218774983 case-notes-part-1

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WRITTEN AND VIDEO CASES
Cases provide an alternative to a project emphasis and offer a hands-on supplement to the Discussion Questions,
Close-Ups, Bringing Research to Life, Snapshots, and Classic and Contemporary Readings. We enjoy case use and
find that it enlivens evening and weekend courses as well as other course structures that have longer session
duration. Also, many instructors use cases to augment or replace projects. Some instructors also find cases an
excellent evaluation exercise, using them to replace multiple choice tests.
The ninth edition of Business Research Methods contains both written and video cases. Four new video cases,
prepared by the text authors, appear on the video cassette. Eleven new written cases, as well as several smaller
written cases from the work of other Irwin/McGraw-Hill authors: Bryant and Smith (Practical Data Analysis: Case
Studies in Business Statistics); Dillon, Madden, and Firtle (Marketing Research in a Marketing Environment, third
edition, Irwin, 1994); and, one case from Siegel (Practical Business Statistics, third edition, Irwin, 1997).
Video cases and cases with data sets are indicated with special icons in the text case section at the end of each
chapter. The majority of the cases have data sets that add further integration to the learning objectives by
connecting statistical tools to concept understanding.
Video Cases by Chapter Use
Video Titles 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Covering Kids with
Health Care
X X X X X
Cummins Engines X X X
Data Development
Corporation
X X X X
1

Endries Fasteners X X X
Envirosell, Inc.
Goodyear's Aquatred X X X X
John Deere and
Company
X
KNSD San Diego X X X X X X
Lexus SC 430 X X X
Outboard Marine
Corporation
X X X X
Pebble Beach Co. X X X X X X X
Starbucks, Bank One,
and Visa Launch
Starbucks Card Duetto
Visa
X X X X
USTA: Come Out
Swinging
X X X X X X X X X
Volkswagen's Beetle X X X X
2

Written Cases by Chapter Use
Written Titles 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
A GEM of a Study X X X X X
Agri Comp X X X
AIDS Rates for Females X
BBQ Products Crosses
Over the Lines of Varied
Tastes
X X X
Calling up attendance X X X X X
Campbell-Ewald Pumps
Awareness into the
American Heart
Association
X X
Campbell-Ewald: R-E-S-
P-E-C-T Spells Loyalty
X X X X X
Can Research Rescue the
Red Cross
X X X
Can the Study Be Saved? X X
Covering Kids with
Health Care
X X X
Donatos: Finding the
New Pizza
X X X X X X X X
Healthy Lifestyles X
HeroBuilders.com X X X X X
HiTech Engineering X
Inquiring minds want to
know--NOW!
X X X X X X X X X X X
Mastering Teacher
Leadership
X X X X X X X X X X X X
Matching Wits with
Jason on Sampling
Theory
X
McDonald’s Tests
Catfish Sandwich
X X X X
Medical Laboratories X
NCRCC: Teeing up a
New Strategic Direction
X X X X X X X X X X X X X X
NetConversions
Influences Kelley Blue
Book
X X X X
Open Doors: Extending
Hospitality to Travelers
with Disabilities
X X X
Overdue Bills X X
Performance Evaluations X X X
Ramada Demonstrates its
Personal Best
X X X X X X X X
Retailers Unhappy with
Displays from
Manufacturer
X X X X
Rubbergate X
State Farm: Dangerous
Intersections
X X X X X X
Written Titles (cont) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Sturgel Division X X X
3

The Brazing Operation X X
The Catalyst for Women
in Financial Services
X X X X X X X X
T-Shirt Designs X X X
USTA: Come Out
Swinging
X X X X X X
Violence on TV X X
Waste Paper X X
Xerox Abuses X X
Yahoo!: Consumer Direct
Marries Purchase Metrics
to Banner Ads
X X X X
Teaching Tips
The videos accompanying this text were selected for discussion of the concepts in Business Research Methods, 9th
edition. Each video synopsis that follows highlights how that video might be used, as well as describing the video
and identifying the principals speaking on the videos.
The videos offer examples from both consumer goods and services and industrial goods companies. With video
lengths ranging from 10-17 minutes, each video is designed to be discussed within a one-class format.
If you have not previously used video cases in teaching Business Research Methods, the following ideas suggest
ways you might use the accompanying video cases.
For an INDIVIDUAL EXERCISE OR ASSIGNMENT:
• Show the video during or outside of class, possibly through a campus cable network or at assigned
times during several days prior to the case discussion.
• Assign a series of background and analytical questions for which the student must prepare answers.
• Questions may include:
• What are the background facts relating to the case?
• How does the management-research question hierarchy apply to the video case?
• How are one or more distinct text concepts relevant to the case?
• How do the various concepts interrelate to each other within the case?
• Which concepts might be applied differently if the video-case firm were a different type of
organization or in a different stage of development or facing a different management
problem?
• During the subsequent class, select an individual to answer each question, with one or more
additional students chosen to contribute further detail or analysis to the initial student's answer.
• Move progressively from case fact or definition questions to analytical questions that tie case
facts to the text concepts.
• Show the video during class.
• Assign each student the responsibility for focusing on how one or more distinct text concepts are
relevant to the case.
• Assign each student a set of analytical questions that form the foundation of the subsequent
discussion.
• You can assign more than one student to each concept.
• Allow students approximately 10 minutes following the video to draft answers to the question set.
• Call on individual students to present their answers to the assigned questions, with additional
students called to develop a full understanding of an appropriate answer to each question.
4

For a TEAM EXERCISE:
• Divide the class into teams:
• Show the video outside of class, possibly through a campus cable network or at assigned times during
several days prior to the case discussion.
• Assign each team the responsibility for discussing a series of analytical questions.
• You can assign each team background questions, as well as analytical questions
• You can assign each team the same or different questions.
• Have each team select a spokesperson to present that team's analysis.
• Show the video during class.
• Assign each team the responsibility for discussing a series of questions.
organization or in a different stage of development or facing a different management
problem?
• You can assign each team the same or different questions.
• Have each team select a spokesperson to resent that team's analysis.
For a COMBINATION exercise:
• Assign a series of background and analytical questions for which the student must prepare answers.
organization or in a different stage of development or facing a different management problem?
• Show the video outside of class, possibly through a campus cable network or at assigned times during
several days prior to the case discussion.
• During the subsequent class session:
• Divide the students into teams.
• Assign each team the responsibility of developing a full analysis of the questions.
• Have each team select a particular individual to share the team's analysis for each question.
• Every student in the team should serve as team spokesperson for at least one question.
• Conduct a class discussion of the questions subsequent to this team discussion
• Start the discussion of each question with a different team, with a spokesperson from each of
the other teams contributing further detail or an alternative analysis to the initial team's answer.
• Move progressively from case fact or definition questions to analytical questions that tie
case facts to the text concepts and each other.
5

Video Cases
Covering Kids with Health Care Duration: 16 minutes
How/When Use:
• To discuss the Management-Research Question Hierarchy
• To discuss multi-stage research design
• To discuss exploration as a critical research step
• To discuss sampling design
o Sampling frame
o Screening of participants
• To discuss how research findings were incorporated into marketing materials
Company Background
Robert Wood Johnson Foundation: This health care philanthropic organization, among is broader mission, seeks to
improve the health and health care of all Americans by assuring that all Americans have access to quality health care at
reasonable cost. It supports training, education, research (excluding biomedical research), and projects that demonstrate
the effective delivery of health care services. Rather than paying for individual care, it concentrates on improving the
effectiveness of health care systems and the conditions that promote better health.
Wirthlin Worldwide is a full-service research organization. Communication strategy development and consulting is one
of its core competencies. It serves as a strategic partner to corporations and their agencies on the full process of
advertising/public relations development and evaluation.
GMMB is a full-service advertising agency with special expertise in working with non-profit organizations.
Company URLs:
Robert Wood Johnson Foundation: www.rwjf.org
Wirthlin Worldwide: www.wirthlin.com
GMMB: www.gmmb.com
Advertising Research Foundation (ARF): www.arfsite.org
Video Content and Discussion:
This video describes the research done (focus groups, survey, ad testing) to increase enrollment in the federal
government’s SCHIP program. Managed at the state level, the State Children’s Health Insurance Program provides basic
health coverage for the children of the nation’s working poor. Research by Wirthlin Worldwide needed to discover why
families who were eligible for the assistance weren’t enrolling. An early, unexpected finding (that working families
thought they weren’t eligible because they were working and earning money) changed the direction of the campaign. The
findings were used by GMMB, Inc. to develop a major advertising and public relations initiative to increase enrollment
which was quite successful. The initial wave of the campaign resulted in the enrollment of more than one million eligible
families. New research was planned and might now be available to prove the continuing success of the multi-year
campaign. The research and subsequent marketing campaign were sponsored by the Robert Wood Johnson Foundation.
Video Presenters:
• Stuart Schear, Senior Communications
Officer, Robert Wood Johnson Foundation
• David Richardson, President Wirthlin
Worldwide
• David Smith, Partner, GMMB • Jean Statler, Senior VP, Wirthlin Worldwide
• Annie Burns, Senior Partner, GMMB • Maury Giles, Senior Research Executive,
Wirthlin Worldwide
6

