seth palmer denise spath dan wolf

1

BUS 562 Marketing Research

The assignment for this report was to analyze the results of a survey (which was developed by the entire

class) of the food habits of MBA students. Furthermore, we had to evaluate the possibility of a opening a new type of restaurant (or other type of

food source) close to the NCSU College of Management.

2


Analysis of Preferences, Habits and Alterative Food Sources for North Carolina State University

Evening MBA Students

Seth Palmer

Denise Spath

Dan Wolf

BUS 562

3

BUS 562 Marketing Research Table of Contents

Executive Summary . . . . 3Introduction/Background . . . 4

Map of Food Establishments . . 5Research Method . . . . 6Objectives and Hypotheses . . . 7Descriptive Interpretations . . . 8

Purchase Habits . . . 9MBA Student Profile . . . 12What are MBA Students Likely to Patronize? . 14Correlations . . . 15Understanding Basic Needs . . 16Factor Details . . . 17Factor Analysis Table . . . 18

Quantitative Issues . . . . 20Linear Regression Tables . . 21What are Spending Habits? . . 22Market Size . . . 23Total Spending . . . 24Purchase Frequency . . . 25Average Purchase Amount . . 26Reliability Analysis . . . 27

Hypotheses Results . . . . 28Conclusions/Recommendations . . . 29Limitations . . . . 30Topics for Further Investigation . . . 31Appendix . . . . . 32

Evaluation of Alternatives (Pros and Cons) . 33Data Cleaning Procedure . . 34Survey . . . . 35

4

BUS 562 Marketing Research Executive Summary

Survey Uncovered Dissatisfaction, Provided Guidance For Improvement And Quantified Market Size


Research Objectives

Method Overview

Summary Of Findings

Started With Focus Group To Uncover Issues

Designed 17 Question Survey To Quantify Issues

Received 66 Out Of 220 MBAs (Census Sample)

High Degree Of Dissatisfaction

Two Distinct Groups In MBA Program - Snackers and The Health Conscience

Two Of Three Alternative Options Positively Perceived

Evening MBA Food Market Is $1100/wk

Understand Food Purchase Preferences And Habits Of Evening MBA Students

Discover The Demand For Food

Evaluate Preferences Of Three Food Alternatives

Overall Satisfaction

3%

17% 20%

38%

10%

0%

20%

40%

60%

VerySatisfied

Satisfied Neutral Dis-Satisfied

Very Dis-Satistfied

48% Not Happy

5

BUS 562 Marketing Research Introduction

Tackled A Real World Problem To Learn Marketing Research Tools Tackled A Real World Problem To Learn Marketing Research Tools

Situation

Dr. Zahay Was Amazed To Find Students Unaware Of University Towers Cafeteria

In-class Focus Group Uncovered:

BUS 562 MBA Students Too Busy To Eat Arrive “JIT”

Eat Snacks

Many Eat After They Get Home

Not Satisfied With Current Food Options

Felt Most Other MBA’s Behaved In The Same Way

BUS 562 May Not Be Representative Need Survey To Verify And Quantify

Call To Action!

• Apply Marketing Research Tools To Quantify Preferences, Habits And Opinions

• Lay Groundwork For Potential Improvements For Food Options

6


Food Establishments within Walking Distance of Nelson Hall

Introduction

vv

v

University Towers: Cafeteria, $5-6 per

dinner

Sakura Express: Japanese, $5-6

dinners, eat-in or take-out

East Village: American cuisine, $5-

8 dinners, eat-in

PizzAmerica: Italian, $6-8 dinners, eat-in,

take out

Subway: Sandwiches, $3-6, eat-in, take out

WolfMart: Snacks

College of Management (Nelson Hall):

2 soda machines and 1 candy/chips machine

200 Feet

Seven Options Within 400 Feet Of Nelson HallSeven Options Within 400 Feet Of Nelson Hall

http://www.ncsu.edu/campus_map/north.htm

7

BUS 562 Marketing Research Research Method

Used Structured Disciplined Approach To Solve A Real World Problem Used Structured Disciplined Approach To Solve A Real World Problem

Exploratory: Focus Group (Qualitative)

Exploratory

Survey Design

Survey Procedures

Analysis

Conclusions and Recommendations

Survey Design 17 Questions Developed In ClassAnswer Key Questions

Survey Procedure E-Mailed To All 220 MBA Students on 4/7/2003Responses Collected From 4/7/2003-4/21/2003 Offered $50 Gift Certificates As Incentives Generated 30% Response Rate (66/220)

Analysis (Quantitative) Cleaned Data Simple Descriptive Statistics, Factor Analysis Answer Key Questions Using Anova, Cluster and Regression

