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Running head: AMERICAN EXPRESS CORPORATION
ANALYSIS
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AMERICAN EXPRESS CORPORATION ANALYSIS
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American Express Corporation Analysis
Xiaoxi Yue
Professor Minji
American Express Corporation analysis
American Express Corporation is an American multinational
financial services entity with headquarter in New York City in
the United States. The company is also known as Amex, and it
operates in the Banking Financial services industry, where there
are other competing companies (American Express Company
SWOT Analysis, 2019). The primary aim of this article is to
critically conduct a SWOT analysis of American Express
Company to help to solve marketing problems that the entity
face when performing its business activities.
Analysis of American Express Corporation and its industry
American Express Corporation is a financial institution which
deals in an extensive range of products and services. The main
products and services of the company are credit card products
and charge and other travel-related services that aim at
satisfying the needs of their clients (Havercome & Mujtaba,
2015). The company sells its products and services to various
groups of clients from different parts of the world. The
company has multiple segments that help it to market and sell
its product and services. Below are some the main segment of
American Express Company and among others. The company
uses different marketing strategies to market and sell its
product. Besides, American Express Company operates in a
competitive industry with many competing firms that use
different marketing strategies to increase their market share.
Some of the company's top competitors are Discover, VISA
MasterCard, Bank of America US Bank, among others.
American Express Corporation SWOT analysis
American Express Corporation operates in a competitive
industry with many competing firms that offer a variety of
products and services to potential clients. As such, the company
has strength, weakness, opportunities, and threat that determine
its operations.
Strengths of American Express
Brand strength is one of the advantages the company enjoy in
its industry. Currently, American Express has the privilege of
being among the treasured brands all over the world. The latter
is one of the internal strength that has enabled the company to
increase its market share in its industry.
Employee strength and market capitalization are other
advantages also different strengths of the company. The
company has a high number of employees, and the level of their
satisfaction is relatively high compared to those of its
competitors (Hickman & Silva, 2018). On the other hand, the
company has a more significant market capital, unlike its
competitors. This has enabled the company to perform all its
operation more efficiently without financial difficulties. As
such, this has enabled the company to one of the top financial
services providers in the world.
Furthermore, the status symbol is another strength for the
company. American Express symbol is always obtained only by
extremely high net worth persons who offered the credit card.
The latter implies that not everybody is given the advantage to
possess the card. International usage of the company's cards is
also another strength that has enabled the company to have a
definite competitive advantage in the global markets.
Weaknesses of American Express
Even though the company is one of the leading companies in the
world, there is some internal weakness that has been reducing
the performance of the company. First, the company lacks debit
cards, which have reduced that effectiveness of its operation in
the global. Lack of other products is another weakness of the
company (Hickman & Silva, 2018). American Express product
line focuses on a few primary products which can profoundly
affect its performance in case of low demands.
Opportunities
Expansion and innovation schemes are some of the significant
opportunities for the company. Seemingly, there is a vast space
in the market extension for the company. However, it does not
have a strong presence that can enable it to get competitive in
the global market. Besides, innovation schemes provide more
attraction to the company's customers; this seems an
opportunity for better completion (Hickman & Silva, 2018).
Moreover, leveraging financial branding equity is also an
opportunity that can enable to rebuild its marketing strength in
the global markets. The leverage of the company offers more
financial products, this increasing more turnover to the
company.
Threats of American Express
Competitors in the global markets are one of the significant
threats for the company. Visa and MasterCard are some of the
company's major competitors that are popular and commonly
used in any part of the world (Hickman & Silva, 2018). Nature
of the business is another threat to the company. Since the
company mainly deals with financial services, the volatility of
economic condition leads to significant effects in its operations.
According to MarketLine Company Profile: American Express
Co. (2019) for the company to remain one of the leading
financial institutions in the global markets, the management
should increase usage of debit cards in different parts of the
world. Increasing the penetration of these cards will
significantly widen the company coverage as well as providing
a significant market share for the company. Additionally, the
company should also increase the branding strategies of its
products to make its product unique and more value compared
to those of its competitors. In doing so, the company will attract
more customers.
References
American Express Company SWOT Analysis. (2019). American
Express Company SWOT Analysis, 1–9. Retrieved from
http://search.ebscohost.com/login.aspx?direct=true&db=buh&A
N=135466847&site=ehost-live
Havercome, C., & Mujtaba, B. G., (2015). Effectively managing
employees to get results in a diverse workplace such as
American Express. Journal of Business Studies Quarterly, 7(1),
13.
Hickman, C. R., & Silva, M. A. (2018). Creating excellence:
Managing corporate culture, strategy, and change in the new
age. Routledge.
MarketLine Company Profile: American Express Co.
(2019). American Express Company MarketLine Company
Profile (pp. 1–49). Retrieved from
http://search.ebscohost.com/login.aspx?direct=true&db=buh&A
N=135473577&site=ehost-live Alexander, V.,
PROJECT
Project Purpose: The purpose of this project is for you to
develop a marketing research skill-set
and apply these skills to a real-world marketing problem. By the
end of the project, you should
be familiar with:
1. Problem definition
2. Marketing research methodologies
3. Data analysis techniques
4. Deriving managerial implications from your results
Project Summary: You will choose a firm that you are interested
in solving a marketing
research problem for (e.g., the company you work for or a
company that you are interested in).
Assume that the firm has hired you to conduct marketing
research on its behalf.
Based on the firm and the marketing problem/opportunity that
you like to analyze, you will need
to design a comprehensive marketing research plan and execute
it. You will present your results
in a final presentation.
Structure: The term project is composed of two phases. In the
first phase you will provide a
proposal for your marketing research project. In the second
phase you will provide the results of
executing said proposal.
For each phase there will be a presentation supported by
PowerPoint and a written report. Please
submit hard copies and digital copies of each written report.
RESEARCH PROPOSAL AND PRESENTATION
Follow your textbook on how to write a proposal. Hint: make
sure it describes a plan detailing
how you will collect all the components mentioned in the final
report. The proposal should be
between 3-5 pages single space.
PHASE 1 (Tuesday June 13, 2019)
The presentation
• 10 minutes
• Describe your decision problem and research problems.
o Project Title (Do not spend more than 1 minute describing the
company)
o Research Questions (Decision Problem & Research Problems)
o Research Hypotheses
o SWOT Analysis
• Leave 2-3 minutes for Q&A
• No note cards or reading from the slides
• No special attire required
• Ignore the budget section
THIS NEXT PART DESCRIBES PHASE 2 (Tuesday, July 2,
2019)
The presentation
• 15 minutes
• Describe your research.
o Methodology (Show Survey Question)
o Data Analysis
o Results
o Recommendations Actions for Marketing Strategy
• Leave 2-3 minutes for Q&A
• No note cards or reading from slides
• Business casual attire
• Do not spend time discussing the situational analysis.
FINAL REPORT FORMATTING (not for Phase 1)
5 Single Space Pages. >>Use The following headings<<
Headings
1. Decision Problem
a. Short and concise
b. Introduce relevant information regarding the background of
the company
c. Clearly state the decision problem. It should be in the first
couple of sentences of
the first paragraph.
