Airbus and Boeing

Содержание

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We’ll start off by looking at the battle between Boeing and

We’ll start off by looking at the battle between Boeing and

Airbus.
Boeing was building smaller planes and Airbus decided on bigger planes, A380.
Boeing won this battle.
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A380 Built on two assumptions: Airbus wanted to differentiate themselves from

A380
Built on two assumptions: Airbus wanted to differentiate themselves from Boeing.

Boeing was going toward making smaller planes, 787 Dreamliner.
And gambled on future market. Airline passengers doubled every 15 years. Airbus though airport would be too small to handle the extra passengers and there would be fewer flights with bigger capacity.
In actuality airports were enlarged, airport capacity increased.
380 was redesigned because too noisy, added weight.
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Airbus engine manufacturer guaranteed that newer engines would not be out

Airbus engine manufacturer guaranteed that newer engines would not be out

within ten years. Boeing came out with newer, more fuel efficient engines in 3 years, 12% more efficient, also Rolls Royce. Both are Airbus competitors.
In the 1990s airplane consultants and experts said the 380 was a bad idea.
Lack of communication between France and Germany, caused problems. Wire harnesses built to short, for example. Plane assembly did not fit together. Cost over runs.
Expensive to develop.
Fuel prices increased.
Redesigned plane came out around 2007, financial crisis, bad timing.
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Boeing 787 had two engines and could fly as far as

Boeing 787 had two engines and could fly as far as

380 with four.
To fill 500 A380 seats airlines had to sell some at low cost, pressure to sell seats.
Cannot find enough routes where demand is high enough all year.
Was designed for 600 seats but too difficult to fill plane so 500 seats.
50% of all 380 flights on Emirates
Less than 20 carriers fly 380.
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Only Emirates has had success, return on investment. High cost to

Only Emirates has had success, return on investment.
High cost to manufacture

plane: cost overruns, development costs, labor costs
Airports had to be changed: terminals adjusted to handle so many passengers at one time, runways strengthened, and gates refitted
747 had peak demand in 1970s, 1990s less.
Boeing has 24 orders for 747, all freight, none passenger.
747 too costly to operate on all but a few routes
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1970s US regulated market, later deregulation Price competition, more competitors and

1970s US regulated market, later deregulation
Price competition, more competitors and low

budget airlines.
In the past twin engine planes had to fly within one hour of airport, now up to 5 hours due to safer planes.
Speculation Boeing will stop producing 747
Business travelers prefer flight frequency and flexible schedules, not airplane size.
Can fly two 777s cheaper on most flights instead one 380
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Boeing The Boeing Company has been the premier manufacturer of commercial

Boeing
The Boeing Company has been the premier manufacturer of commercial

jetliners for more than 40 years and provides products and services to customers in 145 countries. Headquartered in Chicago, Boeing had about 12,000 commercial jetliners in service worldwide as of 2009, which is roughly 75% of the world fleet.
Boeing Commercial Airplanes (BCA) is the division of Boeing that develops and sells airplanes in the commercial segment. Although the airplane manufacturing industry is an oligopoly with only a few players, the competition is intense and the stakes are high.
The division understands that it is important to continuously monitor the dynamic marketplace and understand the needs and priorities of BCA customers (airlines) and their customers (people who fly). To achieve this purpose, BCA employs marketing research on a regular basis.
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Boeing recently entrusted Harris Interactive with a study of this type.

Boeing recently entrusted Harris Interactive with a study of this type.