What Is The Potential Market Size? What Drives Satisfaction? What Are Frequency and Dollar Spending Patterns? Evaluate Alternatives

Survey Method Chosen As Research Tool Need To Answer Who, What, Where, When And How About The Target Population

Data Must Allow For Identifying Relationships, Establishing The Existence Of Differences, And Verifying Validity Of Relationships

Desire To Collect Substantial Amounts Of Measurable Information From Population

Low Distribution Cost

8

BUS 562 Marketing Research Objectives and Hypothesis

Marketing Research Process Will Address Research Objectives And Test Hypotheses

Marketing Research Process Will Address Research Objectives And Test Hypotheses

Research Objectives Hypotheses

Students Are Generally Dissatisfied With Current Options

Students Likely To Frequent University Towers And Nelson Express

Time Is A Prohibitive Factor

Part Time Students Will Spend More And Will Be More Likely To Frequent One Of The Three Alternatives Than Full Time Students

Everyone Eats Something Before Class

Snacking Is A Major Component Of Food Options

University Towers: Full Service Cafeteria

Expanded Nelson Hall Vending Machines: Prepackaged Microwave-able Items

Nelson Express: Kiosk In Nelson Hall (Deli Sandwiches, Hot Dogs, Snacks, Fresh Fruit)

Understand Food Purchase Preferences And Habits Of Evening MBA Students

Estimate Market Demand

Evaluate Three Alternative Food Choices

9

BUS 562 Marketing Research Descriptive Interpretations


48% Of Students Not Satisfied With Current Food Options 48% Of Students Not Satisfied With Current Food Options

3%

17% 20%

38%

10%

0%

20%

40%

60%

VerySatisfied


Very Dis-Satistfied

48% Not Happy

10

BUS 562 Marketing Research Purchase Habits

Most Students Making Purchases Before ClassMost Students Making Purchases Before Class

85% Buy At Least Once A Week

# Of Purchases Per Week

15%

30%

49%

6%

0%

20%

40%

60%

0 1 2 3

15% 14% 5%

65%

0%

25%

50%

75%

100%

0 0.5 0.75 1

% Purchases Per Class Per Week

65% Buy Every Class

11


0%

25%

50%

75%

100%

1 2 3 4 5 Total

Satisfaction Level

Other

Sakura

Nelson

Univ Towers

East Vill

PizzAmer.

SubWay

WolfMart

Purchase Habits

WolfMart Leads The Pack With 33% Food Purchases (# Basis)WolfMart Leads The Pack With 33% Food Purchases (# Basis)

Fast Food9%

American18%

Chinese23%Japanese

9%

Mexican26%

Italian15%

Food Type Preferences

Most Prefer Mexican, American and Chinese

Food Provider Market Share By Satisfaction Level

Ma

rke

t S

ha

re –

Of

Vis

its

B

y S

ati

sfa

cti

on

Le

ve

l How To Read: Of The Very Satisfied People, 10% Visit WolfMart

Dissatisfied People Visit Subway

Satisfied People Visit “Other” and East Village

WolfMart Has Largest Market Share At 33% Of All Purchases

12

BUS 562 Marketing Research Purchase Habits

Avg Purchase AmountFood Provider # of Visits/Month

Wolf Mart 2.1

Nelson Vending

1.3

Subway 0.9

East Village 0.6

11%

3%

15%

24%

12%

18%

9%6%

2.00%0%

10%

20%

30%

$0.0

0$1

.00

$2.0

0$3

.00

$4.0

0$5

.00

$6.0

0$7

.00

$8.0

0

58% of Purchases <=$4.00

… Because They Don’t Have Time

Snack Providers Dominate

11%6%

14%

32% 38%

0%

20%

40%

60%

Before 5pm 5pm to 5:15 5:15-5:30 5:30-5:45 5:45-6:00

Arrival Time

Students Buying Lots Of Snacks…

38% Arrive Within 15 Minutes of Class

13

BUS 562 Marketing Research MBA Student Profile

MBA Student Demographics

70% Part Time Students 70% Work Full Time 67% Male Average Age 31 Years 75% Have Two Classes Per Week

MBA Students Have Strong Feelings…

Feel Rushed Before Class 65% 11%

Prefer Nutritious Meal 52% 11%

Usually Have Chips and Soda 26% 40%

Eat From Vending Machines 26% 47%

Like FF Combo Meals 18% 52%

Late for class 9% 59%

% Strongly Agree, Agree

% Strongly Disagree, Disagree

Want To Eat Right and (Say) They Want To Avoid Fast Food

Want To Eat Right and (Say) They Want To Avoid Fast Food

“Average Student” Is 31 years Old Male, Employed, Part Time Student

Closely Matches Published ProfileImplies Survey Responders

Representative Of MBA’s

“Average Student” Is 31 years Old Male, Employed, Part Time Student

Closely Matches Published ProfileImplies Survey Responders

Representative Of MBA’s

… And Many Important Factors

Sanitation 86% 0% Speed 85% 0% Taste 81% 2% Parking 70% 2% Close to Nelson Hall 71% 3% Take Out 68% 8% Variety 41% 2% Atmosphere 30% 8% Decor 7% 31% TV 9% 64%

