IAE for Business Proposal Report Case Study Pre-reading discussion: 1. Have you ever given or taken part in a survey? For what? 2. Why is it important for companies to find out what their customers are thinking and feeling? 3. Think of situations of when it might be important for a business to talk to its customers directly Why Market Research is Important for Business TALLE T 0-0-0-0 9-8888888 2 909 MARKET RESEARCH EL LIST ou ou Just hearing the term "market research" can make business people feel stressed. However, by understanding what market research is and why this research is important, this anxiety will disappear I Market research is when company has focused on an exact target market and it wants to investigate further into the behavior of that target. In other words, it is research into a very narrow group of consumers to find out why they have made specific choices or have particular feelings about a product, place, company reputation, and/or other factors that a business is struggling with A target market can be divided into smaller and smaller segments. For example: Emiratiu females - from Abu Dhabi ne aged 13-18 (teen) who plan to study at university Finding out about this sample group of people's attitudes, wants, needs and intentions could, for example, help a university in Abu Dhabi to attract more students. Now examine a case of market research implemented by the Walt Disney Company. How did Disney's research team from their marketing department use market research to solve a problem they were facing? In 2005, Disney spent USD 3.5 billion (AED 12,880,000) to open a new theme park, Hong Kong Disneyland (HKDL). Between its opening year and 2008, park attendance actually fell 23%. How did Disney solve this problem of low visitor numbers? They conducted market research by formulating the following focus question: What caused visitors to have an unpleasant experience at the park? HKDL divided their questionnaire into 5 separate focus areas for their questions, and expected to find guest dissatisfaction in each of these areas: 1. The rides 2. The food 3. Cultural comfort 4. Employee interactions 5. Facilities I For example, #1: In general, how long did you have to wait to get on a ride? b) 10-19 minutes a) 1-9 minutes c) 20-29 minutes d) 30-45 minutes e) + 45 minutes A total of 10 questions were asked, with multiple choice, likert scale and scaled response question types all being used. The team then surveyed park visitors aged 18 and over to discover specific details about their experience at HKDL. The team conducted this survey every Saturday from 8am to 8pm during the month of October, 2010, talking to 100 people each Saturday for a total of 500 responses. After analysis of the data, the three main findings from their surveys were: 1. Guests were not often grected by Disney characters when they entered the park. 2. Some guests felt employees were not friendly 3. The waiting lines for food and rides were too long. Because of these findings, recommendations were made to HKDL to: specifically station Disney characters at the gate to start the experience properly, add extra training for employees in customer interactions, extend the opening time by one hour to thin out crowds, introduce more discounts during weekdays to encourage attendance at non-peak times, add TV screens at rides & restaurants to keep guests entertained while waiting. . . By making these changes, Hong Kong Disney became profitable in 2012. This is one example of how market research helped a company to solve an existing problem, Full HKDL questionnaire & key results below: Hong Kong Disneyland (HKDL) Questionnaire Are you 18 or older? Where are you from? Rides 1 1. In general, how long did you have to wait to get on a ride? 1.9 minutes & b 10-19 minutes c 20-29 minutes d 30-45 minutes e + 45 minutes 2. The rides at Hong Kong Disneyland are fun. a Strongly Agree b Agree c Disagree Strongly Disagree d Food 3. In general, how long did you have to wait to eat a meal? 1.9 minutes b 10-19 minutes 20-29 minutes d 30-45 minutes + 45 minutes e 4. The freshness of food at Hong Kong Disneyland is perfect. a b Strongly Agree Agree Disagree Strongly Disagree c d Cultural comfort 5. Who is your favorite cartoon character? a Mickey Mouse b Donald Duck C Goofy d Cinderella OF 1 Other 6. Hong Kong Disneyland cares about Chinese culture. b Strongly Agree Agree Disagree Strongly Disagree c d Employee interactions 7. Where did you interact with Disney characters? (choose all that apply) a At the entrance b At restaurants c At rides d e At games In the walkways Other f 8. The employees at Hong Kong Disneyland are very friendly. a Strongly Agree b C Agree Disagree Strongly Disagree d Facilities 9. Which facilities do you think Hong Kong Disneyland needs more of? (choose all that apply) a Parking b Bathrooms c Food Kiosks d Help Kiosks e Other I 10. I could park my car nearby an entrance. a Strongly Agree b Agree Disagree c d Strongly Disagree Where did you interact with Disney characters? (choose all that apply) 443 350 253 221 132 1 wa Arthe entrance At restaurants At des d At games e in the walkways Other The employees at Hong Kong Disneyland are very friendly. 328 201 Plot Area Strongly Agree Agree Disagree Strongly Disagree b In general, how long did you have to wait to get on a ride? 7% 19 minutes 26% 15% ab 10-19 minutes 20-25 minutes 14% 38% na500 In general, how long did you have to wait to eat a meal? 250 200 150 100 50 0 1-9 minutes 10-19 minutes 20-29 minutes 30-45 minutes - 45 minutes n=500 b Reading Comprehension Questions 1. What problem was Hong Kong Disneyland facing? 