Video Content:
Issues Video Content
What is the SCHIP Program and when was the law
passed that enabled the program?
• State Children’s Health Insurance Program
(SCHIP) was created by Title XXI of the
Federal Balanced Budget Act of 1997. It is
jointly financed by the Federal and State
governments and is administered by the States.
Within broad Federal guidelines, each State
determines the design of its program, eligibility
groups, benefit packages, payment levels for
coverage, and administrative and operating
procedures. SCHIP provides a capped amount
of funds to States on a matching basis for
Federal fiscal years (FY) 1998 through 2007.
Federal payments under title XXI to States are
based on State expenditures under approved
plans effective on or after October 1, 1997.
What is Robert Wood Johnson Foundation? Why
was Robert Wood Johnson Foundation willing to
sponsor the research?
• RWJF is a health care philanthropic
organization that seeks to improve the health
and health care of all Americans by assuring
that all Americans have access to quality health
care at reasonable cost.
What is the management dilemma driving the
research?
• Many families eligible for SCHIP have not
enrolled. At the time of this research, more than
11 million children were without health
insurance.
What is the research question driving the research
design?
• How do we convince working families without
health insurance that SCHIP is for them and
that they should sign up for this coverage.
RWJF used an independent consultant to manage
the RFP process. How was the proposal process
conducted? What did the independent contractor
add to the process?
• RWJF supervises many grants related to health-
care initiatives. An independent consultant
gave this particular program a coordinator who
was undistracted by other projects.
What type of research firm is Wirthlin Worldwide?
Why were they chosen for the research?
• Full service research firm. They had a previous
relationship with GMMB, the agency hired to
develop the communication program.
In what ways was GMMB, the advertising agency
chosen to develop the marketing campaign,
involved in the research?
• They were an equal partner in planning the
design, influencing the questionnaire used for
the survey, and the copy testing.
While names and other contact information of
eligible families were known to government
officials, it couldn’t be accessed to develop a
sample frame due to privacy laws. How did
Wirthlin develop the sampling design?
• Wirthlin used screening procedures to identify
whether the household they were speaking with
was eligible for SCHIP.
What were some of the original hypotheses about
why families weren’t enrolling for SCHIP
• That people weren’t enrolling because of the
7

benefits? ‘welfare’ sigma associated with government
health care initiatives.
• That people weren’t enrolling because
healthcare for their children wasn’t a priority
Poverty, welfare, charity…these are believed to be
exceedingly sensitive issues to the working poor.
How did Wirthlin desensitize these issues?
• They used a laddering interview process that
reached for the emotional drivers beneath
parenting decision making
Why were focus groups used and what did they
reveal?
• They were used to understand the attitudes of
the working poor about preventative health
care, and to determine if their attitudes differed
from those of other families without health care
insurance.
Why was a phone survey chosen? • It was the quickest way to reach the largest
numbers of a national population of working
poor.
• Wirthlin needed to screen large numbers of
families to determine which were likely eligible
for SCHIP and therefore a member of the
relevant population; phone screens were
expedient.
What key findings were critical in the development
of the subsequent marketing materials?
• That 86% felt being a good parent meant
providing healthcare insurance for their
children. (disproved early hypothesis)
• That families weren’t enrolling because they
thought that such programs were not for them,
but for families where the head of the
household didn’t work or made far less money;
they needed to know that an income of 35,000
or less qualified them for the coverage in most
states.
• Major barrier to enrollment was low awareness
of the program.
What are the criteria on which the ARF David
Ogilvy Award for Excellence in Advertising
Research?
• Each year, the Advertising Research
Foundation honors research that has been
shown to make an important contribution to
creating, identifying and improving great
advertising. The award is named after the
legendary adman, David Ogilvy, because of his
passion for the role of research in crafting great
advertising. Research case studies submitted
for consideration must demonstrate measurable
success and describe research that shaped the
communication strategy, the actual advertising,
the evaluation and strengthening of the
8

advertising, or guided the media exposure.
Key Research Facts
After the advertising,
• 42% of eligible households in the test group were aware of the program
• 55% of SCHIP-eligible families knew about any options.
• 22% of SCHIP-eligible families knew about SCHIP.
• 70% to 600% increase in SCHIP hotline calls across all states.
• In test market: 6 of 10 saw the ads; 25% of those called the hotline
• 95% of parents calling learned about the program from advertising, not PR efforts.
• Ads and PR efforts reached 78,850,000 families.
• Ad with the broadest appeal was “hard choices” (pink hair)—shown in the video.
Other Web sites of interest:
ARF/Ogilvy Award: http://www.arfsite.org/awards/ogilvy_intro.html
Covering Kids: www.coveringkids.org
Additional information of Interest:
In 2004, according to the Robert Wood Johnson Foundation website, “Nearly 44 million Americans, over 8 million of them
children, go without health insurance. This is the single greatest barrier to obtaining timely, appropriate health care services.”
Key Graphics in Case:
9

Cummins Engines Duration: 14 minutes
How/When Use:
• To discuss how statistical quality control is used to enhance quality.
• To discuss data from a statistical quality control program can be used in other functional areas of business.
• To discuss longitudinal studies (Customer Council), and when and how they are used.
• To discuss how a communication web site can also be used for compiling information.
• To discuss how special events (Cummins Signature 600 Tour) can be used for competitive intelligence
gathering.
Company Background:
Cummins Engines is a Fortune 500 company founded in 1919 with its headquarters in Columbus, Indiana. It makes
advanced, fuel-efficient diesel power systems and engine related components, and specializes in customized diesel
engine production, shipping more than 1000 engines per day to customers and dealers on every continent and
purchasing engines for use in every conceivable situation and climate. Cummins has a long history of innovation,
from pole performance at the Indianapolis 500 to the first natural gas fueled engine to pass California's tough
emissions regulations. Cummins operates four strategic business units: power generation, automotive, industrial,
and filtration. With more than 25,000 people around the world and 5400 authorized Cummins distributors,
Cummins has the world covered. The Signature 600 engine is the newest and most advanced diesel engine on the
market. It is so powerful and smooth in operation that it captured the competitor's attention during the kick-off
promotional event.
Company URL: www.cummins.com
The Signature 600 engine is the newest and most advanced diesel engine on the market. It is so powerful
and smooth in operation that it captured the competitor's attention during the kick-off promotional event. Parts of
this video are extracted from a corporate video introduction to Cummins' quality control programs. The video
describes how customer and supplier relationships, and the information shared within these relationships led to the
Signature 600 engine.
10

Video presenters:
• none
Video Content:
Issues Video content
What type of data is generated by
Cummins statistical quality control
program? And what does the collection
of this information permit Cummins to
do?
• Cummins electronic and advanced
statistical control programs allow every
employee to track every engine during its
manufacture.
• These programs also:
• time the delivery of parts and
components to assembly, as needed,
• permit each plant to
• operate on a zero defects precision
standard,
• operate without inventory, and
• manage a robotic manufacturing
process (such as engine painting).
• permit monitoring of critical 'clean
environment' measures of temperature
and dust--which impact engine
performance.
How is longitudinal study data different
than cross-sectional study data?
• Cummins formed a Customer Council as
part of its alliance program to produce
more customer-focused products. The
council would generate trackable attitudes
over time that could be matched to
• manufacturing innovations (Ideas are
the power behind Cummins),
• product alterations (keeping Cummins
on the leading edge of advanced, fuel-
efficient engines) , or
• changes in employee training or
motivations programs.
How might employee input influence
the creation of a new powerful engine
like the Signature 600?
• Seasoned, skilled line employees were used
during the design of the Signature 600
engine.
How could managers of the various
strategic business units use tracking of
web connections by customers and
suppliers?
• It's extensive web site offers customers and
dealers:
• wiring diagrams,
• sensor locations,
• a glossary of technical terms,
• shop-talk tips for making engine
repairs, and
• a mechanism for locating the closest
supplier within Cummins' extensive
11

customer service network
How can both Cummins and its
competitors (like Caterpillar) use
special promotional events, like the
Signature 600 tour, to collect
information?
• Prospective Cummins customers had an
opportunity to test-drive the engine during
the tour. Interviewing drivers would allow
Cummins to verify performance and spot
potential problems within a wider group of
users.
• Cummins representatives ask questions and
collected comments made by potential
customers.
• These could be used in the preparation
of second generation promotional
materials for dealers.
• Cummins could use competitor
comments and questions to identify
potential advantages or disadvantages
that the Signature 600 might face when
it is available to the diesel purchasing
market.
• Competitors studied the engine and the
customers' reactions to the test-drive and
performance discussions. This could be
used in their formation of a counter-attack
strategy.
Data Development Corporation Duration: 11 minutes
How/When Use:
• To provide an overview of some of the issues facing the research industry.
• To discuss the pros and cons of various sampling techniques.
• To discuss various research design issues.
Company Background:
Founded in 1960, this New York headquartered research firm is one of the United State's largest research firms
with a reputation for quality custom, qualitative, and quantitative research. With five offices and a staff that
averages more than 20 years of experience, DDC has completed more than 17,000 domestic and international
studies. A leader in in-home and office personal interviewing, DDC WATS centers have 170 CATI (Computer-
Assisted Telephone Interviewing) equipped stations. They offer a network of CAPI (Computer-Assisted Personal
Interviewing) in more than 180 mall locations, Interactive Software (STORE) simulations of store shelving,
buildings, etc. to develop and evaluate logos, signage, packaging, etc. DDC's Internet Survey Group offers web-
based studies.
Company URL: www.datadc.com
Video Content & Discussion: Officers and project directors for Data Development Corp. describe themselves as a
'generalist' research firm. They specialize in marketing research, but they do all types of research using a variety of
research methods. President Joe Goldstein emphasizes that research is 'mostly art and partly science'. The video
12

touches on numerous issues as the DDC officers describe what types of research they do, and how and why they do
these types of research.
Video Presenters: Several DDC officers and project directors contribute their ideas in the video:
• David Rausch, Sr.
V.P.
• Chip Lister, Sr. V.P.
• Morris Cohen, Sr. V.P
• Shoshana Shapiro, Sr. V.P
• Joe Goldstein,
President and
Managing Director
Video Content
Issue Video Content
Why research is used by businesses. • Business owner/manager loses objectivity
the more involved they become with a
project
• Due to the high cost of new product
decision, managers need to predict with
accuracy what is likely to happen before it
happens.
What makes good research? • Information where error is low
• Information where the data is logical and
makes sense.
Impact of technology on research
methodology.
• Ability to use hand held computers and
computer software to replace hand sorting
of 'cards' used to measure complex attitude
measurements.
Problems plaguing the research
industry.
• Declining willingness to participate in any
type of research
• Competition for possible respondents time
from telemarketers selling products and
services
• Research that attempts to evaluate very
minor differences or proposed changes,
that results in consumer confusion
Appropriate sampling methods. • Measuring attitudes demands a longer time
frame (15-20 minutes) and often leads to
purposive sampling rather than probability
sampling (e.g. mall intercept interviews)
• Random-digit dialing is an appropriate
method for phone interviewing to get a
more scientific sample.
Research Design issues. • Face to face interviews are best to measure
attitudes, e.g. personal interviews in the
home and mall intercepts are mentioned.
• Phone interviews are appropriate when you
don't need the respondent to respond to
visual stimuli.
Type of research gaining favor. • Customer satisfaction (determining
whether your customer is happy with your
13

