MARKETING RESEARCH PROJECT

GROUP 7
DEEKSHA AGGARWAL A006
KSHITIJ MUNDHADA A038
PRATEEK NANDA A039
SUDARSHAN RAGHUNATHAN A045
JASPARTAP SINGH A053
TANVEER GAGNANI D019
 Research Methodology

Research Question
What is the impact of price difference on consumer preference for cab service (Uber vs Ola)?

Research Design
Quantitative Research will be carried out on in-between methodology

Operationalization of Variables
We will use a nominal scale where we will be varying the price differences of the cabs and
respondents will only have to select from either of the two brands (Uber or Ola)

Hypothesis
0 : Price difference does not impact preference for cab service
: Price difference impacts preference for cab service
 Research Methodology

Sampling Method
Random sampling method will be used through the form of online survey

Data Collection Plan

Primary research will be carried out in the form of online surveys. Here we have a single
independent variable with 11 experimental treatments
 Research Methodology

Method or procedure of the study conducted

The following questionnaire was floated to the respondents:
Demographic wise breakup of the collected data
 Results: Price difference and Cab preference

Chi square test on Price difference and cab preference:

After running the chi-square test we find that the Asymptotic

significance is .000 which is less than .05, hence the null hypothesis is
rejected which proves that there is a causal relation between price
difference and cab preference

Logistic regression analysis on Price difference and cab preference:

As significance value is less than 0.05, we reject the null hypothesis

and accept the null hypothesis
 Likelihood of selecting Uber

Predicted vs observed likelihood of selecting Uber Predicted likelihood of selecting Uber

p = 1/(1+e^-(o + 1)*x)
where p = Likelihood of selecting Uber
 Results: Gender and Cab preference
Chi square test on gender and cab preference:

After running the chi-square test we find that the Asymptotic

significance is .408 which is more than .05, hence the null hypothesis
is accepted which proves that there is no causal relation between
gender and cab preference

Null Hypothesis : Price difference does not impact cab preference for
male/female

Alternate Hypothesis : Price difference impact cab preference for

male/female

As significance value is less than 0.05, we reject the null hypothesis and accept the null hypothesis.

The aggregate predictive model is very similar to the Male and Female predictive model
 Logistic regression on price difference and cab preference for gender:

Null Hypothesis : Price difference does not impact cab preference for
male/female

Alternate Hypothesis : Price difference impact cab preference for

male/female

As significance value is less than 0.05, we reject the null hypothesis and accept the null hypothesis.

The aggregate predictive model is very similar to the Male and Female predictive model
 Results: Age and Cab preference

Chi square test on age and cab preference:

After running the chi-square test we find that the Asymptotic

significance is .000 which is less than .05, hence the null hypothesis is
rejected which proves that there is a causal relation between
age and cab preference

Logistic regression results on age and cab preference:

After running for 2 age groups ,18-23 years and 24-33 years, we
found that p value is significant for price difference and null
hypothesis is not accepted, we can assume that price difference is
a significant predictor of cab preference

The p value for price difference for 34+ years is insignificant

 Results

Predicted likelihood of Uber

Equation:
p = 1/(1+e^-(o + 1)*x)
where p = Likelihood of selecting Uber
 Results: Income Group and Cab preference
Chi square test on income group and cab preference:

After running the chi-square test we find that the Asymptotic

significance is .502 which is greater than .05, hence the null
hypothesis is rejected which proves that there is no overall causal
relation between income group and cab preference

Logistic regression results on age and cab preference:

We found that results for price difference are significant and

hence null hypothesis is not accepted, which means there is a
significant prediction of cab preference by price difference across
all the 4 age groups
 Income Group and Cab Preference Results

Predicted likelihood of Uber

Equation:
p = 1/(1+e^-(o + 1)*x)
where p = Likelihood of selecting Uber
 Insights

Customers are price sensitive, especially in the lower family income group

The younger age group is more susceptible to change the brand than the older age group

At zero price difference, there is a 64% probability that a user will book an uber cab
THANK YOU!