27

be because they are mostly non-loyal Caribou customers who are less familiar with what
Caribou offers.
Research Objective 3:
Determine if mobile application usage is the same across all handset types, in order to decide how many versions of the application to create.
Survey Questions Used: 2 & 9
Hypothesis:
H
0
: The # of app download is the same between iPhone and other phones. (Average the same)
H a
: The # of app download is different between iPhone and other phones. (Average different)
Results: t-Test: Two-Sample Assuming Equal Variances
Mean
P(T<=t) two-tail iPhone: # apps installed
18.94
Other Smartphone apps installed
0.00066365
6.35
Conclusion:
Reject H a
, the average iPhone user downloads 12 more applications than other Smartphone users. The heavier application usage of the iPhone users indicates that the first version of the mobile application should be created using the iPhone development package.
Research Objective 4:
Determine if iPhone users are more likely than other smartphone users to order coffee using their mobile device.
28

Survey Questions Used: 2 & 26
Hypothesis:
H
0
: Handset type and likelihood of ordering coffee using application are independent.
Ha: Handset type and likelihood of ordering coffee using application are dependent.
Results:
Chi-Square Test
NonRow Non-
Actual iPhone iPhone Totals Expected iPhone iPhone
Very Likely
Likely
Neither Likely nor Unlikely
Unlikely
Very Unlikely
Column Totals
11
2
3
2
7
25
3
11
8
2
0
24
5
18
19
4
3
49
Very Likely
Likely
Neither Likely nor Unlikely
Unlikely
Very Unlikely
Column Totals
2.55
9.18
9.69
2.04
1.53
25
2.45
8.82
9.31
1.96
1.47
24
Row
Totals
5
18
19
4
3
49
Chi Test 0.337355
Conclusion:
The Chi-Square Test revealed that p>alpha therefore reject H
0.
Owning an iPhone handset does not make a person more likely to order coffee using their mobile phone. If the incremental costs associated with adding this feature to the mobile application exceed our budget for Phase
I, consider issuing an application software update with this feature in the future when funds become available.
Research Objective 6:
29

Determine if there is a relationship between a person’s willingness to order products via the phone related to the mobile application and an increase in shopping more frequently at
Caribou.
Survey Questions Used: 24 & 26
Hypothesis:
H
0
: New order feature and likelihood of increasing Caribou Shopping Frequency are statistically dependent.
Ha: New order feature and likelihood of increasing Caribou Shopping Frequency are not statistically dependent.
Results:
Chi-Square Test
Actual
Very Likely
Likely
Neither Likely nor Unlikely
Unlikely
Very Unlikely
Column Totals
App Will Increase
Caribou Shopping
Frequency
4
14
11
3
0
32
App Will Not
Increase Caribou
Shopping Frequency Row Totals
0
3
5
1
3
12
4
17
16
4
3
44
Expected
Very Likely
Likely
Neither Likely nor Unlikely
Unlikely
Very Unlikely
Column Totals
App Will Increase
Caribou Shopping
Frequency
2.91
12.36
11.64
2.91
2.18
32
App Will Not
Increase Caribou
Shopping Frequency Row Totals
1.09
4.64
4.36
1.09
0.82
12
4
17
16
4
3
44
Chi Test 0.033744714
Conclusion:
The Chi-Square Test revealed that p<alpha therefore reject H a.
There is a statistical relationship between people who would use the order feature and an increase in their shopping frequency.
Therefore if Caribou is looking for new ways to increase the frequency of their customers’ visits, they should prioritize this feature in the development plan
______________________________________________________________________________
______
30

Additional Test not used in Results Section
Objective:
Determine if there is a relationship between a person’s willingness to order products via the phone and the number of applications they downloaded to their smartphone.
Survey Questions Used: 9 & 26
Hypothesis:
H
0
: Number of applications downloaded and likelihood of ordering Caribou products via mobile application are statistically dependent.
Ha: Number of applications downloaded and likelihood of ordering Caribou products via mobile application are not statistically dependent.
Results:
31

Chi-Square Test
Actual
Very Likely
Likely
Neither Likely nor Unlikely
Unlikely
Very Unlikely
Column Totals
None
0
8
4
1
0
3
1-5
1
11
1
1
2
6
6-10
1
9
6
0
0
2
11-20
0
10
4
0
1
5
21-50
1
9
3
2
1
2
50+
0
1
1
0
0
0
Row
Totals
4
18
19
4
3
48
Expected
Very Likely
Likely
Neither Likely nor Unlikely
Unlikely
Very Unlikely
Column Totals
None
0.67
3.00
3.17
0.67
0.50
8
1-5
0.92
4.13
4.35
0.92
0.69
11
6-10 11-20
0.75 0.833333
3.375
3.75
3.5625 3.958333
0.75 0.833333
0.5625
0.625
9 10
21-50
0.75
3.38
3.56
0.75
0.56
9
50+
0.08
0.38
0.40
0.08
0.06
1
Row
Totals
4
3
48
4
18
19
Chi Test 0.647908
Conclusion:
The Chi-Square Test revealed that p>alpha therefore reject H
0.
There is not a statistical relationship between people who would use the order feature and the number of applications they download to their phone.
32