Market Research to Understand Behavior of sales wrt Price and flavor

Market Research to Understand Behavior of sales wrt Price and flavor

Renzil D’cruz

http://RenzilDe.com http://about.me/renzilde

http://linkedin.com/in/renzilde

http://renzilde.com/


http://about.me/renzilde



MARKETING RESEARCH

• Marketing Research Is Generally Activated When There Is A Question To Be Answered , Only When There Is A Information Gap.

• Marketing Research Is Generally Taken Up As A Short-term Project With Clearly Defined Scheduled,budget, Which Should Make Marketing Decision –making.

• Who Does The Research?

• It Is A Intermittent Activity, Based On A Identical Information Gap Or Information Need.

• A Large Number Of Professional Research Are Available To Do The Needful. They Have Branches ( In Case Of India) All Over The Country And Some Have Global Associates If Research Is Going Beyond India.

WHEN TO DO MARKETING RESEARCH

- When There Is A Information Gap Which Can Be Filled By Doing Research.

- The Cost Filling Gap Through Marketing Research Is Less Than Taking Wrong Decision Without Doing Research.

- The Time Taken For The Research Does Not Delay Decision –making Beyond Reasonable Limits.

Renzil D’cruz http://RenzilDe.com

http://about.me/renzilde http://linkedin.com/in/renzilde




TEST MARKETING

• This Is A Name Used For A Class Of Controlled Experiments In Marketing Research.

• Its Objective Is To Predicts Sales Based On Change In Marketing Variable Like Price, promotion, advertisement.

• Experimental Design Are Also Classified In Terms Of Number Of Independent Variable Used .

Renzil D’cruz






EXPERIMENTAL DESIGN

• The Design Of Experiment Is Most Critical When It Is Analysed Through Anova.

• The Types Of Design Use In Marketing Research Experiment Are:

• Completely Randomised Design In One Way-anova.

• This Design Is Used When Three Is Only One Category Of Independent Variable And One Dependent Variable.

• Each Category Of Independent Variable Is Called The Level.

• In This Type Of Design We Randomly Allocate Various Sample To Different Level.

• Then We Conduct F-test Under Anova To Test The Null Hypothesis That The Mean Value Of Independent Variable.

• To measure correlation between sales price and flavor

• To measure the involvement of consumer with particular favoritism on flavor

• To measure consumer preference level of while considering price based on flavor

• To measure the change in consumer behavior from the information to interaction by shopkeeper

Objectives of Research methodology

Renzil D’cruz






Sample Frame

• Demographics: Shopkeeper

• Sample size: 20 respondents

• Location: limited to Mira Rd. ,Kandivli and Vasai

Gender/Type

Own Shop Worker

MALE 5 12

FEMALE 2 1

Type and Tools for sample data collection:

• Primary Data: Structured Questionnaire administered

personally.

• Advantage : Better Feedback on personally administered

Questionnaire

• Disadvantage: The sample selected from limited area of

suburbs in Mumbai result may be vary on bigger sample of data

USE OF ANOVA IN MARKETING RESEARCH

• For primary data collection a structured questionnaire was made which was filled

by respondents.

• Once the data collection was completed, analysis was carried out using SPSS,

software for analyzing the data.

• Data analysis tools like t-test and Anova analysis was used to get the output of the

data.

• ANOVA uses squared deviation of variance so that computation of distance of individual data point from their own mean or from grand mean can be summed ( i.e. S.D sum to zero).

• The total deviation of any particular data point may be partitioned into – BETWEEN GROUP VARIANCE and WITHIN GROUP VARIANCE.

THE EXPERIMENT CONDUCTED ON ’20’ RANDOMLY SELECTED RESPONDENT (ICE-CREAM):

PRICE OF 1l KG.PACK

CODE

1 Rs. 95.00

2 Rs. 100.00

3 Rs. 110.00

4 Rs. 120.00

ICE-CREAM FLAVOURS

CODE

STRAWBERRY 1

VANILLA 2

CHOCOLATE 3

Anjir(Fig) 4

Renzil D’cruz






Variable View

Renzil D’cruz






Data View

Renzil D’cruz






OUTPUT OF SPSS OF ICE-CREAM RANDOMISED DESIGN ONE WAY ANOVA ( FLAVOURS AND PRICE)

FLAVOURS Sum of Squares df Mean Square F Sig. Between Groups 20 17 1.176 0.471 0.85 Within Groups 5 2 2.5

Total 25 19

PRICE Between Groups 26.7 17 1.571 6.282 0.146 Within Groups 0.5 2 0.25 Total 27.200

19 27.2 19

Analysis Q1.Are customer s particular while buying Ice-cream on basis of flavor? (1 being less likely and 10 being

most likly)

Statement 1 :

• Conclusion :- Since the F value is 0.0031 which is less than 0.05, we reject H0.

