Jake Soderberg - McDonald's Paper - Marketing Research - University of St. Thomas

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Jake Soderberg - McDonald's Paper - Marketing Research - University of St. Thomas
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  • 1. Jake Soderberg LinkedIn Profile: http://www.linkedin.com/in/jakesoderberg Twitter Profile: http://twitter.com/jakesoderberg (@jakesoderberg) McDonald’s Management Decision Problem By Jake Soderberg Jake Soderberg, Alyssa Burke, Jessica Hull, Caitlin O’Leary
  • 2. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Table of Contents Part I: Executive Summary _____________________________________________________ 3 Part II: Company Overview & Management Decision Problem ________________________ 4 Part III: Marketing Research Problem & Components ________________________________ 5 Part IV: Research Approach & Design ____________________________________________ 7 Part V: Field Work ___________________________________________________________ 9 Part VI: Data Analysis ________________________________________________________ 10 Part VII: Conclusion __________________________________________________________ 13 Appendices: A: Focus Group Screener ________________________________________________ 15 B: Discussion Guides ___________________________________________________ 17 C: Survey ____________________________________________________________ 20 D: Frequency Charts ____________________________________________________ 25 E: Crosstabulation Charts ________________________________________________ 30 F: Two Independent Same T-Test _________________________________________ 35 G: Paired Sample T-Test ________________________________________________ 39 H: PowerPoint Presentation ______________________________________________ 42 2
  • 3. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 I. Executive Summary The Beta Marketing Team is pleased to submit this proposal for McDonald’s Premium Beverage Line Management Research Problem. The information contained in this proposal is intended to illustrate what the team believes to be a proper course of action for McDonald’s in respect to whether the company should expand its premium beverage line. We have taken upon ourselves to complete a focus group, surveys, SPSS computations, and multiple tests designed to significantly assist in a successful outcome to the potential addition of a premium beverage line. Based on our statistical conclusions, we recommend that McDonald’s expand its premium beverage line, focusing on the latte, cappuccino, and mocha as the new beverages to introduce. The following report includes a variety of research and data that support our conclusion. 3
  • 4. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 II. Company Overview & Management Decision Problem a. McDonald’s Overview • McDonald’s is world-renowned for its Big Mac, McNuggets, amusing characters, and kid-friendly dining. Children and adults alike can recognize the infamous gold arches all over the world. McDonald’s has been very successful over the years with its sales and continues to branch out to provide its customers with new tastes and enjoyments. • McDonald’s is the leading global foodservice retailer with more than 30,000 local restaurants serving 52 million people and operating in more then 100 countries around the world. It offers a varied, yet limited, value-priced menu. Individual restaurants are operated either by the company or by independent entrepreneurs under a franchise agreement. It operates Boston Market and as a minority ownership in the United Kingdom-based Pret A Manger. It recently disposed of its investment in Chipotle Mexican Grill. McDonald’s main competitors (in order of sales) are Starbucks, Wendy’s and Burger King. • McDonald’s has sales of over 22 billion, which has grown 9% in the last year. • McDonald’s has approximately 2,800 corporate employees who provide a wide variety of support functions to the 30,000 McDonald’s restaurants. It also has 67,000 restaurant mangers worldwide. In addition, more then 300,000 people have graduated from its Hamburger University facility with expertise knowledge and skills concerning the McDonald’s products. b. Key Issues • The Key issue that McDonald’s is facing is competition from premium coffee restaurants such as Caribou and Starbucks. Since the introduction of the “Premium Blends” coffee and the “Iced Coffee,” McDonald’s has faced tough competition from a new range of food restaurants. The company must answer questions about the future, such as whether or not McDonald’s should plan to compete directly with the competition by increasing the variety and quality of McCaffeine Drinks, in order to move forward with new ideas. 4
