(ASSIGNMENT DIRECTION)
To practice analyzing data sets (Step 10 in the marketing research process in Figure 3.1 in chapter 3 in the textbook), complete Case 11.2 and Case12.2 at the end of chapters 11 and 12 as directed in the textbook.
APA format is not required, but solid academic writing is expected.
(CASE 11.2)
Advanced Automobile Concepts SummarizationAnalysis
Cory Rogers was happy to call Nick Thomas to inform himthat Advanced Automobile Concepts survey data were collected and ready for analysis. Of course, Rogers had other marketing research projects and meetings scheduled with present and prospective clients, so he called in his data analyst, Celeste Brown. Brown was a recently graduated marketing major who had worked as a marketing intern atCMG Research last year. She had worked on a few smallCMG survey data sets, but she had not yet tackled any largeprojects. Rogers called Brown into his office and said, “Celeste, it is time to do some analysis on the survey we did for Nick Thomas of Advanced Automobile Concepts. I am going to assign you primary responsibility for all data analysis on this important project. For now, let’s just get a feel for what the data look like. I’ll leave it up to your judgment as to what analyses to run, but for now, do some summarizations in order to reveal the basic patterns and to gain an understanding of the nature of the variability in the data. Let’s meet on Thursday at 2:30 pm to see what you havefound.”Your task in Case 11.2 is to take the role of CelesteBrown, marketing analyst. The data set for the AdvancedAutomobile Concepts survey is now ready for summarization analysis. The file name is AAConcepts.xlsm, and it isin XLData Analyst data file format. The instructor of yourmarketing research course will tell you how to access thisdata set. The data set sample represents American house-holds, and it includes owners as well as non-owners ofvehicles, because the hybrid vehicles being developed andmarketed by the Advanced Automobile Concepts division of ZEN Motors will not “hit” the market for three to fivemore years.The AAConcepts Define Variables worksheet definesthe variables, but for easy reference, here is a list of themajor variables in the survey. For any variables where thedata coding is not clear in this case description, refer totheDefine Variables worksheet.
All of the attitude variables are measured with a 7-point Likert scale, where 1 = “very strongly disagree”and 7 = “very strongly agree.” The likelihoods of buyingnew automobile types are measured on a 100-point probability scale. The lifestyle types are measured on a 10-pointscale, where 1 = “does not describe me at all” and 10 = “describes me almost perfectly.” The preferences scale is a7-point scale, with 1 = “very undesirable” and 7 = “very desirable.”
Demographics
· Hometown size
· Gender
· Marital status
· Number of people in family
· Age category
· Education category
· Job type category
· Income category
· Dwelling type
Attitudes: Global Warming (Measure: 1–7)
· I am worried about global warming.
· Global warming is a real threat.
· We need to do something to slow global warming.
Attitudes: Gasoline Prices (Measure: 1–7)
· Gasoline prices will remain high in the future.
· Gasoline prices are too high now.
· High gasoline prices will impact what type of autosare purchased.
Automobile Ownership
· Primary vehicle price category
· Primary vehicle type
· Type of commuting
Attitudes: Gasoline Usage (Measure: 1–7)
· Gasoline emissions contribute to global warming.
· Americans use too much gasoline.
· We should be looking for gasoline substitutes.
Attitudes: Effects of New Automobile Types (Measure: 1–7)
· Very small autos with very high mpg will reduce fuelemissions.
· Very small autos with very high mpg will keep gasprices stable.
· Very small autos with very high mpg will slow globalwarming.
· Small autos with high mpg will reduce fuel emissions.
· Small autos with high mpg will keep gas prices stable.
· Small autos with high mpg will slow global warming.
· Hybrid autos that use alternative fuels will reducefuel emissions.
· Hybrid autos that use alternative fuels will keep gas prices down.
· Hybrid autos that use alternative fuels will slowglobal warming.
Probabilities of Buying Hybrid Automobile Types (Measure: 0%–100%)
· Probability of buying a very small (one-seat) hybridauto within three years?
· Probability of buying a small (two-seat) hybrid autowithin three years?
· Probability of buying an economy-size hybrid autowithin three years?
· Probability of buying a standard-size hybrid auto within three years?
· Probability of buying a large-size hybrid auto withinthree years?