• There are significant differences in the preferred type of flavor according to Shopkeeper.

Statement 2:

• Conclusion :- Since the p value is 0.019 which is greater than 0.05, we accept H0.

• There are no significant differences in the preferred type of two types of flavours

ICE-CREAM FLAVOURS Rating

STRAWBERRY

VANILLA

CHOCOLATE

Anjir(Fig)

Renzil D’cruz






Analysis Q2.Are customers preference on basis of cost? (1 being less likely and 10 being most likly)

Statement 1 :

• Conclusion :- Since the F value is 0.0031 which is less than 0.05, we reject H0.

• There are significant differences in the preferred type of flavor according to Shopkeeper.

Statement 2:


• There are no significant differences in the preferred type of two types of flavours

PRICE OF 1l KG.PACK

CODE Rating

1 Rs. 95.00

2 Rs. 100

3 Rs. 110.00

4 Rs. 120.00

ANOVA( SALES AND FLAVOURS)

SALES Sum of Squares df Mean Square F

Between Groups 147616.875 3 49205.65 212.011

Within Groups 65545.875 16 4096.68

Total 213163.75 19

FLAVOURS

Between Groups 0 3 0 0

Within Groups 25 16 1.563

Total 25 19 Renzil D’cruz






ANOVA ( PRICE*SALES)

PRICE Sum of Squares df Mean Square F Sig. Between Groups 0 3 0 0 1 Within Groups

27.200 16 1.7

Total 27.2 19

SALES Between Groups 11463.75 3 3821.25 0.303 0.823 Within Groups 201700 16 12606.25

Total 213163.75 19

• Statement:

• H0 : There are no significant differences in the preferred type of Advertisement according to its impact of celebs ads and contest ads

• H1 : There are significant differences in the preferred type of Advertisement according to its impact of celebs ads and contest ads


• There are no differences in the preferred type of Advertisement according to its impact of celebs ads and contest ads

Data Collected From various Sources(Sales/Flavors)

Sales/Flavours 1 2 3 4 Total

900 0 0 0 1 1

930 0 0 1 0 1

1000 1 1 0 0 2

1020 0 0 0 1 1

1025 0 1 0 0 1

1050 1 0 0 0 1

1075 1 0 0 0 1

1090 0 0 0 1 1

1100 0 0 1 0 1

1110 0 0 0 1 1

1125 0 0 1 0 1

1150 0 1 0 0 1

1175 0 1 0 0 1

1180 0 0 1 0 1

1200 1 0 0 1 2

1220 0 1 0 0 1

1225 0 0 1 0 1

1310 1 0 0 0 1

Total 5 5 5 5 20

Chi-Square Tests( SALES*FLAVOURS)

a) 72 cells (100.0%) have expected count less than 5. The minimum expected count is .25.

Test Type Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 52.000(a) 51 0.435

Likelihood Ratio 49.9 51 0.517

Linear-by-Linear

Association 0.813 1 0.367

N of Valid Cases 20

• Statement 1 :

• Conclusion :- Since the p value is 0.435 which is greater than 0.05, we accept H0. There are no significant differences in respondent’s preference towards brand

• Statement 2 :

• Conclusion :- Since the p value is 0.517 which is greater than 0.05, we accept H0. There are no significant differences in respondent’s agreement towards the statement that I prefer giving feedback to brands .

Renzil D’cruz






Data Collected From various Sources(Sales/Price)

Sales/Price 1 2 3 4 Total

900 0 0 0 1 1

930 0 0 0 1 1

1000 0 0 0 2 2

1020 0 0 1 0 1

1025 0 0 1 0 1

1050 1 0 0 0 1

1075 0 0 1 0 1

1090 1 0 0 0 1

1100 0 0 1 0 1

1110 0 1 0 0 1

1125 1 0 0 0 1

1150 0 1 0 0 1

1175 1 0 0 0 1

1180 0 1 0 0 1

1200 1 1 0 0 2

1220 1 0 0 0 1

1225 1 0 0 0 1

1310 1 0 0 0 1

8 4 4 4 20

Chi-Square Tests(PRICE*SALES)

a) 72 cells (100.0%) have expected count less than 5. The minimum expected count is .20.