  • 5. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 c. Management Decision Problem • Should McDonald’s invest in a new line of premium beverages? III. Marketing Research Problem & Components a. Marketing Research Problem • How much will a new premium beverage line generate in incremental sales in addition to the existing coffee and iced coffee line? Marketing Research Problem Components: • How much new traffic will be generated with the introduction of a premium beverage line? • What do consumers value in a premium beverage? (Examples include: speed of service, cleanliness, employee friendliness, quality, location, affordability, drive thru, variety, consistency, atmosphere) • What do consumers value about the McDonald’s brand and service? (Examples include: speed of service, cleanliness, employee friendliness, quality, location, affordability, drive-thru, and variety) • How would the introduction of a premium beverage line impact the consumer’s perception of McDonald’s? • What are the competitive advantages that the competitors have in the premium beverage market that McDonald’s could/should invest in? (Machinery – see research design notes) • What Premium Beverages should be introduced? (Examples include: Latte, Cappuccino, Mocha, Espresso, Chai, Tea) • What time of day should the Premium Beverages be available? (Morning or all 24 hours) b. Methods of Research: • We used secondary qualitative research, using the Internet, to find out the main issues that McDonald’s is facing. 5
  • 6. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 o Secondary Research was used to find out what McDonald’s is serving now in terms of beverages, and what other premium beverage restaurants (such as Starbucks) offer. • We used direct (non-disguised) qualitative research to better define and understand the problem. (exploratory) o The challenge with our topic is in obtaining the qualitative research that was needed to compare two seemingly different companies: McDonald’s and coffeehouses such as Starbucks and Caribou. o It was important for us to determine what customers value in their favorite coffeehouses so that we could translate that experience into the experience of buying coffee at McDonald’s. o It was also important to know what customers value in McDonald’s so that these values remain intact while new ones are being added to facilitate a new premium beverage line at McDonald’s. • Focus Group: We conducted a focus group in order to obtain this qualitative research. o The focus group was used to understand why people purchase coffee, how they buy coffee, and what they value in the coffee purchasing experience. o In addition, we addressed the question of why people visit McDonald’s and probed into the possible benefits and consequences of McDonald’s offering a new premium beverage line. • One on one interview: We also saw it important to perform one-on-one interviews, which is also direct qualitative research. o We made sure to talk to people who not only regularly visit McDonald’s but also regularly drink coffee and visit coffeehouses. o The one-on-one interviews helped us understand what McDonalds can do to better the overall food/beverage buying experience while introducing a new line of premium beverages. 6
  • 7. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 o Since our focus group consisted mostly of college students, it was important that our one-on-one interviews were with adults. This allowed us to assess their attitudes, beliefs, and feelings towards this issue compared to those of college students. IV. Research Approach & Design a. Marketing Research Approaches Exploratory: Key Information Research Technique What consumers value about McDonald’s Focus group and in-depth interviews What consumers value about coffeehouses Focus group and in-depth interviews What consumers value in a premium beverage Focus group and in-depth interviews What types/flavors of beverages to introduce Focus group and in-depth interviews What other factors should be considered One-on-one interviews Descriptive: Key Information Research Technique Record and measure new consumer traffic Observational research (mechanical) What consumers value about McDonald’s Surveys What consumers value about coffeehouses Surveys The suggested retail price of the beverage In-store surveys The beverage size (small, medium, large) In-store surveys What types/flavors of beverages to introduce In-store surveys and mail surveys What types/flavors of beverages to introduce Observational research (test market) What time/hour of the day to offer beverages Observational research (test market) What other factors should be considered Surveys Causal: 7