Lifestyle Type (Measure: 1–10)
· Novelist—very early adopter, risk taker, “way out,”“show off,” want to be unique and special
· Innovator—Early adopter, less a risk taker thannovelist, but into new technology; likes new products, but not a “show off”
· Trendsetter—Opinion leaders, well off financiallyand educationally, often the first adopters of newtrends that are adopted by most of society
· Forerunner—Early majority of population, respectedand fairly well off; not opinion leaders, but adopt newproducts before the “average” person
· Mainstreamer—Late majority of population, “averagepeople” who are reserved and deliberate
· Classic—Laggards who cling to “old” ways
Favorite Television Show Type
· Comedy
· Drama
· Movies/Mini-series
· News/Documentary
· Reality, Science Fiction
· Sports
Favorite Magazine Type
· Business & Money
· Music & Entertainment
· Family & Parenting
· Sports & Outdoors
· Home & Garden
· Cooking–Food & Wine
· Trucks–Cars & Motorcycles
· News–Politics & Current Events
Favorite Radio Genre
· Classic Pop & Rock
· Country
· Easy Listening
· Jazz & Blues
· Pop & Chart
· Talk
Favorite Local Newspaper Section
· Editorial
· Business
· Local news
· National news
· Sports
· Entertainment
Preferences for Various Types of Hybrid Automobile Models (Measure: 1–7)
· Super cycle one-seat; 120+ mpg city
· Runabout sport two-seat; 90 mpg city, 120 mpg highway
· Runabout with luggage two-seat; 80 mpg city,110mpg highway
· Economy four-seat; 70 mpg city, 100 mpg highway
· Standard four-seat; 50 mpg city, 80 mpg highway
CASE 11.2 (QUESTIONS TO BE ANSWERED)
For each of the following questions, it is your task to determine the type of scale for each variable, so that youcan conduct the proper summarization analysis with XLData Analyst, and to interpret it.
1.What is the demographic composition of the sample?
2.What is the automobile ownership profile of respondents in the survey?
3.How do respondents feel about (1) global warming and(2) the use of gasoline?
4.What are the respondents ‘opinions about the effects ofthe use of various kinds of hybrid vehicles?
5.What size of “new” automobile (very small with veryhigh mpg, small with high mpg, and hybrid usingalternative fuels) do people in the sample believe arelikely to have the most positive effects?
6.What type of hybrid automobile is the most attractive topeople in the sample in terms of likelihood of purchasein the next three years? What type is the least attractive?
(CASE 12.2)
Cory Rogers was pleased with Celeste Brown’s descriptiveanalysis. Brown had done all of the proper descriptiveanalyses, and she had copied the relevant tables and findings into a Word document with notations that Rogerscould refer to quickly. Rogers says, “Celeste, this is greatwork. I am going to Nick Thomas in an hour to show himwhat we have found. In the meantime, Iwant you to look abit deeper into the data. Ihave jotted down some items thatI want you to analyze. This is the next step in understanding how the sample findings generalize to the population ofthe United States. I also have some hypotheses that I wantyou to test.”
In the way of background, the data set for theAdvanced Automobile Concepts survey has fifty variablesthat pertain to the following topics.
Demographics
Vehicle ownership
Probabilities of buying various types of hybrid vehicles inthe next three years
Preferences for specific types of hybrid vehicles
Lifestyle
Favorite television show type
Favorite radio genre
Favorite magazine type
Favorite local newspaper section
The XLData Analyst data set, called AAConcepts.xlsm,is comprised of 1,000 respondents who are a representativesample of American households. There is an estimated14,825,428 American households (U.S. Census, 2010estimate).
Your task here is to again take the role of CelesteBrown, marketing analyst. Using the Advanced Automobile Concepts data set, perform the proper analysis andinterpret the findings for each of the following questionsspecified by Rogers.
CASE 12.2 (QUESTIONS TO BE ANSWERED)
1.What percent of the American public owns the following type of vehicle?
a) Standard vehicle
b) luxury vehicle.SUVor van
2.How does the American public feel about the following statements?
a) Hybrid autos that use alternative fuels will reducefuel emissions.
b) Hybrid autos that use alternative fuels will keepgas prices down.
c) Hybrid autos that use alternative fuels will slowglobal warming.
3.Principals at Advanced Automobile Concepts fully understand that there is resistance to change in Zen. There are some senior executives who grew up during America’s “romance with the automobile” era of the 1950s and 1960s, and who believe that most Americans want alarge and powerful automobile. These executives point out that SUVs are extremely popular despite global warming warnings that have been issued for the past decade and numerous gas online price surges where filling up the gas tank of an SUV or a luxury automobile approached the $100 mark. These executives further believe that hybrid and alternative fuel automobiles are generally regarded by the American publicans undesirable because they are perceived to be unattractive, boxy in appearance, and sluggish in acceleration. Infact, some of these senior executives believe that the probability of the American public buying the various hybrid vehicles in the next three years may resemble the following:
Hybrid Vehicle Type Probability
Probabilityof buying a very small (one-seat)hybrid auto within three years? 5%
Probability of buying a small (two-seat) hybridauto within three years? 5%
Probability of buying an economy size hybrid auto within three years? 15%
Probability of buying a standard size hybridauto within three years? 15%
Probability of buying a large size hybrid autowithin three years? 20%
Test these hypotheses with the findings from the survey.
4.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 three years.
a) Very small (one-seat) hybrid auto
b) Small (two-seat) hybrid auto
c) Economy size hybrid auto
d) Standard size hybrid auto
e) Large size hybrid auto