Video Case 4.

1
Subaru: Mr. Survey Monitors Customer Satisfaction
1. Marketing research can play an important role in helping Subaru understand the devotion
of consumers to its brand. It can help them understand the motivations, perceptions, and
preferences of consumers in their market. It can also provide them with a profile of their loyal
customers.
2. Management Decision roblem!
"hat can Subaru do to improve customer loyalty#
$. %he marketing research problem is to determine customer preferences for automobiles
and discover what things create loyalty among these customers. More specifically!

a. "hat criteria do consumers use for evaluating automobiles#
b. &ow do consumers evaluate Subaru and competing brands on the identified
criteria#
c. "hat is the demographic and psychographic profile of customers loyal to Subaru#
d. "hat characteristics differentiate Subaru loyalists from consumers loyal to other
brands#
'. %he (ensus 2))) data could be a valuable source of secondary data for Subaru. It could
help them reali*e the si*e and demographics of the +S market, however, it would not give them
specific information that would relate motivations, perceptions, and preferences to customer
characteristics. %his could be overcome through other available secondary data or through
primary data collection.
-. Syndicate marketing research firms could provide ob.ective and highly detailed analyses
of consumers/ car buying habits and relevant psychographic and lifestyle information. Specific
car buying information is available from syndicated firms such as 0. D. ower and 1ssociates
2www..dpa.com3.
4. 5ualitative research would help Subaru define the problem and set up an approach to
improving customer loyalty. 6ocus groups and depth interviews would be the most useful
techni7ues.
8. Since comple9 7uestions and a diversity of 7uestions will probably be asked, personal
interviews will be effect. :f the three personal methods, mall intercepts will be the most
efficient in terms of cost and speed.
;.
:rdinal Scale
lease rank order the following automobile brands in terms of your preference. 1ssign the rank
of 1 to the most preferred and the rank of 1) to the least preferred brand.
<rand =ank
a. >M ?????
b. 6ord ?????
c. Subaru ?????
.
.
.. &onda ?????
@(' A 1
Interval Scale
lease rate the following automobile brands in terms of your preference using the sevenApoint
scale, where 1 B no preference, and 8 B strong preference.
Co reference Strong reference
a. >M 1 2 $ ' - 4 8
b. 6ord 1 2 $ ' - 4 8
c. Subaru 1 2 $ ' - 4 8
.
.
.. &onda 1 2 $ ' - 4 8
=atio Scale
&ow many dollars did you spend in the last ten years on the following automobile brands#
<rand Dollars Spent
a. >M ?????
b. 6ord ?????
c. Subaru ?????
.
.
.. &onda ?????
AUTOMO!"# $U#ST!O%A!&#
'A&T A
51! 1re you familiar with Subaru/s automobiles#
a. Des ?????
b. Co ?????
If you answered Co to this 7uestion, please do not answer any additional 7uestions.
%hank you for your time.
52! &ave you ever purchased a Subaru#
a. Des ?????
b. Co ????? 2If Co, skip to 5uestion -3
5$. "hich brand of Subaru did you purchase# lease check all that apply.
a. :utback ?????
b. 6orester ?????
c. Eegacy ?????
d. Impre*a ?????
e. <a.a ?????
5'! 1re you likely to buy a Subaru brand again when you are in the market for an
automobile#
a. Des ?????
b. Co ?????
@(' A 2
5-. &ow important are the following factors in your decision to purchase an automobile
brand#
Cot Important Ceutral @ery Important
a. =eliability 1 2 $ ' -
b. erformance 1 2 $ ' -
c. >as Mileage 1 2 $ ' -
d. =epair F Maintenance 1 2 $ ' -
e. rice 1 2 $ ' -
f. Image 1 2 $ ' -
g. 6eatures 1 2 $ ' -
54. lease evaluate Subaru brands on the following!
@ery oor Ceutral @ery >ood
a. =eliability 1 2 $ ' -
b. erformance 1 2 $ ' -
c. >as Mileage 1 2 $ ' -
d. =epair F Maintenance 1 2 $ ' -
e. rice 1 2 $ ' -
f. Image 1 2 $ ' -
g. 6eatures 1 2 $ ' -
58. lease evaluate %oyota brands on the following!