Issue Video Content
offering and how happy they are).
Endries Fasteners Duration: 6 minutes
How/When Use:
• To discuss difference between problem-focused and opportunity-focused research
• To discuss observation studies for generating information.
• To discuss process mapping as a research technique
• To discuss Electronic Data Interchange (EDI) as a research and communications technique
• To discuss data mining, the use of internally-generated secondary data in business decision making
• To discuss partnerships or alliances with customers or suppliers in data collection and information
management.
Company Background:
Endries Fasteners, now Endries International is a wholesaler of parts to OEMs (original equipment manufactures)
and repair service companies. Located in Brillion, Wisconsin, this company employs 200 people.
Company URL: www.endries.com
Video Content and Discussion: The president of Endries Fasteners and Supply, Inc. discusses the outcome of
data collection, both internal and from its customers, which resulted in the development of new, profitable customer
services that provide significant cost savings for its customers.
Video presenters:
• Bob Endries, President
Video Content:
What are 'soft costs' for a business or
organization?
• Soft costs include activities not related to
the product, such as buying, storing,
handling, quality inspection, and invoicing.
• Several levels within a channel may
duplicate a soft cost-activity (e.g. quality
inspection) that generates excessive and
unnecessarily high soft costs.
• Eliminating soft cost-activities or their
duplication can yield significant savings.
Trends contributing to the discovery of
opportunity
• Increasing use of just-in-time
manufacturing
• Increasing concentration of purchasing
among a one or small group of partner-
suppliers.
14

Research on soft cost-activities that
were duplicated or unnecessarily high.
• Endries Fasteners 'followed' each part it
supplied to its OEM or repair service
customers.
What soft-cost activities were
discovered as possible candidates for
cost-saving programs?
• Quality inspection of parts (quality audits)
• Invoicing
How EDI became part of the
communication process
• Endries now uses EDI with some of its
customers.
What value added functions created
savings for its customers
• Reduced manufacturer inventories
• Manage procurement of parts
• Eliminate multiple invoicing, in some cases
reducing invoices to one
• Speeding communication between Endries
and its customers.
Envirosell Duration: 10 Minutes
How/When Use:
• To discuss observation studies.
• To discuss mechanical vs. human observation.
• To discuss alternative arenas for mechanical observation research (other than the marketing and operations
issues described here).
• To discuss alternative mechanical devices used for observation.
• To discuss ways of presenting data to clients.
• To discuss privacy issues involved with filming unsuspecting participants.
• To discuss the role technology has in observation studies (both generation of information and analysis of
that information).
Company Background:
Founded in 1979 as Environmental Analysis & Planning Consultants, the firm changed its name in 1989 to
Envirosell, Inc. Envirosell specializes in behavioral research, specifically in the retail environment. Envirosell's
specialty is examining consumer-shopping behavior, and it has done this for Fortune 500 companies including
banks, stores, restaurant chains, as well as consumer product companies. Envirosell has offices in New York,
Milan (Italy), Sydney (Australia), and Sao Paulo (Brazil), with some thirty percent of total company revenue
generated offshore. Paco Underhill, its founder, sees himself as a 'retail anthropologist'. Envirosell has sixteen
full-time and thirty part-time staff members in its New York City headquarters. It films between 50,000 and
70,000 shoppers annually. While Envirosell is a for-profit-institution, Envirosellers regard themselves as
consumer advocates and thrill to see the results of their work in stores, showrooms, restaurants, banks, urban
streets, shopping malls and airports around the world. According to their web site, "Life is about casting
shadows and we are proud of ours."
Company URL: www.envirosell.com
Video Content and Discussion: The managing director, research director, and senior analyst share information
from several observational studies done in banks, as well as music, general merchandise, and other retail
15

environments. Envirosell strives to understand what people buy and how to get them to buy more. Managing
Director Underhill describes the process as an exercise in Zen: analysts watch video or time-lapsed still images
repeatedly looking for clues that often emerge only in the eighth or tenth viewing.
Video Presenters: Several DDC officers and project directors contribute their ideas in the video:
• Paco Underhill,
Managing Director
• Anne Marie Luthro,
Senior Analyst
• Barbara Weisfelt,
Research Director
Video Content: The video touches on numerous issues as the Envirosell contributors describe the types of
research they do or have done how these studies were conducted and reported to the client, and what they
want to see as the result of their involvement.
Issue Video content
In what scenarios is an observation
study superior to a communication
study for studying behavior?
• Study participants remember and perceive
their behavior differently than their actual
behavior. This is not a result of intentional
lying, but rather an inability to perceive
reality.
The environments in which
observation studies are conducted?
• Video describes domestic and international
studies and their results in banks, music,
grocery, and general merchandise retail
environments.
How Envirosell's studies are
conducted?
• Survey, time-lapsed fill cameras, video
cameras.
What an Envirosell study might
impact.
• Overall floor plans for retailers can be
affected.
• Traffic patterns can be changed by moving
fixtures
• Aisle width can be adjusted
• Display locations are modified
• Merchandise can be move to a different
height on a shelving fixture
• Signage can change…in location and
content
How observation information is
presented to a client.
• Envirosell uses time-involvement maps,
where different colors on a map indicate
the duration of time spent in any one
location and arrows indicate direction of
movement.
Other Sources of Information:
Numerous articles have been written about research in the retail environment and Envirosell. These articles can be
found in an archive on the Envirosell web site or via one of the numerous Internet search engines.
One article of particular interest for students might be:
Labich, Kenneth. "Attention Shoppers: This Man is Watching You" Fortune, July 19, 1999.
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For retail managers interested in learning more about this type of research, Paco Underhill has a book on the
market, Why We Buy: The Science of Shopping. Simon & Schuster, 1999.
Goodyear's Aquatred Duration: 14 minutes
How/When Use:
• To discuss the coordination of a series of research projects involved in any large-scale management project.
• To discuss the strengths of various types of research designs to answer the various management and research
questions.
• To discuss the differences in sample design in researching the two different relevant populations of interest:
customers and Aquatred dealers.
• To discuss different ways to gain competitive intelligence.
• To discuss the management-research question hierarchy.
Company Background:
Goodyear Tire and Rubber Co. was established in 1898 in Akron, Ohio. From its start manufacturing bicycle and
carriage tires, Goodyear has become on of the world's largest corporations. Goodyear operates in the US and 30
other countries, with more than 28,000 investors and 105,000 associates. With more than $13 Billion in 1999 sales,
their mission for the new millennium is to be the best tire and rubber company in the world and the uncontested
leader in innovation. In 1993, the Aquatred tire, winner of more than a dozen awards, including Japan's prestigious
"Good Product Design Award," reached two million units in the United States. This revolutionary tire pumps away
over two gallons of water per second as you drive at highway speeds. And a new tread rubber compound provides
road-hugging traction and extends the treadlife. By 1994, the highly popular Aquatred tire line had expanded with
the introduction of a new aquachannel tire, the Wrangler Aquatred for light trucks and multi-purpose vehicles.
Driven by Aquatred's success, all-time record sales for 1994 were $12.3 billion, with record income of $567
million. By 1997, with sales of $13.2 billion and earnings of $611 million, Goodyear completed its 97-year history
once more in record territory. Fiscal 2000 sales were 1$14.4 billion with earnings of $40 million; 2001 sales were
$14.2 billion, with a loss of $206.4 million. According to the 2001 Annual Report, “The Goodyear Aquatred tire,
the most successful new product in the history of the tire industry, is a prime example of [a market driven strategy].
We created the wet-traction tire category and have led it for a decade.”
Company URL: www.goodyear.com
Video Content and Discussion: This video profiles the genesis of the Goodyear Aquatred tire.
Video presenters:
• Marco Molinari
VP Sales & Marketing
• John Montgomery
Director of Marketing Communications
Video Content:
What problem or opportunity drove the
research for Goodyear?
• Goodyear regularly tracked its customer
satisfaction.
17

• The 1992 study revealed a troubling
development: a commodity mentality
among tire buyer, most of who thought 'a
tire is a tire'.
What research revealed the wet-traction
market segment within the tire
aftermarket?
• Goodyear does on-going consumer
tracking studies as part of its monitoring of
the market. Goodyear also did focus groups
to understand tire buyers needs.
• Goodyear was in the midst of a consumer
study to understand the criteria tire buyers
use to choose tires when it discovered the
commodity mentality dilemma. Its results
showed the following criteria: tread life
(10) and wet traction (6.2) were the most
powerful criteria, followed by handling
(1.8), snow traction (1.7) and dry traction
(.7).
Given the Goodyear consumer study
findings on tire buying criteria, what
measurement strategy was employed?
• Good year was using a rating scale, or a
composite. A ten represented the highest
value possible and the number on the bar
chart was an average of the rating of the
sample.
What was competition doing? • Goodyear's competitive analysis indicated
they were executing a high-mileage
strategy (going after the treadlife segment).
• 2 new tires with more than 80,000 miles
treadlife were about to be introduced.
What strategy did Goodyear pursue? • Goodyear decided to pursue a 'wet traction
to drive a safety response' strategy.
• Goodyear wanted to 'position Goodyear as
the undisputed leader in web traction, and
hence the perceived leader in safety."
What research was done to hone in on
this strategy?
• Focus groups
• 1-on-1 personal depth interviews
• nationwide customer surveys
What decisions were made based on the
research?
• Deep aqua-channel design
• Name: Aquatred
• Decision to market to the tire aftermarket
rather than to the automobile company as
an original equipment tire
• Decision to price the tire at a 10% premium
• Decision not to discount the tire at its
introduction.
What additional information was
collected via customer research?
• Price elasticity
• Purchase intent
• Media habits
What information was known about the • The way they used point of sale (POS)
18

