Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
ZEN Motors: Advanced Automobile Concepts
Marketing Research on Advanced Automobile Concepts
Danny Gallagher
East Carolina University
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Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
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Table of Contents
Unit 1: The Usefulness of Marketing Research for AAC………………………………………4
Chapters 1: Advanced Automobile Concepts.......……………..………………..4
Chapter 2: AAC Marketing Research……………………………………………5
Unit 2: Establish Secondary Information Relevant for AAC’s Marketing Situation……………6
Chapter 6: Using Secondary Data and Online Information Databases…………..6
Unit 3: AAC’s Marketing Problem and Corresponding Research Objectives; Evaluation of the
Value of Exploratory and Casual Designs ……………………………………………………..10
Chapter 4: Defining the Problem and Determining Research Objectives ...........10
Chapter 5: Understanding Research Design…………………………………….11
Chapter 8: Utilizing Exploratory and Qualitative Research…………………….13
Unit 4: Descriptive Research, Survey Design and Measurement……………………………….19
Chapter 9: Evaluating Survey Data-Collection Methods……………………….19
Chapter 10: Understanding Measurement in Marketing Research………….......23
Chapter 11: Developing Questions and Designing the Questionnaire…………..27
Unit 5: Sampling Considerations for AAC……………………………………………………...31
Chapter 12: Determining How to Select the Sample………………………….....31
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
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Chapter 13: Determining the Size of a Sample..…………………………………33
Unit 6: Data Collection, Analysis, and Interpretation ………………….………………………..34
Chapter 15: Using Basic Descriptive Analysis…………………………………..34
Chapter 16: Performing Population Estimates and Hypothesis Tests…………...47
Chapter 17: Implementing Basic Differences Tests……………………………..51
Chapter 18: Making Use of Associations Tests…………………………………54
Chapter 19: Understanding Regression Analysis Basics………………………..56
Discussion………………………………………………………………………………………..59
Recommendations……………………………………………………………………………......61
Executive Summary……………………………………………………………………………...62
References………………………………………………………………………………………64
Appendix………………………………………………………………………………………..65
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
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Unit 1: The Usefulness of Marketing Research for AAC
Chapter 1: Advanced Automobile Concepts
Summary
Nick Thomas is the CEO of Advance Automobile Concepts. AAC is a new division of
large automobile manufacturer, the division is ZENs motor. ZENs division has been losing
market share to competitors. ZENs most significant losses are due to growing population of
foreign brands; these foreign brands are Japan and Korea. ZENs division only focuses on large
car models and most of the competitions are small, compact, and efficient cars. Historically,
ZENs cars have been very profitable, so ZEN needs to innovate to keep up with the competition.
Nick needs to decide what to do; he can research in fuel-efficient gasoline, diesel, or hybrid cars,
model designs that fit public, and the future of global warming and alternate fuels. The main
question he has to ask himself is will all the research and changes to the division to keep up with
the competition be worth it?
Identifying Market Opportunities and Problems

Market-demand determination

Product/service-use studies

Environmental analysis studies

Competitive analysis
Generating, Refining, and Evaluating Potential Marketing Actions

Concept tests of proposed new products or services
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts

New-product prototype testing

Pricing tests

Advertising pretesting

Distribution effectiveness studies
Monitoring Marketing Performance?
Improving Marketing as a Process?
Chapter 2: AAC Marketing Research
Question 2 pg. 39
a. Nick should use a descriptive research design because this type of research design
answers the questions of who, what, when, where, and how questions. With all of these
questions answered, Nick will have a better idea of how he approaches the fuel-efficient
car market.
b. Nick must gather mainly primary information in this case. He must conduct research to
answer his problem specifically because this issue relates directly to his company. He
may also use some secondary information that has already been collected by another
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party in order to find out information about the consumers and what they are interested
in.
c. Nick must ask his respondents questions similar to: “How willing are you to buy a fuel
efficient car?”, “What body style of fuel efficient car would most likely catch your eye?”,
“Why are you interested in a fuel efficient vehicle?”
d. Nick should focus his sample on people who live in larger cities, because they are
typically more inclined to look into fuel-efficient cars. Nick should also include people
who already buy larger vehicles from ZEN Motors to see if they would be interested to
see ZEN produce a more fuel-efficient vehicle.
Unit 2: Establishing Secondary Information Relevant for AAC’s Marketing Situation
Chapter 6: Using Secondary Data and Online Information Databases
What types of secondary information should Nick seek?
-To find out which fuel-efficient cars are selling well, Nick should use internal secondary
data to see the sales records, purchase requisitions, and invoices of certain cars and syndicated
services data to find out what is selling most in other firms. To find out which alternate fuel
source are being closest to develop, Nick should use external secondary data such as published
sources where he can read about a variety of alternate fuel and online information databases
where he can search the web to see what other people have researched and what fuel is closest to
being available.
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
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Literature Review
Nick Thomas is CEO of Advanced Automobile Concepts, which is a new division of the
large automobile manufacturer ZEN motors. AAC was created to reinvent the aging ZEN
automobile brands by reengineering existing models or developing a completely new model that
is more in style with the present day market. AAC plans to find out consumer attitudes towards
global warming as it relates to automobile selection. AAC feels that to gain more sales we need
to find the trend of the market and where they are swaying toward buying a new vehicle. With
the effects of global warming, and the loss and over use of fuel, Nick feels that people will be
geared more toward fuel-efficient cars and the availability of alternative fuel. This means
developing a new automobile such as a hybrid will be the way to go.
My task is to research secondary information available on consumer attitudes towards
global warming as it relates to automobile selection, trends in the development and marketability
of fuel-efficient cars and the availability of alternatives fuels, and competitive information on
automotive companies offering fuel-efficient cars.
Selected Research
(2011, June 11). Hybrids are on a high. Evening times. Retrieved April 12, 2012, from
LexisNexis Academic
This study states that with global warming and rising fuel prices that are never out of the
news, most of the public have thought about making distinct efforts to decrease the amount of
pollution that we produce. All of the pollution is enhancing global warming and one of the main
targets is larger 4x4s, powerful sports cars and executive saloons that are producing higher
emissions. It is stated that the road fund license is now encouraging the use of smaller, cleaner,
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
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more economical vehicles with lower CO2 emissions. This smaller cars seem to be what is in
favor for the future market. The trend is swaying toward more economical vehicles and turning
heads toward large, powerful automobiles.
The study also talks about the use of new alternative fuels. The article quotes, “Until we develop
zero-emission hydrogen fuel cell technology, hybrids have a very real place in today’s car
market.” (Evening Times)
ZENs competition, Toyota, has one of the most recognizable hybrid cars in our generation. The
car is one of the highest selling automobiles for Toyota, called the Prius. It is cutting cost and
emissions and has kept a sleek look making it popular amongst more age groups. Unique factors
this car has is solar panels on the roof which recharge the car while it is parked. Even Honda is
producing hybrids such as the Civic Hybird compact saloon. It is a sporty hybrid coupe which
will target younger and older age groups.
In any kind of traffic, the best diesels and gas guzzlers will find it hard to surpass a hybrid.
Hybrids are no doubt more economy friendly, greener, and will save you a ton of money on gas.
It seems that hybrids are the ideal choice in this future environment and economy.
(2012, February 11). A glimpse into the future, auto show to show the latest automobile trends.
The Toronto Star. Retrived April 12, 2012, from LexisNexis Academic
This study looks into the trends of the development and marketability of fuel-efficient
cars with competitive information on automotive companies offering fuel-efficient cars.
According to the study, competitors such as Audi, BMW, Chrysler, Ford, GM, Mercedes,
Toyota, and Honda will be unveiling new models of fuel-efficient cars in the coming years.
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
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The article quotes, “New methods of power to the wheel, higher standards of fuel efficient, onboard electronics, reconfigured interiors and improved safety feature are among the gamechanging trends.” This clearly states what the trends of the upcoming market are, if all of your
competition are starting to invent fuel-efficient hybrid vehicles than that should be a strong sign
of what to invest in.
Olivera, M., Vaughan, B., & Rykiel, E. (2005, July 17). Ethanol as Fuel: Energy, Carbon
Dioxide Balances, and Ecological Footprint. In BioScience. Retrieved April 12, 2012, from
JSTOR (Vol. 55, No. 7)
This study states that there may be more fuel sources than just electric gas. The major
contributor to global warming is considered to be the high levels of greenhouse gas emissions
caused by the burning of fossil fuels to create Carbon Dioxide. This article quotes, “to mitigate
CO2 emissions, renewable energy sources such as ethanol have been seen as a promising
alternative to fossil fuel consumption.” This is relevant because Nick has choices to see what he
wants to do. The trend is geared toward fuel-efficient cars, but if hybrids are a bust you can see
what else is out there.
In conclusion, plenty of information has been attained to help Nick in his studies. It is
relevant that the public agrees that global warming is a threat. Gas guzzling cars are getting the
cold shoulder while hybrids and small fuel-efficient cars are getting all the sales. Competitors are
seeing this trend and starting to build concept hybrid and fuel-efficient vehicles. With the trend
swaying toward that direction I would suggest that Nick follows a similar path toward fuelefficient vehicles. With studies and experiments still in progress with alternative fuel-sources
such as Ethanol, I would suggest Nick plans for a hybrid, fuel-efficient cars.
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Unit 3: AAC’s Marketing Problem and Corresponding Research Objectives; Evaluation of
the Value of Exploratory and Casual Designs
Chapter 4: Defining the Problem and Determining Research Objectives
1. The source of Nick Thomas’s problems comes from a few different things. The main
reason is that ZEN has been slowly losing market share to other competitors. The source
of this is that competitors may be taking on new developing models that are more
competitive in today’s new-car market. Nick needs to decide if he should reengineer
existing models or develop totally new models as well with competitors.
2. The problems facing Nick from the areas identified in The Douglass Report has
everything to do with the 3 areas identified in the TDR. One is the demand for the
different basic models. Nick needs to decide what will be best for the company, there are
the 4 different models mentioned with each its unique trait. Nick needs to look at each
carefully along with what the market seems to be doing and decide on which is best. Nick
will need to identify the market segments because right now ZEN is unsure as to where
the market is going. With the fluctuating oil prices and threat of global warming, Nick
needs to find out how people are reacting to these features and figure out how they will
answer to it. Either by blowing it off or helping the cause by buying a fuel efficient
vehicle. Nick will also need to find out how the market is moving. Will it be efficient if
Nick creates a new model car and will it promote more sales? Or will it back-fire and
cause a loss in the company.
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3. Research Objective: To gather information from a sample of representative of the U.S.
population among those who are “very likely” to purchase a newly designed fuel-efficient
automobile within 6 months after the release, which assesses preferences (measured on a
1-5 scale ranging from “very likely to buy” to “not likely at all to buy”) for the model A.
A very small, one-seat vehicle designed to get near maximum mpg, B. A small, two-seat
vehicle designed to get high mpg C. A larger, economy/compact-sized, four seat vehicle
designed to get good mpg D. A large, standard-size, five/six-seat vehicle with
conventional trunk space designed to get reasonably good mpg. This data would serve as
input into a forecasting model that would forecast unit sales, by geographic regions of the
country, for each combination of the model’s different prices and fuel configurations.
Chapter 5: Understanding Research Design
1. The research design I would suggest for the first set of issues is Descriptive Research.
Descriptive research is used to obtain answers to questions of who, what, where, when,
and how. These are the exact answers that we need to know about our consumers and
how they feel about certain issues, how important these issues are, and what terms they
use to discuss these issues. What I would do with Descriptive Research is to conduct a
sample survey for the consumers. I would conduct a survey with a couple questions
asking the questions that Nick Thomas stated in the paragraph. After the survey, we can
then find out how the consumers feel about issues such as global warming, if they would
give up their SUV, or buy a more fuel-efficient car. Nick would be much more informed
after gaining this information. We could also use Cross-Sectional studies and measure a
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sample of the population at one point in time. This would represent a larger population
and we can see how they interact, talk about topics, and how they choose their products.
This information would also be a great help to Nick and determining how consumers
react.
2. The research design I would suggest for the second paragraph in the case is Exploratory
Research. I would use this because there is very little know about the situation, you can
easily define terms about the problem, and we can clarify problems and hypotheses. I
would conduct the following by first using case analysis to try and see if there was a
previous problem with a different company and find out how they solved it. We can also
use secondary research to find out if there is any information online or in books about
consumer attitudes and purchase intentions of auto models and see if the relationships
vary around the country.(If there is we could save a lot of time and money) Lastly, we
could use focus groups and bring a group of consumers together and find out the
questions asked in the second paragraph.
3. The research design I would suggest for Nick Thomas’s last question is Exploratory
Research. I would use this because it would fit perfectly for the situation. Nick is trying
to figure out how much of an increase in mpg will be needed for consumers to have equal
preference for ZEN models as for those outselling ZEN today he should first go with the
cheaper/efficient route of using secondary data. He can look up in books or online how
consumers react to more mpg cars and the relationship in what number of mpg consumers
look for when buying a car. Or Nick can use Projective Techniques to explore hidden
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consumer motives for buying goods and services by asking participants to project
themselves into a situation and ten to respond to specific questions regarding the
situation. An example can be: If you were going to buy a car, what MPG would you look
for in a car. This would give Nick an insight and what consumers prefer and can match is
ZEN models with the mpg suggested and therefore sell more cars.
Chapter 8: Utilizing Exploratory and Qualitative Research Techniques
Planning Document for Focus Group Study
1. Objectives of Focus Group
-To attain knowledge of customer preferences on car types that differs in size, model, and
miles per gallon.
2. Timeline of Focus Group – Focus Group date: April 25, 2012
-8 weeks prior – identify demographics of participants involved in focus group
- 6 weeks prior – develop test questions associated for participants in focus group
-4 weeks prior – locate site where focus group will be held (ZEN Headquarters)
-2 weeks prior – invite and follow up with participants
-1 week prior – gather materials for focus group
-Launch Date: April 25, 2012
3. Participant Profile
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-Male or Female
-40 – 50 years of age
-High Income - $100,000 +
-Live on the Coast
-Outdoorsy
-Tech-Sawy
-Active
-Educated – College Educated
4. Recruitment Protocol
The first step in recruiting the right participants for our focus group is to determine the
subgroups of the population used in the focus group based on our objectives. ZEN motors
will collaborate with “EarthMagzine,” “MotorTrend,” and “HybridMagazine” to get a list
of all subscribers to the magazine. These magazine subscribers have a lot of similar
demographics that match our focus group. I feel the subscribers to this magazine would
be a good fit to find out what we are looking for during the focus group.
After receiving the subscribers information, we will than go through and define group
participant criteria. Deciding what genders, ethnicity, age, income, or education match up
to what we are looking for in our focus group. Also, we will need to determine other
specific criteria such as “how do you feel about global warming.”
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We will then set a quota for the mixture of respondents in the group. Setting certain
percentages for what we are looking for such as, 60% male and 40% female. Following
the quota, we will then write the screener survey based on the defined participant criteria.
Each question should screen the potential participants to see if they are eligible for the
group. Such questions will be similar to “What kind of car do you drive?”
The next step will be to recruit the actual participants. The method I will use to access the
potential participants is through a telephone call. By using the screener survey, I will be
able to keep track of the census for the focus group and the respondents names, address,
and phone numbers. I will use a random sample to contact each client that fit the
demographics for the focus group.
Lastly, I will send a reminder e-mail with the participants date and time of the focus
group, that will include a map and directions of how to get to ZEN headquarters.
5. Screening Questions
1. “Hello, Can I have a moment of your time to ask you questions about your preference
of automobiles?
2. What is your age and gender?
3. Do you own a car?
4. If so, what model of car do you drive?
5. Around how many miles do you drive a day?
6. What is your level of education?
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7. What is your current occupation?
8. What are some of your favorite hobbies?
9. How do you feel about the environment?
10. Do you expect to buy a car in the next 5 years?
11. Thank you for your time, we will contact you with a follow-up call if you have met
the criteria for the focus group.
6. Logistics for Focus Group
-Location: ZEN Motor Headquarters
-Number of groups: 4-5 Groups
-Incentive: 15$ /Hour
CONFIRMATION LETTER
Focus Group Confirmation Letter
April 12, 2012
Dear______________________,
Thank you for your compliance to participate in our focus group. As we discussed on the
phone, we would like to hear your ideas and opinions about your preferences on car types
that differs in size, model, and miles per gallon at ZEN headquarters. You will be in a
group with 8 to 10 other volunteers, all with similar opinions and backgrounds as you.
Your responses to the questions will be confidential and kept anonymous. You will be
paid $25 an hour for your participation that will be given to you in cash at the end of the
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
focus group. The date, time, and place are listed below. Once entering ZEN motors
facilities please look for signs directing you to the room where the focus group will be
held.
DATE
APRIL 25th, 2012
TIME
10:00 A.M.
PLACE
ZEN HEADQUARTERS
If you need directions to the focus group or something arises that you will not be able to attend.
Please call 1-800-555-5555. Otherwise ZEN motors looks forward to seeing you.
Sincerely,
ZEN Motors
Moderators Guide
Hi, my name is Danny Gallagher. How are you doing today?
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We have asked you here today to partake in this focus group to contribute to current research we
are conducting. You contribution will be doing us a huge favor and ZEN motors is very thankful
for your help. Part of our research committee has invited you to take part in our research to attain
knowledge of customer preferences on car types that differs in size, model, and miles per gallon. We are
pleased to use your input to finalize our research.
I will go over a couple things what will be taking place as we go through the questions:

There will be filming throughout the focus group, so we can look back at the tape in case
we have any questions.

