S e g w a y L L C Presented by Kelly Morris Would you sport this?

Quick Facts 85- Pound Scooter Top Speeds of 12.5 MPH Carries up to 250 pounds Operates on battery

85- Pound Scooter

Top Speeds of 12.5 MPH

Carries up to 250 pounds

Operates on battery

Tsk Tsk: Problem Definition Consumer Recall Faulty Batteries & Internal Software Imperfections Price Issue Marketing Strategy Target Market Would this fulfill your need for speed??

Consumer Recall

Faulty Batteries & Internal Software Imperfections

Price Issue

Marketing Strategy

Target Market

A Possible Solution ? Expand Market Segment to Include College Students <Generation Y>

Expand Market Segment to Include College Students

<Generation Y>

Research Questions R1: Would expanding S e g w a y ’s target market to include college students increase use of the product? H1a: Students would be more willing to purchase a S e g w a y at a lower price than they had been offered in the past. H1b: Students will only buy a S e g w a y if they are able to test drive it first from a reputable vendor that is easily accessible would provide an incentive to purchase the product.

R1: Would expanding S e g w a y ’s target market to include college students increase use of the product?

H1a: Students would be more willing to purchase a S e g w a y at a lower price than they had been offered in the past.

H1b: Students will only buy a S e g w a y if they are able to test drive it first from a reputable vendor that is easily accessible would provide an incentive to purchase the product.

R2: What specific needs of the student population could S e g w a y Fulfill? H2a: S e g w a y will help solve the widespread parking issues that plague college campuses. H2b: The use of S e g w a y will aid student financial problems with respect to gas expenditures.

R2: What specific needs of the student population could S e g w a y Fulfill?

H2a: S e g w a y will help solve the widespread parking issues that plague college campuses.

H2b: The use of S e g w a y will aid student financial problems with respect to gas expenditures.

R3: Would students be willing to utilize S e g w a y scooters as an alternative form of transportation to/from/around campus? H3a: Students will be willing to utilize S e g w a y scooters as an alternative form of transportation to/from/around campus.

R3: Would students be willing to utilize S e g w a y scooters as an alternative form of transportation to/from/around campus?

H3a: Students will be willing to utilize S e g w a y scooters as an alternative form of transportation to/from/around campus.

R4: How much would students be willing to pay for a S e g w a y ? H4a: Males will be willing to pay more than females for a S e g w a y . H4b: Students will be more willing to pay for a S e g w a y if a payment plan is available to them that is flexible and fits their needs.

R4: How much would students be willing to pay for a S e g w a y ?

H4a: Males will be willing to pay more than females for a S e g w a y .

H4b: Students will be more willing to pay for a S e g w a y if a payment plan is available to them that is flexible and fits their needs.

R5: Would customization of S e g w a ys affect the willingness of students to purchase the product? H5a : Students would be more willing to purchase a S e g w a y if they were able to customize the product.

R5: Would customization of S e g w a ys affect the willingness of students to purchase the product?

H5a : Students would be more willing to purchase a S e g w a y if they were able to customize the product.

Research Design Target Population: College Students Sample Population: V T Students

Target Population:

College Students

Sampling Method: Non-Probability Convenience Sample Benefits Largest Sample Size Fast Low Cost Limitations Not representative of population 2. Self-selection bias &

Benefits

Largest Sample Size

Fast

Low Cost

Limitations

Not representative of population

2. Self-selection bias

Data Collection Method: Online Survey Benefits Cheap Reach larger number of people Fast No interviewer bias Take at leisure, not rushed Threats to Validity 1. Maturation Effect 2. Mortality Effect 3. Auspices Bias &

Benefits

Cheap

Reach larger number of people

Fast

No interviewer bias

Take at leisure, not rushed

Sampling Frame: V T Listserves Pi Sigma Epsilon Delta Sigma Pi Pi Kappa Alpha Delta Zeta Delta Delta Delta Management Society Marketing Major Marketing Club

Pi Sigma Epsilon

Delta Sigma Pi

Pi Kappa Alpha

Delta Zeta

Delta Delta Delta

Management Society

Marketing Major

Marketing Club

Ta Da! Research Results RQ1 : What would increase the attractiveness of a S e g w a y ? 3 options were given to choose from 72.4% - Change Color 33%- Add a Decal 24% - Personalize the License Plate

RQ1 : What would increase the attractiveness of a S e g w a y ?

3 options were given to choose from

72.4% - Change Color

33%- Add a Decal

24% - Personalize the License Plate

RQ2 : How much are students willing to pay for a S e g w a y ? 62 respondents did not answer this question! Why? # that would actually buy a S e g w a y : 2 # willing to use a S e g w a y around campus: 33. H2A: Students’ reservation price is less than the market price. - Mean reservation price : well under $2000 vs market price : between $4000 and $5000 . -Lack of responses caused by: lack of product demand or the inability to place a specific price on the product.

RQ2 : How much are students willing to pay for a S e g w a y ?

