research assignment

306 Part 4 Data Preparation, Analysis, and Reporting the Results

MARKETING RESEARCH IN ACTION Examining Restaurant Image Positions—Remington’s Steak House

About three years ago, John Smith opened Remington’s Steak House, a retail theme res- taurant located in a large midwestern city. Smith’s vision was to position his restaurant as a unique, theme-oriented specialty restaurant. The plan was for the restaurant to have an excellent reputation for offering a wide assortment of high-quality yet competitively priced entrees, excellent service, and knowledgeable employees who understand custom- ers’ needs. The overriding goal was to place heavy emphasis on satisfying customers.

Smith used this vision to guide the development and implementation of his restaurant’s positioning and marketing strategies. Although Smith knew how to deliver dining experience, he did not know much about developing, implementing, and assessing marketing strategies.

Recently, Smith began asking himself some fundamental questions about his restau- rant’s operations and the future of his business. Smith expressed these questions to an account representative at a local marketing research firm and, as a result, decided to do some research to better understand his customers’ attitudes and feelings. More specifically, he wanted to gain some information and insights into the following set of questions:

1. What are the major factors customers use when selecting a restaurant, and what is the relative importance of each of these factors?

2. What image do customers have of Remington’s and its two major competitors? 3. Is Remington’s providing quality and satisfaction to its customers? 4. Do any of Remington’s current marketing strategies need to be changed, and if so in

what ways?

To address Smith’s questions, the account representative recommended completing an image survey using an Internet panel approach. Initial contact was made with potential respondents using a random digit dialing telephone survey to screen for individuals who were patrons of Remington’s as well as customers of competitors’ restaurants (including their main competitors, Outback Steak House and Longhorn Steak House) within the mar- ket area. Respondents must also have a minimum annual household income of $20,000, and be familiar enough with one of the three restaurant competitors to accurately rate them. If an individual was qualified for the study based on the screening questions, they were directed to a website where they completed the survey.

Because this was the first time Smith had conducted any marketing research, the consultant suggested an exploratory approach and recommended a small sample size of 200. She said that if the results of the initial 200 surveys were helpful, the sample size could be increased so that the findings would be more precise. The questionnaire included questions about the importance of various reasons in choosing a restaurant, perceptions of the images of the three restaurant competitors on the same factors, and selected classification information on the respondents. When the researcher reached the quota of 200 usable completed questionnaires, the sample included 86 respon- dents who were most familiar with Outback, 65 who were most familiar with Longhorn, and 49 who were most familiar with Remington’s. This last criterion was used to deter- mine which of Remington’s restaurant competitors a respondent evaluated. A database for the questions in this case is available in SPSS format at connect.mheducation.com. The name of the database is Remingtons MRIA_essn.sav. A copy of the questionnaire is in Exhibit 11.19.

hai12117_ch11_272-315.indd 306 8/23/16 2:56 PM

Chapter 11 Basic Data Analysis for Quantitative Research 307

Screening and Rapport Questions

Hello. My name is and I work for DSS Research. We are talking to individuals today/ tonight about dining out habits.

1. “Do you regularly dine at casual dining restaurants?” Yes No 2. “Have you eaten at other casual restaurants in the last six months?” Yes No 3. “Is your gross annual household income $20,000 or more?” Yes No 4. There are three casual steakhouse restaurants in you neighborhood—Outback, Longhorn,

and Remington’s. Which of these restaurants are you most familiar with? a. Outback b. Longhorn c. Remington’s d. None

If respondent answers “Yes” to the first three questions, and is familiar with one of the three restaurants, then say: We would like you to answer a few questions about your recent dining experiences at Outback/ Longhorn/Remington’s restaurant. The survey will only take a few minutes and it will be very helpful in better serving restaurant customers in this area.

If the person says yes, give them instructions on how to access the website and complete the survey.