Harris Interactive, one of the largest market research firms in the world, is based in Rochester, New York. It is best known for The Harris Poll and for pioneering Internet-based research methods.
Boeing commissioned a study to determine the aircraft preferences of fliers. “We presented respondents with real-life air travel scenarios to better understand the attitudes and feelings that led to their choices,” said Dr. David Bakken, senior vice president of marketing sciences, Harris Interactive.
“What we found was that travelers taking very long flights generally prefer the more convenient and flexible experience provided by smaller planes.”
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The study was a survey based on 913 interviews conducted in

The study was a survey based on 913 interviews conducted in

the UK, Tokyo, and Hong Kong with international travelers (age 18 and over) who had taken at least one recent eight-hour or longer flight.
Interviews were conducted between November 2003 and February 2004 using a two-stage methodology. Respondents were first screened and qualified by telephone or via in-person interviews, and then they completed an online survey at home or work or at a central interviewing location.
In each region, Harris polled equal numbers of Premium Class Business, Economy Business, and Economy Leisure travelers.
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Some key findings: More than 60% preferred a single-deck, 250-passenger airplane

Some key findings:
More than 60% preferred a single-deck, 250-passenger airplane

to a double-deck, 550-passenger airplane for nonstop flights.
Seven out of 10 travelers preferred a nonstop trip on a single-deck, 250-passenger airplane to a trip involving a connecting flight on a double-deck, 550-passenger airplane with an on-board lounge.
Travelers in all the classes of service from all three regions believed smaller airplanes would provide a better experience with check-in, boarding, disembarking, baggage claim, and customs/immigration than the 550-seat aircraft.
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From Boeing’s point of view, these were important insights. The company

From Boeing’s point of view, these were important insights. The company

is responding with enhanced products. Based on these findings and subsequent product research that involved in-depth interviews and surveys of airlines, BCA developed a new version of the Boeing 737, which caters to the 100- to 215-seat market.
The new concept is focused on bringing more economical solutions to airlines, a better flight experience to passengers, and improved environmental performance to the world.
The newest members of the Boeing 737 family—the 737-600/-700/-800/-900 models—continue the 737’s preeminence as the world’s most popular and reliable commercial jet transport.
Meeting the market demands, the 737 family has won orders for more than 5,200 airplanes, an amazing feat even for Boeing.
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Introduction to Marketing Research Chapter 1

Introduction to Marketing Research

Chapter 1

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Why study marketing research? The end result is that you want

Why study marketing research?
The end result is that you want to

do something beneficial for your company: increase market share, increase profitability.
You want to make a good decision.
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How is marketing different from other business areas? It is connected

How is marketing different from other business areas?
It is connected with

the consumer. You want to bring the consumer to your side.
It is 5 times more costly to find a new customer than to keep an existing customer.
Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
Marketing research is part of marketing.
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The marketing concept is a business philosophy that holds that the

The marketing concept is a business philosophy that holds that the

key to achieving organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its chosen markets.
Over the years there has been a progression: production, product, selling, marketing, and societal marketing.
Production - producing a product will create the demand, build and they will come
product - need a good quality product in order to sell it
selling - need sales people to push the product
marketing - bring the customer to you, pull
societal marketing - includes how the process affects society, the environment.
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A marketing strategy consists of selecting a segment of the market

A marketing strategy consists of selecting a segment of the market

as the company’s target market and designing the proper mix of the product/service, promotion, promotion and place (distribution) to meet the wants and needs of the consumers within the target market.
To practice marketing, to implement the marketing concept, to implement the marketing strategy, managers must make decisions.
Many decisions require additional information and marketing research is needed in order to supply that information.
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It is possible to have a great product and to fail.

It is possible to have a great product and to fail.
It

is possible to have a mediocre product and to succeed.
Some classic market failures
(1) New Coke - customers didn’t want the tradition to change
(2) Yoghurt shampoo P&G - a few people ate it.
(3) 3D Television Vizio - not many 3D movies and people don’t want to wear those glasses for too long
(4) Apple Lisa, B2B - too expensive
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Next few slides are of companies using market research to find

Next few slides are of companies using market research to find

opportunities
(1) YouTube began as a video dating site.
YouTube did market research and found that it was difficult to find videos online and try share them.
(2) Tata (India)
(3) Twitter - Too much clutter on other sites, focus on simplicity and news and celebrities.
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Marketing research is the function that links the consumer, customer, and