2. Research Problem
a. Describe how each problem relates and will help address the
decision problem
b. State at least 2~3 hypotheses. Provide justification for these
hypotheses (e.g., why
did you choose these variables to focus on?)
3. Method – Collect the primary data that will help answer your
research questions. They
can include:
a. Questionnaires (required), In-depth interviews
(telephone/face-to-face), Focus Groups,
Observational data (observing consumer behavior), Content
Analysis.
b. Describe the respondent profile used in each method
including sample size, response
rate, characteristics of respondents, etc.
c. Secondary background research is encouraged to be used to
motivate the research
problem/opportunity and does not count as a method of data
collection (Chapter 4:
Literature Search).
4. Data Analysis
a. Using the data you collected, perform at least 3 of the
following data analysis
techniques:
i. Correlation analysis
ii. Regression analysis
iii. Tests of Means
iv. Chi-square tests
v. Cross-tabulations and frequency distributions
b. Describe each of your analysis techniques and why you
perform those analyses.
5. Results – describe your results. You can describe or present
percentages, descriptive
statistics, hypotheses results (e.g., reject null or fail to reject),
and results from regression
analysis, graphs, tables, etc.
a. Note: these firms have hired you to uncover novel and
counter-intuitive findings. Make
sure that some of your results push managerial thinking.
6. Recommendations and Limitations
a. NO DATA analysis or new information in this section
b. Every single managerial recommendations (3-5) should be
based on the results
i. E.g., We found that X is bigger than Y and that Z increases X.
Based on
these results we recommend to implement Z.
c. Limitations (2-3). Clearly describe the limitations of your
research and methods
i. E.g., We recommend a study with a different population as
our sample
was not representative of your intended target market (senior
citizens).
7. Work Cited and Appendices (include survey)
Helpful Suggestions- This is a marketing class. Therefore,
position and your insights in such a
manner that an executive team at the hiring firm would find
your presentation interesting and
actionable. The content should be clear, concise, and well-
written.
GRADING RUBRIC OF FINAL REPORT
1. Formatting (25%)
a. Does it look professional? (headings, subheadings, graphs,
etc.)
b. Does it follow the requested structure?
i. Did you include the survey used?
ii. Did you use the headings listed on page 1 of this document?
c. Writing style? (citations, etc.)
d. Is it single space, ~5 pages?
e. Did you submit both a digital and a hard copy?
2. Problem Definition (25%)
a. Is the decision problem and research problem clearly stated?
b. Did you cite relevant information?
c. Do the research problems help answer the decision problem?
3. Data Analysis and Results (25%)
a. Are the results presented clear enough for a manager to
understand? (e.g., graphs
and text explaining those graphs)
b. Were the data analyzed properly?
4. Recommendations (25%)
a. How well does the data answer the decision problem?
b. Are the recommendations based on the data and results
presented or is it your
opinion? (hint: not interested in opinions)
This document may change. Please refer to the latest version in
Blackboard.
1
Decision Problem
Zoomer is a mobile application used to help restaurants deliver
food to customers. Restaurants
partnered with Zoomer can utilize Zoomer’s network of local
delivery drivers to bring food to
customers. This eliminates the need of a full-time in-house
delivery driver. Consumers download
the application to access a list of local restaurants. Upon
placing an order, the consumer can use
their phone to track their order in real time.
Zoomer has steadily spread its service to cities throughout the
United States. They also maintain
international operations in countries such as Ireland, Poland,
Sweden, and Thailand (Zoomer).
Zoomer has recently moved into New Brunswick, New Jersey.
Like any new market, there are
challenges in understanding the local populations’
demographics and attitudes. To assist Zoomer
in expanding its business, research was conducted to answer the
following question:
What is the best strategy to market Zoomer to potential
customers in the Easton Avenue/New
Brunswick area?
Research Problems & Hypotheses
To effectively address the decision problem, Zoomer needed to
collect various descriptive data.
Basic demographic information, the presence of competition,
and other factors will impact the
size and scope of marketing efforts. Identifying sources of
value, customer opinions on new
features, and quantifiable delivery expectations will allow
Zoomer to be positively received. This
initial feedback will highlight unique market characteristics
enabling causal research.
Three research problems were developed to focus Zoomer’s data
collection efforts:
1. What aspect of delivery is valued most by our customers?
2. Would a rewards program entice customers to order delivery
more often?
3. Can bundling deliveries from multiple restaurants provide
value to customers?
Each research problem focused on gathering consumer insights
to understand what may persuade
a customer to utilize Zoomer. Promotional materials can then
focus on the insights to build a
positive brand reception in the community. Based on the
research problems, several hypotheses
were developed concerning expected relationships:
I. Consumer moods and feelings will impact their willingness to
pay for delivery.
II. Delivery drivers will impact consumer’s value perception of
delivery. Men and
women will consider different characteristics to be most
important.
III. Competitors have existing value-added features that have
captured consumer loyalty.
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IV. A rewards program will enhance initial trails and likelihood
of ordering delivery.
V. Bundling deliveries will increase order frequency and total
order cost.
Data collection and subsequent analysis will be conducted to
answer these questions and more.
By doing so Zoomer will understand what customers value and
desire, allowing an effective
marketing campaign to gain market share.
Survey Overview & Respondent Profile
Qualitative and quantitative questions relating to the research
questions were distributed in a
survey. The survey can be viewed in its entirety in Appendix A.
In total, 61 responses were
recorded. The gender distribution in responses was almost
exactly even, with 31 male and 30
female respondents completing the survey. All respondents
identified themselves as Rutgers
University undergraduate students.
The survey was designed to seek specific information from
Rutgers students using a filtering
question. Those who were students were asked various
questions, including their age, their
current living arrangements, which campus they frequented
most, and if they had a meal plan.
79% of respondents (48 of 61) indicated they were over 21
years old. There was a fairly even
breakdown of on-campus, off-campus, and commuter students,
with each category receiving
36%, 36%, and 28% of the vote respectively. 64% of students
did not have a meal plan.
Combining the living arrangement and meal plan question
provided a valuable insight, as the
percentage of off-campus and commuter students (64%)
matched the population who did not
have a meal plan exactly. This relationship could be further
analyzed to determine if off-campus
and commuter students order for delivery more frequently, and
thus targeted in advertisements.
Finally, students spent most time on Livingston (67%) or
College Avenue (29%) campuses.
Perhaps the students who spend more time away from College
Avenue will value a delivery
service more. A detailed graphical breakdown concerning this
information appears in Appendix
B.
These demographic considerations must all be considered
during research problem analysis. If
the differences in the population are not properly considered,
conclusions reached may not be
valid when applied to the population at large.
Research Problem One – Analysis, Results, & Recommendations
The first research problem related to understanding what aspect
of delivery did consumers value.
Understanding what is valued by customers is among the most
important takeaway from this
research. If Zoomer is not able to provide consumers value, they
will not use the application.
Consumers’ perception of value varies from market to market.
Understanding what is most
important to the New Brunswick population will enable Zoomer
to highlight value aspects in
advertisements. Ideally, customers will feel the brand
emphasizes attributes that relate to them.