A few people may be watching from an outside room to review reactions toward
questions.
Now we will start the questioning process, here are the following questions:
-
Have you ever taken part in and kind of focus group for research, or something like this
before?
-
What type of vehicle do you drive?
-
How many miles do you drive a day using your automobile?
-
Do you prefer a large automobile or a small automobile?
-
Does the amount of miles per gallon on an automobile effect your decision when buying
an automobile?
-
Would you ever consider a hybrid vehicle?
-
When choosing to buy a vehicle do you base your decision on model types?
-
If do, which model type do you prefer?
-
How do you feel about carbon emissions due from car pollution and the effects on the
environment?
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-
Do you consider yourself a green individual?
-
If you had the option of choosing a regular compact car for $3,000 less than the same car
but a hybrid model type, would you choose the gas compact car or electric hybrid?
-
Would you want your hybrid type model to be a sleeker more up-to-date model or does
model type not distort your decision when going greener?
-
Lastly, can you describe your perfect hybrid model? State the model type, size, mile per
gallon, and price.
You have just completed the focus group research. Thank you very much for participating. You have been
a tremendous help to our research, and we greatly appreciate it. As we have promised, you have been paid
$25.00 for every hour you have been here. You can collect your cash at the front desk on your way out.
Thank you for your time and input.
Unit 4: Descriptive Research, Survey Design and Measurement
Chapter 9 (Data Collection Mode): Evaluating Survey Data-Collection Methods
1. Mail Surveys have pros, cons, and special considerations.
a. The Pros of mail surveys are: They are self-administered, there are no interviewers to
recruit, train, monitor, and compensate. Mailing lists are readily available from
companies that specialize in this particular business, which makes it easy to target
very specific groups of target respondents. All of these Pros would be a great benefit
associated with achieving the overriding objective of the survey because you would
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be able to target a wide-variety audience, its cheap, and if you are asking the right
questions it will be accurate.
b. The Cons of mail surveys are associated with two major problems which are
nonresponse and self-selection bias. Nonresponse is when people receive the survey,
but they do not fill it out or return it. This will be a problem because if you have a lot
of nonresponse it can alter the accuracy in your research. The second is self-selection
bias, which means that those who do respond are most likely different from those
who do not fill out and return the questionnaire. As a result, the sample collected
through this method may be nonrepresentative of the general population.
c. The special considerations to focus on when using Mail Surveys is although there are
two major Cons in these surveys, there is greater benefit that makes these surveys
powerful, effective, and efficient.
2. The system I would use for this situation is Centralized Telephone Interview Facilities
(CATI) because although it has its Pros and Cons, I feel the benefits outweigh the
negatives and it would be a good fit for our situation. Before I introduce the Pros and
Cons I will elaborate on what CATI exactly is. With Cati, the interviewer reads the
questions from a computer screen and enters respondents’ answers directly into the
computer program.
a. The Pros of CATI are as follows: The computer can be used to customize questions,
eliminates the need for editing completed questionnaires and creating computer data
files by manually entering in every response, there is no need to check for errors,
there are no impossible answers, tabulations may be run at any point in the study, and
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managers may find the early reporting of survey results useful in preliminary
planning and strategy development. All of these benefits would fit perfectly with
achieving the overriding objective of the survey because the surveys would not be to
painful, it will have amazing accuracy, it can create questions to fit perfectly with
what we are researching, and it is very effective and efficient.
b. The Cons of CATI are as follows: It may be difficult to get people to come to the
centralized location to take the surveys, you will first have to find the right target
market to answer the questions, so that the survey is accurate, and the phone surveys
may be hassle and annoying to most people. They have to take time out of their day to
go through a bunch of questions that may not even be relevant to them.
c. The Special Considerations to focus on when using CATI are: These telephone
surveys are the most advanced telephone interviews, they are efficient and effective,
and using these systems would be a great advantage to achieving the overriding
objective of the survey.
3. The following data collection methods are not likely to achieve the overriding objective.
a. Drop-Off Surveys: These surveys are geared toward local market research, this is not
what our objective is about. We are trying to reach a wide-variety of the market
where we can reach hundreds, thousands, or even tens of thousands.
b. Group-Administered Surveys: These kind of surveys would take way to much time to
gain the necessary research from the right target market groups. Going from place to
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place handing out surveys in groups of 20-30 is ineffective and time consuming
compared with the other options you have.
c. Mall-Intercept Survey: These surveys would be a waste of money, waste of time, and
ineffective for our objectives. Not a lot of people want to take time out of their day,
(especially while they are shopping and doing something they need to get done) to fill
out a survey. Right there you are going to get lack of participants. You will waste
your time because you will be standing around interviewing maybe a couple people at
a time, but those people will be hard to come by. We are trying to reach out to the
thousands and Mall-Intercept Surveys are not going to cut it.
4. Compare the use of an in-home method to the use of an online method for the Advanced
Automobile Concepts survey.
In-home method: This is conducted by an interviewer who enters the home of the
respondent.
a. Pros: Useful when the research objective requires respondents’ physical presence to
see, read, touch, use, or interact with the research object. Respondent has the security
and comfort of being in their own home.
b. Cons: Takes longer to recruit participants for in-home interviews and researches must
travel to and from respondents homes. Cost per interview is high, and it is not good
for conducting a wide-variety target group. These interviews are more specific and
take time interviewing a couple people at a time.
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Online Interviews: In which the respondent answers questions online.
a. Pros: Fast, easy, and inexpensive. Accommodate all of the standard question formats
and are very flexible, including the ability to present pictures, diagrams, or displays to
respondents. You can target and hit thousands of people.
b. Cons: difficult achieving sample representativeness, respondent validation, and
asking probing questions. These surveys can get repetitive and boring which lose the
attraction to the respondents. If it is not geared toward something that interests the
respondent then they can easily just blow it off which will make it more difficult to
get an accurate read on your target population.
I would recommend Online Interviews for our objective. We are trying to target a
vast amount of people and the most efficient way is with Online Interviews. They are
fast, easy, and inexpensive we can target a lot of people at one time, and we can
customize questions to fit the needs of what we are looking for. This easily trumps inhome method where we do not need to be in the physical presence of our respondent
and there is no need to be traveling all over the place to get our research. Therefore,
Online Interviews would be much more effective than In-Home methods.
Chapter 10 (Measurement): Understanding Measurement in Marketing Research
Online Survey for AAC:
1. The vehicle I own is?
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
Size:
Type:
-Ratio-Scaled
Model:
2. Do you think global warming exists?
A. Yes
-Nominal
B. No
3. Do you think the use of gasoline has a strong impact on global warming? - Interval
Strongly Agree
-NeutralStrongly Disagree
Scaled
4. How do you feel about gasoline price levels and trends?
A. They will rise with trends, and not go back down.
B. They will rise with trends, but eventually go back down.
C. They will not rise with trends, and remain the same.
D. They will lower with trends, but eventually go up.
5. What is your opinion on the impact of alternative-fuel automobiles (such as hybrids,
synthetic fuels, electric, etc.) on global warming
A. Positive impact
B. Negative Impact
-Nominal