  • 8. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Key Information Research Technique The suggested retail price of the beverage Test marketing The beverage size (small, medium, large) Test marketing What types/flavors of beverages to introduce Test marketing What time/hour of the day to offer beverages Test marketing Miscellaneous: Key Information Research Technique Demographics of average consumer Secondary research What beverages to introduce (types/flavors) Panel of consumers (longitudinal) What time of day to offer beverages Panel of consumers (longitudinal) Determine competitive competencies Secret shopping b. Process & Technique Rationale The first step was to use exploratory research to determine the problem or issue. We needed to determine what customers value about premium coffee beverages and the atmosphere at McDonald’s and local coffeehouses. We decided to perform several one- on-one interviews and a focus group to determine consumer tastes and thoughts (both were exploratory research techniques). The focus group was used to understand why consumers purchase coffee and why consumers come to McDonald’s. Towards the conclusion of the focus group, the participants were questioned to try to determine the benefits and consequences of McDonald’s offering a new premium coffee beverage line. The second step was to perform descriptive marketing research. We put together a survey focusing on the topics that came out of the exploratory research. We had a screener question first because we wanted participants of the survey to be able compare local coffeehouses and their experience at McDonald’s. We handed out the surveys personally (rather then mail or online) to control who was taking the survey and because of time constraints. The target population was coffee drinkers who also ate at a 8
  • 9. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 McDonald’s restaurant on a regular basis (a majority of those participants asked to fill out the survey were college students at the University of St Thomas). The main scale used was a semantic differential scale (noncomparative scaling) because of its versatility. The semantic differential scale is easy for the respondent to answer, and the researcher gets a true view of the preferences of the respondent rather then compared to another product or service. We also used a ranking scale (comparative), which has advantages that include: it comes closer to resembling the shopping environment; it is easily understood; and it can be used to rate overall performance between coffeehouses (or other locations that serve coffee). Then the last scale used was a Likert scale (noncomparative). The advantages of a Likert scale include: it is easy for the researcher to construct and administer; it is easy for the respondent to answer; it also helps to get the degree to which consumers agree or disagree with the statement rather then a yes or no. The sample size for the surveys was determined for us with 200 participants needed (that is a large enough sample to make a projection about the population). The next step that would follow in the future would be a test market if a good amount of positive responses were collected from the consumers questioned. V. Field Work Throughout the project we have done a lot of things well and we have also made our fair share of mistakes. In terms of our qualitative research, given the opportunity to do the focus group over we would have probed more into the questions. In order to do better probe into ideas it would have been beneficial for us to come up with a set of questions or statements which could have be used to gather further information. The problem that we found was the mediator, even though she knew she needed to probe, could not come up with the right questions to further discuss an idea. If we were given more time, or if we would have thought of it sooner, it would have been a good idea for us to go to a McDonalds and do our own secret shopping or just sit observe. It would have been 9
  • 10. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 interesting to see how fast the drive-thru was, where the coffee is stored, how often the coffee is change, how many people actually order coffee, how the coffee is made, when coffee was ordered, what kind of other food coffee was ordered with and how long it took to make and serve the coffee. However, what we did do well in terms of the qualitative research was obtain valuable information which we used help create our surveys. For example, we found through qualitative research that people don’t think to buy coffee at McDonald’s because McDonald’s does not have that “coffee house image.” Therefore, we made our survey so that we would get, from it, information about what people want in a coffee house and where McDonald’s measures on those qualities. Through quantitative research the first thing we learned was that it is hard to make surveys. In the end, we ended up with, what we felt, was a good base of questions which would provide the data we wanted to help aid us in making a decision. However, if we could have done it differently we would have made a few minor changes to the survey. First, our screener question which asked how often the respondent has purchased coffee provided too short of a window. Instead of asking how often in the last week, we should have asked how often in the last month. The issue in handing out surveys was that we were only getting respondents who purchased coffee weekly and in reality we care not only about weekly purchasers but monthly purchasers as well. Also, we could have taken out questions within our survey which pertained to places where people generally purchase coffee. No only was this data hard to code but we ended up not using it in our analysis. VI. Data Analysis Using Crosstabulation • Null: No relationship between variables • Want 95% confidence level Relationship between gender and likelihood of trying drink: 10