3
To assess value, respondents were asked to rank certain factors
that may impact ordering
tendencies on a 7-point scale. These included convenience,
saving time, inclement weather, and
lacking a vehicle to pick up a car. The factors listed were
predetermined by the team, but to
ensure critical factors not listed were considered, respondents
were provided the option to write
in their own factors. The results are summarized in the table
below:
Factor Convenience Saving Time Inclement Weather Lack of
Car
Average 6.2 5.6 5.5 3.6
Median 7 6 6 4
Convenience appeared to be the most important factor to
consumers. Reviewing comments also
indicated that feeling lazy leads to ordering for delivery. This
presented an opportunity to test our
first hypothesis. Now that an important mood was identified, we
could test how it impacted
consumers’ opinions on delivery charges. To do so, a regression
was run where:
Y = Maximum Amount in Dollars for a Delivery Charge
X1 = Convenience Factor
X2 = Maximum Time Willing to Wait in Minutes
The regression equation was Y = 1.28 + .2X1 + .007X2, where
the P-Value of X1 and X2 are .06
and .4 respectively. Based on these results, we can conclude
that perceived convenience
significantly impacts consumers’ willingness to pay with 90%
confidence. We cannot reject our
first hypothesis, because those consumers who valued
convenience highly tended to be willing to
pay higher delivery charges. A delivery experience that
consumers believe is convenient may be
more important than a delivery that is fast.
Next, respondents were asked to share experiences with delivery
drivers, both positive and
negative. They indicated if characteristics such as clothing,
cleanliness, politeness, or vehicle
driven ever impacted how they felt about their delivery. To
address our second hypothesis, the
count of responses were split by gender to determine which
characteristic was most important.
Please refer to Appendix C for the cross-tabulation table.
78% (65 of 83) of reported incidents related to politeness and
cleanliness of drivers. Comments
generally indicated that poor attitudes affected tips and the
impression of the restaurant.
Consumers also enjoyed their food more and tipped better when
drivers looked clean. While
women tended to recall more observations impacting their
experience than men, gender did not
affect which characteristic was important. In both populations,
cleanliness, politeness, clothing,
and vehicle driven were ranked most important to least
important. We therefore reject our second
hypothesis, and conclude that gender does not impact important
driver characteristics.
These two tests provided data that enabled the team to make
recommendations regarding value.
First, consumers may be willing to pay a premium if they feel
the Zoomer experience is
convenient. Therefore, Zoomer advertisements should convey
how the application makes life
easier for users. Advertising effectiveness may be amplified if
Zoomer can identify which
advertising medium will provide the most exposure to
consumers who are feeling lazy. It is
possible advertisements should not cater to price sensitive
consumers.
4
Next, if delivery drivers are to be featured in an advertisement,
they must be uniformed, well-
groomed and smiling. Uniforms make drivers appear
professional. A smile may imply the driver
is friendly and striving to enhance the experience. Important
feedback was gained from these
reviews. Zoomer may consider implementing a driver review
feature in their application. By
collecting qualitative and quantitative feedback, drivers who
impact the Zoomer brand image can
be rewarded or disciplined accordingly. Encouraging drivers to
maintain a dress code and proper
grooming standards will enhance positive customer experiences,
and drivers may receive better
tips!
Research Problem Two – Analysis, Results, &
Recommendations
Value-added features can be the difference in satisfying or
delighting a customer. However,
various costs are associated with developing new features. A
rewards program may enhance
order frequency, improve initial trials of Zoomer, and give
consumers a reason to remain loyal to
Zoomer. However, those who actually use the application must
be consulted to ensure the new
feature will actually provide value and be worth the investment.
Before Zoomer can introduce a new feature to capture market
share, it should understand who its
main competitors are. Furthermore, do these competitors have a
differentiating feature that
promote brand loyalty? If so, Zoomer may need to convince
those loyal to other brands that
Zoomer is the superior platform.
Respondents were asked to indicate if they were familiar with
Zoomer and its competitors. Only
30% were familiar with Zoomer, while 79% had heard of
Grubhub and 67% heard of Scarlet
Menus (Appendix D). These are Zoomer’s main competitors.
However, familiarity does not
always translate to loyalty. The team needed to understand if
there was a correlation between
knowledge of applications ordering frequency. A strong positive
correlation, meaning if
customers who ordered frequently tended to know many
applications, may indicate consumers
value ordering online. A strong negative correlation, meaning
those who order frequently have
heard of very few applications, may imply that customers
remained loyal to the brand they tried
first. A graphic representation of the correlation results is in
Appendix E.
The correlation coefficient was .19. While some may interpret
this as a strong correlation, the
lacking sample size led us to conclude the correlation was not
strong enough to provide proof of
a relationship. Based on this interpretation, we reject the third
hypothesis, and conclude that
competitors do not have any features that encouraged loyalty.
An analysis of feedback concerning the rewards program was
now important. Respondents
indicated whether they preferred a loyalty program based on
frequency of use or referral of
friends. They were also asked if a rewards program would
increase their likelihood of ordering
delivery. The results are summarized in a cross tabulation in
Appendix F.
The majority of consumers responded positively to the notion of
a rewards program. 84%
preferred a frequency based program, while 64% indicated a
rewards program would “definitely”
5
or “probably” encourage them to order via Zoomer more often.
An additional 26% indicated it
“maybe” would encourage orders. The reaction leads us to a
failure to reject the fourth
hypothesis. It appears a rewards program will increase ordering
frequency, and by extension
encourage initial trials.
Zoomer should develop a rewards program. It can be
incorporated into advertisements to
encourage users to download and try the application.
Showcasing the tangible or intangible
rewards themselves may be a strategy to encourage
participation, but further research is needed.
Zoomer still has the ability to become the delivery market
leader in New Brunswick.
Research Problem Three – Analysis, Results, &
Recommendations
New Brunswick is home to a diverse range of restaurants. This
caters to the Rutgers University
population, as Rutgers is consistently rated as the most diverse
school in the country (Rutgers
University). Bundling deliveries from multiple restaurants may
be able to increase both order
frequency and total order cost. This could potentially add value
to restaurants and their
customers simultaneously.
Those who took the survey were asked if they would order
dinner and dessert from different
restaurants if they could be delivered at the same time. The
results are summarized in a Pareto
Diagram in Appendix G.
87% responded “probably not”, “maybe”, or “probably” – the
three middle points in the scale.
This implies there is not an overwhelming reception to the idea
either way. Survey participants
also tend to overestimate their likelihood to act in one way or
another while taking surveys. The
team indicated there may be a positive bias in these results, and
accordingly did not feel
comfortable enough to give the bundling idea a thumbs-up. The
uncertainty in the data led to the
rejection of the fifth and final hypothesis. There was simply no
clear indication to tell if
customers would use a feature like this. Management should
avoid developing and implementing
this system. Further research could be conducted, but costs
should be considered as initial results
were underwhelming. This innovation may not be useful to
advertise Zoomer’s services.
Summary & Limitations
Below is a brief summary of the results for the hypotheses
proposed:
I. Consumer moods and feelings will impact their willingness to
pay for delivery.
Fail to reject. Lazy consumers may be willing to pay a delivery
premium.
II. Delivery drivers will impact consumer’s value perception of
delivery. Men and
women will consider different characteristics to be most
important.