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Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
6. Would you buy an alternative-fuel automobile?
A. Yes
B. No
-Nominal
7. What is your preference for various sizes of alternative – fuel automobiles.
A. Mini
B. Economy 2-door
-Nominal
C. Economy 4-door
D. Standard
8. Do you feel that media and the things you watch or are involved in will influence your
buyer decisions?
A. Yes
-Nominal
B. No
9. Preferred Television Show?
A. Drama
B. Mini-Series
C. Sports
10. Preferred Magazine type?
-Nominal
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Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
A. Business and Finance
B. Family Living
-Nominal
C. Travel
11. Preferred Radio Music Genre?
A. Rock
B. Jazz
-Nominal
C. Easy listening
D. Rap
12. Preferred Newspaper section?
A. Local news
B. Sports
-Nominal
C. Editorial
13. Do you buy cars based on looks and perks or the impact it has on the environment?
A. Looks and Perks
B. Environmental Impact
-Nominal
14. Would you buy a car that is environmentally friendly if it was stylish and had good
perks?
A. Yes
B. No
-Nominal
26
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
15. What is your gender?
A. Male
B. Female
-Nominal
16. What is your age?
A. 18-24
B. 25-44
-Nominal
C. 45-64
D. 65+
17. What is your income?
A. $0 - $25,000
B. $25,000 - $50,000
C. $50,000 - $75,000
-Nominal
D. $75,000 - $100,000
E. $100,000 +
Chapter 11 (Survey Design): Developing Questions and Designing the Questionnaire
Online Survey for AAC:
1. The vehicle I own is?
27
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
Size:
Type:
Model:
2. Do you think global warming exists?
A. Yes (1)
B. No (2)
3. Do you think the use of gasoline has a strong impact on global warming? - Interval
Strongly Agree (1)
-Neutral-
(2)
Strongly Disagree (3)
4. How do you feel about gasoline price levels and trends?
A. They will rise with trends, and not go back down. (1)
B. They will rise with trends, but eventually go back down. (2)
C. They will not rise with trends, and remain the same. (3)
D. They will lower with trends, but eventually go up. (4)
5. What is your opinion on the impact of alternative-fuel automobiles (such as hybrids,
synthetic fuels, electric, etc.) on global warming
A. Positive impact (1)
B. Negative Impact (2)
28
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
6. Would you buy an alternative-fuel automobile?
A. Yes (1)
B. No (2)
7. What is your preference for various sizes of alternative – fuel automobiles.
A. Mini (1)
B. Economy 2-door (2)
C. Economy 4-door (3)
D. Standard (4)
8. Do you feel that media and the things you watch or are involved in will influence your
buyer decisions?
A. Yes (1)
B. No (2)
9. Preferred Television Show?
A. Drama (1)
B. Mini-Series (2)
C. Sports (3)
10. Preferred Magazine type?
A. Business and Finance (1)
29
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
B. Family Living (2)
C. Travel (3)
11. Preferred Radio Music Genre?
A. Rock (1)
B. Jazz (2)
C. Easy listening (3)
D. Rap (4)
12. Preferred Newspaper section?
A. Local news (1)
B. Sports
(2)
C. Editorial (3)
13. Do you buy cars based on looks and perks or the impact it has on the environment?
A. Looks and Perks (1)
B. Environmental Impact (2)
14. Would you buy a car that is environmentally friendly if it was stylish and had good
perks?
A. Yes (1)
B. No (2)
30
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
31
15. What is your gender?
A. Male (1)
B. Female (2)
16. What is your age?
A. 18-24 (1)
B. 25-44 (2)
C. 45-64 (3)
D. 65+ (4)
17. What is your income?
A. $0 - $25,000 (1)
B. $25,000 - $50,000 (2)
C. $50,000 - $75,000 (3)
D. $75,000 - $100,000 (4)
E. $100,000 + (5)
Unit 5: Sampling Considerations for AAC
Chapter 12: Determining How to Select the Sample
1. “Households in the United States of car-owners or non-owners interested in purchasing a
fuel-efficient car”
2. Probability Sampling Method
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
32
a. A telephone survey – Telephone numbers of customers listed at major car dealers
b. A mail survey – Mailing list of subscribers to MotorTrend magainze
c. An online survey – E-mail addresses of those registered with major car dealerships
3. The practical problems involved with drawing a simple random sample of American
households is that in simple random sample you need a complete listing of the
population, and obtaining a current and complete listing is hard to get. If you do not have
this accurate list it can lead to a lot of sample frame error which would make the research
not very accurate. Also, having a list of the current and complete population, you would
obtain names that are not part of the frame you are looking for. For instance, a 12 year
old in a household would not be part of the frame you need for surveying.
4. The advantages and disadvantages of random digit dialing are as follows:
Advantages:
-Overcomes problems of unlisted and new telephone numbers
-Has variations to reduce problems such as plus-one dialing procedure
-Can be used in a great variety of situations
-Can work with random numbers of as many digits necessary. Ex: Telephone Numbers,
Social Security Numbers, Credit Card Numbers
Disadvantages:
-May result in a large number of calls to non-existing telephone numbers.
-Annoyed customers or respondents getting unwanted calls
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
33
-
5. Yes, I believe Advanced Automobile Concept should use a probability online panel such
as the one maintained by Knowledge Networks mainly for the reason being that you can
reach a wide target market effectively, efficiently, and for a low cost. Which leads to the
advantages of probability online panels which are the enormous cost benefits, you can
test various concepts online, present images and videos to the selected panelists, and be
able to obtain valuable data that cannot be obtained effectively in other ways. The
disadvantages involved using this approach is that the respondents’ identity is difficult to
check, more dishonesty in online panels in which the respondent can use help to answer
questions in surveys, you usually have shorter max. in questionnaire length, and a limit
on open-ended questions. Overall the advantages clearly outweigh the disadvantages and
for the wide target population Advanced Automobile is looking for I feel that probability
online panel would be a good choice.
Chapter 13: Determining the Size of a Sample
1. Sample Size of 20,000: 20,000 * 10 = 200,000: Sample Error = 1.96 * .35 = .686
2. Sample Size of 10,000: 10,000 * 10 = 100,000: Sample Error = 1.96 * .5 = .98
3. Sample Size of 5,000: 5,000 * 10 = 50,000: Sample Error = 1.96 * .71 = 1.39
4. Sample Size of 2,500: 2,500 * 10 = 25,000: Sample Error = 1.96 * 1 = 1.96
5. Sample Size of 1,000: 1,000 * 10 = 10,000: Sample Error = 1.96 * 1.58 = 3.09
6. Sample Size of 500: 500 * 10 = 5,000: Sample Error = 1.96 * 2.2 = 4.312
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
34
Unit 6: Data Collection, Analysis, and Interpretation
Chapter 15: Basic Descriptive Analysis
What is the demographic composition of the sample?
The demographics composition of the Hometown Size was fairly similar among our
respondents. The range was from 15.4% at under 10,000 to 26.7% for 1 million or more.
Size of home town or city
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
Under 10,000
154
15.4
15.4
15.4
10,00 to 99,999
177
17.7
17.7
33.1
100,000 to 499,999
176
17.6
17.6
50.7
500,000 to 1 million
226
22.6
22.6
73.3
1 million and more
267
26.7
26.7
100.0
1000
100.0
100.0
Total
The gender of our respondents were about even with males being 50.5% and females
49.5%, the marital status was also about even with 51.3% married and 48.7% unmarried.
Gender
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
Male
505
50.5
50.5
50.5
Female
495
49.5
49.5
100.0
1000
100.0
100.0
Total
Marital status
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
Unmarried
487
48.7
48.7
48.7
Married
513
51.3
51.3
100.0
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
35
Gender
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
Male
505
50.5
50.5
50.5
Female
495
49.5
49.5
100.0
Total
1000
100.0
100.0
The number of people in household varied more with a lot more respondents having 1 or
2 people in a household and dropping vastly with 3-9 in a household.
Number of people in household
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
1
395
39.5
39.5
39.5
2
307
30.7
30.7
70.2
3
109
10.9
10.9
81.1
4
104
10.4
10.4
91.5
5
64
6.4
6.4
97.9
6
13
1.3
1.3
99.2
7
5
.5
.5
99.7
8
2
.2
.2
99.9
9
1
.1
.1
100.0
1000
100.0
100.0
Total
Age Category showed the highest percentage at 25.6% for ages between 35 and 49, there
was not much variance between ages with lowest percentage at 12.1% for ages between
18 and 24.
Age category
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
Between 18 and 24
121
12.1
12.1
12.1
Between 25 and 34
174
17.4
17.4
29.5
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
Between 35 and 49
256
25.6
25.6
55.1
Between 50 and 64
239
23.9
23.9
79.0
65 and older
210
21.0
21.0
100.0
1000
100.0
100.0
Total
36
More people who responded to our survey had a level of education with a high school
degree at 29.8%, there was not a lot of variation in level of education respondents with