  • 11. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 • Rejecting null with 99.5% confidence level of relationship between gender and likelihood of trying latte • Not rejecting null because no relationship between gender and likelihood or trying cappuccino • Rejecting null with 97% confidence level of relationship between gender and likelihood of trying mocha • Not rejecting null with 67% confidence level for relationship between gender and likelihood of trying espresso • Not rejecting null with 92% confidence level for relationship between gender and likelihood of trying chai because below 95% • Not rejecting null with 93.3% confidence level for relationship between gender and likelihood of trying tea because below 95% Relationship between gender and purchase of premium beverage: • Not rejecting null because one can assume there is high likelihood of no relationship existing between gender and the purchasing of premium coffee. Women are not more likely to purchase a premium beverage than men, and vice versa. Relationship between gender and how often coffee is purchased: • Not rejecting null because one can assume there is high likelihood of no relationship existing between gender and the purchasing of coffee in general. The assumed significance would be that the purchasing behavior of purchasing coffee in general and purchasing McDonald’s premium coffee in relation to gender are almost the same. Note: • Based on frequencies, latte, cappuccino, and mocha are the best drinks for McDonald’s to introduce if it follows through with expanding on its premium beverage line. Espresso, chai tea, and tea based on their low frequency would not be 11
  • 12. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 as successful if introduced with the McDonalds Premium Coffee Line expansion. (insert tables) • Although there is no relationship between gender and the purchasing of coffee, there is however a relationship in some cases between gender and the likelihood of trying certain premium coffee beverages. For example, we can say with 99.9% confidence that there is a relationship between gender and the likelihood of trying a latte. With 97% confidence we can also say that there is a relationship between gender and the likelihood of trying a mocha. In the case of cappuccino, we can only reject the Null Hypothesis with 20% Confidence. This means that there is more than likely no relationship between gender and the likelihood of trying a cappuccino. Using Hypothesis Tests • Null: No relationship between variables • Want 95% confidence level Two Independent T-tests: • We compared the purchasing of McDonald’s coffee and likelihood of trying new beverages studied in the survey to see if the previous McDonald’s coffee purchasing pattern had an effect on the likelihood of trying one of the new beverages. • With 99.9% confidence the findings show that whether or not a customer has purchased McDonald’s coffee in the past has an effect on whether or not the customer would try the new latte. • With 98% confidence the findings show that whether or not a customer has purchased McDonald’s coffee in the past has an effect on whether or not the customer would try the new cappuccino. • With 99.6% confidence the findings show that whether or not a customer has purchased McDonald’s coffee in the past has an effect on whether or not the customer would try the new mocha. 12
  • 13. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 • The likelihood of a customer trying a new premium beverage is higher if he or she has made a previous McDonald’s coffee purchase. Paired Sample: • With 100% confidence we can say that there is a difference between the importance of the speed of service in a coffeehouse compared to how McDonald’s is rated for its speed of service. Typically McDonald’s speed of service is not up to the standards that people have for coffeehouses. • With 100% confidence we can say that there is a difference between the importance of the cleanliness of a coffeehouse compared to how McDonald’s is rated for its cleanliness. McDonald’s cleanliness falls far below what is expected of coffeehouses. • With 100% confidence we can say