% Ext. Imp., Important

% Not Important

Demanding Crowd… But Speed and Convenience Dominate

Demanding Crowd… But Speed and Convenience Dominate

14

BUS 562 Marketing Research MBA Student Profile

Observations – Supported By Anova Analysis

BUS 562 Class 40% “Strong Snackers” VS. 20% Of MBA Population

Lack Of Differences Among Demographics InterestingLack Of Differences Among Demographics Interesting

Bus562 Class vs. All MBA’s

The Longer You’ve Been In Program The Later You Arrive Health Conscience Arrive Later Part Times Arrive Later

Arrival Time

Females Take Fewer Classes (2 For Males Vs 1.75 Females) Males Are More Snack Oriented, Females More Health Conscience Females More Concerned With Speed/Convenience Than Males No Differences In Spending Amount Freq Or Locations

Gender

Part Times Spend Less Than Full Timers

Full vs Part Time

15

BUS 562 Marketing Research What Are MBA Student’s Likely To Patronize?

Nelson Express Had Most Positive Response Nelson Express Had Most Positive Response

2%9%

19% 17%22%

31%

0%

20%

40%

V. Likely Likely SomewhatLikely

SomewhatUnlikely

Unlikely V. Unlikely

2%

25%

16% 17%22% 19%

0%

20%

40%


SomewhatUnlikely


Not Likely

(11% Likely +)

Not Likely

(11% Likely +)

28%35%

26%

5% 2% 5%

0%

20%

40%


SomewhatUnlikely


University Towers:

Cafeteria

Somewhat Likely

(27% Likely+)

Somewhat Likely

(27% Likely+)

Expanded Nelson Hall Vending

Machines

Nelson Express: Food Kiosk Most Likely

(62% Likely+)

Most Likely

(62% Likely+)

16

BUS 562 Marketing Research Correlations

Significant Correlations

Employment Status (1= Full Time 2 = Part Time

Arrival Time 1=Early, 5=Later)

Avg Amount

Avg Num Of Purchases

Student Status (1=Part Time, 2=Full Time)

Employment Status (1=Full Time, 2 Part Time)

East Village Visits

Avg Number Of Classes

Correlation Coefficient

-0.81

0.52

-0.55

-0.51

Very Few Significant Relationships (Correlation Coefficient)Very Few Significant Relationships (Correlation Coefficient)

17

BUS 562 Marketing Research Understanding Basic Needs

Factor Analysis Reduced 32 Individual Questions To Five Factors Factor Analysis Reduced 32 Individual Questions To Five Factors

Two Food Attitude Factors

Factor Analysis Is Data Reduction Tool That Finds Commonalities In Data

Fast Food Junkies ~25-30%

Health Conscience ~50-60%

Three Restaurant Characteristics Factors

Dining Experience ~20-30%

Speed/Convenience ~70-80%

Food Quality ~50-70%

Explain 28% of Variance

% Of Students

% Of Students

Explain 54% of Variance

18


Fast Food Junkies Tend To Be:

Health Conscience Tend To Be Eat Nutritious Balanced Meals Pay More For Healthy Food

Eat Fast Food Feel Rushed Before Class Buy From Vending Machines Buy Soda And Chips 562 has 2.5x more FF Junkies than

average

Dining Experience

Factor Details

Speed/Convenient

Food Quality:

Dish Presentation Decor Atmosphere

Close to Nelson Hall Take-Out Good Parking

Taste Variety

Factors Not Surprising Factors Not Surprising

19

BUS 562 Marketing Research Factor Analysis Table

MBA’s Concerned With Dining Experience, Speed/Convenience and Food Quality MBA’s Concerned With Dining Experience, Speed/Convenience and Food Quality

“Dining Experience”

“Speed/Convenience”

Factor Analysis On Important Restaurant Characteristics Found Three Factors

“Other” Does Not Explain Significant Variance And Is Difficult to Interpret

Rotated Component Matrix

1 2 3 414-1Dish 0.805 14-2Taste 0.864 14-3Variety 0.810 14-4Deco 0.880 14-5Sanitation 0.513 0.409 14-6Atmos 0.875 14-7Close 0.796 14-8Park 0.725 14-9Speed 0.575 14-10TakeOut 0.768 14-11ShrtWait 0.90314-12TV 0.435 0.437Var. Explained 23% 19% 15% 10%Cum Var Explained 23% 42% 57% 67%Rotation Method: Varimax with Kaiser Normalization.Rotation converged in 6 iterations.