@ery oor Ceutral @ery >ood
a. =eliability 1 2 $ ' -
b. erformance 1 2 $ ' -
c. >as Mileage 1 2 $ ' -
d. =epair F Maintenance 1 2 $ ' -
e. rice 1 2 $ ' -
f. Image 1 2 $ ' -
g. 6eatures 1 2 $ ' -
5;. lease evaluate &onda brands on the following!
@ery oor Ceutral @ery >ood
a. =eliability 1 2 $ ' -
b. erformance 1 2 $ ' -
c. >as Mileage 1 2 $ ' -
d. =epair F Maintenance 1 2 $ ' -
e. rice 1 2 $ ' -
f. Image 1 2 $ ' -
g. 6eatures 1 2 $ ' -
5G. lease evaluate Cissan brands on the following!
@ery oor Ceutral @ery >ood
a. =eliability 1 2 $ ' -
b. erformance 1 2 $ ' -
@(' A $
c. >as Mileage 1 2 $ ' -
d. =epair F Maintenance 1 2 $ ' -
e. rice 1 2 $ ' -
f. Image 1 2 $ ' -
g. 6eatures 1 2 $ ' -
'A&T !!
1)3 "hat is your gender#
?????Male
?????6emale
113 "hat age group are you in#
?????1;A2'
?????2-A2G
?????$)A$'
?????$-A''
?????'-A4'
?????4- and over
123 "hat category of income do you fit into#
?????)AH2),)))
?????H2),))1AH$-,)))
?????H$-,))1AH-),)))
?????H-),))1AH1)),)))
?????H1)),))1 and above
1$3 "hat is your marital status#
?????Married
?????Single
1'3 If you were ever married, how many children do you have#
?????Cone
?????:ne
?????%wo
?????%hree
?????6our or more
%hank you for your time. Dour assistance will help us in better meeting your automobile needs.
????????????????????????????????????????????????????????????????
G. %arget population! +S population age 14 and older that own a car
Sampling frame! eople at malls across the +S
Sampling unit! Individual consumers at malls
Sampling techni7ue! 5uota sampling
Sample si*e! 1)))
@(' A '
I9ecution! Select specific shopping malls based on the .udgment of the researcher. Set
7uotas by age and gender. +se 7uota sampling to select mall patrons and interview them.
1). a. %he simple correlation coefficient can be estimated between the willingness to
purchase an automobile brand and each of the seven independent variables. :ne could
also run seven bivariate regressions. In these regressions, the dependent variable will be
the willingness to purchase an automobile brand and each of the seven independent
variables will serve as the predictor variable. %hese analyses will be conducted across
the four automobile brands.
b. 1 multiple regression should be estimated. %he dependent variable will be the
willingness to purchase an automobile brand and the seven independent variables should be
considered simultaneously in the regression. %his analysis will be conducted across the four
automobile brands.
c. 1 paired samples t test should be conducted with Subaru/s ratings on reliability
and image as the two variables.
d. 1 paired samples t test should be conducted with the %oyota/s rating on reliability
and Subaru/s ratings on reliability serving as the two variables.
e. Seven independent samples t tests should be conducted with each independent
variable serving as the test variable. %he grouping variable will be those who have purchased
and those who have not purchased a Subaru automobile.
f. 1n independent samples t test should be conducted with willingness to purchase
Subaru brands as the test variable and gender as the grouping variable.
g. 1 oneAway 1C:@1 should be conducted with the four groups as the factor and
willingness to purchase Subaru brands as the dependent variable.
h. 1 crossAtabulation should be conducted with the four age groups as the
independent variable and willingness to purchase %oyota brands as the dependent variable.
i. 1 oneAway 1C:@1 should be conducted with the three marital status groups as
the factor and willingness to purchase Subaru brands as the dependent variable.
.. 1 crossAtabulation should be conducted with the three marital status groups as the
independent variable and willingness to purchase %oyota brands as the dependent variable.