dealer given the promotional program
undertaken to make them part of the
Aquatred team?
displays and literature.
• That persuasive selling was used with
customers and that experiencing the tire on
wet pavement was critical to such
persuasion: (ride and drive events held in
80 U.S. cities)
What was the dealer structure? • 600 franchised dealers
• 1047 company owned stores
• 4400 independent dealers
Where did Goodyear establish dealer
contact?
• At the annual industry trade show in Las
Vegas.
What promotion decisions were made? • Goodyear used print and broadcast directed
publicity (earned coverage in numerous
newspapers and magazines as well as
Today and Good Morning America)
• Goodyear used TV rather than magazine
advertising, with the rest on cable or
syndicated shows
• Launch message: safety benefits of wet
traction (achieve awareness, stimulate
interest)
• Follow-up message: Aquatred won
numerous awards (precede from liking to
preference)
• 2nd
Follow-up approach: show product
demonstration (from conviction to
purchase)
Other Discussion Questions:
Apply the management -Research
question hierarchy to the Aquatred
scenario.
• Management dilemma: why does the tire
buyer see all tires as essentially
comparable?
• Management question: what can we do to
distinguish Goodyear tires as superior?
Will the tire buyer pay a premium for
safety?
• Research Question: What is the tire buyer
looking for in a tire and why?
• Investigative questions: what are the wants,
fears, needs, driving habits, and purchase
behaviors of the tire user.
Sampling • Sample frame would have been readily
available for Goodyear's dealer network;
earning participation would have been the
19

challenge.
• Given that Goodyear tires are original
equipment on many new cars, an alliance
with auto manufacturers could have
generated an appropriate sample frame for
the consumer study to gage the aftermarket.
John Deere and Company Duration: 12 minutes
How/When Use:
• To discuss environmental scanning as a critical business information component.
• To discuss plausible sources of information as part of an environmental scanning.
• To discuss management research hierarchy.
• To discuss plausible exploratory research to shed light on problems or opportunities identified during
environmental scanning.
• To discuss sampling strategy.
Company Background:
John Deere has a rich 160-year history of serving the agricultural, construction, forestry and lawn care markets. It's
emphasis on helping its customers achieve better productivity, has made it possible to successfully operate in more
than 150 countries, in 50 currencies and every time zone of the world. During the 1970s, 1980s, and 1990s the
company faced numerous challenges to its core businesses, yet its attention to environmental scanning and staying
close to its customers permitted it to prosper when competitors have abandoned whole segments of the business for
industrial equipment or gone out of business altogether.
Company URL: www.deere.com
Video Content and Discussion: The company's need for information is dependent on its volatile environment.
The video traces the environmental influences on the company from the early 1970s through the late 1990s. The
goal for John Deere was to double its sales from the mid-1990s by 2000.
Video presenters:
• Mark Rostvold, Senior Vice President, C& CE
Division
Video Content:
The environmental arenas that John
Deere felt it necessary to monitor
• Political-legal
• Competitive
• Cultural-social
• Demographic
Trends contributing to strategic • President Jimmy Carter impose an embargo
20

planning turmoil at John Deere on sale of grain products to Soviet Union
or its allies (1979)
• Loss of sales to US farmers at a time
when they were highly leveraged
• Dramatic increase in farm bankruptcies
• Government introduction of Payment-in-
Kind subsidies, which paid farmers to
lower their production by holding back
acreage from cultivation.
• Continued shift away from agriculture as
an occupation.
• Aging of the baby-boomers and their
growing interest in gardening as a hobby.
• Recession in the agriculture and
construction industries in the early 1990s.
• Aging equipment by late 1990s
• Rising farm incomes by late 1990s
• Low interest rates by late 1990s
• Increased acreage in cultivation brought
about by the 1996 Farm Act
• New environmental regulations in late
1990s dealing with
• Increasing soil erosion
• Engine exhaust emissions
• Water pollution by agricultural run-off
• Increasing interest in and practice of
'precision farming' in the 1990s (the use of
global positioning satellite technology to
enhance grain yields by matching acreage
productivity to seed and fertilizer
practices).
Actions John Deere took in response to
its environment
• Expanded into financial services (John
Deere Credit)
• Engaged in extensive R & D to improve
quality
• Strengthened its dealer network
• Entered the lawn care industry.
• Became the supplier of equipment to the
Professional Golf Association tournament
golf courses (to enhance its image in this
market segment).
• Teamed up with NASCAR, introducing the
John Deere racing team, for more exposure.
• Open its John Deere Healthcare program to
non-employees.
21

KNSD San Diego Duration: 15 minutes
How/When Use:
• To discuss research design issues
• Telephone survey • Random digit
dialing
• Sample size
• Sample Frame • Survey length • Extracting sensitive information
• Longitudinal studies • Preliminary Data
Analysis
• Reporting Results
• To discuss investigative questions and different response strategies feasible for measurement questions
• To discuss how syndicated research can be combined with custom research for better understanding of
respondents' motivations.
• To discuss how research information can enhance a 'product' for a company doing business with other
businesses.
• To discuss university-based research programs.
Company Background:
NBC 7/39 got its start as an UHF station in 1965. It affiliated with NBC in 1977 and changed its call letters to
KNSD in 1988. According to its web site, “In 1990, KNSD was awarded the Emmy for Outstanding News Station
in San Diego. The station never lost this title, and has been awarded more Emmys this decade than all other stations
in San Diego combined. On November 20, 1996, after a successful year as San Diego's most watched television
station, KNSD was purchased by NBC. On January 1, 1997, it became known as NBC 7/39. NBC 7/39 is now
owned and operated by the television network considered by many the world-leader in news, entertainment and
sports programming.” In 2002, KNSD sees the following as its mission: “Our efforts will be focused on
understanding and serving our community, benefiting the people of San Diego, attracting the largest possible
audience, fulfilling the needs of our advertisers and increasing the profitability of our station.”
VALS, a research service of SRI (SRI Consulting Business Intelligence), is "one of the first major consumer
segmentation systems based on lifestyle characteristics. Consumer products and services companies throughout the
United States have used VALS to improve product development, product positioning, advertising effectiveness and
corporate image." In 1989, SRI introduced VALS2, "a new segmentation system that incorporates recent lifestyle
trends." Recently introduced, GeoVALS powers the VALS segmentation system with geocoded demographics.
Company URL:
www.nbcsandiego.com www.sric-bi.com
Video Content and Discussion: The video describes the "KNow San Diego" research project, undertaken so that
advertisers purchasing time on this NBC-owned station would have a better understanding of which programs
attracted which potential target audiences. It describes the use of the VALs profiling developed based on a scaling
system developed by SRI (Stanford Research Institute).
Video presenters:
• Two KNSD anchors
Video Content:
22

Why was the KNSD project started? • To learn more about the viewers of KNSC
programs, especially viewers of its award-
winning news programs, so that advertising
could be sold more effectively.
How was the study done? • Telephone interviews were conducted with
1000 adults, 500 men and 500 women.
Random Digit Dialing was used to select
the household. The study is repeated
annually to track changes in attitudes and
behavior.
At what confidence level was the study
conducted?
• 95%. (NOTE: The video explains in
layman's terms what the confidence level
means.)
What type of information was collected
from respondents?
• Participants were asked numerous
questions about their TV viewing,
entertainment, shopping, and other
behaviors, as well as about their attitudes,
likes and dislikes. Dozens of investigative
questions are verbalized in the video.
(NOTE: The actual measurement questions
are on a 4-point scale of agreement)
How was the information used? • VALS segmentation profiles were used to
help advertisers select programs on which
to advertise.
• Dr. Pepper advertising is used as a case. An
award-winning TV campaign which
promoted peer acceptance (Dr. Pepper
made a pepper out of me) didn't increase
sales, sales actually decreased. After
applying VALS, a new campaign
repositioned the soft drink for non-
conformists (Hold out for the unusual).
Lost sales were recaptured and new
customers were attracted.
Other information:
• http:// www.sric-bi.com/VALS/presurvey.shtml
Students can learn more about VALS and take a sample survey. The results are processed quickly and the
student is assigned to one of the eight VALS segments. With the results they receive links to learn more about
the segmentation system and their particular classification, as well as behavior and purchase patterns typical for
that behavior.
Lexus SC 430 Duration: 8 minutes
How/When Use:
23

• To provide an example of the use of syndicated research
• To discuss the integration of qualitative and quantitative techniques.
• To reveal a complex research design with many phases.
• To discuss how intercept personal interviews might be done.
Company Backgrounds:
Team One Advertising: Team One Advertising is a full-service agency, including comprehensive relationship
marketing, event marketing/promotions, and interactive services. Headquartered in El Segundo, Calif., and
a division of Saatchi & Saatchi, the agency has regional offices in New York, Chicago and Atlanta.
Lexus: Lexus, the luxury vehicle division of Toyota Motor Sales, U.S.A., Inc., markets and sells luxury cars and
sport utility vehicles through 187 dealers in the United States. It is one of the fastest growing luxury
nameplates in the industry.
Company URL: www.teamoneadv.com; www.lexus.com
This video case follows the research used to develop the newest Lexus, the SC 430, its hardtop convertible. From
auto show interviews to Qual-Quant clinics and positioning analysis, students will learn about how Team One
Advertising, Lexus’s U.S. agency, used research to position this latest entry into the crowded sport coupe category.
This research won Team One and Lexus the 2002 David Ogilvy Research Award, Durables Category.
Video Presenters::
• Unspecified Executive at the auto show.
Video Content
 What role did the Detroit Auto
Show play in the research
 It was the first observation study of the
reaction of show attendees to the prototype
SC430’s design.
 Site of intercept personal interviews, getting
reactions to the car
 What motivates people to buy cars
and how did Toyota discover this
 Toyota’s Consolidated Dynamic Study CDS)
revealed that two primary factors influence
purchase: Rational (right) reasons and
Emotional (real) reasons. Research revealed
that Lexus did well on the rational reasons
but not the emotional ones. Lexus SC 430
was specifically developed to be the
emotional flagship for the Lexus brand
repositioning.
 What do the motivators affect?  Toyota’s CDS revealed four key dynamics:
brand dominance, model leadership, user
needs and wants, and segment imagery.
 What cars were primary competitors
for the luxury coupe market
 Corvette (leader), Jaguar XKE, Mercedes and
Porsche.
 How did Lexus use syndicated
research?
 Allison-Fischer International does several
syndicated studies for the automobile
24