Reject. Gender has no impact on which delivery driver
characteristics are important.
6
III. Competitors have existing value-added features that have
captured consumer loyalty.
Reject. There is no evidence that any competitor has captured
significant loyalty.
IV. A rewards program will enhance initial trails and likelihood
of ordering delivery.
Fail to reject. A rewards program was received very positively
if executed correctly.
V. Bundling deliveries will increase order frequency and total
order cost.
Reject. Consumers will likely not utilize this feature if
available.
While the team was pleased with the outcome of the data
analysis and resulting conclusions,
various factors could have impacted results. The first and most
obvious is survey noncoverage
error. Insights were only gathered from Rutgers students. To
provide great assurance of validity,
populations including graduate students, New Brunswick
residents unaffiliated with Rutgers, and
non-resident employees based in New Brunswick must be
considered. Restaurant owners should
also be provided a separate survey. Without satisfying the
restaurant owners, Zoomer will not
have any business period!
While designing the survey, consideration of privacy and
appropriateness was of the utmost
concern. However, sensitive questions that could provide
valuable insights were avoided. New
Brunswick has been referred to as a “food desert”. This refers to
urban areas that lack proper
grocery stores. Small convenience shops and corner stores sell
fresh fruit and meat, but normally
at prices that prohibit low to middle range earners from
consistently purchasing it. These
individuals often turn to restaurants and fast food for more
affordable meals (Kratovil). It would
be interesting to analyze if socioeconomic status effected
delivery habits, but out of respect for
classmates this topic was avoided.
There were various comments in the survey that indicated
alcohol consumption may impact
delivery frequency. It is true that New Brunswick, has a busy
night life and popular bar scene,
but the researchers were not comfortable to probe on the topic.
Chances are the results from
college students regarding their alcohol consumption may be
alarming!
Zoomer is also not a publicly held company. There are very
little details online about the
company’s activity and financial results. Advertising budgets,
corporate strategies, and insight to
cost drivers set the scope for research. Without this, it is
impossible to develop an analysis that
would properly reflect the level of detail and sophistication that
Zoomer could afford.
Finally, the team’s inexperience as researchers limited potential
applications of the data! Various
parts of the survey could be adjusted to capture a higher degree
of insight. The team also realized
that one conclusion from the data only leaves you asking
yourself five more questions about the
subject! Pretesting the survey would improve the quality of data
and therefore improve the
analysis.
7
Works Cited
"Diversity." Diversity | Rutgers University - Newark. Rutgers
University, n.d. Web. 17 Dec.
2016.
Kratovil, Charlie. "City Still Working to Replace Failed
Downtown Supermarket." New
Brunswick Today. N.p., 12 Mar. 2015. Web. 16 Dec. 2016.
"Zoomer - The Delivery Network for High Volume
Restaurants." Zoomer - The Delivery
Network for High Volume Restaurants. Zoomer, n.d. Web. 16
Dec. 2016.
8
Appendix A - Survey
Q 1
On a ve ra ge , how ma ny time s do you orde r food for de live
ry monthly?
Q 2
Ra te the importa nce of the following fa ctors whe n cons
ide ring orde ring food for de live ry. (1
be ing not importa nt, with 7 be ing e s s e ntia l)
1 2 3 4 5 6 7
Conve nie nce
S a ving Time
We a the r Fa ctors
Don't ha ve a ve hicle to
drive to the re s ta ura nt
Othe r. P le a s e s pe cify.
Q 3
Wha t is the longe s t a cce pta ble time (in minute s ) for a
de live ry orde r?
Q 4
Wha t's the mos t you would pa y for a de live ry cha rge be
fore s e e king a n a lte rna tive
re s ta ura nt?
01 2 3 4 5
Am ount
in
Dolla rs
P a g e Bre a k
9
Q 5
Cons ide r the following s ce na rio: Re s ta ura nt A offe rs a
pizza for $12 a nd a $3 de live ry
cha rge . Re s ta ura nt B offe rs the pizza for $15 a nd fre e
de live ry. Which offe r a re you more
incline d to choos e ?
Re s ta ura nt A
Re s ta ura nt B
P a g e Bre a k
Q 6
P le a s e indica te if you ha ve he a rd of the following a
pplica tions :
Zoom e r
S e a m le s s
Grubhub
P os tm a te s
S ca rle t Me nus
Ea t S tre e t
P a g e Bre a k
Q 7
Ha ve a ny of the following cha ra cte ris tics of a de live ry
drive r e ve r impa cte d how you fe lt
a bout your de live ry?
Clothe s /Uniform
Cle a nline s s /Hyge ine
P olite ne s s /Attitude
Type of Ve hicle Drive n
Othe r
Not Applica ble
Q 8
If you che cke d a ny of the pre vious boxe s , ple a s e brie
fly de s cribe wha t wa s right or wrong,
a nd how it impa cte d your e xpe rie nce .
P a g e Bre a k
10
Q 9
Would a re wa rds progra m tha t provide d dis counts a nd fre
e ite ms for fre que nt orde rs
e ncoura ge you to orde r de live ry more fre que ntly?
De finite ly
P roba bly
Ma ybe
P roba bly not
De finite ly Not
Q 10
If a de live ry re wa rds progra m we re e s ta blis he d, would
you pre fe r the ince ntive s to be ba s e d
on fre que ncy of us e or re fe rra l?
Fre que nc y of Us e
Re fe rra l
Q 11
Ima gine a de live ry s e rvice wa s a ble to pick up food
from multiple re s ta ura nts a nd de live r
the m to you a t the s a me time . Would you be more like ly
to orde r de s s e rt from a nothe r
re s ta ura nt in a ddition to your ma in cours e ?
De finite ly
P roba bly
Ma ybe
P roba bly Not
De finite ly Not
P a g e Bre a k
Q 12
Wha t me dium a re you mos t like ly to notice a n a dve rtis e
me nt?
Te le vis ion
Ra dio
Ne ws pa pe r/Ma ga zine
S ocia l Me dia
Othe r Online S ite
P a pe r Flye r
11
Othe r (P le a s e S pe cify)
Q 13
Are you a Rutge rs s tude nt?
Ye s
No
P a g e Bre a k
Q 14
Are you a gra dua te or unde rgra dua te s tude nt?
Gra dua te
Unde rgra dua te
Q 15
Do you ha ve a me a l pla n?
Ye s
No
Q 16
P le a s e indica te your curre nt living a rra nge me nts .
On-ca m pus
Off-ca m pus
Comm ute r
Q 17
Wha t ca mpus do you s pe nd the m os t time on?
Colle ge Ave nue
Livings ton
Cook/Dougla s s
Bus ch
P a g e Bre a k
12
Q 18
P le a s e indica te your ge nde r.
Ma le
Fe m a le
P re fe r not to s pe cify
Q 19
P le a s e indica te your a ge .