that there is a difference between the importance of the friendliness of employees a coffeehouse compared to how McDonald’s is rated for its friendliness of employees. McDonald’s employees are not viewed as friendly as baristas in coffeehouses are expected to be. • With 100% confidence we can say that there is a difference between the importance of the friendliness of employees in a coffeehouse compared to how McDonald’s is rated for its friendliness of employees. McDonald’s employees are not viewed as friendly as baristas in coffeehouses are expected to be. • With 100% confidence we can say that there is a difference between the importance of food and beverage quality in a coffeehouse compared to McDonald’s is rated for its food and beverage quality. McDonald’s food and beverages are not viewed as high quality as food and beverages in coffeehouses are expected to be. • With 100% confidence we can say that there is a difference between the importance of the location a coffeehouse compared to how McDonald’s is rated for its locations. On our seven-point scale, location was ranked highly for both how people view both coffeehouses and McDonald’s. 13
  • 14. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 • With only 80% confidence, we can say that there is no difference between how people rate the importance of affordability at a coffeehouse and how they view the affordability of McDonald’s. We can assume, therefore, that there is no difference between the importance of affordability of a coffeehouse and the importance of affordability of McDonald’s. • With 100% confidence we can say that there is a difference between the importance of a drive-thru at a coffeehouse compared to how McDonald’s is rated for its drive- thru. People do not view a drive-thru to be important for a coffeehouse to have; however, McDonald’s drive-thru is rated highly on importance. • With only 86.4% confidence, we can say that there is no relationship between the variety of food and beverages offered at McDonald’s and the importance of food and beverage variety at a coffeehouse. Variety of food and beverages, however, is rated low in importance for people who visit coffeehouses. • With 100% confidence we can say that there is a difference between the importance of the atmosphere at a coffeehouse compared to how McDonald’s is rated for its atmosphere. There is a substantial difference between the importance of a good atmosphere in a coffeehouse compared to how people view McDonald’s overall atmosphere, which tends to have low number ratings. VII. Conclusion McDonald’s is not commonly viewed as a coffeehouse. In order to be preferred as a coffeehouse, an establishment must be clean, have a good atmosphere, sell high quality food and beverages, and have a good location. McDonald’s, however, does not rate highly in many of these areas, with the exception of prime locations and affordability. Based on frequency, we recommend that McDonald’s should decide to expand on the premium coffee line. The company should focus on the latte, cappuccino, and mocha as the new drinks to introduce. As described earlier, however, there is no relationship between gender and the purchasing of premium coffee from McDonald’s. There is a relationship between gender and the likelihood of purchasing a specific coffee drink 14
  • 15. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 (such as a latter or mocha). Therefore, we recommend that if McDonald’s introduces the cappuccino, it uses a marketing strategy which is gender-neutral since there is no relationship between gender and the likelihood of trying a cappuccino. We also found that people who have purchased McDonald’s premium coffee before are more likely to purchase the new premium coffee drinks. Marketing strategies that include coupons on cups of premium coffee for example, these loyal customers have a higher potential of trying the new beverages and hopefully inspire others to try the new beverages as well. If McDonald’s does follow through with our suggestion of introducing a latte, cappuccino, and mocha premium beverage, we strongly recommend first that McDonald’s improves its overall atmosphere, cleanliness, quality of food and beverages, and employee friendliness if it wishes to successfully move into the market share of premium coffee beverages. Secondly, since McDonald’s is viewed highly on its affordability, which is something that coffee drinkers find important, we suggest that McDonald’s focuses on the positive attribute of affordable beverages through its marketing campaign. It should attempt to show customers that affordability is important when buying coffee beverages. 15
  • 16. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Appendix A 16
  • 17. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Appendix B 17
  • 18. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Appendix C 18