11. Subaru needs to address differences in the lifestyleJpastime 2autobahn3 and popular sports
2soccer3 in their marketing research. %hey also need to consider other socioAcultural factors such
as environmental friendliness and research methodology in >ermany. In addition,
economicalJinfraAstructural factors, marketing environment, government environment, legal
environment, and information and technological environment should be considered as well.
12. "ith regard to the general public, ethical concerns revolve primarily around the methods
of generating and reporting research results. It is the .oint responsibility of the researcher and the
@(' A -
client to ensure that the research findings are being disseminated accurately. In particular, care
should be taken by both the market researcher and the client to avoid incomplete reporting,
misleading reporting, and biased research.
It is the marketing researcher/s responsibility to protect the respondents from unethical
research practices. %wo issues deserve special attention! conducting a survey as a guise to sell
products, and the invasion of the privacy of the respondent.
>iven the comple9ity involved, it is not surprising that the ethical issues surrounding the
researcherAclient relationship are somewhat numerous. 1reas that deserve special attention from
an ethical standpoint are! abuse of position arising from speciali*ed knowledge, unnecessary
research, an un7ualified researcher, disclosure of identity, treating data as nonconfidential, and
misleading presentation of data.
%he researcher 2or the research firm3 has the right to be treated ethically as well. Ithical
treatment by clients involves several issues! improper solicitation of proposals, disclosure of
proprietary techni7ues, and misrepresentation of findings.
@(' A 4
Video Case 4.(
Marriott: Mar)etin* &esearc+ "eads to #,-anded Offerin*s
1. Marketing research has played a crucial role in helping Marriott segment the market and
develop its line of hotels. Marketing research is needed if Marriott is to keep track of changing
consumer and business customer needs, identify new opportunities in the hotel market, further
develop and differentiate its various brands, and develop strong e7uity.
2. %he management decision problem is! K%o what degree and in what way should Marriott
further penetrate the nonAbusiness travelers segment in the +nited States#L %his statement is
actionAoriented and asks what the decision maker should do in regards to Marriott presence in the
target market.
$. %he marketing research problem is to determine nonAbusiness travelers/ preferences for
hotels and to assess their evaluations of Marriott and its competitors. Specifically,
13 "hat attitudes and perceptions nonAbusiness travelers have about hotels in the +nited
States#
23 "hat criteria do nonAbusiness travelers use in selecting a hotel#
$3 &ow do nonAbusiness travelers evaluate the e9isting Marriott and competitors/ hotels
in the target area#
'3 "hat is the demographic and psychographic profile of Marriott nonAbusiness
customers and does it differ from the profile of nonAbusiness travelers who
patroni*e competing hotels#
'. 1n appropriate research design would be to begin with e9ploratory research followed by
descriptive research. %he ob.ective of e9ploratory research is to identify the relevant factors that
business and nonAbusiness travelers use in evaluating hotels. I9ploratory research should
involve the analysis of secondary data and 7ualitative research in the form of focus groups. %he
ob.ective of descriptive research would be to 7uantitatively measure the preferences for Marriott
and competing hotels. (rossAsectional descriptive surveys are recommended for this purpose.
-. In order to obtain the re7uired information, three types of online searches can be utili*ed.
6irst, key words should be entered in standard search engines like www.google.com and
www.yahoo.com. %he keywords should be descriptive of the type of information and attempt to
restrict the number of responses. Some of the keywords that could be used are! Khotels and
market shareL, KMarriott and market shareL and K&ilton and market share,L etc.
%he second type of search that can be used is a database search. %hrough the library "eb
site, students can search for articles in maga*ines, papers and periodicals like New York Times
and News Week concerning market share in the hotel industry. In addition, Ee9isACe9is
1cademic +niverse business and industry news database can be used to search for market share
statistics.
6inally, the "eb sites of ma.or hotels should be visited looking for press releases that
may contain the information needed.
4. Marriott has a marketing research department within the organi*ation. %hey collect a lot
of secondary data on an ongoing basis and in response to specific marketing problems and
opportunities. %hese data can provide valuable information such as! the number of nonAbusiness
travelers staying at each of the Marriott/s hotels over time, the relative occupancy by nonA
business versus business travelers over time by specific Marriott brands, average length of stay
by nonAbusiness travelers, etc. %hese data can provide an understanding of the nonAbusiness
traveler segment and how this segment selects a hotel.