13
Appendix B – Respondent Profile
14
15
Appendix C – Delivery Driver Cross Tabulation
Trait Male Female Total Male % Female % Total %
Clothes 8 6 14 10% 7% 17%
Cleanliness 12 15 27 14% 18% 33%
Politeness 16 22 38 19% 27% 46%
Vehicle 2 2 4 2% 2% 5%
Total 38 45 83 46% 54% 100%
Appendix D – Competitor Analysis
Application Frequency Percentage
Grubhub 48 79%
Scarlet Menus 41 67%
Eat Street 23 38%
Zoomer 18 30%
Seamless 16 26%
Postmates 9 15%
Appendix E – Correlation Results
16
Appendix F – Rewards Program Cross-Tabulation
Appendix G – Bundling Pareto Diagram
Order Likelihood? Frequency Referral Total
Definitely 18% 2% 20%
Probably 39% 7% 46%
Maybe 18% 8% 26%
Probably Not 7% 0% 7%
Definitely Not 2% 0% 2%
Total 84% 16% 100%

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Running head AMERICAN EXPRESS CORPORATION ANALYSIS 1AMERICA.docx

  • 1. Running head: AMERICAN EXPRESS CORPORATION ANALYSIS 1 AMERICAN EXPRESS CORPORATION ANALYSIS 2 American Express Corporation Analysis Xiaoxi Yue Professor Minji American Express Corporation analysis American Express Corporation is an American multinational financial services entity with headquarter in New York City in the United States. The company is also known as Amex, and it operates in the Banking Financial services industry, where there are other competing companies (American Express Company SWOT Analysis, 2019). The primary aim of this article is to critically conduct a SWOT analysis of American Express Company to help to solve marketing problems that the entity face when performing its business activities. Analysis of American Express Corporation and its industry American Express Corporation is a financial institution which deals in an extensive range of products and services. The main products and services of the company are credit card products and charge and other travel-related services that aim at satisfying the needs of their clients (Havercome & Mujtaba, 2015). The company sells its products and services to various groups of clients from different parts of the world. The company has multiple segments that help it to market and sell its product and services. Below are some the main segment of American Express Company and among others. The company uses different marketing strategies to market and sell its product. Besides, American Express Company operates in a
  • 2. competitive industry with many competing firms that use different marketing strategies to increase their market share. Some of the company's top competitors are Discover, VISA MasterCard, Bank of America US Bank, among others. American Express Corporation SWOT analysis American Express Corporation operates in a competitive industry with many competing firms that offer a variety of products and services to potential clients. As such, the company has strength, weakness, opportunities, and threat that determine its operations. Strengths of American Express Brand strength is one of the advantages the company enjoy in its industry. Currently, American Express has the privilege of being among the treasured brands all over the world. The latter is one of the internal strength that has enabled the company to increase its market share in its industry. Employee strength and market capitalization are other advantages also different strengths of the company. The company has a high number of employees, and the level of their satisfaction is relatively high compared to those of its competitors (Hickman & Silva, 2018). On the other hand, the company has a more significant market capital, unlike its competitors. This has enabled the company to perform all its operation more efficiently without financial difficulties. As such, this has enabled the company to one of the top financial services providers in the world. Furthermore, the status symbol is another strength for the company. American Express symbol is always obtained only by extremely high net worth persons who offered the credit card. The latter implies that not everybody is given the advantage to possess the card. International usage of the company's cards is also another strength that has enabled the company to have a definite competitive advantage in the global markets. Weaknesses of American Express Even though the company is one of the leading companies in the world, there is some internal weakness that has been reducing
  • 3. the performance of the company. First, the company lacks debit cards, which have reduced that effectiveness of its operation in the global. Lack of other products is another weakness of the company (Hickman & Silva, 2018). American Express product line focuses on a few primary products which can profoundly affect its performance in case of low demands. Opportunities Expansion and innovation schemes are some of the significant opportunities for the company. Seemingly, there is a vast space in the market extension for the company. However, it does not have a strong presence that can enable it to get competitive in the global market. Besides, innovation schemes provide more attraction to the company's customers; this seems an opportunity for better completion (Hickman & Silva, 2018). Moreover, leveraging financial branding equity is also an opportunity that can enable to rebuild its marketing strength in the global markets. The leverage of the company offers more financial products, this increasing more turnover to the company. Threats of American Express Competitors in the global markets are one of the significant threats for the company. Visa and MasterCard are some of the company's major competitors that are popular and commonly used in any part of the world (Hickman & Silva, 2018). Nature of the business is another threat to the company. Since the company mainly deals with financial services, the volatility of economic condition leads to significant effects in its operations. According to MarketLine Company Profile: American Express Co. (2019) for the company to remain one of the leading financial institutions in the global markets, the management should increase usage of debit cards in different parts of the world. Increasing the penetration of these cards will significantly widen the company coverage as well as providing a significant market share for the company. Additionally, the company should also increase the branding strategies of its products to make its product unique and more value compared
  • 4. to those of its competitors. In doing so, the company will attract more customers. References American Express Company SWOT Analysis. (2019). American Express Company SWOT Analysis, 1–9. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=buh&A N=135466847&site=ehost-live Havercome, C., & Mujtaba, B. G., (2015). Effectively managing employees to get results in a diverse workplace such as American Express. Journal of Business Studies Quarterly, 7(1), 13. Hickman, C. R., & Silva, M. A. (2018). Creating excellence: Managing corporate culture, strategy, and change in the new age. Routledge. MarketLine Company Profile: American Express Co. (2019). American Express Company MarketLine Company Profile (pp. 1–49). Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=buh&A N=135473577&site=ehost-live Alexander, V., PROJECT Project Purpose: The purpose of this project is for you to develop a marketing research skill-set and apply these skills to a real-world marketing problem. By the end of the project, you should be familiar with: 1. Problem definition 2. Marketing research methodologies
  • 5. 3. Data analysis techniques 4. Deriving managerial implications from your results Project Summary: You will choose a firm that you are interested in solving a marketing research problem for (e.g., the company you work for or a company that you are interested in). Assume that the firm has hired you to conduct marketing research on its behalf. Based on the firm and the marketing problem/opportunity that you like to analyze, you will need to design a comprehensive marketing research plan and execute it. You will present your results in a final presentation. Structure: The term project is composed of two phases. In the first phase you will provide a proposal for your marketing research project. In the second phase you will provide the results of executing said proposal. For each phase there will be a presentation supported by PowerPoint and a written report. Please submit hard copies and digital copies of each written report.