Marketing research is the function that links the consumer, customer, and

public to the marketer through information—information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.
Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection
Marketing research is the systematic and objective identification, collection, analysis, dissemination, and use of information for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing process, analyzes the results, and communicates the findings and their implications.
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The purpose of marketing research is to link the consumer to

The purpose of marketing research is to link the consumer to

the marketer by providing information that can be used in making marketing decisions.
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Marketing research is systematic. Systematic planning is required at all stages

Marketing research is systematic.
Systematic planning is required at all stages

of the marketing research process. The procedures followed at each stage are methodologically sound, well documented, and, as much as possible, planned in advance.
Marketing research uses the scientific method in that data are collected and analyzed to test prior notions or hypotheses.
Marketing research attempts to provide accurate information that reflects a true state of affairs. It is objective and should be conducted impartially.
Although research is always influenced by the researcher’s philosophy, it should be free from the personal or political biases of the researcher or the management.
Research that is motivated by personal or political gain involves a breach of professional standards.
The motto of every researcher should be, “Find it and tell it like it is.”
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Marketing research involves the identification, collection, analysis, dissemination, and use of

Marketing research involves the identification, collection, analysis, dissemination, and use of

information. Each phase of this process is important.
We identify or define the marketing research problem or opportunity and then determine what information is needed to investigate it.
Because every marketing opportunity translates into a research problem to be investigated, the terms “problem” and “opportunity” are used interchangeably here.
Next, the relevant information sources are identified and a range of data collection methods varying in sophistication and complexity are evaluated for their usefulness.
The data are collected using the most appropriate method; they are analyzed and interpreted, and inferences are drawn.
Finally, the findings, implications, and recommendations are provided in a format that allows the information to be used for marketing decision making and to be acted upon directly.
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A Classification of Marketing Research Organizations engage in marketing research for

A Classification of Marketing Research
Organizations engage in marketing research for two

reasons: (1) to identify and (2) to solve marketing problems.
This distinction serves as a basis for classifying marketing research into problem-identification research and problem-solving research.
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(1) Problem-identification research is undertaken to help identify problems that are,

(1) Problem-identification research is undertaken to help identify problems that are,

perhaps, not apparent on the surface and yet exist or are likely to arise in the future. Problem-identification research include market potential, market share, brand or company image, market characteristics, sales analysis, short-range forecasting, long-range forecasting, and business trends research.
A survey of companies conducting marketing research indicated that 97% of those who responded were conducting market potential, market share, and market characteristics research.
About 90% also reported that they were using other types of problem-identification research. Research of this type provides information about the marketing environment and helps diagnose a problem.
A declining market potential indicates that the firm is likely to have a problem achieving its growth targets. Similarly, a problem exists if the market potential is increasing but the firm is losing market share.
The recognition of economic, social, or cultural trends, such as changes in consumer behavior, may point to underlying problems or opportunities.
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Once a problem or opportunity has been identified, (2) problem-solving research

Once a problem or opportunity has been identified, (2) problem-solving research

is undertaken to arrive at a solution.
The findings of problem-solving research are used in making decisions that will solve specific marketing problems.
Most companies conduct problem-solving research.
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Problem-identification research and problem-solving research go hand in hand, and a

Problem-identification research and problem-solving research go hand in hand, and a

given marketing research project may combine both types of research.
This was illustrated in the opening Boeing example.
The consumer surveys identified potential demand for smaller planes (problem identification).
Subsequent product research led to the introduction of the new versions of the Boeing 737, which cater to the 100- to 215-seat market (problem solving).
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Kellogg’s Kellogg’s, marketing its products in more than 180 countries as