@(' A 8
8. Syndicated surveys would be useful. Specifically, hotel habits and practices as a part of
sychographic and Eifestyle surveys should provide relevant information. Cielsen %elevision
Inde9 2C%I3 provides information on who was watching which program, so that audience si*e
and demographic characteristics can be calculated. In addition, syndicated industry services can
provide valuable information on the hotel industry.
;. It is the role of 7ualitative research to provide Marriott with relevant information that will
help better define the problem of further penetrating the nonAbusiness travelers segment. It can
aid the development of an approach to the problem via the generation of better hypothesis and
the inclusion of variables, which are not intuitive. It should be noted that 7ualitative research is
an unstructured and nonAstatistical techni7ue and its results would be misused if Marriott uses
them to draw generali*ations about the greater population or regard them as conclusive.
6ocus groups could provide impressions of new hotel products, pricing and ideas about
older brands. 1ll this is valuable information for a company thinking about e9panding further in
a market. <esides, this information would lead to better marketing research further down the
line by defining the problem more precisely, generating alternative courses of action, developing
better approaches to the problem, designing 7uestionnaires, and interpreting statistical results.
Depth interviews could play a role in the Marriott case study even though their need is
debatable because the insight and understanding sought can easily come from focus groups.
Depth interviews would be used to discuss confidential, sensitive and embarrassing topics such
as personal finances, spending habits, and eating habits. Deeper probing for the moods and
emotions during a hotel stay would be obtained this way.
ro.ective techni7ues are complicated, sub.ective to a certain degree and have nothing
more to offer in this case. Information of the Marriott problem can be obtained easily from the
direct 7ualitative method, thus making the use of pro.ective techni7ues unnecessary.
G. MallAintercept personal interviews would be appropriate because brochures of the
new hotel package may have to be shown and the concept e9plained to the respondents in order
to obtain meaningful responses. In addition, there will be good sample control as the profile of
the mall shoppers closely matches the profile of the nonAbusiness travelers. %his method offers
fle9ibility and the 7uantity of data that can be collected, and the response rates are good. %he
control of the field force is not a problem as the interviews are conducted in a central location.
Since the issue is not sensitive, social desirability bias and the need for perceived anonymity are
not salient. %he speed and cost of data collection are reasonable.
1).
Eikert scale! Strongly Disagree Ceutral 1gree Strongly
Disagree 1gree
I prefer Marriott hotel 1 2 $ ' -
Semantic differential scale! My preference for Marriott hotel is!
Strong AA AA AA AA AA AA AA "eak

Stapel scale!
My preference for Marriott hotel is!
M-
M'
M$
@(' A ;
M2
M1
reference
A1
A2
A$
A'
A-
11. See the Marriott 7uestionnaire in the following.
.OT#" $U#ST!O%%A!&#
'A&T A
51. &ow often do you stay in a hotel#
a. Eess than once a year ????
b. :nce a year ????
c. 2 or $ times a year ????
d. 6our or more times a year ????
52. "hich meals do you typically eat in a hotel when staying there# lease check all that apply.
a. <reakfast ????
b. Eunch ????
c. Dinner ????
d. :ther 2lease specify3 ????
e. Do not eat in a hotel ????
5$. lease rate the importance of the following factors in your selection of a hotel#
Cot at all
@ery
Important
Important
a. 5uality 1 2 $ ' - 4 8
b. 1menities 1 2 $ ' - 4 8
c. Service 1 2 $ ' - 4 8
d. rice 1 2 $ ' - 4 8
e. (omfort 1 2 $ ' - 4 8
f. (onvenience of location 1 2 $ ' - 4 8
5'. lease rate your preference for the following hotels.