Component

“Food Quality”

2 Missing Values Replaced with question mean value

20

BUS 562 Marketing Research Factor Analysis Table

MBA Program Made Up Of Snackers and Health Conscience MBA Program Made Up Of Snackers and Health Conscience

Rotated Component Matrix

1 2 3 4 5 612-1EatBal -0.478 0.525 12-2EatHome 0.720 12-3Vend 0.662 12-4Combo 0.624 12-5Deli 0.504 0.434 12-6PrefFF 0.648 12-7ChipsSoda 0.809 12-8Rushed -0.677 12-9NutMeal 0.780 12-10FreshFruit -0.537 0.531 12-11Driving -0.763 12-12Late 0.438 0.53512-13Location 0.774 12-1499Cents 0.472 0.48212-15Rarely -0.743 12-16Car 0.747 12-17Healthy 0.876 12-18Family 0.71112-19Spending 0.798 Variance Explained 16% 15% 10% 9% 9% 7%Cumulative Var Expl 16% 31% 41% 50% 59% 66%Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.

Rotation converged in 10 iterations.

Component

“Snackers”

“Health Conscience”

Factor Analysis On Food Attitudes Found Two Significant Factors

“Others” Do Not Explain Significant Variance and Are Difficult to Interpret

9 Missing Values Replaced With Question Mean Value

21

BUS 562 Marketing Research Quantitative Issues

Arrival Time Drives Overall Satisfaction Arrival Time Drives Overall Satisfaction

What Drives Current Satisfaction Level?


3%

17% 20%

38%

10%

0%

20%

40%

60%

VerySatisfied


Very Dis-Satistfied

48% Not Happy

Linear Regression On Overall Satisfaction:

Arrival TimeLikelihood To Use Nelson Express

Age

Later You Arrive The Happier You Are

Concept Satisfies The Dissatisfied

Younger Are Happier

22

BUS 562 Marketing Research Linear Regression Tables

Coefficientsa

4.396 .385 11.413 .000

-.267 .095 -.357 -2.806 .007 1.000 1.000

4.876 .430 11.328 .000

-.257 .092 -.343 -2.787 .007 .997 1.003

-.219 .099 -.272 -2.215 .031 .997 1.003

3.687 .757 4.870 .000

-.237 .091 -.316 -2.615 .012 .984 1.016

-.247 .098 -.307 -2.526 .015 .975 1.026

3.790E-02 .020 .230 1.888 .065 .966 1.035

(Constant)

7Arrival

(Constant)

7Arrival

17NelsonExp

(Constant)

7Arrival

17NelsonExp

5Age

Model1

2

3

B Std. Error

UnstandardizedCoefficients

Beta

StandardizedCoefficients

t Sig. Tolerance VIF

Collinearity Statistics

Dependent Variable: 11Satfacta.

ANOVAd

7.016 1 7.016 7.875 .007a

48.109 54 .891

55.125 55

11.093 2 5.547 6.676 .003b

44.032 53 .831

55.125 55

13.919 3 4.640 5.855 .002c

41.206 52 .792

55.125 55

Regression

Residual

Total

Regression

Residual

Total

Regression

Residual

Total

Model1

2

3

Sum ofSquares df Mean Square F Sig.

Predictors: (Constant), 7Arrivala.

Predictors: (Constant), 7Arrival, 17NelsonExpb.

Predictors: (Constant), 7Arrival, 17NelsonExp, 5Agec.

Dependent Variable: 11Satfactd.

Model Summary

.357a .127 .111 .944

.449b .201 .171 .911

.502c .252 .209 .890

Model1

2

3

R R SquareAdjustedR Square

Std. Error ofthe Estimate

Predictors: (Constant), 7Arrivala.

Predictors: (Constant), 7Arrival, 17NelsonExpb.

Predictors: (Constant), 7Arrival, 17NelsonExp, 5Agec.

What Drives Satisfaction?

Model Explains 25% of Variance Model Explains 25% of Variance

Also Tried Logistic Regression On Satisfaction. Response Defined As Values 1 Ad 2 (Strongly Agree, Agree) Of Satisfaction Question. Non Response Defined As Values 3, 4 And 5.

Same Results As Above Tried Logistic On Dissatisfaction With Same Results As Above

23

BUS 562 Marketing Research What Are Spending Habits?