Kellogg’s
Kellogg’s, marketing its products in more than 180 countries as of

2009, experienced a slump in the market and faced the challenge of reviving low cereal sales.
Through problem-identification research, Kellogg’s was able to identify the problem and, through problem-solving research, develop several solutions to increase cereal sales.
Kellogg’s performed several tasks to identify the problem.
The researchers spoke to decision makers within the company, interviewed industry experts, conducted analysis of available data, performed some qualitative research, and surveyed consumers about their perceptions and preferences for cereals.
Several important issues or problems were identified by this research.
Current products were being targeted to kids, bagels and muffins were winning for favored breakfast foods, and high prices were turning consumers to generic brands. Some other information also came to light during the research. Adults wanted quick foods that required very little or no preparation.
These issues helped Kellogg’s identify the problem. It was not being creative in introducing new products to meet the needs of the adult market.
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After defining the problem, Kellogg’s went to work on solutions. It

After defining the problem, Kellogg’s went to work on solutions.
It

developed and tested several new flavors of cereals using mall intercept interviews with adult consumers.
Based on the results, Kellogg’s introduced new flavors that were more suited to the adult palate but were not the tasteless varieties of the past. In 2008 it introduced Kellogg’s Nutri-Grain Cereal Bar Blackberry.
This new cereal bar is filled with blackberries. The new cereal bar was supported by an ad campaign and major in-store promotions.
Through creative problem-identification research followed by problem-solving research, Kellogg’s has not only seen an increase in sales, but also increased consumption of cereal at times other than just breakfast.
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The Marketing Research Process We conceptualize the marketing research process as

The Marketing Research Process
We conceptualize the marketing research process as consisting

of six steps.
Each of these steps is discussed in great detail in the subsequent chapters; the discussion here is brief.
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Step1: Problem definition (Chapter 2) In defining the problem, the researcher

Step1: Problem definition (Chapter 2)
In defining the problem, the researcher should

take into account the purpose of the study, the relevant background information, the information needed, and how it will be used in decision making.
Problem definition involves discussion with the decision makers, interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such as focus groups.
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Step 2: Development of an approach to the problem (Chapter 2)

Step 2: Development of an approach to the problem (Chapter 2)
This

step includes formulating an objective or theoretical framework, analytical models, research questions, and hypotheses and identifying the information needed.
This process is guided by discussions with management and industry experts, analysis of secondary data, qualitative research, and pragmatic considerations.
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Step 3: Research design formulation (Chapters 3-12) A research design is

Step 3: Research design formulation (Chapters 3-12)
A research design is a

framework or blueprint for conducting the marketing research project.
It details the procedures necessary for obtaining the required information, and its purpose is to design a study that will test the hypotheses of interest, determine possible answers to the research questions, and provide the information needed for decision making.
Conducting exploratory research, precisely defining the variables, and designing appropriate scales to measure them are also a part of the research design.
The issue of how the data should be obtained from the respondents (for example, by conducting a survey or an experiment) must be addressed.
It is also necessary to design a questionnaire and a sampling plan to select respondents for the study.
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Formulating the research design involves the following steps: 1. Definition of

Formulating the research design involves the following steps:
1. Definition of

the information needed
2. Secondary data analysis
3. Qualitative research
4. Methods of collecting quantitative data (survey, observation, and experimentation)
5. Measurement and scaling procedures
6. Questionnaire design
7. Sampling process and sample size
8. Plan of data analysis
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Step 4: Fieldwork or Data Collection (Chapter 13) Data collection involves

Step 4: Fieldwork or Data Collection (Chapter 13)
Data collection involves a

field force or staff that operates either in the field, as in the case of personal interviewing (in-home, mall intercept, or computer-assisted personal interviewing), from an office by telephone (telephone or computer-assisted telephone interviewing), through mail (traditional mail and mail panel surveys with prerecruited households), or electronically (e-mail or Internet).
Proper selection, training, supervision, and evaluation of the field force help minimize data-collection errors.
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Step 5: Data preparation and analysis (Chapters 14-22) Data preparation includes