  • 6. RESEARCH PROPOSAL AND PRESENTATION Follow your textbook on how to write a proposal. Hint: make sure it describes a plan detailing how you will collect all the components mentioned in the final report. The proposal should be between 3-5 pages single space. PHASE 1 (Tuesday June 13, 2019) The presentation • 10 minutes • Describe your decision problem and research problems. o Project Title (Do not spend more than 1 minute describing the company) o Research Questions (Decision Problem & Research Problems) o Research Hypotheses o SWOT Analysis • Leave 2-3 minutes for Q&A • No note cards or reading from the slides • No special attire required • Ignore the budget section THIS NEXT PART DESCRIBES PHASE 2 (Tuesday, July 2, 2019)
  • 7. The presentation • 15 minutes • Describe your research. o Methodology (Show Survey Question) o Data Analysis o Results o Recommendations Actions for Marketing Strategy • Leave 2-3 minutes for Q&A • No note cards or reading from slides • Business casual attire • Do not spend time discussing the situational analysis. FINAL REPORT FORMATTING (not for Phase 1) 5 Single Space Pages. >>Use The following headings<< Headings 1. Decision Problem a. Short and concise b. Introduce relevant information regarding the background of
  • 8. the company c. Clearly state the decision problem. It should be in the first couple of sentences of the first paragraph. 2. Research Problem a. Describe how each problem relates and will help address the decision problem b. State at least 2~3 hypotheses. Provide justification for these hypotheses (e.g., why did you choose these variables to focus on?) 3. Method – Collect the primary data that will help answer your research questions. They can include: a. Questionnaires (required), In-depth interviews (telephone/face-to-face), Focus Groups, Observational data (observing consumer behavior), Content Analysis. b. Describe the respondent profile used in each method including sample size, response rate, characteristics of respondents, etc. c. Secondary background research is encouraged to be used to motivate the research problem/opportunity and does not count as a method of data
  • 9. collection (Chapter 4: Literature Search). 4. Data Analysis a. Using the data you collected, perform at least 3 of the following data analysis techniques: i. Correlation analysis ii. Regression analysis iii. Tests of Means iv. Chi-square tests v. Cross-tabulations and frequency distributions b. Describe each of your analysis techniques and why you perform those analyses. 5. Results – describe your results. You can describe or present percentages, descriptive statistics, hypotheses results (e.g., reject null or fail to reject), and results from regression analysis, graphs, tables, etc. a. Note: these firms have hired you to uncover novel and counter-intuitive findings. Make
  • 10. sure that some of your results push managerial thinking. 6. Recommendations and Limitations a. NO DATA analysis or new information in this section b. Every single managerial recommendations (3-5) should be based on the results i. E.g., We found that X is bigger than Y and that Z increases X. Based on these results we recommend to implement Z. c. Limitations (2-3). Clearly describe the limitations of your research and methods i. E.g., We recommend a study with a different population as our sample was not representative of your intended target market (senior citizens). 7. Work Cited and Appendices (include survey) Helpful Suggestions- This is a marketing class. Therefore, position and your insights in such a manner that an executive team at the hiring firm would find your presentation interesting and actionable. The content should be clear, concise, and well- written.
  • 11. GRADING RUBRIC OF FINAL REPORT 1. Formatting (25%) a. Does it look professional? (headings, subheadings, graphs, etc.) b. Does it follow the requested structure? i. Did you include the survey used? ii. Did you use the headings listed on page 1 of this document? c. Writing style? (citations, etc.) d. Is it single space, ~5 pages? e. Did you submit both a digital and a hard copy? 2. Problem Definition (25%) a. Is the decision problem and research problem clearly stated? b. Did you cite relevant information? c. Do the research problems help answer the decision problem? 3. Data Analysis and Results (25%) a. Are the results presented clear enough for a manager to understand? (e.g., graphs and text explaining those graphs) b. Were the data analyzed properly?
  • 12. 4. Recommendations (25%) a. How well does the data answer the decision problem? b. Are the recommendations based on the data and results presented or is it your opinion? (hint: not interested in opinions) This document may change. Please refer to the latest version in Blackboard. 1 Decision Problem Zoomer is a mobile application used to help restaurants deliver food to customers. Restaurants partnered with Zoomer can utilize Zoomer’s network of local delivery drivers to bring food to customers. This eliminates the need of a full-time in-house delivery driver. Consumers download the application to access a list of local restaurants. Upon placing an order, the consumer can use their phone to track their order in real time.
  • 13. Zoomer has steadily spread its service to cities throughout the United States. They also maintain international operations in countries such as Ireland, Poland, Sweden, and Thailand (Zoomer). Zoomer has recently moved into New Brunswick, New Jersey. Like any new market, there are challenges in understanding the local populations’ demographics and attitudes. To assist Zoomer in expanding its business, research was conducted to answer the following question: What is the best strategy to market Zoomer to potential customers in the Easton Avenue/New Brunswick area? Research Problems & Hypotheses To effectively address the decision problem, Zoomer needed to collect various descriptive data. Basic demographic information, the presence of competition, and other factors will impact the size and scope of marketing efforts. Identifying sources of value, customer opinions on new features, and quantifiable delivery expectations will allow Zoomer to be positively received. This initial feedback will highlight unique market characteristics enabling causal research. Three research problems were developed to focus Zoomer’s data collection efforts: 1. What aspect of delivery is valued most by our customers?
  • 14. 2. Would a rewards program entice customers to order delivery more often? 3. Can bundling deliveries from multiple restaurants provide value to customers? Each research problem focused on gathering consumer insights to understand what may persuade a customer to utilize Zoomer. Promotional materials can then focus on the insights to build a positive brand reception in the community. Based on the research problems, several hypotheses were developed concerning expected relationships: I. Consumer moods and feelings will impact their willingness to pay for delivery. II. Delivery drivers will impact consumer’s value perception of delivery. Men and women will consider different characteristics to be most important. III. Competitors have existing value-added features that have captured consumer loyalty. 2
  • 15. IV. A rewards program will enhance initial trails and likelihood of ordering delivery. V. Bundling deliveries will increase order frequency and total order cost. Data collection and subsequent analysis will be conducted to answer these questions and more. By doing so Zoomer will understand what customers value and desire, allowing an effective marketing campaign to gain market share. Survey Overview & Respondent Profile Qualitative and quantitative questions relating to the research questions were distributed in a survey. The survey can be viewed in its entirety in Appendix A. In total, 61 responses were recorded. The gender distribution in responses was almost exactly even, with 31 male and 30 female respondents completing the survey. All respondents identified themselves as Rutgers University undergraduate students. The survey was designed to seek specific information from Rutgers students using a filtering question. Those who were students were asked various questions, including their age, their current living arrangements, which campus they frequented most, and if they had a meal plan. 79% of respondents (48 of 61) indicated they were over 21 years old. There was a fairly even breakdown of on-campus, off-campus, and commuter students, with each category receiving
  • 16. 36%, 36%, and 28% of the vote respectively. 64% of students did not have a meal plan. Combining the living arrangement and meal plan question provided a valuable insight, as the percentage of off-campus and commuter students (64%) matched the population who did not have a meal plan exactly. This relationship could be further analyzed to determine if off-campus and commuter students order for delivery more frequently, and thus targeted in advertisements. Finally, students spent most time on Livingston (67%) or College Avenue (29%) campuses. Perhaps the students who spend more time away from College Avenue will value a delivery service more. A detailed graphical breakdown concerning this information appears in Appendix B. These demographic considerations must all be considered during research problem analysis. If the differences in the population are not properly considered, conclusions reached may not be valid when applied to the population at large. Research Problem One – Analysis, Results, & Recommendations The first research problem related to understanding what aspect of delivery did consumers value. Understanding what is valued by customers is among the most important takeaway from this research. If Zoomer is not able to provide consumers value, they will not use the application. Consumers’ perception of value varies from market to market. Understanding what is most important to the New Brunswick population will enable Zoomer to highlight value aspects in
  • 17. advertisements. Ideally, customers will feel the brand emphasizes attributes that relate to them. 3 To assess value, respondents were asked to rank certain factors that may impact ordering tendencies on a 7-point scale. These included convenience, saving time, inclement weather, and lacking a vehicle to pick up a car. The factors listed were predetermined by the team, but to ensure critical factors not listed were considered, respondents were provided the option to write in their own factors. The results are summarized in the table below: Factor Convenience Saving Time Inclement Weather Lack of Car Average 6.2 5.6 5.5 3.6 Median 7 6 6 4 Convenience appeared to be the most important factor to consumers. Reviewing comments also indicated that feeling lazy leads to ordering for delivery. This presented an opportunity to test our first hypothesis. Now that an important mood was identified, we could test how it impacted consumers’ opinions on delivery charges. To do so, a regression was run where:
  • 18. Y = Maximum Amount in Dollars for a Delivery Charge X1 = Convenience Factor X2 = Maximum Time Willing to Wait in Minutes The regression equation was Y = 1.28 + .2X1 + .007X2, where the P-Value of X1 and X2 are .06 and .4 respectively. Based on these results, we can conclude that perceived convenience significantly impacts consumers’ willingness to pay with 90% confidence. We cannot reject our first hypothesis, because those consumers who valued convenience highly tended to be willing to pay higher delivery charges. A delivery experience that consumers believe is convenient may be more important than a delivery that is fast. Next, respondents were asked to share experiences with delivery drivers, both positive and negative. They indicated if characteristics such as clothing, cleanliness, politeness, or vehicle driven ever impacted how they felt about their delivery. To address our second hypothesis, the count of responses were split by gender to determine which characteristic was most important. Please refer to Appendix C for the cross-tabulation table. 78% (65 of 83) of reported incidents related to politeness and cleanliness of drivers. Comments generally indicated that poor attitudes affected tips and the impression of the restaurant. Consumers also enjoyed their food more and tipped better when drivers looked clean. While
  • 19. women tended to recall more observations impacting their experience than men, gender did not affect which characteristic was important. In both populations, cleanliness, politeness, clothing, and vehicle driven were ranked most important to least important. We therefore reject our second hypothesis, and conclude that gender does not impact important driver characteristics. These two tests provided data that enabled the team to make recommendations regarding value. First, consumers may be willing to pay a premium if they feel the Zoomer experience is convenient. Therefore, Zoomer advertisements should convey how the application makes life easier for users. Advertising effectiveness may be amplified if Zoomer can identify which advertising medium will provide the most exposure to consumers who are feeling lazy. It is possible advertisements should not cater to price sensitive consumers. 4 Next, if delivery drivers are to be featured in an advertisement, they must be uniformed, well- groomed and smiling. Uniforms make drivers appear professional. A smile may imply the driver is friendly and striving to enhance the experience. Important feedback was gained from these reviews. Zoomer may consider implementing a driver review feature in their application. By
  • 20. collecting qualitative and quantitative feedback, drivers who impact the Zoomer brand image can be rewarded or disciplined accordingly. Encouraging drivers to maintain a dress code and proper grooming standards will enhance positive customer experiences, and drivers may receive better tips! Research Problem Two – Analysis, Results, & Recommendations Value-added features can be the difference in satisfying or delighting a customer. However, various costs are associated with developing new features. A rewards program may enhance order frequency, improve initial trials of Zoomer, and give consumers a reason to remain loyal to Zoomer. However, those who actually use the application must be consulted to ensure the new feature will actually provide value and be worth the investment. Before Zoomer can introduce a new feature to capture market share, it should understand who its main competitors are. Furthermore, do these competitors have a differentiating feature that promote brand loyalty? If so, Zoomer may need to convince those loyal to other brands that Zoomer is the superior platform. Respondents were asked to indicate if they were familiar with Zoomer and its competitors. Only 30% were familiar with Zoomer, while 79% had heard of Grubhub and 67% heard of Scarlet Menus (Appendix D). These are Zoomer’s main competitors. However, familiarity does not always translate to loyalty. The team needed to understand if
  • 21. there was a correlation between knowledge of applications ordering frequency. A strong positive correlation, meaning if customers who ordered frequently tended to know many applications, may indicate consumers value ordering online. A strong negative correlation, meaning those who order frequently have heard of very few applications, may imply that customers remained loyal to the brand they tried first. A graphic representation of the correlation results is in Appendix E. The correlation coefficient was .19. While some may interpret this as a strong correlation, the lacking sample size led us to conclude the correlation was not strong enough to provide proof of a relationship. Based on this interpretation, we reject the third hypothesis, and conclude that competitors do not have any features that encouraged loyalty. An analysis of feedback concerning the rewards program was now important. Respondents indicated whether they preferred a loyalty program based on frequency of use or referral of friends. They were also asked if a rewards program would increase their likelihood of ordering delivery. The results are summarized in a cross tabulation in Appendix F. The majority of consumers responded positively to the notion of a rewards program. 84% preferred a frequency based program, while 64% indicated a rewards program would “definitely”
  • 22. 5 or “probably” encourage them to order via Zoomer more often. An additional 26% indicated it “maybe” would encourage orders. The reaction leads us to a failure to reject the fourth hypothesis. It appears a rewards program will increase ordering frequency, and by extension encourage initial trials. Zoomer should develop a rewards program. It can be incorporated into advertisements to encourage users to download and try the application. Showcasing the tangible or intangible rewards themselves may be a strategy to encourage participation, but further research is needed. Zoomer still has the ability to become the delivery market leader in New Brunswick. Research Problem Three – Analysis, Results, & Recommendations New Brunswick is home to a diverse range of restaurants. This caters to the Rutgers University population, as Rutgers is consistently rated as the most diverse school in the country (Rutgers University). Bundling deliveries from multiple restaurants may be able to increase both order frequency and total order cost. This could potentially add value to restaurants and their customers simultaneously. Those who took the survey were asked if they would order dinner and dessert from different
  • 23. restaurants if they could be delivered at the same time. The results are summarized in a Pareto Diagram in Appendix G. 87% responded “probably not”, “maybe”, or “probably” – the three middle points in the scale. This implies there is not an overwhelming reception to the idea either way. Survey participants also tend to overestimate their likelihood to act in one way or another while taking surveys. The team indicated there may be a positive bias in these results, and accordingly did not feel comfortable enough to give the bundling idea a thumbs-up. The uncertainty in the data led to the rejection of the fifth and final hypothesis. There was simply no clear indication to tell if customers would use a feature like this. Management should avoid developing and implementing this system. Further research could be conducted, but costs should be considered as initial results were underwhelming. This innovation may not be useful to advertise Zoomer’s services. Summary & Limitations Below is a brief summary of the results for the hypotheses proposed: I. Consumer moods and feelings will impact their willingness to pay for delivery. Fail to reject. Lazy consumers may be willing to pay a delivery premium. II. Delivery drivers will impact consumer’s value perception of
  • 24. delivery. Men and women will consider different characteristics to be most important. Reject. Gender has no impact on which delivery driver characteristics are important. 6 III. Competitors have existing value-added features that have captured consumer loyalty. Reject. There is no evidence that any competitor has captured significant loyalty. IV. A rewards program will enhance initial trails and likelihood of ordering delivery. Fail to reject. A rewards program was received very positively if executed correctly. V. Bundling deliveries will increase order frequency and total order cost. Reject. Consumers will likely not utilize this feature if available. While the team was pleased with the outcome of the data analysis and resulting conclusions, various factors could have impacted results. The first and most
  • 25. obvious is survey noncoverage error. Insights were only gathered from Rutgers students. To provide great assurance of validity, populations including graduate students, New Brunswick residents unaffiliated with Rutgers, and non-resident employees based in New Brunswick must be considered. Restaurant owners should also be provided a separate survey. Without satisfying the restaurant owners, Zoomer will not have any business period! While designing the survey, consideration of privacy and appropriateness was of the utmost concern. However, sensitive questions that could provide valuable insights were avoided. New Brunswick has been referred to as a “food desert”. This refers to urban areas that lack proper grocery stores. Small convenience shops and corner stores sell fresh fruit and meat, but normally at prices that prohibit low to middle range earners from consistently purchasing it. These individuals often turn to restaurants and fast food for more affordable meals (Kratovil). It would be interesting to analyze if socioeconomic status effected delivery habits, but out of respect for classmates this topic was avoided. There were various comments in the survey that indicated alcohol consumption may impact delivery frequency. It is true that New Brunswick, has a busy night life and popular bar scene, but the researchers were not comfortable to probe on the topic. Chances are the results from college students regarding their alcohol consumption may be alarming!