62 respondents did not answer this question! Why?

# that would actually buy a S e g w a y : 2

# willing to use a S e g w a y around campus: 33.

H2A: Students’ reservation price is less than the market price.

- Mean reservation price : well under $2000

vs market price : between $4000 and $5000 .

-Lack of responses caused by: lack of product demand or the inability to place a specific price on the product.

RQ3: Would students be more willing to purchase a S e g w a y if they were able to test drive it first? Yes. 90.9% of students who said they were willing to use a S e g w a y chose to test drive the product first before deciding to purchase.

RQ3: Would students be more willing to purchase a S e g w a y if they were able to test drive it first?

Yes. 90.9% of students who said they were willing to use a S e g w a y chose to test drive the product first before deciding to purchase.

RQ4: What specific needs of the student population could S e g w a y fulfill? H4A: S e g w a y will help solve the widespread parking issues that plague college campuses. We wanted to know if students who described parking as poor or fair would be more willing to purchase the product for more parking convenience. This was not significant

RQ4: What specific needs of the student population could S e g w a y fulfill?

H4A: S e g w a y will help solve the widespread parking issues that plague college campuses.

We wanted to know if students who described parking as poor or fair would be more willing to purchase the product for more parking convenience.

This was not significant

RQ5: Will the use of S e g w a ys aid student financial problems with respect to gas expenditures? Minimal correlation between students willing to use a S e g w a y on campus and those affected greatly by rising gas prices Majority of students were not affected by rise in gas prices

RQ5: Will the use of S e g w a ys aid student financial problems with respect to gas expenditures?

Minimal correlation between students willing to use a S e g w a y on campus and those affected greatly by rising gas prices

Majority of students were not affected by rise in gas prices

RQ6: Would upperclassmen be more willing to use S e g w a y scooters as a form or transportation to/from/around campus more than underclassmen? Problem : Only 1 freshmen answered our survey Junior and seniors showed similar results so they were grouped together as upperclassmen, and remaining respondents were classified as underclassmen. Of the 30% of students willing to use a S e g w a y on campus, 50% of those were underclassmen

RQ6: Would upperclassmen be more willing to use S e g w a y scooters as a form or transportation to/from/around campus more than underclassmen?

Problem : Only 1 freshmen answered our survey

Junior and seniors showed similar results so they were grouped together as upperclassmen, and remaining respondents were classified as underclassmen.

Of the 30% of students willing to use a S e g w a y on campus, 50% of those were underclassmen

H6A: Males will be willing to pay more than females for a S e g w a y . No significance between gender and maximum cost willing to be paid for a S e g w a y . H6B: Students will be more willing to pay for a S e g w a y if a payment plan is available to them that is flexible and fits their unique needs On a 10 point scale: Gas cost: mean 7.8 Convenience of parking in motorcycle spots: mean 7.4 Flexible Payment plan: mean 6.6 * Compares only those students willing to use a S e g w a y on campus

H6A: Males will be willing to pay more than females for a S e g w a y .

No significance between gender and maximum cost willing to be paid for a S e g w a y .

H6B: Students will be more willing to pay for a S e g w a y if a payment plan is available to them that is flexible and fits their unique needs

On a 10 point scale:

Gas cost: mean 7.8

Convenience of parking in motorcycle spots: mean 7.4

Flexible Payment plan: mean 6.6

* Compares only those students willing to use a S e g w a y on campus

Oops! Topic Pick one that better relates to college students Interesting but unreasonable for this research project Difficult problem definition & scope Research Questions and Hypotheses More specific Should have linked each stage in the project together more closely with the problem definition Survey questions Form to directly correlate with the research questions and hypotheses When coming up with research questions and hypotheses keep the data analysis stage in mind

Topic

Pick one that better relates to college students

Interesting but unreasonable for this research project

Difficult problem definition & scope

Research Questions and Hypotheses

More specific

Should have linked each stage in the project together more closely with the problem definition

Survey questions

Form to directly correlate with the research questions and hypotheses

When coming up with research questions and hypotheses keep the data analysis stage in mind

for S e g w a y: Present as originally intended Specialized product Stick with original target market Address price concerns Product awareness campaign Address all possible areas of use…be creative !

Present as originally intended

Specialized product

Stick with original target market

Address price concerns

Product awareness campaign

Address all possible areas of use…be creative !

Take-Away… Big Picture: Research as a StairMaster …each stage builds on the step before (and increases in difficulty) No I in TEAM … 5 heads are better than 1 !!! Minor changes in design = major changes in results Marketing Research is an essential ingredient for the recipe of any company’s product strategy. (and S e g w a y’s may not be as cool as we thought)

Big Picture: Research as a StairMaster …each stage builds on the step before (and increases in difficulty)

No I in TEAM … 5 heads are better than 1 !!!

Minor changes in design = major changes in results

Marketing Research is an essential ingredient

for the recipe of any company’s product strategy.

(and S e g w a y’s may not be as cool as we thought)