lowest percentage being Post-undergraduate degree at 7.2%.
Level of education
Cumulative
Frequency
Valid
Did not complete high
Percent
Valid Percent
Percent
194
19.4
19.4
19.4
High school degree
298
29.8
29.8
49.2
Some college
214
21.4
21.4
70.6
College degree
222
22.2
22.2
92.8
72
7.2
7.2
100.0
1000
100.0
100.0
school
Post-undergraduate degree
Total
The highest respondents in our Job Type Category section was people in Sales and
Office positions at a 28.5%, there was a wide variety of different job types so the
percentages were spread out and there was not a big difference in the percentages of
different jobs. Our lowest percentages came from Agricultural and Natural Resources at a
2.9%.
Job category
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
Managerial and Professional
246
24.6
24.6
24.6
Sales and Office
285
28.5
28.5
53.1
Service
120
12.0
12.0
65.1
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
Agricultural and Natural
29
2.9
2.9
68.0
75
7.5
7.5
75.5
102
10.2
10.2
85.7
143
14.3
14.3
100.0
1000
100.0
100.0
37
Resources
Precision Production, Craft,
Repair
Operation, Fabrication,
General Labor
Retired
Total
Income Category showed more variance with most people between $25,000 and $49,999
at a 34.3% and the lowest Income at $125,000 and higher at 7%
Income category
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
Under $25,000
256
25.6
25.6
25.6
Between $25,000 and
343
34.3
34.3
59.9
194
19.4
19.4
79.3
137
13.7
13.7
93.0
70
7.0
7.0
100.0
1000
100.0
100.0
$49,999
Between $50,000 and
$74,999
Between $75,000 and
$124,999
$125,000 and higher
Total
Dwelling Type had a wide variety with a lot of variance between respondents. Most respondents were
single-family that made up almost half the respondents at 45.2% , the least amount of respondents fell in
to the category of Mobile Home with only 6.7%.
Dwelling type
Cumulative
Frequency
Percent
Valid Percent
Percent
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
Valid
Single-family
452
45.2
45.2
45.2
Multiple-Family
296
29.6
29.6
74.8
Condominium/Townhouse
185
18.5
18.5
93.3
67
6.7
6.7
100.0
1000
100.0
100.0
Mobile Home
Total
38
1. What is the automobile ownership profile of respondents in the survey?
The automobile ownership profile of respondents in the survey tend to be geared at an
Economy Primary Vehicle price type, with their Primary Vehicle Type being a Car, and
the type of commuting being Single Occupancy.
From the Primary Vehicle Price type you can see that the highest percentage (almost half)
of respondents chose to have an Economy price type. About 25% chose Standard and
very few chose Luxury or No vehicle.
Primary vehicle price type
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
No vehicle
100
10.0
10.0
10.0
Economy
455
45.5
45.5
55.5
Standard
271
27.1
27.1
82.6
Luxury
174
17.4
17.4
100.0
1000
100.0
100.0
Total
Looking at Primary Vehicle type you can see that it is very similar to the Primary Vehicle
price type table. This is because the people who chose Economy price type also chose
Car for their primary vehicle. From these 2 tables you can see that our respondents are
geared more toward Economy Cars.
Primary vehicle type
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
39
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
No vehicle
100
10.0
10.0
10.0
Car
432
43.2
43.2
53.2
Pick-Up Truck
210
21.0
21.0
74.2
SUV, Van
258
25.8
25.8
100.0
1000
100.0
100.0
Total
Type of commuting table showed how our respondents tend to travel. From our
information we can see that more than half of our respondents travel alone (single
occupancy). From all the information gathered we see that our profile of respondents is a
Single Occupancy, Economy Car driver.
Type of commuting
Cumulative
Frequency
Valid
Single occupancy
Percent
Valid Percent
Percent
588
58.8
58.8
58.8
62
6.2
6.2
65.0
Public transportation
188
18.8
18.8
83.8
Non-motorized
125
12.5
12.5
96.3
Telecommute
37
3.7
3.7
100.0
1000
100.0
100.0
Multiple occupancy
Total
2. How do respondents feel about (1) global warming and (2) the use of gasoline?
I ran a cross-tabulation of both global warming and the use of gasoline to see how the
respondents felt about both topics. The following are the conclusions I have found for
each cross-tabulation.
For the respondents who are worried about global warming, but feel that gasoline
emissions contribute to global warming, Americans uses to much gasoline, and we should
be looking for gasoline substitutes the results for each cross-tabulation are very similar.
The conclusion I found was that the majority Very Strongly Agreed that they are worried
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
40
about global warming and they all agree that gasoline emissions contribute to global
warming, Americans use to much gasoline, and we should be looking for gasoline
substitutes. Although some respondents answers were different a vast majority very
strongly agreed, this shows that more people are worried and we should be focused on the
majority.
I am worried about global warming. * Gasoline emissions contribute to global warming.
Crosstabulation
Count
Gasoline emissions contribute to global warming.
Very
Niether
strongly Strongly
I am worried
Very strongly
about global
disagree
warming.
Strongly
disagre
Very
disagre
disagre
Disag
e nor
Agre
e
ed
ree
agree
e
Strongly strongly
agree
agree
Total
3
4
0
6
1
1
0
15
11
3
2
6
1
1
1
25
8
12
2
10
2
1
3
38
20
10
4
15
7
6
14
76
Agree
20
13
2
14
9
4
26
88
Strongly agree
18
15
9
16
6
12
54
130
Very strongly
60
40
40
60
49
66
313
628
140
97
59
127
75
91
411 1000
disagree
Disagree
Niether
disagree nor
agree
agree
Total
From the results I found of the respondents opinions on if global warming is a real threat
the results seems to be almost exact has the cross-tabulation for the I am worried about
global warming. The large majority very strongly agreed that global warming is a real
threat and that Americans use to much gasoline, we should be looking for gasoline
substitutes, and gasoline emissions contribute to global warming. Between the two cross-
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
41
tabulations there was hardly a difference in the results except by +/- 20 people on each
section.
Global warming is a real threat. * Americans use too much gasoline. Crosstabulation
Count
Americans use too much gasoline.
Very
Niether
strongly Strongly
Global
Very strongly
warming is a
disagree
real threat.
Strongly
disagre
Very
disagre
disagre
Disag
e nor
Agre
e
ed
ree
agree
e
Strongly strongly
agree
agree
Total
5
9
8
8
7
2
11
50
2
8
4
4
8
5
11
42
Disagree
8
10
8
12
7
5
15
65
Niether
9
13
9
28
8
8
20
95
8
15
10
14
8
8
34
97
Strongly agree
12
16
18
19
14
14
34
127
Very strongly
25
27
23
59
60
52
278
524
69
98
80
144
112
94
403 1000
disagree
disagree nor
agree
Agree
agree
Total
The last cross-tabulation showing how the respondents felt about needing to do
something to slow global warming was also very similar to the two other crosstabulations. The majority chose Very Strongly Agree on both topics. This is a major
finding in our research. Not only have we found how respondents feel about global
warming and the use of gasoline, we have also found the profile of our majority of
respondents, how they feel, and their opinion on the subjects.
We need to do something to slow global warming. * We should be looking for gasoline substitutes.
Crosstabulation
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
42
Count
We should be looking for gasoline substitutes.
Very
Niether
strongly Strongly
We need to do Very strongly
disagre
Very
disagre
disagre
Disag
e nor
Agre
e
ed
ree
agree
e
Strongly strongly
agree
agree
Total
17
12
7
1
3
6
11
57
13
15
6
4
4
9
20
71
Disagree
10
5
1
10
2
9
15
52
Niether
20
6
7
10
21
20
48
132
6
7
5
7
18
12
58
113
Strongly agree
18
11
11
16
19
20
52
147
Very strongly
29
17
34
42
43
41
222
428
113
73
71
90
110
117
something to
disagree
slow global
Strongly
warming.
disagree
disagree nor
agree
Agree
agree
Total
426 1000
3. What are the respondents’ opinion about the effects of the use of various kinds of hybrid
vehicles?
There were 5 different kinds of hybrid vehicles that were used in the survey. Consisting
of Super cycle 1-seat, Runabout Sport 2-seat, Runabout with Luggage 2-seat, Economy
4-seat, and the Standard 4-seat. After running the test, I found out what our respondents’
felt about each type of hybrid.
For the Super Cycle 1-seat, the tables showed that more respondents disliked the Super
Cycle 1 seat hybrid. The majority showed over half the respondents on the undesirable
side of the scaled rather than desirable. Even with the high 120 mpg in the city, people
still felt this is not what they desired. The theory behind this information is that most
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
43
people are enjoy having at least one more seat when they drive, so that they can drive
friends or family with them. That is why a one seat car is undesirable to most people.
Preference: Super Cycle 1 seat hybrid
Frequency
Very undesirable
180
Undesirable
199
Somewhat undesirable
189
Neutral
198
Somewhat desirable
109
Desirable
61
Very desirable
64
Total
1000
Our next table is the Runabout Sport 2-seat 90mpg city, 80 mpg highway, which showed
not a lot of desire one way or another. Most respondents chose right in the middle toward