DINING OUT SURVEY

Please read all questions carefully. In the first section a number of reasons are listed that people use in selecting a particular restaurant to dine at. Using a scale from 1 to 7, with 7 being “Very Important” and 1 being “Not Important at All,” please indicate the extent to which a particular selection reason is important or unimportant. Circle only one number for each selection reason.

Section 1: Importance Ratings

How important is/are in selecting a particular restaurant to dine at?

1. Large portions Not Important Very At All Important 1 2 3 4 5 6 7

2. Competent employees Not Important Very At All Important 1 2 3 4 5 6 7

3. Food quality Not Important Very At All Important 1 2 3 4 5 6 7

4. Speed of service Not Important Very At All Important 1 2 3 4 5 6 7

5. Atmosphere Not Important Very At All Important 1 2 3 4 5 6 7

6. Reasonable prices Not Important Very At All Important 1 2 3 4 5 6 7

Exhibit 11.19 The Remington’s Steak House Questionnaire

(continued)

hai12117_ch11_272-315.indd 307 8/23/16 2:56 PM

308 Part 4 Data Preparation, Analysis, and Reporting the Results

Section 2: Perceptions Measures

Listed below is a set of characteristics that could be used to describe [Outback/Longhorn/ Remington’s]. Using a scale from 1 to 7, with 7 being “Strongly Agree” and 1 being “Strongly Disagree,” to what extent do you agree or disagree that [Remington’s—Outback— Longhorn’s]: (a particular restaurant’s name appeared on the screen based on the familiarity question in the telephone screener)

7. has large portions Strongly Strongly Disagree Agree 1 2 3 4 5 6 7

8. has competent employees Strongly Strongly Disagree Agree 1 2 3 4 5 6 7

9. has excellent food quality Strongly Strongly Disagree Agree 1 2 3 4 5 6 7

10. has quick service Strongly Strongly Disagree Agree 1 2 3 4 5 6 7

11. has a good atmosphere Strongly Strongly Disagree Agree 1 2 3 4 5 6 7

12. reasonable prices Strongly Strongly Disagree Agree 1 2 3 4 5 6 7

Section 3: Relationship Measures

Please indicate your view on each of the following questions:

13. How satisfied are you with ? Not Satisfied Very At All Satisfied 1 2 3 4 5 6 7

14. How likely are you to return to Definitely Will Definitely in the future? Not Return Will Return 1 2 3 4 5 6 7

15. How likely are you to recommend Definitely Will Definitely Will to a friend? Not Recommend Recommend 1 2 3 4 5 6 7

16. Frequency of Patronage 1 = Occasionally (Less than once a month) How often do you eat at ? 2 = Frequently (1–3 times a month) 3 = Very Frequently (4 or more times a month) Section 4: Classification Questions

Please circle the number that classifies you best.

17. Number of Children at Home 1 None 2 1–2 3 More than 2 children at home

Exhibit 11.19 continued

hai12117_ch11_272-315.indd 308 8/23/16 2:56 PM

Chapter 11 Basic Data Analysis for Quantitative Research 309

Exhibit 11.19 continued

18. Do you recall seeing any 0 No advertisements in the last 1 Yes 60 days for Outback/Longhorn/ Remington’s?

19. Your gender 0 Male 1 Female

20. Your age in years 1 18–25 2 26–34 3 35–49 4 50–59 5 60 and Older

21. Your annual gross household income 1 $20,000–$35,000 2 $35,001–$50,000 3 $50,001–$75,000 4 $75,001–$100,000 5 More than $100,000

22. Competitors: Most familiar with _______? 1 Outback 2 Longhorn 3 Remington’s

Thank you very much for your help. Click on the submit button to exit the survey.

Researchers focused their initial analysis of the data on the importance ratings for the restaurant selection factors. The importance ratings are variables X1–X6 in the Rem- ington’s database. Exhibit 11.20 shows that food quality and speed of service are the two most important factors. To create this exhibit, the click-through sequence is ANALYZE → DESCRIPTIVE STATISTICS → FREQUENCIES. Highlight variables X1–X6 and move them to the Variable(s) box. Then go to the Statistics box and check “Mean,” and then click Continue, and OK. The least important factor is competent employees (mean = 3.12). This does not mean employees are not important. It simply means they are less important com- pared to the other factors included in the survey. In sum, respondents wanted good food, fast service, and reasonable prices.