Step 5: Data preparation and analysis (Chapters 14-22)
Data preparation includes the

editing, coding, transcription, and verification of data.
Each questionnaire or observation form is inspected or edited and, if necessary, corrected.
Number or letter codes are assigned to represent each response to each question in the questionnaire.
The data from the questionnaires are transcribed or keypunched onto magnetic tape or disks, or input directly into the computer.
The data are analyzed to derive information related to the components of the marketing research problem and to provide input into the management decision problem.
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Step 6: Report preparation and presentation (Chapter 23) The entire project

Step 6: Report preparation and presentation (Chapter 23)
The entire project should

be documented in a written report that addresses the specific research questions identified; describes the approach, the research design, data collection, and data analysis procedures adopted, and presents the results and the major findings.
The findings should be presented in a comprehensible format so that management can readily use them in the decision-making process.
Although we have described the research process as a sequence of steps, it should be noted that these steps are interdependent and iterative.
At each step, the researcher should not only look back at the previous steps but also look ahead to the following steps.
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Marriott Marriott International is a leading worldwide hospitality company. Its heritage

Marriott
Marriott International is a leading worldwide hospitality company. Its heritage can

be traced to a root beer stand opened in Washington, D.C., in 1927 by J. Willard and Alice S. Marriott. As of 2009, Marriott International has nearly 3,000 lodging properties located in the United States and 69 other countries and territories. Its brands include Marriott, Renaissance, Courtyard, Residence Inn, Fairfield Inn, Towneplace Suites, Springhill Suites, and Ramada International.
Marketing research at Marriott is done at the corporate level through the Corporate Marketing Services (CMS). Its goals include providing Marriott managers with the information that they need to better understand the market and the customer.
CMS does many different types of research. It uses quantitative and qualitative research approaches such as telephone and mail surveys, focus groups, and customer intercepts to gain more information on market segmentation, product testing, price sensitivity of consumers, consumer satisfaction, and the like.
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The process of research at Marriott is a simple stepwise progression.

The process of research at Marriott is a simple stepwise progression.


The first steps are to better define the problem to be addressed and the objectives of the client unit and to develop an approach to the problem.
The next step is to design the study by formulating a formal research design. CMS must decide whether to do its own research or to buy it from an outside organization, and in that case, decide whether to use multiple firms.
Once a decision is made, the data are collected and analyzed.
Then CMS presents the study findings to the client unit in a formal report.
The final step in the research process is to conduct a constant dialogue between the client and CMS. During this stage, CMS may help explain the implications of the research findings, assist in decision making, or make suggestions for future research
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The Role of Marketing Research in Marketing Decision Making The emphasis

The Role of Marketing Research in Marketing Decision Making
The emphasis

in marketing is on the identification and satisfaction of customer needs. In order to determine customer needs and to implement marketing strategies and programs aimed at satisfying those needs, marketing managers need information.
They need information about customers, competitors, and other forces in the marketplace.
In recent years, many factors have increased the need for more and better information.
As firms have become national and international in scope, the need for information on larger and more distant markets has increased. As consumers have become more affluent and sophisticated, marketing managers need better information on how they will respond to products and other marketing offerings.
As competition has become more intense, managers need information on the effectiveness of their marketing tools. As the environment changes more rapidly, marketing managers need more timely information.
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Today’s competitive marketing environment and the ever-increasing costs attributed to poor

Today’s competitive marketing environment and the ever-increasing costs attributed to poor

decision making require marketing research to provide sound information.
Sound decisions are not based on gut feeling, intuition, or even pure judgment.
In the absence of sound information, an incorrect management decision may be made.
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Johnson & Johnson is considered to be the world’s most broadly