2. What steps did the market research team follow to help Disney? 1. Identified the problem(s) 2. 3. Surveyed I 5. Discovered the findings 6. Made 3. Why did HKDL add extra training for its employees? 4. Why was employee training recommended even though most people strongly agreed that HDKL employees were very friendly? Reference Lake, L. (2016). Why Market Research Important to Your Business. Retrieved from https://www.thebeluse.com Key Business Vocabulary Comprehension Find the underlined key words in the article above. Write in the part of speech that is used and then match the word with the correct business meaning by writing the letter next to the definition in the answer box. The first one has been done for you. Business Definition Key word Part of Answer Speech target market h MOUR to do a detailed study of a market or geographical area to gather data on attitudes, impressions, opinions, etc. by asking a section of the population behavior b making money consumer C segment subdivision of a population into groups with similar characteristics such as age, education income d people randomly selected to represent the behavior and characteristics of the entire group the action and response of an individual or group to its environment f to create something by careful thought and effort sample e implement conduct 8 the results of a study or investigation survey particular section of people s-which marketing campaige is focused an examination of information yio find cause-effect relationships that can be used to solve problems and formulate 1 make decisions questionnaire to direct or take part in the operation or management of a bayer of goods or services analysis findings a list of research questions designed to bring out specific information profitable m to begin to do or use something, such as a plan Now choose 2 of the words from the table and use them in sentences 1. 2. Dictate Styles sitivity Font Paragraph Grammarly Understanding Market Research: Topics for Discussion & Mini-Presentation Brainstorm answers to the following questions and prepare a mini presentation about your ideas for one of the questions below: 1. What wants and needs do you think Emirati female teenagers from Abu Dhabi have that would be useful for a university to know? 2. What are other areas that HKDL. could have focused on in their survey? Why? 1 3. What kinds of information could Disney collect from people here in the UAE to be able to open a successful park? 4. Which company here in the UAE do you think could benefit from conducting market research? Why? 5. Coca Cola is losing customers to Pepsi in the GCC. What kinds of questions do you think Coke should ask to solve this problem? Who should their sample population be? IAE for Business Proposal Report Case Study Pre-reading discussion: 1. Have you ever given or taken part in a survey? For what? 2. Why is it important for companies to find out what their customers are thinking and feeling? 3. Think of situations of when it might be important for a business to talk to its customers directly Why Market Research is Important for Business TALLE T 0-0-0-0 9-8888888 2 909 MARKET RESEARCH EL LIST ou ou Just hearing the term "market research" can make business people feel stressed. However, by understanding what market research is and why this research is important, this anxiety will disappear I Market research is when company has focused on an exact target market and it wants to investigate further into the behavior of that target. In other words, it is research into a very narrow group of consumers to find out why they have made specific choices or have particular feelings about a product, place, company reputation, and/or other factors that a business is struggling with A target market can be divided into smaller and smaller segments. For example: Emiratiu females - from Abu Dhabi ne aged 13-18 (teen) who plan to study at university Finding out about this sample group of people's attitudes, wants, needs and intentions could, for example, help a university in Abu Dhabi to attract more students. Now examine a case of market research implemented by the Walt Disney Company. How did Disney's research team from their marketing department use market research to solve a problem they were facing? In 2005, Disney spent USD 3.5 billion (AED 12,880,000) to open a new theme park, Hong Kong Disneyland (HKDL). Between its opening year and 2008, park attendance actually fell 23%. How did Disney solve this problem of low visitor numbers? They conducted market research by formulating the following focus question: What caused visitors to have an unpleasant experience at the park? HKDL divided their questionnaire into 5 separate focus areas for their questions, and expected to find guest dissatisfaction in each of these areas: 1. The rides 2. The food 3. Cultural comfort 4. Employee interactions 5. Facilities I For example, #1: In general, how long did you have to wait to get on a ride? b) 10-19 minutes a) 1-9 minutes c) 20-29 minutes d) 30-45 minutes e) + 45 minutes A total of 10 questions were asked, with multiple choice, likert scale and scaled response question types all being used. The team then surveyed park visitors aged 18 and over to discover specific details about their experience at HKDL. The team conducted this survey every Saturday from 8am to 8pm during the month of October, 2010, talking to 100 people each Saturday for a total of 500 responses. After analysis of the data, the three main findings from their surveys were: 