Somewhat undesirable, Neutral, and Somewhat desirable. The respondents are now
choosing more up the chart toward desirable, but not yet there. With the option of a 2 seat
hybrid is more appealing than the 1 seat, it is not yet what our target market wants.
Preference: Runabout Sport 2 seat hybrid
Frequency
Valid
Very undesirable
73
Undesirable
86
Somewhat undesirable
174
Neutral
213
Somewhat desirable
196
Desirable
139
Very desirable
119
Total
1000
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
44
The Runabout with Luggage 2-seat 80 mpg city, 70 mpg highway was about even all over the desirable
scale. There was no major preference toward this vehicle except that it was not very desirable. As for now
I would still wait on which hybrid vehicle to concentrate on because there is no major preference for any
of the vehicles yet.
Preference: Runabout with Luggage 2 seat hybrid
Frequency
Valid
Very undesirable
180
Undesirable
108
Somewhat undesirable
144
Neutral
153
Somewhat desirable
195
Desirable
169
Very desirable
Total
51
1000
The Economy 4-seat 70mpg city, 60 mpg highway is much like the Runabout with Luggage except a little
more undesirable amongst our respondents. It seems that most of our respondents don’t have a strong
opinion toward a Runabout or an Economy car even with the extra room and good MPG per car.
Although we can see that more respondents are gearing more toward the desirable part of the scale with
the Economy type car.
Preference: Economy 4 seat hybrid
Frequency
Valid
Very undesirable
174
Undesirable
172
Somewhat undesirable
180
Neutral
180
Somewhat desirable
129
Desirable
83
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
Very desirable
45
82
Total
1000
The Standard 4-seat; 60 mpg city, 50 mpg highway is our most preferred car amongst our respondents.
The statistics show a strong answer that the vast majority of our respondents find this car desirable. It is a
4-seat that most our respondents tend to find desirable, but it seems that most of our respondents like the
standard version of the car. The Standard has less mpg than any other hybrid and the respondents still
prefer this hybrid over the rest. It shows that our respondents are not against hybrid cars, but like cars
similar to what they already know.
Preference: Standard 4 seat hybrid
Frequency
Very undesirable
31
Undesirable
48
Somewhat undesirable
117
Neutral
175
Somewhat desirable
209
Desirable
203
Very desirable
217
Total
1000
4. What size of “new” automobile (very small with very high mpg, small with high mpg,
and hybrid using alternative fuels) do people in the sample believe are likely to have the
most positive effects?
After running the test, there is a unanimous agreement that the majority of our
respondents feel that Hybrid Autos will reduce fuel emission, keep gas prices down, and
slow down global warming. Very small autos and Small Autos were similar in statistics
to hybrids in that our respondents felt that they would both have a positive effect on
emissions, gas prices, and global warming. Even though both Autos were close, the
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
46
Hybrid models still have a majority of preference that they strongly agreed. The statistics
read that for very small autos the amount of respondents who very strongly agreed were
836 people. For small autos the number was 1046 people and for hybrid models the
number of respondents totaled 1,320. This tells Nick that we should keep our focus on
hybrid models because the market segment is tending to sway more toward hybrids,
reducing fuel emissions, keeping gas prices down, and slowing global warming.
5. What type of hybrid automobile is the most attractive to people in the sample in terms of
likelihood of purchase in the next 3 years? What type is least attractive?
After running a descriptive statistic table for likelihood of purchase in the next 3 years, I
have found the mean for the probability of buying all types of cars. The mission was to
see what car was most attractive in sample terms of likelihood of purchase in the next 3
years. The best way to determine this was to find the mean, the mean is the average of all
people who picked each car. The higher the mean, the more probability the respondents
will buy that car. According to the graph, the hybrid automobile that is most attractive to
people in the sample in terms of likelihood of purchase in the next 3 years is the standard
size synthetic fuel auto with a mean score of 40.17. The model that was least attractive to
purchase in the next 3 years was a very small (1 seat) hybrid auto with a mean score of
13.78.
Descriptive Statistics
N
Probability of buying a very
Minimum
Maximum
Mean
Std. Deviation
1000
0
100
13.78
23.088
1000
0
90
20.59
19.285
1000
0
100
30.12
21.205
small (1 seat) hybrid auto
within 3 years
Probability of buying a small (2
seat) hybrid auto within 3 years
Probability of buying a standard
size hybrid auto within 3 years
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
Probability of buying a standard
47
1000
0
100
40.17
21.465
1000
0
100
34.64
22.090
size synthetic fuel auto within 3
years
Probability of buying a standard
size electric auto within 3 years
Valid N (listwise)
1000
Chapter 16: Performing Population Estimates and Hypothesis Tests
What percentage of the American public owns
a. Standard Vehicle, Luxury Vehicle, SUV or van
After running the frequency table to find out what percentage of the American
public owns certain types of vehicles, I have found that 27.1% of Americans own
a Standard Vehicle, 17.4% own a Luxury Vehicle, and 25.8% own an SUV or
Van. For the Primary vehicle type the highest percentage car owned was the
Economy type with 45.5%, this shows that Economy is the most popular among
Americans at the time and is something to focus on in future research. We have
also found out that most Americans drive cars instead of trucks or SUVs. This
should be also taken in to consideration when creating a new type of car. The car
invented should help the economy and be smaller and compact like a basic car.
Primary vehicle price type
Frequency
Valid
Percent
No vehicle
100
10.0
Economy
455
45.5
Standard
271
27.1
Luxury
174
17.4
1000
100.0
Total
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
48
Primary vehicle type
Frequency
Valid
Percent
No vehicle
100
10.0
Car
432
43.2
Pick-Up Truck
210
21.0
SUV, Van
258
25.8
1000
100.0
Total
1. How does the American public feel about the following statements:
a. Hybrid autos that use alternative fuels will reduce fuel emissions
According to the frequency table that was used to find out how Americans felt
about these 3 statements, I have found that for statement number one, “Hybrid
autos that use alternative fuels will reduce fuel emissions,” the major majority
agreed that this statement was true. The statistics were 639 – agreed and 361 –
disagreed. This proves that the respondents are leaning more toward hybrid autos.
Hybrid autos that use alternative fuels will reduce fuel emissions.
Frequency
Valid
Very strongly disagree
Percent
101
10.1
38
3.8
Disagree
101
10.1
Niether disagree nor agree
121
12.1
95
9.5
Strongly agree
147
14.7
Very strongly agree
397
39.7
1000
100.0
Strongly disagree
Agree
Total
b. Hybrid autos that use alternative fuels will keep gas prices down
According to this frequency table, it is very similar to the first statement that the
vast majority of our respondents also agreed with this statement as well. The
statistics showed that 772 respondents agreed and 228 disagreed. This was an
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
49
even greater majority than the first statement. This shows that our respondents
strongly agree with hybrids keeping gas prices down and would be willing to buy
one.
Hybrid autos that use alternative fuels will keep gas prices down.
Frequency
Valid
Very strongly disagree
Percent
109
10.9
Strongly disagree
43
4.3
Disagree
49
4.9
Niether disagree nor agree
27
2.7
Agree
23
2.3
Strongly agree
35
3.5
714
71.4
1000
100.0
Very strongly agree
Total
c. Hybrid autos that use alternative fuels will slow down global warming
From the research on statement 3, I have found that our respondents tend to
disagree that hybrid autos that use alternative fuels will slow down global
warming. That statistics read that 541 disagreed and 459 agreed with this
statement. This is odd because the previous statements showed that our
respondents believed hybrids would reduce fuel emissions and keep gas prices
down, but it comes pretty even that it will slow down global warming. Overall,
our respondents do prefer hybrid vehicles and even though it is pretty even when
it comes to slowing down global warming, consumers will still lean toward hybrid
vehicles from the benefits that they come with.
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
Hybrid autos that use alternative fuels will slow down global warming.
Frequency
Valid
Percent
Very strongly disagree
168
16.8
Strongly disagree
126
12.6
Disagree
144
14.4
Niether disagree nor agree
103
10.3
Agree
164
16.4
86
8.6
209
20.9
1000
100.0
Strongly agree
Very strongly agree
Total
2. Test these hypotheses with the findings from the survey
 Probability of buying a very small (1-seat) hybrid auto within 3 years?
o 5%
 The hypotheses is rejected