76% of Market Are Snackers and Cheap Diners 76% of Market Are Snackers and Cheap Diners

Used Average Expenditure and the Prob of Purchasing A Snack Before Class (Q8/Q6)

Found Four Identifiable Segments

Cluster Analysis

13%

11%

32%44%

0

0.5

1

1.5

0 2 4 6 8Average $P

(Bu

y)

Indifferent

Snackers Cheap Diners

Elite Diners

Indifferent Snackers Cheap Diners Elite Diners

Goal: Find Buying Habit Segments

Avg Purchase:Purchase Freq:

Avg. Sat (Low=Good):Market Share:

LowLow 2.6

13%

Low High3.9

44%

Moderate High3.2

32%

High High3.2

11%

24

BUS 562 Marketing Research Market Size

Demographics Not Driving Spending Habits Demographics Not Driving Spending Habits

Market Size: Average Spending

X Frequency Of Purchase

= Total Spending/Week

X 220 MBA Students

= Market Size/Week

$3.34

1.5/week

$5.01

220

$1102

What Drives Total Spending, Average Purchase Amount and Frequency Of Purchase?

Number of Classes (Q6) How Many Times You Buy (Q8) Correlation Coefficient = .66

What’s Interesting Is What’s Not Here:

Goal: Determine Market Size and Understand Drivers of Consumption

• Demographics

• Attitudes

• Spending habits

• Restaurant Characteristics

25

BUS 562 Marketing Research Total Spending

What Drives Total Spending? (Details)

Coefficientsa

-.856 .744 -1.150 .255

1.939 .196 .802 9.871 .000 1.000 1.000

-7.537 1.087 -6.931 .000

1.842 .143 .762 12.896 .000 .991 1.009

3.529 .499 .418 7.072 .000 .991 1.009

-9.392 .991 -9.474 .000

1.533 .136 .634 11.255 .000 .769 1.300

3.717 .421 .440 8.829 .000 .982 1.018

3.359 .698 .270 4.811 .000 .775 1.290

-10.870 1.179 -9.218 .000

1.591 .134 .658 11.837 .000 .738 1.355

3.566 .413 .422 8.636 .000 .954 1.048

3.420 .676 .275 5.063 .000 .774 1.292

.355 .165 .107 2.152 .036 .917 1.090

(Constant)

9AvgAmt

(Constant)

9AvgAmt

6NumClass

(Constant)

9AvgAmt

6NumClass

Pur/Class

(Constant)

9AvgAmt

6NumClass

Pur/Class

16UniTowers

Model1

2

3

4

B Std. Error


Beta




Dependent Variable: Total$a.

ANOVAe

778.986 1 778.986 97.427 .000a

431.760 54 7.996

1210.746 55

988.604 2 494.302 117.934 .000b

222.142 53 4.191

1210.746 55

1057.023 3 352.341 119.187 .000c

153.723 52 2.956

1210.746 55

1069.822 4 267.456 96.792 .000d

140.923 51 2.763

1210.746 55

Regression

Residual

Total

Regression

Residual

Total

Regression

Residual

Total

Regression

Residual

Total

Model1

2

3

4


Predictors: (Constant), 9AvgAmta.

Predictors: (Constant), 9AvgAmt, 6NumClassb.

Predictors: (Constant), 9AvgAmt, 6NumClass, Pur/Classc.

Predictors: (Constant), 9AvgAmt, 6NumClass, Pur/Class, 16UniTowersd.

Dependent Variable: Total$e.

Model Summary

.802a .643 .637 2.82764

.904b .817 .810 2.04728

.934c .873 .866 1.71936

.940d .884 .874 1.66229

Model1

2

3

4



Predictors: (Constant), 9AvgAmta.

Predictors: (Constant), 9AvgAmt, 6NumClassb.

Predictors: (Constant), 9AvgAmt, 6NumClass,Pur/Class

c.

Predictors: (Constant), 9AvgAmt, 6NumClass,Pur/Class, 16UniTowers

d.

Model Explains 99% of Variance In Total Spending Model Explains 99% of Variance In Total Spending

On the Margin, Question 16 Does Not Explain Much Variance

26


Model Summary

.823a .678 .672 .485

.988b .976 .975 .135

Model1

2



Predictors: (Constant), Pur/Classa.

Predictors: (Constant), Pur/Class, 6NumClassb.

ANOVAc

27.253 1 27.253 115.679 .000a

12.958 55 .236

40.211 56

39.232 2 19.616 1082.433 .000b

.979 54 .018

40.211 56

Regression

Residual

Total

Regression

Residual

Total

Model1

2


Predictors: (Constant), Pur/Classa.

Predictors: (Constant), Pur/Class, 6NumClassb.

Dependent Variable: 8AvgNumPurc.