Cot at all
@ery Much
referred
referred
@(' A G
a. 5uality 1 2 $ ' - 4 8
b. 1menities 1 2 $ ' - 4A 8
c. Service 1 2 $ ' - 4 8
d. rice 1 2 $ ' - 4 8
e. (omfort 1 2 $ ' - 4 8
f. (onvenience of location 1 2 $ ' - 4 8
5-. lease rate the following hotels in terms of 5uality.
oor I9cellent
a. &oliday Inn 1 2 $ ' - 4 8
b. Marriott 1 2 $ ' - 4 8
c. Sheraton 1 2 $ ' - 4 8
d. Doubletree 1 2 $ ' - 4 8
e. "yndham 1 2 $ ' - 4 8
f. <est "estern 1 2 $ ' - 4 8
54. lease rate the following hotels in terms of 1menities.
oor I9cellent
a. &oliday Inn 1 2 $ ' - 4 8
b. Marriott 1 2 $ ' - 4 8
c. Sheraton 1 2 $ ' - 4 8
d. Doubletree 1 2 $ ' - 4 8
e. "yndham 1 2 $ ' - 4 8
f. <est "estern 1 2 $ ' - 4 8
58. lease rate the following hotels in terms of Service.
oor I9cellent
a. &oliday Inn 1 2 $ ' - 4 8
b. Marriott 1 2 $ ' - 4 8
c. Sheraton 1 2 $ ' - 4 8
d. Doubletree 1 2 $ ' - 4 8
e. "yndham 1 2 $ ' - 4 8
f. <est "estern 1 2 $ ' - 4 8
5;. lease rate the following hotels in terms of a value rice.
oor I9cellent
a. &oliday Inn 1 2 $ ' - 4 8
b. Marriott 1 2 $ ' - 4 8
c. Sheraton 1 2 $ ' - 4 8
d. Doubletree 1 2 $ ' - 4 8
e. "yndham 1 2 $ ' - 4 8
f. <est "estern 1 2 $ ' - 4 8
5G. lease rate the following hotels in terms of (omfort.
oor I9cellent
@(' A 1)
a. &oliday Inn 1 2 $ ' - 4 8
b. Marriott 1 2 $ ' - 4 8
c. Sheraton 1 2 $ ' - 4 8
d. Doubletree 1 2 $ ' - 4 8
e. "yndham 1 2 $ ' - 4 8
f. <est "estern 1 2 $ ' - 4 8
51). lease rate the following hotels in terms of (onvenience of Eocation.
oor I9cellent
a. &oliday Inn 1 2 $ ' - 4 8
b. Marriott 1 2 $ ' - 4 8
c. Sheraton 1 2 $ ' - 4 8
d. Doubletree 1 2 $ ' - 4 8
e. "yndham 1 2 $ ' - 4 8
f. <est "estern 1 2 $ ' - 4 8
'A&T
In this part, we would like to ask you some 7uestions for classification purposes.
511. Dour >ender!
1. Male ?????
2. 6emale ?????
512. Marital Status!
1. Married ?????
2. Cever Married ?????
$. DivorcedJSeparatedJ"idowed ?????
51$. 6amily Si*e!
1. :ne ?????
2. %wo ?????
$. %hree ?????
'. 6our ?????
-. 6ive or more ?????
51'. Dour 1ge!
1. 1;A2' ?????
2. 2-A') ?????
$. '1A4) ?????
'. 4)M ?????
51-. Dour 6ormal Iducation
1. Eess than &igh School ?????
2. &igh School >raduate ?????
$. Some (ollege ?????
'. (ollege >raduate ?????
@(' A 11
514. "hat is Dour :ccupation#
????????????????????
518. "hat is the appro9imate combined annual income of your household before ta9es#
1. H$),))) or less ?????
2. H$),))1 to -),))) ?????
$. H-),))1 to 8-,))) ?????
'. H8-,))1 to 1)),))) ?????
-. H1)),))1 to 1-),))) ?????
4. H1-),))1 and over ?????
%hank you for your participation.
????????????????????????????????????????????????????????????????????????????
12. (onvenience sampling could be used for mallAintercept interviews
%arget population! Mall shoppers in the +nited States in the current year
Sampling frame! Malls in the +nited States
Sampling unit! Malls and then shoppers
Sampling techni7ue! MallAintercept interviews 2(onvenience sampling3
Sample si*e! -))
I9ecution! Interview shoppers in the selected malls by intercepting them in key locations in the
mall. Cote that imposing 7uotas is not necessary since the profile of the mall shoppers closely matches
that of target population.