1. Guests were not often grected by Disney characters when they entered the park. 2. Some guests felt employees were not friendly 3. The waiting lines for food and rides were too long. Because of these findings, recommendations were made to HKDL to: specifically station Disney characters at the gate to start the experience properly, add extra training for employees in customer interactions, extend the opening time by one hour to thin out crowds, introduce more discounts during weekdays to encourage attendance at non-peak times, add TV screens at rides & restaurants to keep guests entertained while waiting. . . By making these changes, Hong Kong Disney became profitable in 2012. This is one example of how market research helped a company to solve an existing problem, Full HKDL questionnaire & key results below: Hong Kong Disneyland (HKDL) Questionnaire Are you 18 or older? Where are you from? Rides 1 1. In general, how long did you have to wait to get on a ride? 1.9 minutes & b 10-19 minutes c 20-29 minutes d 30-45 minutes e + 45 minutes 2. The rides at Hong Kong Disneyland are fun. a Strongly Agree b Agree c Disagree Strongly Disagree d Food 3. In general, how long did you have to wait to eat a meal? 1.9 minutes b 10-19 minutes 20-29 minutes d 30-45 minutes + 45 minutes e 4. The freshness of food at Hong Kong Disneyland is perfect. a b Strongly Agree Agree Disagree Strongly Disagree c d Cultural comfort 5. Who is your favorite cartoon character? a Mickey Mouse b Donald Duck C Goofy d Cinderella OF 1 Other 6. Hong Kong Disneyland cares about Chinese culture. b Strongly Agree Agree Disagree Strongly Disagree c d Employee interactions 7. Where did you interact with Disney characters? (choose all that apply) a At the entrance b At restaurants c At rides d e At games In the walkways Other f 8. The employees at Hong Kong Disneyland are very friendly. a Strongly Agree b C Agree Disagree Strongly Disagree d Facilities 9. Which facilities do you think Hong Kong Disneyland needs more of? (choose all that apply) a Parking b Bathrooms c Food Kiosks d Help Kiosks e Other I 10. I could park my car nearby an entrance. a Strongly Agree b Agree Disagree c d Strongly Disagree Where did you interact with Disney characters? (choose all that apply) 443 350 253 221 132 1 wa Arthe entrance At restaurants At des d At games e in the walkways Other The employees at Hong Kong Disneyland are very friendly. 328 201 Plot Area Strongly Agree Agree Disagree Strongly Disagree b In general, how long did you have to wait to get on a ride? 7% 19 minutes 26% 15% ab 10-19 minutes 20-25 minutes 14% 38% na500 In general, how long did you have to wait to eat a meal? 250 200 150 100 50 0 1-9 minutes 10-19 minutes 20-29 minutes 30-45 minutes - 45 minutes n=500 b Reading Comprehension Questions 1. What problem was Hong Kong Disneyland facing? 2. What steps did the market research team follow to help Disney? 1. Identified the problem(s) 2. 3. Surveyed I 5. Discovered the findings 6. Made 3. Why did HKDL add extra training for its employees? 4. Why was employee training recommended even though most people strongly agreed that HDKL employees were very friendly? Reference Lake, L. (2016). Why Market Research Important to Your Business. Retrieved from https://www.thebeluse.com Key Business Vocabulary Comprehension Find the underlined key words in the article above. Write in the part of speech that is used and then match the word with the correct business meaning by writing the letter next to the definition in the answer box. The first one has been done for you. Business Definition Key word Part of Answer Speech target market h MOUR to do a detailed study of a market or geographical area to gather data on attitudes, impressions, opinions, etc. by asking a section of the population behavior b making money consumer C segment subdivision of a population into groups with similar characteristics such as age, education income d people randomly selected to represent the behavior and characteristics of the entire group the action and response of an individual or group to its environment f to create something by careful thought and effort sample e implement conduct 8 the results of a study or investigation survey particular section of people s-which marketing campaige is focused an examination of information yio find cause-effect relationships that can be used to solve problems and formulate 1 make decisions questionnaire to direct or take part in the operation or management of a bayer of goods or services analysis findings a list of research questions designed to bring out specific information profitable m to begin to do or use something, such as a plan Now choose 2 of the words from the table and use them in sentences 1. 2. Dictate Styles sitivity Font Paragraph Grammarly Understanding Market Research: Topics for Discussion & Mini-Presentation Brainstorm answers to the following questions and prepare a mini presentation about your ideas for one of the questions below: 1. What wants and needs do you think Emirati female teenagers from Abu Dhabi have that would be useful for a university to know? 2. What are other areas that HKDL. could have focused on in their survey? Why? 1 3. What kinds of information could Disney collect from people here in the UAE to be able to open a successful park? 4. Which company here in the UAE do you think could benefit from conducting market research? Why? 5. Coca Cola is losing customers to Pepsi in the GCC. What kinds of questions do you think Coke should ask to solve this problem? Who should their sample population be