Exhibit 11.20 Average Importance Ratings for Restaurant Selection Factors

hai12117_ch11_272-315.indd 309 8/23/16 2:56 PM

310 Part 4 Data Preparation, Analysis, and Reporting the Results

The next task was to examine the perceptions of the three restaurant competitors. Using the restaurant image factors, the consultant conducted an ANOVA to see if there were any differences in the perceptions of the three restaurants (Exhibits 11.21 and 11.22). To create these exhibits, the click-through sequence is ANALYZE → COMPARE MEANS → ONE-WAY ANOVA. Highlight variables X7–X12 and move them to the Dependent List box, and then highlight variable X22 and move it to the Factor box. Next go to the Options box, check “Descriptive,” and then click Continue, and OK.

We show the results in Exhibits 11.21 and 11.22. We provide an overview of the find- ings from Exhibits 11.20 to 11.22 in Exhibit 11.23.

The findings of the survey were quite revealing. On the most important factor (food quality), Remington’s rated the highest (mean = 6.86; see Exhibit 11.23), but Outback

Exhibit 11.21 One-Way ANOVA for Restaurant Competitors

Descriptives

N Mean

X7 -- Large Portions Outback 86 3.57

Longhorn 65 2.77

Remington’s 49 3.39

Total 200 3.27

X8 -- Competent Employees Outback 86 5.15

Longhorn 65 3.25

Remington’s 49 2.49

Total 200 3.88

X9 -- Food Quality Outback 86 6.42

Longhorn 65 5.12

Remington’s 49 6.86

Total 200 6.11

X10 -- Speed of Service Outback 86 4.35

Longhorn 65 3.02

Remington’s 49 2.27

Total 200 3.41

X11 -- Atmosphere Outback 86 6.09

Longhorn 65 4.35

Remington’s 49 6.59

Total 200 5.65

X12 -- Reasonable Prices Outback 86 5.50

Longhorn 65 5.00

Remington’s 49 5.49

Total 200 5.34

hai12117_ch11_272-315.indd 310 8/23/16 2:56 PM

Chapter 11 Basic Data Analysis for Quantitative Research 311

Exhibit 11.22 One-Way ANOVA of Differences in Restaurant Perceptions

Competitor Means

Attributes Rankings* Outback Longhorn Remington’s Sig.

X7—Large Portions 4 3.57 2.77 3.39 .000 X8—Competent Employees 6 5.15 3.25 2.49 .000 X9—Food Quality 1 6.42 5.12 6.86 .000 X10—Speed of Service 2 4.35 3.02 2.27 .000 X11—Atmosphere 5 6.09 4.35 6.59 .000 X12—Reasonable Prices 3 5.50 5.00 5.49 .000 N = 200 total 86 65 49 .000

*Note: Rankings are based on mean importance ratings of attributes.

Exhibit 11.23 Summary of ANOVA Findings from Exhibits 11.20–11.22

was a close second (mean = 6.42). Remington’s was also rated the highest on atmosphere (mean = 6.59), but that factor was fifth most important. For speed of service (second most important) and competent employees (least important), Remington’s was rated the lowest of the three competitors.

hai12117_ch11_272-315.indd 311 8/23/16 2:56 PM

312 Part 4 Data Preparation, Analysis, and Reporting the Results

Exhibit 11.24 Importance-Performance Chart for Remington’s Steak House

71

7

3 Less Important

More Important

ExcellentPoor

X9—Food Quality X10—Speed of Service

X12—Reasonable Prices

X7—Large Portions

X11—Atmosphere

X8—Competent Employees

Quadrant A Quadrant B

Quadrant C Quadrant D

An easy way to convey the results of an image analysis is to prepare an impor- tance performance chart (IPC). To prepare this chart, calculate the mean values for the importance and performance questions for each of the restaurants.Then use these means to plot the position of each restaurant on a perceptual map. The IPC for Rem- ington’s Steak House is shown in Exhibit 11.24. The chart shows that in terms of food quality and prices, Remington’s is doing well. But there are several areas for improve- ment, particularly in comparison to the competition. The competitive restaurants can be plotted on a separate perceptual map. An IPC (perceptual map) has quadrants (A–D) that are described as follows:

Quadrant A: Modifications are needed. Quadrant B: Good job—no need to modify. Quadrant C: Don’t worry—low priority. Quadrant D: Rethink—a possible overkill.

Hands-On Exercise 1. What are other areas of improvement for Remington’s? 2. Run post-hoc ANOVA tests between the competitor groups. What additional problems

or challenges did this reveal? 3. What new marketing strategies would you suggest?

hai12117_ch11_272-315.indd 312 8/23/16 2:56 PM

Chapter 11 Basic Data Analysis for Quantitative Research 313

Summary Explain measures of central tendency and dispersion. The mean is the most commonly used measure of cen- tral tendency and describes the arithmetic average of the values in a sample of data. The median rep- resents the middle value of an ordered set of values. The mode is the most frequently occurring value in a distribution of values. All these measures describe the center of the distribution of a set of values. The range defines the spread of the data. It is the distance between the smallest and largest values of the distribu- tion. The standard deviation describes the average dis- tance of the distribution values from the mean. A large standard deviation indicates a distribution in which the individual values are spread out and are relatively far- ther away from the mean.

Describe how to test hypotheses using univariate and bivariate statistics. Marketing researchers often form hypotheses regard- ing population characteristics based on sample data. The process typically begins by calculating frequency distributions and averages, and then moves on to actu- ally test the hypotheses. When the hypothesis testing involves examining one variable at a time, researchers use a univariate statistical test. When the hypothesis testing involves two variables, researchers use a bivari- ate statistical test. The Chi-square statistic permits us to test for statistically significant differences between the frequency distributions of two or more groups. Categori- cal data from questions about sex, race, profession, and so forth can be examined and tested for statistical dif- ferences. In addition to examining frequencies, market- ing researchers often want to compare the means of two groups. There are two possible situations when means are compared. In independent samples the respondents

come from different populations, so their answers to the survey questions do not affect each other. In related samples, the same respondent answers several questions, so comparing answers to these questions requires the use of a paired-samples t-test. Questions about mean differ- ences in independent samples can be answered by using a t-test statistic. Apply and interpret analysis of variance (ANOVA). Researchers use ANOVA to determine the statistical significance of the difference between two or more means. The ANOVA technique calculates the variance of the values between groups of respondents and com- pares it with the variance of the responses within the groups. If the between-group variance is significantly greater than the within-group variance as indicated by the F-ratio, the means are significantly different. The statistical significance between means in ANOVA is detected through the use of a follow-up test. The Scheffé test is one type of follow-up test. The test examines the differences between all possible pairs of sample means against a high and low confidence range. If the difference between a pair of means falls outside the confidence interval, then the means can be consid- ered statistically different. Utilize perceptual mapping to present research findings. Perceptual mapping is used to develop maps that show perceptions of respondents visually. These maps are graphic representations that can be produced from the results of several multivariate techniques. The maps pro- vide a visual representation of how companies, products, brands, or other objects are perceived relative to each other on key attributes such as quality of service, food taste, and food preparation.

Key Terms and Concepts

Analysis of variance (ANOVA) 297 Chi-square (X2) analysis 291 Follow-up test 299 F-test 297 Independent samples 294 Interaction effect 301

Mean 274 Median 275 Mode 275 n-way ANOVA 300 Perceptual mapping 304 Range 277

hai12117_ch11_272-315.indd 313 8/23/16 2:56 PM

314 Part 4 Data Preparation, Analysis, and Reporting the Results

Related samples 294 Standard deviation 278

t-test 294 Variance 278

Review Questions 1. Explain the difference between the mean, the median,

and the mode. 2. Why and how would you use Chi-square and t-tests

in hypothesis testing?