industry.
• Automotive Intensions & Purchases
Study (quarterly, tracks demand, links
brand equity to shopping and purchase
behavior).
• Automotive Shopping Study (records
internet and dealer shopping activity
and how retail process interacts with
demand and sales performance; reveals
the behavioral basis for automotive
market segments
• Advanced Automotive Features Study
reveals purchase interest of auto
features among new vehicle intenders;
tracks interest in existing options;
evaluates new features & technologies
• RL Polk measures trends in the luxury and
luxury coupe segment
 How did Toyota use qualitative
research?
 They invited 154 people to Dallas to
participate in several qualitative exercises,
including
 focus groups (done by Grieco Research
Group)…to describe the typical driver in
terms of financial security, affluence,
professional success, and status
consciousness
 image sorts (done by Thompson Consulting)
…to capture references that people had
difficulty putting into words but that would
influence the positioning related to the use of
DESIRE.
 How was the advertising that was
ultimately created tested before it
was aired?
 Diagnostic Research tested the ads via
“clutter reel” methodology. Lexus ad was
buried in the middle position of other product
ads and the audience dial tested their interest
in the ad. Also, interviews were done with
participants.
 Car was seen to be sexy and seductive,
alluring, sophisticated, and distinctively
styled.
 What did post-advertising tracking
studies reveal?
 That the car was distinctive looking, sporty,
luxurious, had excellent acceleration and
handling.
 Did the web play a role in the
research?
 Yes, they tracked visitors to the Toyota and
Lexus web sites over several months.
 Visits increased 56% over the month
immediately before the advertising.
 More than 300,000 visitors to the SC 430
25

web site in several months after the ad
campaign.
 Was Sales tracking included in the
research?
 Yes, sales met or exceeded the monthly goal
in each of the seven months following the
campaign.
Additional Information:
At time of press, the Lexus commercial campaign that resulted from this research was unavailable due to a pending
law suit. Please watch the Business Research Methods web site; when this campaign becomes available we will
make it available there.
Outboard Marine Corporation Duration: 12 minutes
How/When Use:
• To discuss data mining, secondary data.
• To discuss the management-research question hierarchy
• To discuss research design and sampling design.
• To discuss how the environment of research affects its design (industrial vs. consumer goods).
Company Background:
The three Johnson brothers began building this world class outdoor recreational products company with the
development of a two-cycle inboard marine engine in 1903. Meanwhile Ole Evinrude of Wisconsin was inventing
the first successful vertical-crankshaft outboard motor. These two technology innovators would eventually merge to
become Outboard Marine and Manufacturing Company in 1936, then shorten its name to Outboard Marine
Corporation in 1956.
"Outboard Marine Corporation (Waukegan, IL) is a leading manufacturer and marketer of internationally-known
boat brands, including Chris-Craft, Four Winns, Seaswirl, Javelin, Stratos, Lowe, Hydra-Sports, and Princecraft;
marine accessories and marine engines, under the brand names of Johnson and Evinrude; and FICHT Ram Injection
– the world’s premier low-emission two-stroke outboard engine technology."1
The company's history is rich with
awards for its innovations. According to Soundings Trade Only, "The need to serve two different masters -
government as well as consumers - has driven engine makers in recent years to develop the most innovative
outboard technology the industry has seen in a generation." 1
For the nine months ended Sept. 30, 1999 OMC’s net
sales increased 4.2 percent, to $850.2 million.1
The recreational products division of Bombardier International purchased the Evinrude and Johnson assets of OMC
on March 12, 2001. Bombardier Inc., a diversified manufacturing and service company headquartered in
Canada, is a “world leading manufacturer of business jets, regional aircraft, rail transportation equipment
and motorized recreational products. It is also a provider of financial services and asset management. In
2002, the Corporation employed 56,000 people in 12 countries in North America, Europe and Asia, and
more than 90% of its revenues are generated outside Canada.”2
1
www.omc-online.com Accessed June 2000.
2
“Bombardier Finalizes Acquisition of OMC’s Engine Assets.” Press Release 3/14/2001
Company URL: www.bombardier.com
26

Video Content and Discussion: This video discusses the evolution of a product and the importance of keeping
competition off balance by continually "attacking" your own best product and developing replacements that they
competition cannot match or cannot as cost-effectively produce. The example used is the standard for bass
fisherman, the 150hp Evinrude Intruder 150. No specific research is mentioned.
Video presenters:
• Bob Shaughnessy, VP Sale and Marketing
Video Content:
What type of data must OMC collect in
order to execute its "attack your own
best product" strategy? Which of that
data can be internally data mined?
Which must come from secondary
sources? What must be newly
collected?
• OMC needs information about its
customers:
• what they have been buying (data
mined)
• what competitive they consider when
comparing engines (data mined or
secondary source exploration, or
primary data collection)
• The features and attributes they seek in
their pleasure crafts and engines. (customer
wishes and expectations need primary
data--video indicates these are always
changing)
• OMC needs information about leading-
edge technology affecting speed,
performance, and other attributes (both
secondary data searches and data mining
their own product development logs)
• OMC needs information about competitors'
current products and competitive
intelligence about product development
(combination of secondary data searching
and primary data via reverse engineering of
competitors products)
• Information about what competitors are
advertising (secondary data searching).
Build the management-research
question hierarchy.
• management dilemma • 150 hp bass-fishing motor is nearing the
end of its life cycle; it is losing market
share
• management question 1. What should replace the current 150hp?
2. What can be done to extend the life of the
current 150 hp motor?
3. What can be done to reduce costs and
increase gross margins associated with
producing the current 150 hp?
4. What celebrities would be appropriate to
27

endorse the new 150 hp motor?
• research question (1)
• What features and benefits will attract
today's bass fisherman?
• What is attractive about the current features
of the 150 hp that will attract water skiers,
offshore fishers?
• You could hypothesize about processes,
materials, and supplier relationships here.
• Would Ken Cook or some other winning
boatman be appropriate for the new 150hp
Measurement and Investigative
questions
• Student could be asked to offer suggestions
based on one of the above research
questions.
Design an appropriate design for
determining customer preferences and
expectations.
• Video features trade shows; this
environment would allow OMC to cost-
effectively reach boatman and/or dealers
(two plausible relevant populations for
research).
• Information needed is motivational so
communication is necessary at some level
How does the environment and industry
affect research design?
• This is a technology driven industry, so
product life is relatively short, research
design must make choices so that
information is collected and shared
quickly.
• Dealers are mentioned as important.
Research may be done more quickly and at
a more detailed level if sample respondent
is a dealer rather than a boat buyer.
• Product is expensive, but boatmen have
repeatedly been willing to pay for state-of-
the-art. These characteristics may indicate
that OMC could communicate with its
relevant population in a high-tech
environment: computer administered or
Web surveying should be explored.
• Design must not reveal OMC's plans to its
competitors as product life is so short; this
might lead to an in-house managed
research process vs. outsourcing to a
research firm.
Additional information: www.soundingstradeonly.com
Pebble Beach Co. Duration: 11 minutes
28

How/When Use:
• To discuss types of research needed within an organization's strategic planning.
• To discuss types of research needed to benchmark the achievement of the organization's vision.
• To discuss various issues involved with research design.
• To discuss sampling issues, including special problems sampling the very rich.
• To discuss the role that employee research could play at Pebble Beach Resorts in its achievement of its seven
core values.
Company Background:
Samuel Morse, who acquired the extensive real estate in the Monterey Peninsula once held by Pacific Improvement
Co. which he managed, founded Pebble Beach. Pebble Beach Company, a 5300 acre complex in Monterey (CA),
offers three lodging options (Casa Palmero opened in September 1999, Inn at Spanish Bay opened in 1989 and the
Lodge at Pebble Beach opened in 1919), four golf courses, plus a new 5-hole 'golf links', 8 restaurants, and an
ocean-side Beach & Tennis Club. The tennis club’s newly remodeled state-of-the-art tennis facility offers ten hard
surface and two clay courts and an extensive pro shop. The professional staff is available to arrange golf or tennis
lessons and clinics for players of any caliber. The Spa at Pebble Beach, opened December 1999, is a "luxurious
sanctuary designed to help guests relax, restore and rejuvenate." Pebble Beach has repeatedly won awards as
American's best travel resort and is the host to the AT&T Pro-Amateur championship, the 1999 Amateur
championship, and the U.S. Open in 2000. In January of 1999 The Inn at Spanish Bay was granted the coveted
Mobil Five-Star award from the 1999 Mobil Travel Guide. Pebble Beach achieves its quality status by focusing on
seven core values. Pebble Beach Company, which employs 1600 people, targets the upscale golf enthusiast.
Company URL: www.pebblebeach.com
Pebble Beach achieves its world-class standing by focusing on seven core values. The company is also
land-locked so it must develop ever-creative ways to make the facilities it has more intensively profit-generating.
While research methodology is described only superficially, the video can be used to discuss the wide range of
research that a corporation might need to maintain an award-winning reputation.
Video Presenters:
• Richard Fowler, Banquet Asst. Mgr. Inn at Spanish Bay
• Several unnamed Pebble Beach employees contribute to this video.
Issue Video Content
What are the core values at Pebble
Beach?
• Service: "customers deserve our best effort"
• Teamwork
• Constant Improvement
• Fulfilled Employees
• Being a Good Neighbor
• Caring for the Environment
• Building Financial Value
What business practices are employed
to execute its core values?
• Service & Teamwork
• Mows golf courses at dawn to avoid
interrupting play
29

