danielggallagher.weebly.comdanielggallagher.weebly.com/.../1-50_mktg_rsrch.docx · web viewnick...

Marketing Research Case Study – ZEN Motors: Advanced Automobile Concepts 1

ZEN Motors: Advanced Automobile Concepts

Marketing Research on Advanced Automobile Concepts

Danny Gallagher

East Carolina University


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


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


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


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

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.

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,

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.


The article quotes, “New methods of power to the wheel, higher standards of fuel efficient, on-

board electronics, reconfigured interiors and improved safety feature are among the game-

changing 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 fuel-

efficient 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.


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.


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


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


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


-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.”


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?


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


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?

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?

- 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

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

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


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.


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 in-

home 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?


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

-Neutral-

Strongly 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


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 -Nominal

C. Sports

10. Preferred Magazine type?


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 -Nominal

B. No


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?


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)


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)


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)


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


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


-

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


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

Frequency Percent Valid Percent

Cumulative

Percent

Valid 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

Total 1000 100.0 100.0

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

Percent

Valid Male 505 50.5 50.5 50.5

Female 495 49.5 49.5 100.0

Total 1000 100.0 100.0

Marital status


Cumulative

Percent


Gender


Cumulative

Percent

Valid Male 505 50.5 50.5 50.5

Female 495 49.5 49.5 100.0

Valid Unmarried 487 48.7 48.7 48.7

Married 513 51.3 51.3 100.0

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

Percent

Valid 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

Total 1000 100.0 100.0

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

Percent

Valid Between 18 and 24 121 12.1 12.1 12.1

Between 25 and 34 174 17.4 17.4 29.5

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

Total 1000 100.0 100.0

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

Percent

Valid Did not complete high school 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

Post-undergraduate degree 72 7.2 7.2 100.0

Total 1000 100.0 100.0

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

Percent

Valid 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

Agricultural and Natural

Resources

29 2.9 2.9 68.0

Precision Production, Craft,

Repair

75 7.5 7.5 75.5

Operation, Fabrication,

General Labor

102 10.2 10.2 85.7

Retired 143 14.3 14.3 100.0

Total 1000 100.0 100.0

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

Percent

Valid Under $25,000 256 25.6 25.6 25.6

Between $25,000 and

$49,999

343 34.3 34.3 59.9

Between $50,000 and

$74,999

194 19.4 19.4 79.3

Between $75,000 and

$124,999

137 13.7 13.7 93.0

$125,000 and higher 70 7.0 7.0 100.0

Total 1000 100.0 100.0


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

Percent

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

Mobile Home 67 6.7 6.7 100.0

Total 1000 100.0 100.0

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

Percent

Valid 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

Total 1000 100.0 100.0


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


Cumulative

Percent

Valid 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

Total 1000 100.0 100.0

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

Percent

Valid Single occupancy 588 58.8 58.8 58.8

Multiple occupancy 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

Total 1000 100.0 100.0

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

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.

Total

Very

strongly

disagree

Strongly

disagree

d

Disag

ree

Niether

disagree

nor

agree

Agre

e

Strongly

agree

Very

strongly

agree

I am worried

about global

warming.

Very strongly

disagree

3 4 0 6 1 1 0 15

Strongly

disagree

11 3 2 6 1 1 1 25

Disagree 8 12 2 10 2 1 3 38

Niether

disagree nor

agree

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

agree

60 40 40 60 49 66 313 628

Total 140 97 59 127 75 91 411 1000


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-

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.

Total

Very

strongly

disagree

Strongly

disagree

d

Disag

ree

Niether

disagree

nor

agree

Agre

e

Strongly

agree

Very

strongly

agree

Global

warming is a

real threat.

Very strongly

disagree

5 9 8 8 7 2 11 50

Strongly

disagree

2 8 4 4 8 5 11 42

Disagree 8 10 8 12 7 5 15 65

Niether

disagree nor

agree

9 13 9 28 8 8 20 95

Agree 8 15 10 14 8 8 34 97

Strongly agree 12 16 18 19 14 14 34 127

Very strongly

agree

25 27 23 59 60 52 278 524

Total 69 98 80 144 112 94 403 1000

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 cross-

tabulations. 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

Count

We should be looking for gasoline substitutes.

