For each of the following eight hypotheses, please state:

• The most correct descriptive OR inferential statistical test
• A justification for why the proposed test is correct for the hypothesis

Hypothesis:

H1: Associating RACV membership with the concept of 'putting members before profits' is significantly greater than '4 - undecided' on a 7-point scale.

H2: When choosing a car insurance provider, the importance of good value for money is significantly greater than the importance of a reputation for good customer service.

H3: Associating RACV membership with the concept of 'a sense of belonging to a community' is significantly associated with the length of time (in years) that a person has been an RACV member.

H4: Preferred membership benefits is positively associated with the number of people in personal network that already have RACV membership.

H5: Associating RACV membership with the concept of 'immediate assistance in times of crisis' significantly predicts the appeal of the RACV membership proposition.

H6: Awareness of RACV's flexible payment plans is significantly associated with employment status.

H7: When choosing a car insurance provider, the importance of a brand you can trust significantly differs between generation groups.

H8: Gender, preferred car insurance company, the appeal of RACV operating for members (not for shareholders), and length of time (in months) having a driver's license significant predicts how compelling the RACV membership offering is overall.

Company Background

Royal Automobile Club of Victoria (RACV) started operating in 1903 as an auto club. At the time of this research project, RACV has more than two million members and has a presence in over 70% of Victoria's households. RACV's business spans numerous categories: motoring and other transport; home; leisure and travel; resorts and retail; emergency roadside and home assistance; insurance and finance; home security; and drive school and vehicle inspections.

RACV is a mutual organisation, which means it is owned by members rather than shareholders. In 2005, RACV introduced 'Membership Architecture' which involved transforming all those who purchase a product or service (e.g., car insurance) from RACV from customers into members. At RACV, membership is not a buzzword but a philosophy underpinning everything RACV does. Compared to shareholder-based companies, the value earned by RACV is returned to members through discounts and benefits with products and services. RACV has served and advocated for its members for almost 120 years.

Throughout its long history, RACV has grown and evolved by driving and responding to changes in the market and environment. Its current corporate strategy focuses on building a stronger and more relevant RACV - this translates to growing the membership base, delivering more products and services to more members, and making membership more meaningful and valuable. RACV has become focused on young Victorians (under 30s), which they've identified as a large and lucrative segment. For instance, RACV previously launched the free2go program targeted at a youth market, which offers all the benefits of RACV membership and comes with roadside care at half-price or for free, depending on your age. Going forward, RACV seeks to better understand what young Victorians need and value and to establish a sense of connection and community with this group.

Past Market Research

Given RACV's focus on their membership offering and the young Victorians segment, they have previously conducted market research around these two themes. Key findings summarised below.

Key findings around the RACV membership offering:

• Members value their membership with RACV, and being an RACV member invokes thoughts of 'security', 'assistance', 'trust', and 'reliability'
• Membership with RACV and member benefits are considered to be important

Key Findings around the young victorians segment:

Young Victorians (those aged under 30 years) generally have low awareness of the RACV brand and membership benefits

This segment behaves quite differently from over 30s when it comes to core RACV products and services e.g., roadside assistance. Young Victorians are less likely to have it in the first place. They rely on word-of-mouth from trusted friends and family, perhaps because they consider themselves to possess relatively weak product category knowledge.

Research objectives:

1. To determine what young Victorians value (i.e., find important and relevant) from RACV
2. To identify what RACV membership means to young Victorians

Research method:Online survey - please see the RACV DRAFT FOLLOW-UP SURVEY

Target population:Victorians aged 18-30 years old; a mix of RACV members and non-members

Sampling method:Quota sampling; a consumer panel was used

Sample size:n=212