Issue Video Content
• Teamwork and Fulfilled Employees:
• surveys employees
• Holds town meetings with
employees
• Extends golf privileges to
employees
• Recognizes employees with
service awards
• Being a good neighbor
• Support employees volunteer
efforts at 64 charities
• Donates land for community
purposes
• Finances the Pebble Beach
Foundation
• Build Financial Value
• Encourages local patronage of
its restaurants
• 2nd
largest employer,
contributing $80 million through
employee wages and bringing in $450
million to community through tourist
expenditures.
• Developed the Pebble Beach
brand into a variety of merchandise
offerings
Starbucks, Bank One, and Visa Launch the Duration: 10 minutes
Starbucks Card Duetto Visa
How/When Use:
• To discuss multi-stage research designs
• To discuss the integration of qualitative and quantitative research
• To discuss the use of Web surveys.
• To discuss focus groups as an exploratory tool to refine a subsequent quantitative study
• To have the students generate measurement questions from the extensive list of investigative questions
presented.
The Starbucks story is also featured in a written case on the CD that provides additional information, and is
featured in a snapshot in Chapter 17.
Company Backgrounds:
Starbucks: Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world,
with more than 8,700 retail locations in North America, Latin America, Europe, the Middle East and the
Pacific Rim. In addition to its retail operations, the Company produces and sells bottled Frappuccino®
coffee drinks, Starbucks DoubleShot™ coffee drink, and a line of superpremium ice creams through its
joint venture partnerships.
30

Bank One: Bank One is part of the new JPMorgan Chase created on July 1, 2004 upon completion of the holding
company merger between JPMorgan Chase & Co. and Bank One Corporation. The mergers of the
broker/dealer, credit card companies, and lead banks will be completed over the next nine months. The
Bank One brand continues to be used in the marketplace. It is the number one issuer of Visa cards in the
world. JPMorgan Chase has assets of approximately $1.1 trillion and operations in more than 50 countries.
Visa: Visa is the world's leading payment brand and largest payment system, enabling banks to provide their
consumer and business customers with a wide variety of payment alternatives. Cardholders in more than
150 countries carry more than 1 billion Visa-branded cards, accepted at millions of locations worldwide.
Within the United States, nearly 14,000 financial institutions issue 396 million Visa cards, accounting for
more than $1 trillion in annual transaction volume.
Company URLs: www.starbucks.com; www.bankone.com; www.visa.com
Video Content:
In the very mature financial services industry, it is rare for a new financial product to garner much attention, let
alone be named one of BusinessWeek’s outstanding products of the year. But what started as a way for Starbucks to
add value to its existing Starbucks Card program developed into a financial product that many other institutions are
interested in exploring. This case reveals the research that was done to develop this new payment option for
Starbucks customers.
Video Presenters::
• None
Video Content
 What research led Starbucks to
choose Visa?
 Starbucks contacted several of financial
institutions and credit card companies to
determine their interest.
 (Not in the video: Before the selection was
made, they visited the Visa card operations of
Bank One to determine if their operations
were as customer focused as Starbuck’s own
operations)
 What investigative questions drove
the research once the partners were
chosen?
 Would customers be confused by the dual
function of the card
 Would they feel the Duetto card was
valuable?
 (For the loyalty aspect of the card) What
Monthly rewards would have the greatest
appeal?
 Would instant rewards from the card prompt
customers to use the Duetto Visa rather than
another credit card that also offered rewards
(airlines, hotels, etc.)
 What is the best way to deliver the rewards?
 What is the difference between a
stored-value card and the Duetto
card?
 A stored-value card…like a debit card…
while the Duetto had both the stored-value
feature and the credit card feature (2
functions on the same card)
31

 How did Starbucks use qualitative
research?
 They used four focus groups comprised of
current Starbucks customers; two groups of
those who had used the stored-value
Starbucks card and two groups of those who
had not used the stored-value card.
 The groups were used to determine how to
explain the dual functionality in the
quantitative study, to determine the appeal of
different monthly awards being considered
and how to deliver them; to determine if past
negative credit-card experience would carry
over to the Starbucks Duetto card; and to
determine if the paring of the card with the
Starbucks foundation would be an important
feature of the card.
 How many quantitative studies were
done before the Duetto was
introduced
 Two: a product functionality study and a
product optimization study; both were done
online.
 Why do you think these quantitative
studies were done online?
 (not in the video: speed, easy availability of
database of customer e-mails; in-store
intercepts were considered but Starbucks and
Bank One wanted to know the differences in
geographic patterns)
 How were quantitative studies used  Product Functionality Study, among current
users/non users of the Starbucks stored value
card, was used to determine
 if the dual function was understood
 the impact on the brand
 the likelihood of future purchases if person
owned the Duetto Visa
 barriers to using the Duetto Visa
 perceptions of the different card attributes
  Product Optimization Study, among current
users/non users of the Starbucks stored value
card, was used to
 Forecast sign-ups for the Duetto Visa
 Determine which Duetto card attributes
were most important
 Determine impact of the different card
features
 Identify ‘surprise and delight’ benefits
 Develop a profile of the likely Duetto Visa
applicant.
 Who was the launch announcement
used for research purposes?
 Announcement contained information about
how interested customers could get early e-
mail notification of the card
 Tens of thousands of customers requested
early notification through the Starbucks web
32

site.
 What research followed the launch
of the Duetto Visa
 Major Brand Tracking study was done online
to determine awareness of the card,
understand how the card’s benefits were
understood, determine intension to apply as
well as those who had already applied, and
why or why not.
 Quarterly brand tracking studies evaluate the
perception of the brand, number of cards
issued, percent of card holders who use the
card as their primary card, and the dollar
value of purchases made with the card.
 Bank One also tracks
 Ratio of approved accounts to applications
 Market cost of account acquisition
 Number of accounts with actual purchases
 Trends in monthly activity
 Patterns of spending on an account over
time.
 A Brand Loyalty Study measures who is
using the card, using one or both functions,
and using the Duetto Visa to activate the auto
reload feature of the stored-value function of
the card.
 Was the product introduction
successful?
 Yes, all partners said the card was meeting
their expectations.
Special Content to Mention
Starbucks Card DuettoTM
was selected by BusinessWeek as one of the outstanding products of 2003; it was
the only financial product to receive that recognition.
The launch marketing program based on the research that is described in this video won a 2003 Silver
SABRE award. (Silver SABREs are awarded for the best programs in specific industry sectors. Programs can
involve work in any practice area, including marketing communications, public affairs, crisis or issues
management, investor relations, or employee communications, for an organization in the relevant industry.)
The Starbucks Card DuettoTM
Visa was named CardTrak’s Top Card of 2003.
33

U.S.T.A.: Come Out Swinging Duration: 11 minutes
How/When Use:
• To discuss telephone surveys
• To discuss two-stage surveys
• To discuss post-advertising testing
• To discuss ethnographic interviewing
• To discuss sample size and sampling issues
34

• To discuss the management-research question hierarchy
This case also has a written counterpart that comes complete with survey instruments.
Company Background:
The Taylor Research and Consulting Group: A privately-held company established in 1987 by Scott Taylor, it
provides qualitative and quantitative market and opinion research and consulting services to businesses in a
variety of industries.
United States Tennis Association: Established in 1881, the USTA is the national governing body for the sport of
tennis and the recognized leader in promoting and developing the growth of tennis on every level in the
United States - from local communities to the crown jewel of the professional game, the US Open.
Vigilante: An urban advertising and marketing agency established in 1997, Vigilante crafts marketing
communication programs relevant to the consumers of urban culture using both traditional and non-
traditional channels including advertising, sales promotion, events, street and entertainment marketing,
media planning, strategic planning and research.
Company URLs: www.usta.com; www.vigilantenyc.com; www.thetaylorgroup.com
The United States Tennis Association funded one of the most aggressive surveys ever undertaken about a
single sport in order to revitalize tennis in the minds of consumers. The survey results were supplemented with
qualitative research by Vigilante, a specialist in urban communication campaigns. What resulted was a full-scale
marketing initiative involving the establishment of Tennis Welcome Centers and the Come Out Swinging
advertising, merchandising, and public relations campaigns. This case reveals the research and how the marketing
initiative developed from it.
Video presenters:
• none
Video Content:
What is the basic research design?  Two rounds of phone surveys were followed
by 30-40 street ethnography IDIs, and post
advertising behavior tracking, which included
 Visits to tenniswelcomecenter.com
 Inquiries at tennis facilities
 Lesson sign-ups at tennis facilities
 Sales of rackets, balls, and apparel.
Why did the study include 25,000+
households
• USTA needed a benchmark study that
provided data in each of its 17 sections and
that detailed information based on
ethnicity, age,
What was the underlying management
dilemma driving the research?
• Tennis participation, while flat, suffered
from the leaky-bucket syndrome: 5 million
young players started each year, but 5
million young adult players lapsed each
year.
35

• Tennis is viewed as an elitist sport of
wealthy Caucasian country-clubbers
What was the research question? • How can we get people to see tennis as the
well-rounded sport it is, one offering
fitness, socialization and competition that
appeals to all ethnic groups?
What were the major investigative
questions driving the 5-minute random-
dialed phone survey?
• Who plays tennis…by demographic
segment?
• Why do people play? Why don’t they play?
• Who plays/doesn’t play tennis in the
household (among people over 6 years of
age)?
What types of measurement questions
were used in the shorter phone survey?
• Pretested questions used on earlier surveys
• Open-ended questions to get people’s
perceptions
What were the various cells defined for
the longer 10-15 minute phone survey
among 2032 participants?
• Three groups were defined:
• Current players
• Former players
• Never played
What types of measurement questions
were used in the longer phone survey?
• Pretested questions for comparison to
earlier surveys
• Closed questions…for greater ease in
analysis
What were some of the findings? • Minority participation was growing
• 5% of current players are African-
American; yet 10% of new players are
• 16% of current players are Hispanic-
American; yet 22% of new players are
• Unaware of Tennis facilities in their area
• Tennis is not perceived as a good fit
• “Tennis is not for me”
• Culturally, ethnically, and financially
people didn’t think tennis fit them
Vigilante was charged with coming up
with an ad campaign that could make
tennis appear “cool, relevant, cutting
edge” and accessible to former players.
What research did they use to guide
campaign development?
• Their Street Spies methodology used street
ethnography (30-40 IDIs)
• Video-taped interviews done as
intercepts
• Interviewers matched participants in
age, ethnicity and lifestyle
Did the findings confirm or refute the
quantitative study?
• Confirmed
• “I can’t afford it.”
• “It’s too expensive.”
• “I’d rather play basketball or soccer or
video games.”
• “Don’t have a clue about how to start.”
36