3. Why and when would you want to use ANOVA in marketing research?

4. What will ANOVA tests not tell you, and how can you overcome this problem?

Discussion Questions 1. The measures of central tendency discussed in this

chapter are designed to reveal information about the center of a distribution of values. Measures of dis- persion provide information about the spread of all the values in a distribution around the center values. Assume you were conducting an opinion poll on vot- ers’ approval ratings of the job performance of the mayor of the city where you live. Do you think the mayor would be more interested in the central ten- dency or the dispersion measures associated with the responses to your poll? Why?

2. If you were interested in finding out whether or not young adults (21–34 years old) are more likely to buy products online than older adults (35 or more years old), how would you phrase your null hypothesis? What is the implicit alternative hypothesis accompa- nying your null hypothesis?

3. The level of significance (alpha) associated with testing a null hypothesis is also referred to as the probability of a Type I error. Alpha is the probability of rejecting the null hypothesis on the basis of your sample data when it is, in fact, true for the popula- tion of interest. Because alpha concerns the prob- ability of making a mistake in your analysis, should you always try to set this value as small as possible? Why or why not?

4. Analysis of variance (ANOVA) allows you to test for the statistical difference between two or more means. Typically, there are more than two means tested. If the ANOVA results for a set of data reveal that the four means that were compared are significantly dif- ferent from each other, how would you find out which individual means were statistically different from

each other? What statistical techniques would you ap- ply to answer this question?

5. EXPERIENCE MARKETING RESEARCH. Nike, Reebok, and Converse are strong competitors in the athletic shoe market. The three use different advertis- ing and marketing strategies to appeal to their target markets. Use one of the search engines on the Internet to identify information on this market. Go to the websites for these three companies (www.Nike.com; www .Reebok.com; www.Converse.com). Gather back- ground information on each, including its target mar- ket and market share. Design a questionnaire based on this information and survey a sample of students. Prepare a report on the different perceptions of each of these three companies, their shoes, and related aspects. Present the report in class and defend your findings.

6. SPSS EXERCISE. Form a team of three to four students in your class. Select one or two local fran- chises to conduct a survey on, such as Subway or McDonald’s. Design a brief survey (10–12 questions) including questions like ratings on quality of food, speed of service, knowledge of employees, attitudes of employees, and price, as well as several demographic variables such as age, address, how often individuals eat there, and day of week and time of day. Obtain per- mission from the franchises to interview their custom- ers at a convenient time, usually when they are leaving. Assure the franchiser you will not bother customers and that you will provide the franchise with a valuable report on your findings. Develop frequency charts, pie charts, and similar graphic displays of findings, where appropriate. Use statistics to test hypotheses, such as

hai12117_ch11_272-315.indd 314 8/23/16 2:56 PM

Chapter 11 Basic Data Analysis for Quantitative Research 315

“Perceptions of speed of service differ by time of day or day of week.” Prepare a report and present it to your class; particularly point out where statistically signifi- cant differences exist and why.

7. SPSS EXERCISE. Using SPSS and the Santa Fe Grill employee database, provide frequencies, means, modes, and medians for the relevant variables on the questionnaire. The questionnaire is shown in Chap- ter 10. In addition, develop bar charts and pie charts where appropriate for the data you analyzed. Run an ANOVA using the work environment perceptions variables to identify any differences that may exist

between male and female employees, and part-time versus full-time employees. Be prepared to present a report on your findings.

8. SPSS EXERCISE. Review the Marketing Research in Action case for this chapter. There were three res- taurant competitors—Remington’s, Outback, and Longhorn. Results for a one-way ANOVA of the restaurant image variables were provided. Now run post-hoc ANOVA follow-up tests to see where the group differences are. Make recommendations for new marketing strategies for Remington’s compared to the competition.

hai12117_ch11_272-315.indd 315 8/23/16 2:56 PM