Coefficientsa

8.508E-02 .144 .590 .558

1.859 .173 .823 10.755 .000 1.000 1.000

-1.614 .077 -20.895 .000

1.903 .048 .843 39.686 .000 .999 1.001

.840 .033 .546 25.710 .000 .999 1.001

(Constant)

Pur/Class

(Constant)

Pur/Class

6NumClass

Model1

2

B Std. Error


Beta




Dependent Variable: 8AvgNumPura.

Purchase Frequency

What Drives Purchase Frequency? (Details)

Model Explains 99% of Purchase Frequency Variance Model Explains 99% of Purchase Frequency Variance

27

BUS 562 Marketing Research Average Purchase Amount

What Drives Average Purchase Amount? (Details)

Model Explains 46% of Average Purchase Amount Model Explains 46% of Average Purchase Amount

Model Summary

.547a .299 .286 1.626

.691b .478 .459 1.416

Model1

2



Predictors: (Constant), 10-4NEastVa.

Predictors: (Constant), 10-4NEastV, Pur/Classb.

ANOVAc

61.976 1 61.976 23.452 .000a

145.345 55 2.643

207.320 56

99.082 2 49.541 24.716 .000b

108.239 54 2.004

207.320 56

Regression

Residual

Total

Regression

Residual

Total

Model1

2


Predictors: (Constant), 10-4NEastVa.

Predictors: (Constant), 10-4NEastV, Pur/Classb.

Dependent Variable: 9AvgAmtc.

Coefficientsa

2.768 .238 11.644 .000

.869 .179 .547 4.843 .000 1.000 1.000

1.172 .425 2.758 .008

.818 .157 .515 5.219 .000 .994 1.006

2.175 .506 .424 4.303 .000 .994 1.006

(Constant)

10-4NEastV

(Constant)

10-4NEastV

Pur/Class

Model1

2

B Std. Error


Beta




Dependent Variable: 9AvgAmta.

28

BUS 562 Marketing Research Reliability Analysis

Scale Scale CorrectedMean Variance Item- Alphaif Item if Item Total if Item

Deleted Deleted Correlation DeletedQ14_01 28.21 23.49 0.34 0.63Q14_02 29.73 26.60 0.16 0.66Q14_03 28.77 25.35 0.27 0.65Q14_04 27.67 23.95 0.35 0.63Q14_05 30.00 23.75 0.47 0.62Q14_06 28.50 22.81 0.45 0.61Q14_07 29.42 25.08 0.20 0.66Q14_08 29.44 22.77 0.46 0.61Q14_09 29.83 26.51 0.18 0.66Q14_10 29.35 24.05 0.25 0.65Q14_11 29.20 26.13 0.13 0.67Q14_12 27.21 23.74 0.36 0.63

Scale Scale CorrectedMean Variance Item- Alphaif Item if Item Total if Item

Deleted Deleted Correlation DeletedQ12_01 63.17 90.76 0.28 0.60Q12_02 61.53 84.96 0.28 0.60Q12_03 61.27 78.79 0.48 0.56Q12_04 61.20 83.79 0.36 0.58Q12_05 61.29 86.76 0.26 0.60Q12_06 62.27 89.62 0.20 0.61Q12_07 61.41 87.14 0.23 0.60Q12_08 62.92 91.89 0.09 0.62Q12_09 62.64 81.31 0.53 0.56Q12_10 62.77 90.86 0.15 0.61Q12_11 61.77 92.49 0.06 0.63Q12_12 60.95 87.49 0.30 0.59Q12_13 61.62 87.99 0.19 0.61Q12_14 60.97 90.95 0.10 0.62Q12_15 61.64 99.59 -0.18 0.66Q12_16 61.47 92.13 0.06 0.63Q12_17 62.62 83.16 0.53 0.57Q12_18 62.17 93.62 0.01 0.63Q12_19 61.77 83.93 0.44 0.58

Reliability Analysis – Attitude Questions

Reliability Analysis – Restaurant Characteristics

•Alpha = .66

•Statistically Significant

•F Test

•Alpha = .62

•Statistically Significant F test

Reliability Analysis Is Used To Assess Reliability of Using Multiple Questions To Create A Scale

Questions 12 and 14 Can Be Reliably Used to Create Scales Questions 12 and 14 Can Be Reliably Used to Create Scales

29


Students Are Generally Dissatisfied With Current Options

Students Likely To Frequent University Towers And Nelson Express

Time Is A Prohibitive Factor

Part Time Students Will Spend More And Will Be More Likely To Frequent One Of The Three Alternatives

Everyone Eats Something Before Class

Snacking Is A Major Component Of Food Options

Hypothesis Result

True

More Likely to Frequent Nelson Express, Less Likely to Frequent University Towers

True

False, Part Time Spend More And They Are No More Likely To Freq One Of The Three Alternatives