1$. %his sample si*e of -)) was selected based on 7ualitative considerations, such as the importance
of the decision, nature of the research, statistical analyses that would be re7uired, resource constraint,
and the sample si*es used in similar studies Marriott had conducted in the past.
1'. %raining is needed in the following areas!
N Making the initial contact A %he initial contact is important to gain the
confidentiality and trust of respondents. ractice in approaching people should be
a part of the training, including an opening line.
N 1sking 5uestions A 1s always, field workers must ask the 7uestions e9actly as
worded in order to prevent interviewer bias. 6ield workers should be instructed to
abide by the guidelines listed in the te9t.
N robing A "hen respondents do not sufficiently answer the 7uestion, it is
necessary to motivate them to respond or clarify their answers. %raining should
cover different techni7ues of probing so that field workers are comfortable with at
least one techni7ue.
N =ecording answers A 6ield workers should be familiar with the survey form and
know how to mark responses on the form. %he entire form should be reviewed in
detail. =ecording answers to unstructured 7uestions should be reviewed as well.
%he guidelines listed in the te9t should be followed.
@(' A 12
N %erminating the interview A 6ield workers should be instructed to close each
interview in a polite and gracious manner after all the information has been
obtained. Supervision of field workers will be important. 5uality control and
editing is needed regardless of the mode of data collection. Sampling control
should not be a significant problem since the interviews are taking place in a mall,
yet supervisors should keep daily records on the number of contacts made,
refusals, and completed interviews. (ontrol over interviewer cheating should not
be a problem since all the interviews will take place in a mall. 6inally, central
office controls are also needed, such as checking 7uota variables, demographic
characteristics, and answers to key variables.
1-. a. (orrelation between preference rating and each of si9 independent variables
Dependent variable! preference rating
Independent variable! product 7uality, price, service, facilities, staffing, or
uni7ueness. 1 positive relationship is e9pected.
b. Multiple regression between preference rating and all si9 independent variables.
dependent variable! preference rating
Si9 independent variables! product 7uality, price, service, facilities, staffing, and
uni7ueness.
c. &ypothesis testing using tAtest for paired samples 2paired variables! product
7uality and price3.
d. &ypothesis testing using tAtest for two independent samples 2patrons and nonA
patrons3.
e. 1C:@1
Dependent variable! reference for Marriott
Independent variable! roduct usage 2heavy, medium, and light users3.
f. Since 1$ per cent represents a large number of cases, throwing out these
respondents 2i.e., casewise deletion3 is not an attractive option. airwise deletion
and substitution of the missing values with the variable mean should be tried.
g. Iach hotel will coded as a 1 of the respondent had stayed there and ) otherwise.
14. ie (harts can be used to present percentage estimates. &istograms and bar charts, since
fre7uency counts, will be obtained for most of interval scaled variables. Eine charts will not be
used since the data are crossAsectional and pertain to a single point in time.
18. %he difference in the environments of countries, cultural units, or foreign markets should
be considered while conducting international marketing research. %hese differences may arise in
the marketing environment, government environment, legal environment, economic
environment, structural environment, informational and technological environment, and
sociocultural environment.
1;. "ith regard to the general public, ethical concerns revolve primarily around the methods
of generating and reporting research results. It is the .oint responsibility of the researcher and the
client to ensure that the research findings are being disseminated accurately. Incomplete
reporting, misleading reporting, and biased research should not take place.
It is to the marketing researcher/s advantage to protect the respondents from unethical
research practices. %wo of these deserve special attention! conducting a survey as a guise to sell
products, and the invasion of the respondent/s privacy.
@(' A 1$
%he ethical issues surrounding the researcherAclient relationship are! abuse of position
arising from speciali*ed knowledge, unnecessary research, an un7ualified researcher, disclosure
of identity, treating data as nonconfidential, and misleading presentation of data.
%he researcher 2or the research firm3 has the right to be treated ethically as well. Ithical
treatment by clients involves several issues! improper solicitation of proposals, disclosure of
proprietary techni7ues, and misrepresentation of findings.
@(' A 1'