Probability of buying a small (2-seat) hybrid auto within 3 years?
o 5%
 The hypotheses is rejected

Probability of buying a standard-size hybrid auto within 3 years?
o 15 %
 The hypotheses is rejected

Probability of buying a standard-size synthetic fuel auto within 3 years?
o 15 %
 The hypotheses is rejected
50
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts

51
Probability of buying a standard-size electric auto within 3 years?
o 20 %
 The hypotheses is rejected
3. Using the findings from the survey, estimate the number of vehicles of each of the
following hybrid types that are expected to be purchased over the next 3 years:
The way I found out the estimate number of vehicles of each of the following hybrid
types that are expected to be purchased over the next 3 years was to gather the
percentage of people that were at least 80% sure of buying that car model, and
multiplying that number by 111,617,402 which is the estimated American
households.
a. Very small (1-seat) hybrid auto – .034(111,617,402) = 3,794,991.668
b. Small (2-seat) hybrid auto – .01(111,617,402) = 1,116,174.020
c. Standard-size hybrid auto – .023(111,617,402) = 2,567,200.246
d. Standard-size electric auto – .04(111617402) = 4,464,696.080
e. Standard-size synthetic fuel auto – .052(111,617,402) = 5,804,104.904
Chapter 17: Implementing Basic Differences Tests
1. Super Cycle One-Seat: 120+ mpg city
Demographic Factor
Target Market
Gender
Male
Marital Status
Unmarried
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
Age Category
21 – 29
Education Category
Some High School Education
High School Diploma
Some College
Income Category
$20,000 - $37,499
Hometown Size Category
1,500,000 +
2. Runabout Sport two-seat: 90 mpg city, 80 mpg highway
Demographic Factor
Target Market
Gender
Males and Females
Marital Status
Unmarried
Age Category
21 – 29
Education Category
Some High School Education
High School Diploma
Some College
Income Category
$20,000 - $37,499
Hometown Size Category
1,500,000 +
3. Runabout with Luggage two-seat, 80 mpg city, 70 mpg highway
Demographic Factor
Target Market
Gender
Male or Female
Marital Status
Unmarried or Married
Age Category
30 – 41
Education Category
Completed College
52
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
Some College
Income Category
$37,500 - $62,499 and $62,500 - $99,999
Hometown Size Category
1,500,000 +
4. Economy four-seat, 7- mpg city, 60 mpg highway
Demographic Factor
Target Market
Gender
Male or Female
Marital Status
Married
Age Category
57 – 69
Education Category
Post College Education
Completed College
Income Category
$100,000 - $150,000 +
Hometown Size Category
300,000 – 749,999, 750,000 – 1,499,999
5. Standard four-seat, 60 mpg city, 50 mpg highway
Demographic Factor
Target Market
Gender
Female
Marital Status
Married
Age Category
57 – 69, 42 – 56
Education Category
Post College Education
Completed College
Income Category
$100,000 - $149,999; $150,000 +
53
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
54
5,000 – 54,999; 55,000 – 299,999; 300,000 –
Hometown Size Category
749,999; 750,000 – 1,499,999
Chapter 18: Making Use of Associations Tests
1. Each of the demographic profiles below have a different media vehicle that would be
most effective for the type of vehicle. The best way to find this information was to run a
cross tabulation with a chi square diagram to display the significance levels for each item.
Below is the description of each medium of the demographic profile.
a. Gender – According to this demographic, magazines would be the most effective
media vehicle. This becomes clear by the media vehicle being the only one with a
significance level below .05.
b. Marital Status – This demographic is approximately the same as the output for the
gender demographic. Marital status has one media vehicle with a significance
level below .05. Magazines seem to be the most effective form of media.
c. Age – For this demographic profile, age was the first category to have all media
vehicles with a significance level below .05. The method to use to define which
one would be most effective is to look at all the total outputs. Depending on the
demographic profile previously selected, the most popular selection would be the
media vehicle that’s most effective.
d. Education Level – This demographic component had similar results to the
previous demographic, age. All of the media vehicles had significance levels that
were below .05. This makes all of them adequate way of communicating with the
sample.
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
55
e. Income – Similar to age and education level, all of the media forms had
significance levels that were less than .05. This would show that you can
effectively communicate with the sample through any of these mediums.
f. Hometown Size – This last demographic category turned out to be different from
the rest of the components. The only media vehicle to turn out a significance level
of less than .05 was radio. The most popular radio station was easy listening.
2. A correlation was ran in order to find the lifestyle for each target market. The correlation
was a symmetrical chart with three numbers in each cell with each number reading
important information about the lifestyles. I looked at the significance level to see if the
information was relevant. After I found out if it was significant or was not significant, I
looked at the correlation number which was either negative or positive. The scale of the
correlation for these numbers is from negative one to positive one. A negative number
would indicate that there was an inverse correlation with the lifestyle category and car
style. A positive number indicated that there was a direct correlation between the
category and style. If the correlation number is further from zero, the correlation is
positive. I have listed the different models with the correlation number below. These
numbers describe the lifestyle that is most directly related to that specific model. The
more directly related the best chance of purchase.
a. Super Cycle one-seater, 120+ mpg city: Novelist Lifestyle, .788
b. Runabout Sport two-seater, 90 mpg city, 80 mpg highway: Innovator Lifestyle,
.731
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
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c. Runabout with Luggage two-seater, 80 mpg city, 70 mpg highway: Trendsetter
Lifestyle, .719
d. Economy four-seater, 70 mpg city, 60 mpg highway: Forerunner Lifestyle, .731
e. Standard four-seater, 60 mpg city, 50 mpg highway: Mainstream Lifestyle, .746
Chapter 19: Understanding Regression Analysis Basics
Super Cycle one-seat Hybrid
After running the test for Super Cycle one-seat Hybrid plenty of information has been found about the
automobile. The statistically significant independent variables were marital status, income category, size
of hometown or city, level of education, age category, number of people in household, and gender at a
95% level of confidence. The beta coefficient for all of the statistically significant independent variables
were all negative numbers except home town or city which was positive at a .336. This indicates that
there is an inverse relationships with the super cycle one-seat hybrid for all negative numbers. Since the
hometown or city was positive, this indicates a direct correlation. (These numbers were taken from the 7th
cell of the table) The most important statistically significant independent variable is hometown or city.
This is because the beta coefficient vale was the furthest away from zero traveling in a positive direction.
The strength of the significant variables as they are joined to predict the preferences for the hybrid model
concerned is represented by the r-squared value which is located in the super cycle one-seat hybrid
summary chart, shows a value at .617. This indicates a strong value because it is a positive correlation
closer to 1.
Runabout Sport two-seat hybrid
After running the regression test for the Runabout sport two-seat hybrid, the statistically significant
independent variables are income category, size of hometown or city, number of people in household, age
category, level of education, gasoline emissions contribute to global warming, and marital status at a 95%
level of confidence. The beta coefficient for the statistically significant independent variables were all
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
57
negative except for size of hometown or city and marital status. This indicates that there is an inverse
relation ships with all negative numbers attached to the significant variables. Size of hometown or city’s
beta coefficient is a .377 and marital status at a .070, this indicates a direct correlation. Out of the two
positive significant variables, size of hometown or city is the stronger correlation because the positive
number is closer to 1. The strength of the significant variables as they are joined to predict the preferences
for the hybrid model concerned is represented by the r-squared value which is located in the runabout
sport two-seat hybrid summary chart, shows a value at .573. This indicates a strong value because it is a
positive correlation closer to 1.
Runabout with Luggage two-seat hybrid
After running the regression test for the Runabout with Luggage two-seat hybrid, the statistically
significant independent variables are size of hometown or city, age category, level of education, marital
status, income category, number of people in household, hybrid autos that use alternative fuels will reduce
fuel emissions, Americans use too much gasoline at a 95% level of confidence. The beta coefficient for
the statistically significant independent variables were even between negatives and positive numbers. The
negative correlations consisted of age category, income category, number of people in household, and
hybrid autos that use alternative fuels will reduce fuel emissions. The negative numbers range from -.066
- -.217. This indicates there is an inverse relationship attached to all negative correlation. The positive
numbers ranged from .060 - .425. This indicates a direct correlation which indicates that when one of
these variables come up, the automobile will go up as well. The most positive direct correlation is size of
hometown or city. The strength of the significant variables as they are joined to predict the preferences for
the hybrid model concerned is represented by the r-squared value which is located in the runabout with
Luggage two-seat hybrid summary chart, shows a value at .300. This correlation is still positive, but is not
as strong as it was with the super cycle and runabout sport.
Economy four-seat hybrid
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
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According to the output generated from the regression test run on the Economy four-seat hybrid, the
statistically significant independent variables are income category, level of education, age category,
hybrid autos that use alternative fuels will keep gas prices down, and size of hometown or city at a 95%
level of confidence. The beta coefficient for this model type are mostly positive with the exclusion of one
negative variable. The positive variables ranged from .122 - .366 with the most direct correlation being
level of education. The negative variable with size of hometown or city at a -.109. This shows an inverse
relationship attached to the variable. The strength of the significant variables as they are joined to predict
the preferences for the hybrid model concerned is represented by the r-squared value which is located in
the Economy four-seat hybrid summary chart, shows a value at .534. This indicates a positive correlation
because the value is positive and closer to 1.
Standard four-seat hybrid
According to the output generated from the regression test run on the Standard four-seat hybrid, the
statistically significant independent variables are size of hometown or city, number of people in
household, level of education, age category, gender, and income category at a 95% level of confidence.
The beta coefficient for this model type are all positive except for the exemption of one variable. The
positive variables range from .081 - .402 with number of people in house having the most direct
correlation. The negative variable is size of hometown or city at a -.319 this indicates an inverse
relationship. The strength of the significant variables as they are joined to predict the preferences for the
hybrid model concerned is represented by the r-squared value which is located in the Standard four-seat
hybrid summary chart, shows a value at .408. This indicates a positive correlation because the value is
positive and closer to 1.
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
59
Discussion:
The report for Advanced Automotive Concepts is finally completed. This report was a marketing
research study to determine car model preferences and profile market segments. The research
objectives were to gather information from a sample of representative of the U.S. population
among those who are very likely to purchase a newly designed fuel-efficient automobile within 6
months after the release. There were 5 possible hybrid automobiles that were through research
amongst our respondents. These 5 hybrid models are as follows: Super Cycle one-seat hybrid,
Runabout Sport two-seat hybrid, Runabout with Luggage two-seat hybrid, Economy four-seat
hybrid, and the Standard four-seat hybrid. These automobiles were thoroughly assessed by
demographics, beliefs about global warming and gasoline prices, and attitudes toward Hybrid
Automobiles.
Many interpretations and analysis were taken and tested to find out the conclusions based off my
research. After running various test we finally found out how our respondents felt toward global
warming and gasoline prices. This was the main concern at first because our concept was to find
the trends in the market. AAC needed to find out where the consumers were turning towards,
what they liked, and how to sell our product to them. The conclusions found from this research
were that the majority of peoples beliefs are that they are worried about global warming, it is a
threat, and needs to be slowed down. The majority of the population believes that gasoline
emissions contribute to global warming, too much gasoline is being used, and we need to look
for substitutes for gasoline. This was a tremendous finding because now AAC knows how the
consumer feels and we can create a product to suit their needs. The product generated was a
hybrid automobile. But now AAC need to find out our consumers attitudes toward hybrid
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60
automobiles. After various tests were run, I have found out that the majority of our respondents
feel that hybrid autos that use alternative fuels will reduce fuel emissions, keep gas prices down,
and ultimately slow global warming. This was a bigger finding than their beliefs because now we
know that the majority of our consumers want a hybrid car. AAC than found 5 possible hybrid
automobiles, ran tests, and found out the best models to be made for our consumers. Each model
had its pros and cons, but this is what I found.
The Economy four-seat hybrid and the Standard four-seat hybrid were the favorite hybrid model
types amongst our respondents. The Economy four-seat is a very efficient car geared toward
male and females, typically married, aged 57-69, reasonably priced, and has wide variety for
hometown size. The majority of our respondents rated this model desirable when asked if they
would buy this model. The Standard four-seat is even more versatile. It is incredibly efficient
geared toward females, aged 42-69, reasonably priced, and targets an even wider variety than the
Economy four-seat hybrid for hometown size.
In terms of the issues facing AAC, I would say that AAC is going to be in good shape. The
company has now found the demographics, beliefs, and attitudes of our majority consumers. We
have found the hybrid models that they most desire and are now on target with the marketing
trend. I can see lots of hybrid sales in the near future.
The limitations of the research design which was ultimately used by AAC was exploratory
research. Designed to gain background information, to define terms, to clarify problems and
hypothesis, and establish research priorities. A consumer survey was then designed to measure
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
61
our respondents beliefs and attitudes towards global warming and hybrids, as well as find out a
little more of their demographics. More exploratory research could have been done to improve
the resulting data, such as experience surveys or projective techniques. Even descriptive and
causal research could have been looked at in more depth. There should be very little concern in
Nick’s ability to use the information I have presented and discussed here. As the axiom reads,
“The only perfectly accurate sample is a census.” And “A random sample will always have some
inaccuracy, which is referred to as “sample error.” Stating no matter what research that has been
done, it is never going to be perfect.
Recommendations:
As stated in my discussion above, the top two hybrid automobiles are the Economy four-seat
hybrid and Standard four-seat hybrid. My recommendation would be to manufacturer a small
amount of these vehicles in the beginning stages of the selling process and advertise hard for
these two new hybrid models, showing commercials, magazine ads, billboards etc. These
automobiles need to get their name out to the public, as well as the new face of ZEN motors.
According to the research, these automobiles should be a hit with the public. As you watch the
sales of the automobiles rise, and you see that the hybrids are generating a lot of sales. Continue
to produce more and more, the hybrids will continue to keep selling. Once Hybrid automobiles
start trending more with the public, AAC can then go even further and try to promote sales in
target specific areas. For example, the Super Cycle one-seat hybrid was a desired car in areas
such as cities. ZEN can target specific cities where they feel high amounts of consumers will buy
hybrids and start promoting the automobile in that area. Once the Hybrid automobiles trend with
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
62
the public you can generate larger sales, and target specific areas to continue to sell more
automobiles.
Executive Summary:
A study was conducting for a problem facing AAC and ZEN Motors. The problem is ZENs division has
been losing market share to competitors. ZENs most significant losses are due to growing
population of foreign brands. ZENs division only focuses on large car models and most of the
competitions are small, compact, and efficient cars. Historically, ZENs cars have been very
profitable, so ZEN needed to innovate to keep up with the competition. A study was conducted
to research the demographics, beliefs about global warming and gasoline prices, and the attitudes
toward hybrid automobiles of our respondents. The main question he has to ask himself is will
all the research and changes to the division to keep up with the competition be worth it?
Various test, analysis, and interpretations were taken on our respondents. The process and
significant findings are as follows:

A brief summary was written about the problems facing ZEN motors. A list of marketing
research studies were gathered to find out which strategy would be the best fit for ZENs
situation. We decided to use exploratory research.

Our first step was to establish secondary information that would be relevant for AAC’s
marketing situation. I searched through various, credible databases to find consumer
attitudes towards global warming as it relates to automobile selection, trends in the
development and marketability of fuel-efficient cars and the availability of alternative
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
63
fuels, and competitive information on automotive companies offering fuel-efficient cars.
A literature review was conducted on my findings.

Various evaluations of the exploratory and causal designs were conducted. The problems
facing Nick were evaluated and the source of the problem was found.

A focus group was then conducted with the select few respondents and volunteers who
decided to help us out. A planning document was created and Moderator’s Guide was
produced about how the focus group was run.

A measurement was taking from our respondents and a survey was designed to handout
to all of our respondents. It was then coded for easy measurability of the findings.

Lastly, data collection, analysis, and interpretation of all our data was run through various
tests using the SPSS software. This was where a lot of our findings took place.
Demographics, beliefs, and attitudes were all in effect for gaining knowledge of the best
possible hybrid automobile. I ran statistical tests on demographics, and consumer beliefs
and attitudes toward the five possible hybrid automobiles.

Conclusions of my findings were then drawn up.
The conclusion formed is that the population is worried about global warming, and agrees
that hybrids are most beneficial to this problem. The Economy four-seat hybrid, and
Standard four-seat hybrid were the most desired cars amongst the hybrid cars offered.
The complete set of evidence and researched gathered amongst our respondents is
presented in discussion and recommendation section of the research report.
Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts
64
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(2011, June 11). Hybrids are on a high. Evening times. Retrieved April 12, 2012, from
LexisNexis Academic
(2012, February 11). A glimpse into the future, auto show to show the latest automobile trends.
The Toronto Star. Retrieved April 12, 2012, from LexisNexis Academic
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