Johnson & Johnson is considered to be the world’s most broadly

based manufacturer of health care products with more than 250 operating companies in 57 countries as of 2009. Despite its success in the industry, Johnson & Johnson’s attempt to use its company name on baby aspirin proved to be unsuccessful.
Johnson & Johnson baby products are perceived as gentle, but gentleness is not what people want in a baby aspirin.
Although baby aspirin should be safe, gentleness per se is not a desirable feature. Rather, some people perceived that a gentle aspirin might not be effective enough.
This is an example of what intuitively seemed to be a natural move but without proper marketing research turned out to be an incorrect decision.
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Marketing managers make decisions about potential opportunities, target market selection, market

Marketing managers make decisions about potential opportunities, target market selection, market

segmentation, planning and implementing marketing programs, marketing performance, and control.
These decisions are complicated by interactions among the controllable marketing variables of product, pricing, promotion, and distribution. (4Ps)
Further complications are added by uncontrollable environmental factors such as general economic conditions, technology, public policies and laws, the political environment, competition, and social and cultural changes.
Another factor in this mix is the complexity of the various customer groups: consumers, employees, shareholders, suppliers.
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Marketing research helps the marketing manager link the marketing variables with

Marketing research helps the marketing manager link the marketing variables with

the environment and the customer groups.
It helps remove some of the uncertainty by providing relevant information about the marketing variables, environment, and consumers.
In the absence of relevant information, consumers’ response to marketing programs cannot be predicted reliably or accurately.
Ongoing marketing research programs provide information on controllable and uncontrollable factors and consumers; this information enhances the effectiveness of decisions made by marketing managers.
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Traditionally, marketing researchers were responsible for assessing information needs and providing

Traditionally, marketing researchers were responsible for assessing information needs and providing

the relevant information, whereas marketing decisions were made by the managers. These roles are changing.
Marketing researchers are becoming more involved in decision making, whereas marketing managers are becoming more involved with research.
This trend can be attributed to better training of marketing managers, the Internet and other advances in technology, and a shift in the marketing research paradigm in which more and more marketing research is being undertaken on an ongoing basis rather than in response to specific marketing problems or opportunities.
Marketing research must add value to marketing decision making, indeed to the entire organization. It should be emphasized that marketing managers do not work in isolation from other functions in the organization. Rather, the marketing orientation embodies a cross-functional perspective to meet consumer needs and attain long-term profitability.
Marketing research should interface with the other functions in the organization such as manufacturing, research and development, finance, accounting, and other functional areas as may be relevant in a given project.
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The Decision to Conduct Marketing Research Marketing research can be beneficial

The Decision to Conduct Marketing Research
Marketing research can be beneficial in

a variety of situations, but the decision to conduct research is not automatic.
This decision should be guided by a number of considerations, including the costs versus the benefits, the resources available to conduct the research, the resources available to implement the research findings, and management’s attitude toward research.
Marketing research should be undertaken when the expected value of information it generates exceeds the costs of conducting the marketing research project.
The more important the decision confronting management and the greater the uncertainty or risk facing them, the greater the value of information obtained.
Formal procedures are available for quantifying the expected value as well as the costs of a marketing research project. Although in most instances the value of information exceeds the costs, there are instances when the reverse may be true.
A pie manufacturer wanted to understand consumers’ purchase of pies in convenience stores. I advised against a major marketing research project when we discovered that less than 1% of the sales were coming from convenience stores and that this situation was unlikely to change in the next five years.
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Resources, especially time and money, are always limited. If either time

Resources, especially time and money, are always limited.
If either time

or money is not available in adequate amounts to conduct a quality project, that project probably should not be undertaken. It is better not to do a formal project than undertake one in which the integrity of the research is compromised because of lack of resources.
A firm may lack the resources to implement the recommendations arising from the findings of marketing research. In that case, spending the resources to conduct the research may not be warranted.
And if management does not have a positive attitude toward research, then it is likely that the project report will gather dust after the project is conducted.
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Toyota Toyota has had tremendous success with both the Toyota and