• Ethnography revealed the edginess that
tennis offered to satisfied players that was
the genesis of the “Come Out Swinging”
tagline and “campaign rallying cry.”
• Ethnography revealed the characteristics
used for celebrity selection criteria: “no
holds barred” attitude, physically fit.
What research went into selection of
Vigilante as the ad agency?
• Identified three agencies that had a good
track record with sport related positioning
ad campaigns.
• Vigilante was one identified and they had a
reputation for ethnically-based campaigns.
How was the quantitative research used
to guide the campaign?
• USTA provided Vigilante with all the
results of the extensive telephone survey.
• Survey revealed the four primary target
audiences for the campaign: seniors,
Caucasian men & women, ethnic players,
youth players
• Survey revealed the key communication
messages for the campaign (fitness,
socialization, competition)
Why wasn’t ad testing done before the
print advertising campaign was used.
• (Not in the video) Budget was too small to
do both the quantitative study the section
leaders wanted and extensive pre-campaign
research.
Volkswagen's Beetle Duration: 16 minutes
How/When Use:
• To discuss how the 'problems' driving business change over time and how failure to recognize the change can
blind-side a business
• To discuss plausible exploratory research Volkswagen could have done to prevent disenfranchising its
customer group in the mid-70s.
• To discuss how qualitative research is conducted
• To discuss how qualitative research supports manufacturing and marketing decisions.
• To discuss the advantages and disadvantages of trade shows and other special events as research venues.
Company Background:
Out of the rubble of World War II-torn Europe, the Beetle was originally introduced in the United States in 1949.
Ferdinand Porsche designed the original Volkswagen Beetle while Ivan Hurst masterminded production. The
Beetle became a symbol of the 1960's rebelliousness, but lost the love of a generation when it stressed engineering
over style and low-cost operation, what the baby-boomers considered crucial in the 1970s. By 1974, the Beetle had
lost ground to its aggressive Japanese rivals for the value segment of the US automobile market. And by 1979 you
could no longer buy a Bug in the States. But the Beetle still had a franchise in the US, as one spokesperson
comments: "Where ever it is introduced, the new Beetle garners the same reaction: people smile." In 1998 when the
Beetle was reintroduced in the United States, it surpassed all sales estimates. The second year it doubled its sales.
37

Historically, the Beetle is the world's best selling car, having sold in more countries than any other automobile,
more than 21 million in its lifetime. 2002 model year was the fifth for the NewBeetle. In December 2002
Volkswagen introduced the first 180 horsepower version of the 1.8 T called the New Beetle Turbo S.
Company URL: www.vw.com
Video Content and Discussion: The video profiles the history of the original Beetle in the U.S. market from its
introduction in 1949 to its demise in 1979, then follows the initial two years of the NEW Beetle's rebirth 1998-99.
It is ideal for discussing qualitative research, as the advertising profiled is dependent on an in-depth understanding
of the needs of today's small-car segment. Research is alluded to, but not described.
Video presenters:
• Jack Dolby, TV Anchorman &
Narrator
• Maria Leonhauser, spokesperson for
VW
• Unspecified Man-on-the-street
Video Content:
What management dilemmas should
have led Volkswagen to research its
U.S. market?
• Emphasis on engineering, not style, when
market was interested in more 'flash' or
pizzazz.
• Engineering was state-of-the-art but
exterior styling stayed relatively constant;
market couldn't value what it didn't know.
• Oil embargo of the early 1970s forced
gasoline prices up and generated long lines.
By necessity, cars with exceptional gas
mileage were favored over superior
performance vehicles.
• Japanese entered the market with more
stylish and more cost efficient cars.
Is the reveal of the design of a new (or
reborn) car the first research that
Volkswagen was likely to have done?
What type of research would be done at
such an event?
Is the attendee at such a show likely to
be members of the relevant sample
population?
• The 'concept 1', what a 1990s Beetle would
look, like earned enthusiastic reviews at
auto shows around the world.
• Beetle arrived with due pomp and
circumstance, under spotlights, with the
world's journalists snapping and filming the
arrival.
• Many concept cars are revealed at the
major world auto shows.
What management
dilemma/opportunity led to the
reintroduction of the Beetle in the
1990s?
• Japanese cars' prices had increased beyond
the value-car segment's ability to buy.
• European styling was once again gaining
favor around the world.
What qualitative research could have
revealed the major themes used in the
• One enthusiastic buyer relates the nostalgia
that the car evokes, but also claims that
38

advertising that re-introduced the
Beetle?
everyone can see themselves in the Beetle
because of its great engineering and great
'curves'.
• Ads stress the
• power of the engineering--because
people thought the original Beetle was
under-powered (Less flower. More
power).
• Color (What color do you dream in?)
• Technology (Reverse engineered from
UFOs.)
• Attitude of Nostalgia (Engine's in front,
but the heart's in the same place.)
Other information from VW Press:
April 04, 2001
VOLKSWAGEN IS AWARDED TWO BEST CAR PICKS FROM MONEY MAGAZINE
“…the Volkswagen New Beetle…earned a five-star safety rating, making it the only car in its class to achieve these
outstanding results. With high safety standards, a unique style and excellent driving capabilities, it is not a surprise
that the New Beetle was awarded Money’s Best Pick in the small car category.
After making its debut in 1998, the New Beetle has proven itself as much more than a sequel to its legendary
namesake. It has won several distinguished automotive awards, including “North American Car of the Year,” as
selected by the continent’s top automobile writers and Motor Trend’s Import Car of the year. The New Beetle has
established itself as a totally modern creation, both functional and fun to drive.
Money Magazine describes the New Beetle is described as, “… pure passion on wheels … it offers more than just
looks: The New Beetle is a terrific small car.”
Tuesday, November 02, 1999
VOLKSWAGEN SALES UP 65.4 PERCENT-BEST OCTOBER IN 25 YEARS -BEST JETTA AND
PASSAT OCTOBER EVER-NEW BEETLE UP 21 PERCENT
Volkswagen’s popular New Beetle again posted healthy sales growth. In October, Volkswagen sold 7,390 New
Beetles. This is a 21 percent increase over last year’s sales of 6,109. So far in 1999, New Beetles sales are 69,621,
an increase of 65.2 percent over the same period in 1998 when sales were 42,146.
Wednesday, January 06, 1999
AUTOMOBILE MAGAZINE ANNOUNCES ITS 1999 AUTOMOBILE OF THE YEAR, THE
VOLKSWAGEN NEW BEETLE, AT THE NORTH AMERICAN INTERNATIONAL AUTO SHOW
Automobile Magazine’s Editor and Publication Director David E. Davis, Jr. stated: "It gives us great pleasure to
recognize the New Beetle for its character, its quality, its value, its impact on the global automotive industry, and
the sheer joy it brings to anyone who drives it, sits in it, or sees it on the road. It is the most important automobile to
debut in the 1999 model year and our kind of car!"
39

Tuesday, January 05, 1999
VOLKSWAGEN RECORDS BEST SALES SINCE 1981-BEST DECEMBER IN 17 YEARS
“In 1998, Volkswagen sold 219,679 new cars in the U.S., up 59.3 percent over 1997. It was the best Volkswagen
total in the U.S. since 1981 when the German automaker sold 278,513.”
Tuesday, October 12, 1999
THE 2000 VOLKSWAGEN BEETLE
Since its introduction, the New Beetle has garnered numerous distinguished automotive awards, including “North
American Car of the Year,” as selected by the continent’s top automobile writers, Automobile Magazine’s
Automobile of the Year, Motor Trend Magazine’s 1999 Import Car of the Year, J.D. Power and Associates’ Most
Appealing Small Car, European Car Magazine’s Grand Prix 1998 winner, Consumers Digest’s Best Buy,
MotorWeek’s Drivers’ Choice Award for Best of the Year, Time Magazine’s The Best of 1998 Design, Business
Week’s Best New Products, African American on Wheels Urban Car of the Year, Popular Science’s Best of What’s
New for 1998, and many others.
June 8, 1998
VW'S NEW LOVE BUG STIRS BUYER PASSION: SUPPLIES SHORT, CONSUMERS PAY
PREMIUMS, AND LOCAL CAR DEALERS ARE RIDING HIGH, Crain's Chicago Business,
Volkswagen of America Inc (Auburn Hills, MI) has shipped just 602 new Beetles to authorized dealers in Chicago
since rolling out its reincarnation of the 1960s classic in late March. Customers pay up to $10,000 more than the
model's $15,200 list price for the hottest color: yellow. Area VW showrooms are drawing double the usual number
of customers -- and seeing total sales soar 40% to 50%. Meanwhile, the German automaker is overhauling other
product lines, positioning its dealers to regain market share from their Japanese competitors for the first time in a
generation. Customers' ardor hasn't been dampened by the German automaker's May recall of 10,100 Beetles to
correct a wiring problem that could cause engine fires. Volkswagen is now poised to recapture some of the
customer base it lost to Japanese brands after it pulled the plug on the original Bug in 1979. VW has redesigned the
Passat and this fall will unveil an overhauled Golf compact that is already garnering high praise in Europe. Since
rolling out the Beetle nationally in April, total U.S. sales for Volkswagen are up 42% over comparable 1997 totals.
40