Total

Very

strongly

disagree

Strongly

disagree

d

Disag

ree

Niether

disagree

nor

agree

Agre

e

Strongly

agree

Very

strongly

agree

We need to do

something to

slow global

warming.

Very strongly

disagree

17 12 7 1 3 6 11 57

Strongly

disagree

13 15 6 4 4 9 20 71

Disagree 10 5 1 10 2 9 15 52

Niether

disagree nor

agree

20 6 7 10 21 20 48 132

Agree 6 7 5 7 18 12 58 113

Strongly agree 18 11 11 16 19 20 52 147

Very strongly

agree

29 17 34 42 43 41 222 428

Total 113 73 71 90 110 117 426 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

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


Neutral 213


Desirable 139

Very desirable 119

Total 1000

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


Undesirable 108


Neutral 153


Desirable 169

Very desirable 51

Total 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


Undesirable 172


Neutral 180


Desirable 83

Very desirable 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


Neutral 175


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

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 Minimum Maximum Mean Std. Deviation

Probability of buying a very

small (1 seat) hybrid auto within

3 years

1000 0 100 13.78 23.088

Probability of buying a small (2

seat) hybrid auto within 3 years

1000 0 90 20.59 19.285

Probability of buying a standard

size hybrid auto within 3 years

1000 0 100 30.12 21.205


size synthetic fuel auto within 3

years

1000 0 100 40.17 21.465


size electric auto within 3 years

1000 0 100 34.64 22.090

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 Percent

Valid No vehicle 100 10.0

Economy 455 45.5

Standard 271 27.1

Luxury 174 17.4

Total 1000 100.0


Primary vehicle type

Frequency Percent

Valid No vehicle 100 10.0

Car 432 43.2

Pick-Up Truck 210 21.0

SUV, Van 258 25.8

Total 1000 100.0

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 Percent

Valid Very strongly disagree 101 10.1

Strongly disagree 38 3.8

Disagree 101 10.1

Niether disagree nor agree 121 12.1

Agree 95 9.5

Strongly agree 147 14.7

Very strongly agree 397 39.7

Total 1000 100.0

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

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 Percent



Disagree 49 4.9


Agree 23 2.3



Total 1000 100.0

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.


Hybrid autos that use alternative fuels will slow down global warming.

Frequency Percent



Disagree 144 14.4


Agree 164 16.4



Total 1000 100.0

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 %


Probability of buying a standard-size hybrid auto within 3 years?

o 15 %



Probability of buying a standard-size synthetic fuel auto within 3 years?

o 15 %


Probability of buying a standard-size electric auto within 3 years?

o 20 %


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

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


Gender Males and Females

Marital Status Unmarried


Education Category Some High School Education

High School Diploma

Some College

Income Category $20,000 - $37,499


3. Runabout with Luggage two-seat, 80 mpg city, 70 mpg highway


Gender Male or Female

Marital Status Unmarried or Married



Education Category Completed College

Some College

Income Category $37,500 - $62,499 and $62,500 - $99,999


4. Economy four-seat, 7- mpg city, 60 mpg highway


Gender Male or Female

Marital Status Married


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


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 +

Hometown Size Category 5,000 – 54,999; 55,000 – 299,999; 300,000 –

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.

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

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 7 th

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

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

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.


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

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

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

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

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.


References

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)

Simon, J. S. (n.d.). Conducting a Focus Group. In Conducting a Focus Gorup. Retrieved April

12, 2012, from http://www.cse.lehigh.edu/~glennb/mm/FocusGroups.htm

(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

Burns, A. C., & Bush, R. F. (2010). Marketing Research (Sixth ed., pp. 1-630). Upper Saddle

River, NJ: Prentice Hall

http://www.cse.lehigh.edu/~glennb/mm/FocusGroups.htm

danielggallagher.weebly.comdanielggallagher.weebly.com/.../1-50_mktg_rsrch.docx · web viewnick...

Documents