Toyota
Toyota has had tremendous success with both the Toyota and Lexus

brands of cars. The Lexus brand was created to sell cars more luxurious than those previously offered by Toyota and to cater to the older, more affluent crowd.
The company noticed an opportunity in the younger, “Generation Y” crowd (those born between 1977 and 1995), where Toyota had a relatively smaller market share. More than 65 million Americans fall into this demographic category. Cars bought by this group are less expensive and more youth-oriented. Chief rivals within this competitive landscape include Honda, Volkswagen, BMW, Mazda, Ford, and Chevrolet.
Focus groups and surveys by Toyota targeted at the teen through thirties age group suggested that Toyota had the image of being “my parents’ car.” Needless to say, sales to this diverse and elusive age group were small.
Toyota then began a secret project, code-named “Genesis,” to research the under-30 market to find out what features they wanted in their cars and to determine their buying habits.
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The members of the study looked at existing Toyota models such

The members of the study looked at existing Toyota models such

as the Echo, the Celica, and the MR2 Spyder and found that the Generation Y crowd perceived these cars as having no cohesive theme and carrying Toyota’s older image.
Several cars were brought to the US that were being used in Japan to see what kind of reaction they would elicit. The cars that created the most buzz ultimately were modified for American preferences and resulted in a third line of cars for Toyota, aptly named “Scion”. The Scion name means “offspring of an illustrious family” and illustrates the fact that they are a spin-off from Toyota.
Now that Toyota had the cars and the strategy, they had to build their brand and market the new cars to this new audience. Toyota hired marketing firm ATTIK (www.attik.com) to help with this task. They con- ducted qualitative market research through traditional focus groups and clinics as well as quantitative research through Internet surveys and youth panels.
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They also implemented case studies by asking people to study their

They also implemented case studies by asking people to study their

younger friends’ preferences and to report their findings.
The results of this market research revealed that the Generation Y crowd values individuality and expression, diversity, and style.
Because they are more prone to disdain commercialism and can be swayed more effectively by word-of-mouth communications, Scion chose not to advertise through traditional channels such as network television or magazines.
They decided to market the Scion through guerrilla tactics such as live concerts and events with a music or arts focus catered toward this younger crowd.
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Scion took the results of their market research and applied them

Scion took the results of their market research and applied them

to their business strategy. In 2003, the first Scions were available for sale. Three different models were designed to attract a wide spectrum of younger buyers, such as the Scion xB, which is a boxy, compact sports utility vehicle.
All Scions came loaded with options that were desirable to the target buyer, such as 160-watt stereos, cell phone holders, plush seats, and plenty of customization options.
They implemented a no-haggling, easy-to-understand pricing structure to make the buying process more enjoyable for many of these first-time buyers.
More than 90% of Scion owners have never owned a Toyota car before, and the median age of Scion owners is 34, much lower than the average ages of Toyota and Lexus owners (49 and 54, respectively).
Since 2006, Scion has been partnering with Nielsen Online’s BuzzMetrics service to use information from consumer-generated media (CGM) in formulating their market strategies.
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CGM is important to Scion because that’s where their customers are

CGM is important to Scion because that’s where their customers are

and where they are most likely to see and engage in the brand.
There are many blogs, Web sites, and social networking sites for discussions for customers to get more information and see how other customers like the product.
All the three models (tC, xB, and xD) continued to do well through 2008, until the recession hit.
Although Toyota appears to have figured out through market research the secret to attracting younger buyers, they cannot simply be content. The tricky younger generation is fickle.
Therefore, Scion and Toyota must continually rely on market research to meet the ever-changing demands of younger buyers.
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Healthy Restaurants Average consumers have become more concerned with health and

Healthy Restaurants
Average consumers have become more concerned with health and nutrition.