Written Cases
Case: A GEM of a Study
Abstract: The Global Entrepreneurship Monitor Entrepreneurial Assessment, a joint project of The
Kauffman Center for Entrepreneurial Leadership at Babson College and The London Business School,
has undertaken a long-term, large-scale project to prove the causal links between a government's
economic policies and initiatives, the resulting entrepreneurial activity and subsequent economic
growth. This case describes multiple-stage research, including thousands of interviews in several
countries by established research firms.
This case deals with the concept of causal studies vs. descriptive studies and what needs to be included in the
research design of each study type. It also deals with what constitutes control in research design; in this context it is
best used with chapters 4-9. This is also a great case to use to discuss constructs vs. concepts, as Exhibit C-GEM-
1.1 clearly has struggled with defining numerous constructs and multiple-measurement variables and, therefore,
could be used to further explore text Exhibit 2-3. The case also mentions the use of standardized data; in this
context you could use the case to explore how "standardized" data from different countries really is and where the
student seeks such country-specific data.
1. Using the GEM Conceptual Model, students should first identify that the dependent variable the study purports
to measure is the construct of economic growth through GDP and jobs. But they might also note that the
construct of business dynamics is also a dependent variable of interest, as it contains new firm/job creation,
firm/job growth, firm/job dissolution, and firm/job shrinkage.
The independent variables in the study are numerous and contained within the GEM Conceptual Model as the
constructs of general national framework conditions, entrepreneurial opportunities, entrepreneurial
framework conditions, and entrepreneurial capacity. Each of these constructs contains numerous other
concepts and constructs. Here is an excellent opportunity to discuss the nature of constructs and the importance
of breaking down such complex entities in terms of more concrete and truly measurable elements as is done in
Exhibit 2-3.
2. Many of the variables leading to the dependent variable could be seen as extraneous, intervening or moderating,
as easily as they can be identified as independent. Extraneous variables are described in Chapter 2 as almost
infinite in number and treated "as independent or moderating variables" and "assumed or excluded from the
study." The GEM authors took great care in tracking as many of these variables as possible, and chose at the
outset to use most as independent variables having some, hopefully measurable, influence of the chosen
dependent variable(s). Many of the attitudinal variables in the model are treated as moderating variables--a
class of "independent variables believed to have a significant contributory or contingent effect on the IV-DV
relationship."
The business start-up rate was found to have a high correlation with people's perceived opportunities (0.88) and
with the GEM Opportunity Perception Index (0.79)--which factors in perception of positive opportunity in a
person's country to start a business, the capacity (skills and motivation) to pursue the opportunities, the level of
respect for entrepreneurial efforts by others in the society, and the level of resentment against those who do
well in an entrepreneurial venture).
You could use this question to discuss factors not mentioned in the GEM Conceptual Model that might
contribute to business/job formation and ultimately to higher GDP. One factor that usually comes up in such a
discussion is creativity of ideas. This can generate a lively discussion about how the study could have measured
for 'creativity'. Students might also mention demographic characteristics of the country, such as median age.
41

Using Bill Gates as a model, you can expect many students to believe in the notion that entrepreneurial
ventures are generally started by young adults. They might point out after you show the graphs below that
Japan has a median age of almost 40 years compared to 34.3 for the U.S. Also, the percentage of the
population under the age of 15 in the US is 22%, compared with Japan at only 15%. Additionally, students
may raise the issue of economic stability. Given the unprecedented economic growth experienced in the U.S. in
the latter part of the 20th
century, they may want to use economic stability as a moderating variable.
SOURCE: GEM 1999 UK Executive Report
Such variables need to be assumed, discounted, or controlled in order for causation to be proven with some
degree of certainty. A great effort has been expended in this study to achieve high levels of both validity
and reliability. This question is designed to exhibit a lively discussion in the context of control as it is
described in Chapter 13
3. Chapter 15 and sampling concerns are the focus of this question. The study has extracted information from
two different samples in the participant countries: a survey of 1000 adults and an in-depth personal
interview, plus a follow-on survey, with 40 key informants.
A key informant is an expert with substantial experience in each of the nine entrepreneurial framework
conditions. Key informants were asked to identify the "single most important critical issue facing the
entrepreneurial sector in their country." It was assumed that these experts would focus on factors with the
highest correlations with business start-up rates. National teams of interviewers were created and asked to
42

develop a list of such key informants in their country. A discussion could focus on the issue of probability
vs. nonprobability samples, and about the way that such individuals were chosen.
This question is also suitable for discussing how a national probability study could be conducted in each
country, and the special considerations that would have to take place to conduct such a study in 10
countries with numerous languages, as well as cultural and social mores. The national study of 1000 adults
was randomly selected in each country, but no sample frame is discussed in any of the methodology
sections in the reports. A well-established research firm, with international offices in numerous countries,
drew each sample and conducted each study. Using statistical profiles on age and education for each
country, the research firm built a representative sample using random digit dialing procedures in 9 of the 10
countries (personal interviews were used in Japan).
4. This question addresses research design issues. The multi-stage study first identified critical issues
affecting entrepreneurial activity. These issues were drawn from face-to-face, personal interviews with as
few as 4 experts per country. Detailed interview records were compiled on each country's interviews.
Following his or her interview, each key informant also completed a detailed, 12-page questionnaire.
Multiple-item indices were developed from these interviews then used to developed the 10-item yes/no
question survey given to the sample of 1000 adult in each country. Survey information was then combined
with statistical data collected, via government and not-for-profit organizations, in each country to develop
comparative indices for each country.
You might ask students to discuss the value of pre-selecting experts to refine the focus of each
measurement question, the purpose and uses of multi-stage studies, and the types of bias or error built into
the study by the multi-stage process.
5. This final question asks whether this study qualifies as a causal study (vs. a descriptive study). Depending
on when you use the case in your course, some students may be encouraged to use the symbols of
experimentation in Chapter 11 to describe this study. Their result will likely not reflect any of the standard
models. Students should be further encouraged to address issues of reliability and validity, and asked how
the study stacks up in this regard. Some students may conclude that the act of calculating correlation
statistics makes this a causal study. Others will suggest that building the GEM Conceptual Model is a stage
of the research design preliminary to the actual causal study. They may indicate that the model needs to be
tested over time (in not only the countries included in the preliminary study but in other countries not
included in these early-stage tests) by manipulating one or more variables comprising one of their indices
and measuring the net effects. This last stance is likely the most viable, as GEM-study designers plan
subsequent measures over time on each of their multiple-item indices, and simultaneous tracking changes
in the factors which comprise their model.
Case: AgriComp
Abstract: AgriComp, a supplier of computer systems for farmers, has surveyed it dealers on whether to change
its procedure for settling warranty claim disputes. Currently local dealers handle warranty services for
customers via local repair followed by a reimbursement claim to Agri Comp. Denied claims follow an internal
company appeal process. Dealers have been complaining about the fairness of the appeal process and in a
recent survey were asked to respond to an alternative process, an impartial mediator. The student is asked to
review survey results and determine whether the costly external mediator process would be worth
implementing to keep the dealers happy.
43

This case offers a chance for students to deal with the data before it's crosstabulated. Nothing very fancy is
required, but the students will need to recognize that a crosstabulation is in order (or at the very least that some
separate tabulations are needed). The dealer preferences are different for those who have used the existing appeals
process than for those who haven't. The more they've used the process, the less they perceive a need for change. If
the data are tabulated in the aggregate, this trend is not apparent.
1. Jody wonders just how important the process is to the dealers? Was there widespread discontent or had
he just heard from a few malcontents at the dealers' meeting?
You can start with a question like "How do the dealers feel?" and follow it up with "Do all of the dealers
feel that way?" This will normally bring out a cross tabulation or something like the series of MINITAB dotplots
given below. Then you should turn the discussion to how best to summarize or display the conclusions. Either some
sort of crosstabulation (using appropriate percentages instead of counts) or plots like those below will work. The
main point is to be sure students don't simply declare a "significant" lack of independence and let it go at that. They
should have to say something about what kind of dependence they find, not just assert the absence of independence.
The more the dealers have used the existing appeals process, the less they agree with the statement that it
should be replaced, so it appears that Jody was hearing from some malcontents. The cross-tabulation of responses
by number of uses is given on the next page. The corresponding chi-squared is 82.16 on 12 degrees of freedom, so
something is clearly going on. Students may offer a variety of summaries of just what is going on, and you should
prompt them for such summaries if all they offer is chi-squared. The general trend is illustrated by such diagrams as
the dotplots given on the page following the crosstabulation.
44

Crosstabulation (count) of REP by USE
USE
REP 0 1 2 3
+------+------+------+------+
1 | 12 | 12 | 4 | 6 |34
+------+------+------+------+
2 | 6 | 27 | 18 | 12 |63
+------+------+------+------+
3 | 8 | 18 | 16 | 18 |60
+------+------+------+------+
4 | 4 | 9 | 8 | 52 |73
+------+------+------+------+
5 | 1 | 12 | 12 | 37 |62
+------+------+------+------+
31 78 58 125 292
USE (percent)
REP 0 1 2 3
+------+------+------+------+
1 | 38.7 | 15.3 | 6.9 | 4.8 |34 11.6%
+------+------+------+------+
2 | 19.4 | 34.6 | 31.0 | 9.6 |63 21.6%
+------+------+------+------+
3 | 25.8 | 23.1 | 27.6 | 14.4 |60 20.5%
+------+------+------+------+
4 | 12.9 | 11.5 | 13.8 | 41.6 |73 25.0%
+------+------+------+------+
5 | 3.2 | 15.5 | 20.7 | 29.6 |62 21.2%
+------+------+------+------+
31 78 58 125 292
100.0 100.0 100.0 100.0
45

Dotplot of REP by USE
USE 0
:
: :
: : :
: : : :
: : : : .
1 2 3 4 5
USE 1
.
:
:
:
:
: :
: :
: :
: : : :
: : : . :
: : : : :
: : : : :
: : : : :
: : : : :
1 2 3 4 5
USE 2
:
: :
: :
: : :
: : :
: : : :
: : : :
: : : : :
: : : : :
1 2 3 4 5
USE 3 (Each dot represents 3 points)
:
:
: .
: :
: :
: :
: : :
: : : :
: : : : :
1 2 3 4 5
46

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