True

True

Hypotheses Results

Most Hypotheses Turned Out To Be True Most Hypotheses Turned Out To Be True

All Conclusions Supported With ANOVA Analysis

30

BUS 562 Marketing Research Conclusions/Recommendations

MBA Students Dissatisfied, Something Should Be Done

Be Viable On A Percentage of $1100/Week Address Health Conscience And Junkies NeedsRecognize Most People Spending $3-$5 Fast and Convenient

Next Steps: Share Findings With MBA OfficeGenerate Specific ProposalsThink Through Pros And Cons of Options

Survey Suggests MBA Evening Solution Should:



MBA Evening Market Size ~ $1100 /Week

Nelson Express And Expanded Vending Are Preferred Alternatives

Balance Student Needs Within University Constraints

Expanded Vending Seems Most Viable

UT Not Viable

Nelson Express – MBA Evening Market Not Big Enough… But Adding Prof., MAC, Econ, and Undergrads Could Help Justify

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Low Response Rate May Introduce Bias Low Response Rate May Introduce Bias

Limitations

Q10-1 To Q10-8

• Missing Responses Greater Than 5%

• Obvious Misunderstanding Of Instructions

• Missing Responses Are Most Likely “Zero” Visits

Q14-13: Misunderstanding Of Instructions 68% Did Not Answer This Question

Response Rates Lower Than Face-to-face Interviews

Inaccuracies In Construct Development, Scale Measurements, And Questionnaire

Limited Use Of Probing Questions

Intentions And Behaviors Are Often Different

Disadvantages of Survey Method:

Systematic (Nonsampling) Error:

30% Response Rate (66/220) May Cause Invalid Findings

Census Is Ideal For Populations Under 500

Respondents Were Self Selected, Which May Introduce Bias

Nonsystematic (Sampling) Error:

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Topics for Further Study

• Survey students in other curriculums, e.g., engineering, textiles, education, etc., who may be taking

• MBA classes to determine if they have similar views on purchasing food before evening classes

• Survey only full-time MBA students to determine if they have concerns about the availability or variety of food during lunch hours

• Survey professors, MAC, Econ and Undergraduates of the College of Management to determine if they have concerns about the availability or variety of food available within walking distance of Nelson Hall during lunch and dinner hours.

• Survey nearby buildings such as Kilgore, Scott, or Bostian Halls to see if other students and/or professors have concerns about lunch or evening meals (please see slide 5 for a map of nearby buildings)

• Conduct a survey to determine if there would be demand for meals or snacks from the NCSU food court during evening hours (it is within walking distance from Nelson Hall but closes at 3:30 pm)

Professors And Students From Other Disciplines Located Close To Nelson Hall Could Be Surveyed To See If They Have Similar Food Preferences. The Discovery Of Additional Segments

May Lessen The Risk Of Opening A New Food Venture In Or Near Nelson Hall

Professors And Students From Other Disciplines Located Close To Nelson Hall Could Be Surveyed To See If They Have Similar Food Preferences. The Discovery Of Additional Segments

May Lessen The Risk Of Opening A New Food Venture In Or Near Nelson Hall

Further Investigation

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APPENDIX

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BUS 562 Marketing Research Evaluating Alternatives

Survey Is First Step In A Long Process To Address This Issue Survey Is First Step In A Long Process To Address This Issue

Expanded Vending

Pros:

Available 24x7

Fits Price Range

Minimal Financial Risk To University

Meets “Rushed”

Nelson Express

Cons:

Space Issues

Zoning (?)

Mess Factor

Would Not Be Perceived as Healthy

Pros:

62% Likely To Use

Better able to Offer Fresh Food

Cons:

Space Issues

Zoning

Mess Factor

Limited Availability

Financial Risk

May Be Out of Price Range

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BUS 562 Marketing Research Data Cleaning

Special Coding of Missing Values Allowed for Customized Treatment Special Coding of Missing Values Allowed for Customized Treatment

What We Did Rationale

19 Attitude Questions (Q12_1 to Q12_19) One Missing Data in Factor Analysis Wipes Out the Entire Row of Data – Avoided Losing 10% of the Responders.

Missing 9 Values On 7 Different Responders Filled in with Average Value

Restaurant Characteristics Question Q14_13 One Missing Data in Factor Analysis Wipes Out the Entire Row of Data – Avoided Losing 10% of the Responders.

46 Missing Values Threw Question Out

12 Restaurant Characteristics Questions (Q14_1 to Q14_12) Missing 2 Value On 2 Different Responders Filled in with Average Value

One Missing Data in Factor Analysis Wipes Out the Entire Row of Data – Avoided Losing 13% of the Responders.

