Marketing Research: Global Motors Case 11.2 & 12.2
Case 11.2 Global Motors
This case acquaints you with the practical problems of running a data collection company, and it requires your team to assess and compare capabilities of competing online panel providers.
Answers to Case Questions
Keeping the quality of the data as a foremost concern, compare the practices of these two competing panel companies and recommend one that you think CMG research should use for the Global Motors survey. Why have you selected your choice over the competitor? You should discuss which company is better for EACH category/question.
Question 1. What experience does your company have with providing online samples for market research?
Company A: We have conducted market research since 1999. We are the only panel company to take advantage of computer technology and provide a truly nationally representative U.S. sample online. Company B: We have supplied online U.S. samples since 1990, Europe samples since 2000, and our Asian Panel went “live” in 2005. We have supplied approximately 5,000 online samples to our clients in the past 10 years.
Question 2. What are the people told when they are recruited?
Company A: Individuals volunteer for our online panel via our website where they are informed that they will be compensated with redemption points based on the number of surveys in which they take part. Company B: We recruit household members by asking them to join our panel, telling them they can have a say in the development of new products and services. They are rewarded with “credits” that they can use to claim products.
Question 3. If the sample comes from a panel, what is your annual panel turnover/attrition/retention rate?
Company A: Our voluntary drop-out rate is approximately five percent per month. If a panelist misses ten consecutive surveys, he/she loses his/her panel membership. Company B: We do a 1-for-1 replacement for each panel member who drops out voluntary (about 3% per year) or removed due to nonparticipation (about 2% per year).
Question 4. What profile data is kept on panel members? For how many members is this data collected and how often is this data updated?
Company A: We maintain extensive individual-level data, in the form of about 1,000 variables including demographics, household characteristics, financials, shopping and ownership, life styles, and more. All are updated every other year. Company B: For each panelist, we have about 2,500 data points on demographics, assortment of goods and services owned, segmentation/life style factors, health-related matters, political opinions, travel, financials, Internet usage, leisure activities, memberships, etc. Our updating is done annually.
Question 5. Explain how people are invited to take part in a survey.
Company A: Typically a survey
Invitation is sent via email and posted on every selected panel member’s personal member page. In either case, we have a link to the online survey location: “Click here to start your survey.” The email invitation is sent daily to selected panelists until the survey quota is filled. Company B: Based on the client’s sample requirements, we email selected panelists with a link to the online survey. After 48 hours, if the panelist has not participated, we send a reminder, and again 48 hours after the reminder.
USING DESCRIPTIVE ANALYSIS, PERFORMING POPULATION ESTIMATES, AND TESTING HYPOTHESES
Case 15.3 Global Motors Descriptive Analysis
I have provided the SPSS data output for the Global Motors case below. You will use these output files to interpret the results of the data analysis and to answer the questions posed in your text and repeated below.
The SPSS output follows each question.
1. Describe the demographic composition of the sample?
Except for number of household members, the demographic variables are nominal/categorical and require frequencies. Household members is metric (ratio) and requires means analysis.
2. How do respondents feel about (1) global warming and (2) gasoline emissions?
Interpretation of the scale is 1 = not concerned at all to 7= extremely concerned. Please interpret the following descriptive statistics to answer the questions.
3. What type of automobile model is the most desirable to people in the sample? What type is the least desirable? Explain why.
Interpret the following data to answer these questions.
4. Describe the “traditional” media usage of respondents in the sample.
Use the following data to answer the question.
5. Describe the social media usage of the respondents in the sample.
The social media variables are measured with 1= “Never” and 4 = “Four + times a day,” so you must use frequencies to see the distributions.
Use the following data to answer this question.
6. The Global Motors principals believe that the desirability on the part of the American public for each of the automobile models under consideration is the following.
Test these hypotheses with the findings from the survey.
These require one-sample t-test analyses.
Interpret the results below to answer this question, that is for each model was the assumption made by Global Motors correct regarding the desirability of each model? Explain why or why not.