Obesity lawsuits have been filed against fast-food giants that have offered only fatty, greasy burgers and fries. As a result, many fast-food chains are now offering healthier alternatives, such as salads and fresh fruit, as well as decreasing serving sizes.
It seems that this shift toward healthier fare is paying off for fast-food chains. According to the Quick-Track research study conducted by market research firm Sandelman & Associates in 2009, Americans were satisfied with fast food.
The Quick-Track is a syndicated market research project conducted quarterly to track key consumer behavioral and attitudinal measures for all major fast-food and pizza chains in individual markets. In this study, each quarter 400 respondents are surveyed in each market via a combination of telephone and Internet interviews in more than 100 markets representing a wide range of demographics.
Telephone respondents are selected via a computer-generated random sample of listed and unlisted telephone numbers, and online respondents are selected from a panel of more than 5 million Internet users.
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Respondents were asked their opinions of past visits to each fast-food

Respondents were asked their opinions of past visits to each fast-food

restaurant chain within the last three months. They were asked to rate their opinions on the overall restaurant experience as well as on 12 specific attributes such as food, service, cleanliness, and value.
The responses were scored on a scale with 1 = Poor and 5 = Excellent. To ensure reliability and representation of the population, only chains with a minimum of 150 responses were considered.
The three most important attributes for respondents were cleanliness (77% rated it as extremely important), food taste and flavor (74%), and order accuracy (66%). The availability of healthy and nutritious food is increasing in importance among respondents, with 40% rating it as extremely important (up from 34% in 2003).
The overall increase in satisfaction with fast food chains can be attributed to the chains’ responsiveness to customer demands for food quality, taste, health, and nutrition.
Слайд 66

One example of how fast-food chains respond to the consumer’s desire

One example of how fast-food chains respond to the consumer’s desire

for healthier, tasty food offerings is to provide fresh fruit as a menu option.
Wendy’s is now offering fresh fruit bowls as an entrée or as a dessert.
McDonald’s is offering a fruit and walnut salad, and IHOP is selling fruit plate entrees.
These are not isolated examples in the food industry. According to marketing research firm NPD Group, fruit consumption in restaurants has increased by more than 10% from 2006 to 2009.
Kerrii Anderson, president of Wendy’s, commented that now’s the time for fruit, because people are looking for different and new tastes and for healthier alternatives.
Слайд 67

The Department Store Patronage Project A department store patronage project that

The Department Store Patronage Project
A department store patronage project that I

conducted is used as a running example throughout this text to illustrate concepts and data analysis procedures.
The purpose of this project was to assess the relative strengths and weaknesses of a major department store relative to a group of direct and indirect competitors.
This store will be referred to as Sears; the true identity of the actual store has been disguised.
The goal was to formulate marketing programs designed to boost the declining sales and profits of Sears.
Ten major stores, including prestigious department stores (e.g., Saks Fifth Avenue, Neiman-Marcus), national chains (e.g., JCPenney), discount stores (e.g., Kmart, Wal-Mart), and some regional chains (e.g., Kohl’s) were considered in this study.
A questionnaire was designed and administered, using in-home personal interviews, to a convenience sample of 271 households drawn from a major metropolitan area.
A six-point scale was used (subjects were asked to check a number from 1 to 6) whenever ratings were obtained.
Слайд 68

The following information was solicited: 1. Familiarity with the 10 department

The following information was solicited:
1. Familiarity with the 10 department stores
2.

Frequency with which household members shopped at each of the 10 stores
3. Relative importance attached to each of the eight factors selected as the choice criteria utilized in selecting a department store. These factors were quality of merchandise, variety and assortment of merchandise, returns and adjustment policy, service of store personnel, prices, convenience of location, layout of store, and credit and billing policies.
4. Evaluation of the 10 stores on each of the eight factors of the choice criteria
5. Preference ratings for each store
6. Rankings of the 10 stores (from most preferred to least preferred)
7. Degree of agreement with 21 lifestyle statements
8. Standard demographic characteristics (age, education, etc.)
9. Name, address, and telephone number
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