8 Frequency Of Visiting Restaurants Questions (Q10_1 to Q10_8)

60 Missing Values on 15 Different Responders

Assumed Missing Meant 0 Visits

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Would you like a chance to win a $50 gift certificate to PF Chang’s China Bistro?

Dear NC State M.B.A. Student:

The students of BUS 562 (Marketing Research) are asking for your help. As part of their joint class project, we have decided to conduct a survey of the eating habits before classes of the students who have evening classes in Nelson Hall. We intend to present our results to fulfill our class requirements and also share them with the M.B.A. office. The questionnaire should take only 5-10 minutes to complete. All responses will be analyzed in aggregate and no individual response will be identified. Only aggregate reports will be shared with the M.B.A. office and all individual responses will remain strictly confidential. Please print out the questionnaire and fill it out by hand. When you have finished the survey, please return the survey to any of your evening or day professors. They will have a special envelope for the surveys to be returned to us. If you have any questions while completing the survey, please contact Glen Ridout at [email protected]

Thanks in advance for your help. We need your response before April 15.

Sincerely yours,

Spring '03 M.B.A. 562 class Only complete surveys that are turned in to your professor by April 15 will be eligible for the drawing. We will be giving away 2 gift certificates!

Please be sure to include Name/Email so you may be contacted if you are one of the winners! Name: ________________________E-Mail Address:_________________________

Survey

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BUS 562 Marketing ResearchFirst, please provide us with some background information:

1) What is your student status?□ Part-time □ Full-time □ I am not currently taking classes. 2) In which year of the MBA program are you?□ Year 1 □ Year 2 □ Year 3 □ Greater than 3 Years

3) Are you currently employed and what is your status?□ I work part-time □ I work full-time □ I am not working at this time

4) What is your gender?□ Male □ Female

5) What is your age?□ < 21 years □ 21-25 □ 26-30 □ 31-35 □ 36-40 □ 41-45 □ 46-50 □ > 50

6) How many 6:00 PM Classes do you have per week?□ 0 □ 1 □ 2 □ 3 □ 4

7) What time do you usually arrive for your 6:00pm class in Nelson Hall?Before 5:00 ___ 5:00 to 5:15 ___5:15 to 5:30 ___ 5:30 to 5:45 ___5:45 to 6:00 ___

8) On average, how many times per week do you have a meal or snack before your evening class? □ 0 day per week□ 1 days per week□ 2 days per week□ 3 days per week□ 4 days per week□ More than 4 days per week

Survey (continued)

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9) How much do you spend, on average, for meals/snacks on nights you have class?Please place “X”.

$0 $1 $2 $3 $4 $5 $6 $7 >$7

10) Please indicate the number of times you have made purchases from the following establishments within walking distance of Nelson during the past month:

Zero One Two Three More than ThreeWolfmart � � � � � Subway � � � � � Pizza America � � � � � East Village � � � � � University Towers � � � � � Nelson Vending Machines � � � � � Sakura Express � � � � � Other � � � � �

11) Indicate the extent to which you agree with this statement:

I am generally satisfied with the choices of restaurants/snack food available within walking distance of Nelson. (circle one)1 = Strongly Agree 2=Agree 3 = Neutral 4=Disagree 5 = Strongly Disagree

Survey (continued)

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12) On a scale of 1 to 5, with 1 = Strongly Agree, 2 = Agree 3 = Somewhat Agree, 4= Somewhat Disagree, 5 =Disagree 6=Strongly Disagree , please check the number that best expresses the extent to which you agree or disagree with each of the following statements.

Survey (continued)

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13) What kind of cuisine do you enjoy the most? (Check Only One)□ Fast Food□ American (Family Restaurant)□ Chinese□ Japanese□ Mexican□ Italian□ Other (Specify) ___________________________________

14) How would you rate the following restaurant characteristics in determining your choice before class? Using a scale of 1 (Extremely important) to 5 (not at all important. Please Check.

Survey (continued)

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15) How likely are you to use Expanded Vending machines in Nelson? (vending machines containing microwave-ready prepackaged vending items and a microwave oven.) Please circle one.

1 = Very Likely 2=Likely 3=Somewhat Likely 4=Somewhat Unlikely 5=Unlikely 6=Very Unlikely

16) How likely are you to visit University Towers Cafeteria, located across the street from Nelson Hall? For a reasonable price you can purchase a meal card or an individual meal with choices including a salad bar, sandwich line, and several hot meal selections. They serve dinner between 4PM and 7:30PM. Please circle one.


17) How likely are you to purchase deli sandwiches, hotdogs, snacks, and fresh fruit available at a food stand located in Nelson Hall? Please circle one.


Please add any additional comments you may have:

Thank you again for taking the time to complete this survey!

Survey (continued)

seth palmer denise spath dan wolf

Documents