  • 19. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Appendix D 19
  • 20. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Frequency Charts How often do you purchase Coffee? Cumulative Frequency Percent Valid Percent Percent Valid 1-2 103 55.4 55.4 55.4 3 to 4 42 22.6 22.6 78.0 5 to 6 22 11.8 11.8 89.8 7 or more 19 10.2 10.2 100.0 Total 186 100.0 100.0 What Time of Day do you Purchase Coffee? Early Morning Cumulative Frequency Percent Valid Percent Percent Valid no 127 68.3 68.3 68.3 yes 59 31.7 31.7 100.0 Total 186 100.0 100.0 Mid-Morning Cumulative Frequency Percent Valid Percent Percent Valid no 80 43.0 43.2 43.2 yes 105 56.5 56.8 100.0 Total 185 99.5 100.0 Missing 2.00 1 .5 Total 186 100.0 Afternoon Cumulative Frequency Percent Valid Percent Percent Valid no 145 78.0 78.4 78.4 yes 40 21.5 21.6 100.0 Total 185 99.5 100.0 Missing 3.00 1 .5 Total 186 100.0 20
  • 21. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Early Evening Cumulative Frequency Percent Valid Percent Percent Valid no 150 80.6 80.6 80.6 yes 36 19.4 19.4 100.0 Total 186 100.0 100.0 Late Evening Cumulative Frequency Percent Valid Percent Percent Valid no 165 88.7 88.7 88.7 yes 21 11.3 11.3 100.0 Total 186 100.0 100.0 How often have you Purchased McDonalds in the Last month? Cumulative Frequency Percent Valid Percent Percent Valid never 46 24.7 24.7 24.7 1 to 3 103 55.4 55.4 80.1 4 to 6 24 12.9 12.9 93.0 7 to 9 7 3.8 3.8 96.8 10 or more 6 3.2 3.2 100.0 Total 186 100.0 100.0 Have you purchased McDonalds Premium Coffee? Cumulative Frequency Percent Valid Percent Percent Valid Yes 53 28.5 28.8 28.8 No 131 70.4 71.2 100.0 Total 184 98.9 100.0 Missing 3.00 1 .5 4.00 1 .5 Total 2 1.1 Total 186 100.0 21
  • 22. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Age Cumulative Frequency Percent Valid Percent Percent Valid 18 and younger 14 7.5 7.5 7.5 19-25 135 72.6 72.6 80.1 26-35 11 5.9 5.9 86.0 36-45 8 4.3 4.3 90.3 46-55 14 7.5 7.5 97.8 56 and Older 4 2.2 2.2 100.0 Total 186 100.0 100.0 Gender Cumulative Frequency Percent Valid Percent Percent Valid Female 116 62.4 62.4 62.4 Male 70 37.6 37.6 100.0 Total 186 100.0 100.0 Likelihood you will try: Latte Cumulative Frequency Percent Valid Percent Percent Valid 1.00 56 30.1 30.1 30.1 2.00 86 46.2 46.2 76.3 3.00 44 23.7 23.7 100.0 Total 186 100.0 100.0 Cappuccino Cumulative Frequency Percent Valid Percent Percent Valid 1.00 56 30.1 30.1 30.1 2.00 92 49.5 49.5 79.6 3.00 38 20.4 20.4 100.0 Total 186 100.0 100.0 22
  • 23. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Mocha Cumulative Frequency Percent Valid Percent Percent Valid 1.00 51 27.4 27.4 27.4 2.00 87 46.8 46.8 74.2 3.00 48 25.8 25.8 100.0 Total 186 100.0 100.0 Espresso Cumulative Frequency Percent Valid Percent Percent Valid 1.00 77 41.4 41.4 41.4 2.00 83 44.6 44.6 86.0 3.00 26 14.0 14.0 100.0 Total 186 100.0 100.0 Chai Cumulative Frequency Percent Valid Percent Percent Valid 1.00 106 57.0 57.0 57.0 2.00 58 31.2 31.2 88.2 3.00 22 11.8 11.8 100.0 Total 186 100.0 100.0 Tea Cumulative Frequency Percent Valid Percent Percent Valid 1.00 97 52.2 52.2 52.2 2.00 65 34.9 34.9 87.1 3.00 24 12.9 12.9 100.0 Total 186 100.0 100.0 23
  • 24. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Appendix E 24
  • 25. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Crosstabulations – Chi Squared How often Do you purchase Coffee * Gender Count Gender Total Female Male Female How often Do you 1-2 61 42 103 purchase Coffee 3 to 4 29 13 42 5 to 6 14 8 22 7 or more 12 7 19 Total 116 70 186 Chi-Square Tests Asymp. Sig. (2- Value df sided) Pearson Chi-Square 1.253(a) 3 .740 Likelihood Ratio 1.270 3 .736 Linear-by-Linear .323 1 .570 Association N of Valid Cases 186 Have you purchased McDonalds Premium Coffee * Gender Count Gender Total Female Male Female Have you purchased Yes 34 19 53 McDonalds Premium Coffee No 82 49 131 Total 116 68 184 Chi-Square Tests Asymp. Sig. Exact Sig. Exact Sig. Value df (2-sided) (2-sided) (1-sided) Pearson Chi-Square .039(b) 1 .843 Continuity Correction(a) .001 1 .977 Likelihood Ratio .039 1 .843 Fisher's Exact Test .868 .491 Linear-by-Linear Association .039 1 .843 25
  • 26. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 N of Valid Cases 184 Gender * Likelihood you will try Latte Count Likelihood You will try: Latte Total 1.00 2.00 3.00 1.00 Gender Female 26 56 34 116 Male 30 30 10 70 Total 56 86 44 186 Chi-Square Tests Asymp. Sig. (2- Value df sided) Pearson Chi-Square 10.503(a) 2 .005 Likelihood Ratio 10.608 2 .005 Linear-by-Linear 10.239 1 .001 Association N of Valid Cases 186 Cappuccino Count Gender Total Female Male Female Likelihood You will 1.00 35 21 56 try: Cappuccino 2.00 59 33 92 3.00 22 16 38 Total 116 70 186 Chi-Square Tests Asymp. Sig. (2- Value df sided) Pearson Chi-Square .446(a) 2 .800 Likelihood Ratio .442 2 .802 Linear-by-Linear .145 1 .704 Association N of Valid Cases 186 26
