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.............................................................. Error! Bookmark not defined.
Introduction ......................................................................... Error! Bookmark not defined.
Research design ................................................................... Error! Bookmark not defined.
Results ................................................................................................................................. 7
Recommendation................................................................. Error! Bookmark not defined.
Appendix ........................................................................................................................... 13
#1 - Secondary data sources……………………………………………………………………………..16
#2 - Focus Group Questionnaire………………………………………………………………………..16
#3 - Survey…………………………………………………………………………………………………………17
#4 - Survey Research Objectives and Results …………………………………………………….22
2
EXECUTIVE SUMMARY
3
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.
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.
4
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
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 platformsthree 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
5
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
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 65participants, 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.
6
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.
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
All phones
iPhone
Other phones
web/app
web
App
web
app
web
app
Mean
0.44
0.72
0.78
1.04
0.08
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
7
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.
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
8
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
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.
9
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.
iPhone: # apps installed
Other Smartphone: # apps installed
Mean
18.94
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.
10
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
NoniPhone
iPhone
2
7
11
2
3
25
Row
Totals
3
11
8
2
0
24
Expected
5
18
19
4
3
49
Very Likely
Likely
Neither Likely nor Unlikely
Unlikely
Very Unlikely
Column Totals
Chi Test
iPhone
NoniPhone
2.55
9.18
9.69
2.04
1.53
25
Row
Totals
2.45
8.82
9.31
1.96
1.47
24
5
18
19
4
3
49
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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non-loyal Caribou
loyal Caribou customers customers
Mean
0.833333333
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
Row Totals
0
4
3
17
5
16
1
4
3
3
12
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
Chi Test
App Will Not
Increase Caribou
Shopping
Frequency
Row Totals
1.09
4
4.64
17
4.36
16
1.09
4
0.82
3
12
44
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
13
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
14
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.
15
APPENDIX #1 – Secondary Data Sources
1.
2.
3.
4.
5.
Universal McCann and AOL Report: AOLMcCann_SmartPhoneLeaveBehind5_7b.pdf
AdMob Mobile Metrics Report: AdMob-Mobile-Metrics-July-09.pdf
BrightKite Mobile Advertising Report: BrightKiteStudy_Q1_2009.pdf
Google Mobile Ads: GoogleMobileOverview_072909.ppt
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
16








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?
Wrap-Up
-
Rank three of your favorite features for a Caribou App
Thanks for coming!
APPENDIX #3 – Survey
Caribou Coffee Marketing Research 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) _________
Palm Pre_________
Other (Specify__________ ______)
 No
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:
17
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
18
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
19
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
20
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
Very Likely
Likely
Neither likely
or unlikely
Unlikely
Very Unlikely
Order in
Advance
Pay in
Advance
23. Please indicate the importance of each of the following feature for a Caribou Coffee app.
Very
Important
Important
Neither
likely
or
unlikely
Not Very
Important
Not at All
Important
Store locator/map
Promotion alert
Game
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__________________________________
21
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
22
Question 7 (Ease of using mobile web sites) by handset type
Question 8 (Ease of using mobile applications) by handset type
Hypothesis:
H0: The average difficult of finding information is the same between mobile web and mobile
application.
23
Ha: 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
50
0.464822
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
t Critical two-tail
Web
App
0.777778 1.037037
1.25641 0.883191
27
27
0.373232
0
26
-1.15804
0.128688
1.705618
0.257376
2.055529
Other phone users:
t-Test: Paired Two Sample for Means
Mean
Web
App
0.083333 0.416667
24
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
24
0.457944
0
23
-1.78113
0.044052
1.713872
0.088104
2.068658
Conclusion:
Reject H0 for all phone users and other phone users. Do not reject H0 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
25
Hypothesis:
For each feature:
H0: 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.
Ha: 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
Mean
for all
samples
store locator
game
menu
trivia
coupon
pay via phone
order in advance
iTune
Facebook
1.58
4.02
2.12
2.74
1.74
3.09
2.35
3.16
3.35
response
to Q24
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
mean
1.55
1.59
4.64
3.81
1.55
2.30
3.09
2.62
2.09
1.63
p value
0.42638
0.0062793
0.035652
0.15052
0.045789
No
3.55
Yes
2.94
0.073203
No
Yes
2.91
2.16
0.027943
No
Yes
No
Yes
3.27
3.12
3.36
3.34
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
26
0.48245
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:
H0: The # of app download is the same between iPhone and other phones. (Average the same)
Ha: The # of app download is different between iPhone and other phones. (Average different)
Results:
t-Test: Two-Sample Assuming Equal Variances
iPhone: # apps installed
Other Smartphone apps installed
Mean
18.94
6.35
P(T<=t) two-tail
0.00066365
Conclusion:
Reject Ha, 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.
27
Survey Questions Used: 2 & 26
Hypothesis:
H0: 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
Actual
iPhone
iPhone
Totals
Very Likely
2
3
5
Likely
7
11
18
Neither Likely nor Unlikely
11
8
19
Unlikely
2
2
4
Very Unlikely
3
0
3
Column Totals
25
24
49
NonRow
Expected
iPhone
iPhone
Totals
Very Likely
2.55
2.45
5
Likely
9.18
8.82
18
Neither Likely nor Unlikely
9.69
9.31
19
Unlikely
2.04
1.96
4
Very Unlikely
1.53
1.47
3
Column Totals
25
24
49
Chi Test
0.337355
Conclusion:
The Chi-Square Test revealed that p>alpha therefore reject H0. 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:
28
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:
H0: 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
4
3
17
5
16
1
4
3
3
12
44
App Will Increase
App Will Not
Caribou Shopping Increase Caribou
Expected
Frequency
Shopping Frequency Row Totals
Very Likely
2.91
1.09
4
Likely
12.36
4.64
17
Neither Likely nor Unlikely
11.64
4.36
16
Unlikely
2.91
1.09
4
Very Unlikely
2.18
0.82
3
Column Totals
32
12
44
Chi Test
0.033744714
Conclusion:
The Chi-Square Test revealed that p<alpha therefore reject Ha. 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
______________________________________________________________________________
______
29
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:
H0: 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:
30
Chi-Square Test
Actual
None
Very Likely
Likely
Neither Likely nor Unlikely
Unlikely
Very Unlikely
Column Totals
1-5
0
3
4
1
0
8
Expected
None
1-5
Very Likely
0.67
Likely
3.00
Neither Likely nor Unlikely
3.17
Unlikely
0.67
Very Unlikely
0.50
Column Totals
8
Chi Test
6-10
2
6
1
1
1
11
11-20
0
2
6
0
1
9
6-10
0.92
4.13
4.35
0.92
0.69
11
0.75
3.375
3.5625
0.75
0.5625
9
21-50
1
5
4
0
0
10
Row
Totals
50+
1
2
3
2
1
9
0
0
1
0
0
1
4
18
19
4
3
48
Row
11-20
21-50
50+
Totals
0.833333
0.75
0.08
4
3.75
3.38
0.38
18
3.958333
3.56
0.40
19
0.833333
0.75
0.08
4
0.625
0.56
0.06
3
10
9
1
48
0.647908
Conclusion:
The Chi-Square Test revealed that p>alpha therefore reject H0. There is not a statistical
relationship between people who would use the order feature and the number of applications
they download to their phone.
31