Pearson Chi-Square 56.250(a) 51 .285

Likelihood Ratio 50.515 51 .493

Linear-by-Linear

Association 12.232 1 0.0

N of Valid Cases 20

• Statement 1 :

• Conclusion :- Since the p value is 0.009 which is less than 0.05, we reject H0. There are significant differences in respondent’s agreement towards the statement that I prefer brand engaging with the customers to promote their product or service

•

• Statement 2 :

• Conclusion :- Since the p value is 0.192 which is greater than 0.05, we accept H0. There are no significant differences in respondent’s agreement towards the statement that I prefer interacting with brands of my choice

Chi-Square Tests(PRICE*FLAVOURS)

a) 16 cells (100.0%) have expected count less than 5. The minimum expected count is 1.00.


Pearson Chi-Square .000(a) 9 1

Likelihood Ratio 0 9 1

Linear-by-Linear

Association 0 1 1

N of Valid Cases 20

Descriptive Statistics

N Statistics Minimum Statistics

Maximum Statistics

Mean Statistics Std. Error

Std. Deviation Variance

SALES 20 900 1310 1104.25 23.685 105.92 11219.14

FLAVOURS 20 1 4 2.5 0.256 1.147 1.316

PRICE 20 1 4 2.2 0.268 1.196 1.432

Valid N (listwise) 20 4

• Usefulness of Advertisements

– Respondents consider banner ads to be their 1st most preferred type of advertisements according to its

usefulness following by online ads , tv ads & print ads respectively

• Impact of Advertisements

– Majority of the respondents were able to recall for a brand easily after watching an advertisement

• Different forms of Advertisement

– There are different forms of Advertisements that creates an impact on the respondent in terms of its

usefulness out of which celebs advertisements has the highest impact on the respondent followed by

creative media ads followed by traditional, Online ads & advertisements involving engagement.

OBSERVATIONS

Renzil D’cruz






• Brand Engagement

– Majority of the respondents prefer brand communicating with consumers

• Interactive Advertising

– In terms of awareness level of different methods of interactive advertising social media has

the highest level of awareness among the respondents followed by vouchers and discounts ,brand involvement contest and sms & win prizes

Renzil D’cruz






• To make advertising more fruitful brands should consider engagement with the customers as important as communicating with the customers

• Interactive advertisements have a better recall then normal advertisements hence brands should consider interaction based advertising as an important medium for awareness

• With a better recall value & personal engagement with a brand it creates an impact on consumer buying decision

• It is recommended for brands to make their advertising campaign more informative & engaging rather than having a celebrity endorsements

• Advertisements should have Promotional campaigns like discounts & vouchers, should be entertaining & funny because it has better impact on customers

• Platforms like Social networking sites & blogs are highly engaging & interactive, brands should consider these platforms for interaction

• Brands should have an separate engaging campaign to have interaction with the customers

• Brands should spend more on interactive advertising media like Internet & Mobile compare to Traditional advertising Media like Print & Radio

Suggestions and recommendations

Renzil D’cruz






• Most of the respondents says that banner ads are most useful

• Most of the respondents said advertisements creates an awareness for a brand & helps in brand recall value

• Most of the respondents said that celebrities advertisements have a greater impact on them

• In terms of awareness level of different methods of interactive advertising social media has the highest level of awareness among the respondents followed by vouchers and discounts & sms & win prizes

Conclusion

• In terms of interaction most of the respondents who are interested in advertisement prefer ads to be entertaining & to be of their interest. Brand loyalty & celebrities & contest are also factors for consideration

• In regards of platforms for interaction majority of respondents prefer internet to interact most of the engaging & interactive ad campaigns should be on Internet

• Brands generally advertise to have an impact on customers mind & to create a high brand recall value which will eventually leads to sales but customers expect advertisements to be useful & to be appropriate

• Brands should incentivize the customers with discounts & vouchers to increase interaction & eventually increase sales of their product & service.

conclusion

Thank You. • Questions ???

• Comments #@$%

• Concerns !!!


• Comments #@$%

• Concerns !!!


• Comments #@$%

• Concerns !!!

facebook.com/renzilde

twitter.com/renzilde

linkedin.com/in/renzilde

https://www.facebook.com/renzilde

https://www.facebook.com/renzilde

https://twitter.com/renzilde

https://twitter.com/renzilde



Market Research to Understand Behavior of sales wrt Price and flavor

Education

Transcript of Market Research to Understand Behavior of sales wrt Price and flavor