  • 27. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Mocha Count Gender Total Female Male Female Likelihood 1.00 24 27 51 You will try: 2.00 60 27 87 Mocha 3.00 32 16 48 Total 116 70 186 Chi-Square Tests Asymp. Sig. (2- Value df sided) Pearson Chi-Square 7.084(a) 2 .029 Likelihood Ratio 6.954 2 .031 Linear-by-Linear 4.173 1 .041 Association N of Valid Cases 186 Espresso Count Gender Total Female Male Female Likelihood 1.00 48 29 77 You will try: 2.00 55 28 83 Espresso 3.00 13 13 26 Total 116 70 186 Chi-Square Tests Asymp. Sig. (2- Value df sided) Pearson Chi-Square 2.232(a) 2 .328 Likelihood Ratio 2.187 2 .335 Linear-by-Linear .486 1 .486 Association N of Valid Cases 186 Chai 27
  • 28. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Count Gender Total Female Male Female Likelihood 1.00 59 47 106 You will try: 2.00 40 18 58 Chai 3.00 17 5 22 Total 116 70 186 Chi-Square Tests Asymp. Sig. (2- Value df sided) Pearson Chi-Square 5.190(a) 2 .075 Likelihood Ratio 5.340 2 .069 Linear-by-Linear 5.076 1 .024 Association N of Valid Cases 186 Tea Count Gender Total Female Male Female Likelihood 1.00 53 44 97 You will try: 2.00 47 18 65 Tea 3.00 16 8 24 Total 116 70 186 Chi-Square Tests Asymp. Sig. (2- Value df sided) Pearson Chi-Square 5.394(a) 2 .067 Likelihood Ratio 5.465 2 .065 Linear-by-Linear 3.336 1 .068 Association N of Valid Cases 186 28
  • 29. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Appendix F 29
  • 30. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Two Independent Sample T-Test Users and Non-Users of McDonald’s Premium Coffee * Likelihood of Trying New Drinks Group Statistics Have you purchased McDonalds Premium Std. Error Coffee N Mean Std. Deviation Mean Likelihood You will Yes 53 2.2075 .81709 .11224 try: Latte No 131 1.8244 .66194 .05783 Likelihood You will Yes 53 2.0943 .74069 .10174 try: Cappuccino No 131 1.8244 .68479 .05983 Likelihood You will Yes 53 2.2264 .80004 .10989 try: Mocha No 131 1.8855 .68659 .05999 Likelihood You will Yes 53 1.9434 .76999 .10577 try: Espresso No 131 1.6412 .64532 .05638 Likelihood You will Yes 53 1.6415 .78677 .10807 try: Chai No 131 1.5038 Equality of Means t-test for .64895 .05670 95% Confidence Interval of Likelihood You will Yes 53 1.7170 .81753 .11230 the Difference try: Tea No 131 1.5649 .65749 .05745 Upper Lower Equal variances assumed 3.316 182 .001 .38312 .11554 .15515 .61109 Equal variances not assumed 3.034 80.997 .003 .38312 .12626 .13190 .63434 Equal variances assumed 2.364 182 .019 .26991 .11415 .04468 .49515 Equal variances not assumed 2.287 89.884 .025 .26991 .11803 .03542 .50440 Equal variances assumed 2.905 182 .004 .34092 .11735 .10939 .57245 Equal variances not assumed 2.723 84.602 .008 .34092 .12520 .09197 .58987 Equal variances assumed 2.717 182 .007 .30217 .11123 .08271 .52164 Equal variances not assumed 2.521 83.070 .014 .30217 .11986 .06379 .54056 Equal variances assumed 1.224 182 .223 .13769 .11251 -.08430 .35969 Users and Non-Users of McDonald’s Premium Coffee * Ratings of McDonalds Equal variances not assumed 1.128 82.078 .263 .13769 .12204 -.10508 .38047 Equal variances assumed 1.322 182 .188 .15210 .11508 -.07497 .37916 Equal variances not assumed 1.206 80.569 .231 .15210 .12614 -.09890 .40309 30
  • 31. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Group Statistics Have you purchased McDonalds Premium Std. Error Coffee N Mean Std. Deviation Mean Rating McDonalds on the Yes 53 5.4340 1.27866 .17564 Following Qualities: Speed No 131 4.8855 1.75254 .15312 Rating McDonalds on the Yes 53 3.9057 1.59644 .21929 Following Qualities: No Clean 131 3.7328 1.71789 .15009 Rating McDonalds on the Yes 53 4.0377 1.20834 .16598 Following Qualities: No Employees 131 3.5573 1.59885 .13969 Rating McDonalds on the Yes 53 4.3396 1.35793 .18653 Following Qualities: No Quality 131 3.6718 1.61456 .14106 Rating McDonalds on the Yes 53 5.7925 1.00687 .13830 Following Qualities: No Location 131 5.1527 1.87072 .16345 Rating McDonalds on the Yes 53 6.1132 .80049 .10996 Following Qualities: No Affordable 131 5.2977 1.71282 .14965 Rating McDonalds on the Yes 53 5.5094 1.69414 .23271 Following Qualities: No Drive Thru 131 5.0382 1.86632 .16306 Rating McDonalds on the Yes 53 4.5660 1.29361 .17769 Following Qualities: No Variety 131 4.3969 1.59653 .13949 Rating McDonalds on the Yes 53 3.8491 1.44643 .19868 Following Qualities: No Atmosphere 131 3.7252 1.53950 .13451 31
  • 32. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 32