  • 26. Zoomer is also not a publicly held company. There are very little details online about the company’s activity and financial results. Advertising budgets, corporate strategies, and insight to cost drivers set the scope for research. Without this, it is impossible to develop an analysis that would properly reflect the level of detail and sophistication that Zoomer could afford. Finally, the team’s inexperience as researchers limited potential applications of the data! Various parts of the survey could be adjusted to capture a higher degree of insight. The team also realized that one conclusion from the data only leaves you asking yourself five more questions about the subject! Pretesting the survey would improve the quality of data and therefore improve the analysis. 7 Works Cited "Diversity." Diversity | Rutgers University - Newark. Rutgers University, n.d. Web. 17 Dec. 2016. Kratovil, Charlie. "City Still Working to Replace Failed
  • 27. Downtown Supermarket." New Brunswick Today. N.p., 12 Mar. 2015. Web. 16 Dec. 2016. "Zoomer - The Delivery Network for High Volume Restaurants." Zoomer - The Delivery Network for High Volume Restaurants. Zoomer, n.d. Web. 16 Dec. 2016.
  • 28. 8 Appendix A - Survey Q 1 On a ve ra ge , how ma ny time s do you orde r food for de live ry monthly? Q 2 Ra te the importa nce of the following fa ctors whe n cons ide ring orde ring food for de live ry. (1 be ing not importa nt, with 7 be ing e s s e ntia l) 1 2 3 4 5 6 7 Conve nie nce S a ving Time We a the r Fa ctors Don't ha ve a ve hicle to drive to the re s ta ura nt
  • 29. Othe r. P le a s e s pe cify. Q 3 Wha t is the longe s t a cce pta ble time (in minute s ) for a de live ry orde r? Q 4 Wha t's the mos t you would pa y for a de live ry cha rge be fore s e e king a n a lte rna tive re s ta ura nt? 01 2 3 4 5 Am ount in Dolla rs P a g e Bre a k 9 Q 5
  • 30. Cons ide r the following s ce na rio: Re s ta ura nt A offe rs a pizza for $12 a nd a $3 de live ry cha rge . Re s ta ura nt B offe rs the pizza for $15 a nd fre e de live ry. Which offe r a re you more incline d to choos e ? Re s ta ura nt A Re s ta ura nt B P a g e Bre a k Q 6 P le a s e indica te if you ha ve he a rd of the following a pplica tions : Zoom e r S e a m le s s Grubhub P os tm a te s S ca rle t Me nus Ea t S tre e t P a g e Bre a k Q 7 Ha ve a ny of the following cha ra cte ris tics of a de live ry drive r e ve r impa cte d how you fe lt a bout your de live ry? Clothe s /Uniform Cle a nline s s /Hyge ine
  • 31. P olite ne s s /Attitude Type of Ve hicle Drive n Othe r Not Applica ble Q 8 If you che cke d a ny of the pre vious boxe s , ple a s e brie fly de s cribe wha t wa s right or wrong, a nd how it impa cte d your e xpe rie nce . P a g e Bre a k 10 Q 9 Would a re wa rds progra m tha t provide d dis counts a nd fre e ite ms for fre que nt orde rs e ncoura ge you to orde r de live ry more fre que ntly? De finite ly P roba bly Ma ybe
  • 32. P roba bly not De finite ly Not Q 10 If a de live ry re wa rds progra m we re e s ta blis he d, would you pre fe r the ince ntive s to be ba s e d on fre que ncy of us e or re fe rra l? Fre que nc y of Us e Re fe rra l Q 11 Ima gine a de live ry s e rvice wa s a ble to pick up food from multiple re s ta ura nts a nd de live r the m to you a t the s a me time . Would you be more like ly to orde r de s s e rt from a nothe r re s ta ura nt in a ddition to your ma in cours e ? De finite ly P roba bly Ma ybe P roba bly Not De finite ly Not P a g e Bre a k Q 12 Wha t me dium a re you mos t like ly to notice a n a dve rtis e me nt?
  • 33. Te le vis ion Ra dio Ne ws pa pe r/Ma ga zine S ocia l Me dia Othe r Online S ite P a pe r Flye r 11 Othe r (P le a s e S pe cify) Q 13 Are you a Rutge rs s tude nt? Ye s No P a g e Bre a k Q 14 Are you a gra dua te or unde rgra dua te s tude nt? Gra dua te Unde rgra dua te
  • 34. Q 15 Do you ha ve a me a l pla n? Ye s No Q 16 P le a s e indica te your curre nt living a rra nge me nts . On-ca m pus Off-ca m pus Comm ute r Q 17 Wha t ca mpus do you s pe nd the m os t time on? Colle ge Ave nue Livings ton Cook/Dougla s s Bus ch P a g e Bre a k 12
  • 35. Q 18 P le a s e indica te your ge nde r. Ma le Fe m a le P re fe r not to s pe cify Q 19 P le a s e indica te your a ge . 13 Appendix B – Respondent Profile 14
  • 36. 15 Appendix C – Delivery Driver Cross Tabulation Trait Male Female Total Male % Female % Total % Clothes 8 6 14 10% 7% 17% Cleanliness 12 15 27 14% 18% 33% Politeness 16 22 38 19% 27% 46%
  • 37. Vehicle 2 2 4 2% 2% 5% Total 38 45 83 46% 54% 100% Appendix D – Competitor Analysis Application Frequency Percentage Grubhub 48 79% Scarlet Menus 41 67% Eat Street 23 38% Zoomer 18 30% Seamless 16 26% Postmates 9 15% Appendix E – Correlation Results 16 Appendix F – Rewards Program Cross-Tabulation Appendix G – Bundling Pareto Diagram
  • 38. Order Likelihood? Frequency Referral Total Definitely 18% 2% 20% Probably 39% 7% 46% Maybe 18% 8% 26% Probably Not 7% 0% 7% Definitely Not 2% 0% 2% Total 84% 16% 100%