  • 33. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 t-test for Equality of Means Mean Std. Error 95% Confidence Interval t df Sig. (2-tailed) Difference Difference of the Difference Upper Lower Speed Equal variances 2.065 182 .040 .54847 .26556 .02450 1.07243 assumed Equal variances not 2.354 130.847 .020 .54847 .23301 .08751 1.00942 assumed Cleanliness Equal variances .630 182 .529 .17284 .27416 -.36810 .71377 assumed Equal variances not .650 103.085 .517 .17284 .26573 -.35418 .69985 assumed Employees Equal Friendliness variances 1.971 182 .050 .48048 .24381 -.00058 .96155 assumed Equal variances not 2.215 126.391 .029 .48048 .21694 .05118 .90979 assumed Quality Equal variances 2.654 182 .009 .66787 .25161 .17142 1.16432 assumed Equal variances not 2.856 113.626 .005 .66787 .23386 .20457 1.13116 assumed Location Equal variances 2.353 182 .020 .63978 .27189 .10333 1.17624 assumed Equal variances not 2.988 167.775 .003 .63978 .21411 .21709 1.06248 assumed Affordability Equal variances 3.319 182 .001 .81550 .24574 .33064 1.30036 assumed Equal variances not 4.391 178.322 .000 .81550 .18570 .44904 1.18195 assumed Drive Thru Equal variances 1.592 182 .113 .47127 .29609 -.11294 1.05547 assumed Equal variances not 1.659 105.433 .100 .47127 .28415 -.09213 1.03466 assumed Variety Equal variances .685 182 .494 .16909 .24682 -.31791 .65609 assumed Equal variances not .749 117.923 .456 .16909 .22590 -.27826 .61644 assumed : Atmosphere Equal variances .503 182 .616 .12387 .24639 -.36227 .61001 assumed Equal variances not .516 102.016 .607 .12387 .23993 -.35203 .59977 assumed 33
  • 34. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Appendix G 34
  • 35. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Paired Sample T-Test Importance of Qualities in a Coffee Shop * Rating of McDonalds Qualities Std. Error Mean N Std. Deviation Mean Pair 1 Importance of Speed Of Service In a Coffee Shop 5.6720 186 1.26703 .09290 Rating McDonalds on the Following Qualities: Speed Of 5.0484 186 1.64492 .12061 service Pair 2 Importance of Cleanliness In a 5.9355 186 1.12760 .08268 Coffee Shop Rating McDonalds on the Following Qualities: 3.7849 186 1.67558 .12286 Cleanliness Pair 3 Importance of Friendliness In a Coffee Shop 5.3226 186 1.36093 .09979 Rating McDonalds on the Following Qualities: 3.6989 186 1.50520 .11037 Friendliness Pair 4 Importance of Quality of Bev. In a Coffee Shop 6.5215 186 .92536 .06785 Rating McDonalds on the Following Qualities: Quality 3.8710 186 1.56465 .11473 Pair 5 Importance of Location In a Coffee Shop 5.8763 186 1.27376 .09340 Rating McDonalds on the Following Qualities: location 5.3387 186 1.68885 .12383 Pair 6 Importance of Affordability In a Coffee Shop 5.3548 186 1.45673 .10681 Rating McDonalds on the Following Qualities: 5.5376 186 1.54611 .11337 Affordability Pair 7 Importance of Drive-Thru In a Coffee Shop 3.9409 186 1.95123 .14307 Rating McDonalds on the Following Qualities: Drive 5.1828 186 1.82147 .13356 Thru Pair 8 Importance of Variety In a Coffee Shop 4.6720 186 1.54044 .11295 Rating McDonalds on the 4.4516 186 1.51044 .11075 Following Qualities: Variety Pair 9 Importance of Atmosphere In a Coffee Shop 5.3730 185 1.32547 .09745 Rating McDonalds on the Following Qualities: 3.7838 185 1.49519 .10993 Atmosphere 35
  • 36. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Paired Samples Test Paired Differences Sig. (2- Std. 95% Confidence Std. tailed) Std. Error t Deviatio Std. Error Mean Deviation Mean Mean n Mean Lower Upper Lower Upper Lower Upper Lower Upper Pair Importance of Speed 1 Of Service In a Coffee Shop - Rating .62366 2.02905 .14878 .33014 .91717 4.192 185 .000 McDonalds on the Following Qualities: Speed Of service Pair Importance of 2 Cleanliness In a Coffee Shop - Rating 2.15054 2.10249 .15416 1.84640 2.45468 13.950 185 .000 McDonalds on the Following Qualities: Cleanliness Pair Importance of 3 Friendliness In a Coffee Shop - Rating 1.62366 2.05289 .15053 1.32669 1.92062 10.787 185 .000 McDonalds on the Following Qualities: Friendliness Pair Importance of Quality 4 of Bev. In a Coffee Shop - Rating 2.65054 1.81924 .13339 2.38737 2.91371 19.870 185 .000 McDonalds on the Following Qualities: Quality Pair Importance of 5 Location In a Coffee Shop - Rating .53763 1.98131 .14528 .25102 .82425 3.701 185 .000 McDonalds on the Following Qualities: location Pair Importance of 6 Affordability In a Coffee Shop - Rating -.18280 1.94490 .14261 -.46414 .09855 -1.282 185 .202 McDonalds on the Following Qualities: Affordability Pair Importance of Drive- 7 Thru In a Coffee Shop - Rating McDonalds -1.24194 2.47377 .18139 -1.59979 -.88409 -6.847 185 .000 on the Following Qualities: Drive Thru 36
  • 37. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Pair Importance of Variety 8 In a Coffee Shop - Rating McDonalds on .22043 2.14597 .15735 -.09000 .53086 1.401 185 .163 the Following Qualities: Variety Pair Importance of 9 Atmosphere In a Coffee Shop - Rating 1.58919 1.97371 .14511 1.30290 1.87548 10.952 184 .000 McDonalds on the Following Qualities: Atmosphere 37
  • 38. Jake Soderberg University of St. Thomas Marketing Research MKTG 340 McDonald’s Management Decision Problem Spring 2008 Appendix H LinkedIn and Twitter LinkedIn Profile: http://www.linkedin.com/in/jakesoderberg Twitter Profile: http://twitter.com/jakesoderberg (@jakesoderberg) 38