Business Research Methods II Currently Kellogg trails its competitors in successful new product launches. Gaining insight into the consumer decision process for purchasing and trying new cereal or snack items will clarify the course of action the organization needs to take. Most importantly, Team C must determine what provokes consumers to purchase a new cereal or snack item and continue to repurchase them. Before reviewing the process of Team C’s sampling description. Five questions must be answered before designing the sampling process. First, what is the target population? Second, what are the parameters of interest?
Third, what is the sampling frame? Fourth, what is the appropriate sampling method? Fifth, what size sample is needed? (Cooper, Schnider, 2006, page 409). Once these questions are answered a conclusion to the survey can be dissected. First, our target populations are grocery shoppers. The survey included questions about Kellogg cookies, cereal, and snack items which consisted of basic questions that focus on family size, income, ethnicity, grocery visits to the market, average grocery bill, the influence and purchase of cookies and snack items, the use of coupons, and who the products are for.
The format also included questions with optional answers. Second, the interest was based on families who purchase cookies, cereal, and other snack items of interest which includes children and adults. Third, the sampling frame for this project is price point, consumers who purchases items on display, consumers who use coupons, the type of advertising used to lure customers and on-line services. Fourth, the best method to figure out what makes a consumer purchase cookies, cereal, and snack items is to find out why or what makes a family purchase these products.
The chances of purchasing Kellogg products may be due to coupons, taste, price or being a repeat customer. In any case, a researcher must follow guidelines such as interviewers or others cannot modify the selections made or selected elements from the original sampling frame are included. (Cooper, Schnider, 2006, page 413). Fifth, our sample size includes approximately 50 consumers of all ages, most importantly, kids who are at the age of 13 years and older considering they are the market power on purchase decisions.
The population chosen, grocery shoppers, for this survey was contacted through friends and family members from Team’s C’s group. Each team member distributed 10 surveys to friends and family members via e-mail or face to face surveys. A total of 60 surveys were sent out to gather pertinent information about consumer purchases on Kellogg’s cookies, cereals and snack items. The purpose of the survey is to figure out what lures a customer to purchase new items or maintain repeating customers. For that reason, Team C brainstormed to figure out what pertinent question should be asked to find out the thought process of a consumer.
Description of Sample Used It is very important when choosing a sample to choose a sample size that can accurately reflect your consumer base. Knowing this Team C has come up with a way to do just that. The survey takes into account ages of the customer base and must account accurately for ages across the entire sample section. This will allow Team C to gear a marketing campaign towards customer likes and what draws the customer’s attention to products. For instance, the 13 year old sample section may not have purchasing power but they do have the power to influence those purchasing decisions.
We are counting on being able to address the customers attention span and market accordingly. However, Team C also understands that you must cater to those with the purchasing power. For instance, parents in a family generally make the decision. If the children want something the parents will not automatically buy. They often consider price point, healthy or not, and whether the children will actually eat the product or simply like it because it is colorful. The sample used must accurately pinpoint how these decisions are made across the entire sample size.
Considering the size of the survey, Team C concludes that the sample size to use would be half of the entire population. This decision is made based on the relative simplicity and small population size. Background In the highly competitive consumer goods business, a point of differentiation for many manufacturers is the introduction of new items. This is especially true in the cookie, cracker and cereal categories. These new item introductions can range from just a few to 70 per year by an individual manufacturer.
As manufacturers attempt to gain larger market share and improve profitability introduction of new items is one way to accomplish these goals. The Kellogg Company is one of the manufacturers that actively introduce new items in an attempt to improve market share and grow bottom line profits. Research Question Although Kellogg Company introduces upward of 50 new items each year, some of these new items do not meet the sales goals outlined in the development stage. In addition, Kellogg competitors have been shown to outperform Kellogg Company on new item introductions.
As a result, an opportunity exists to research those factors that influence consumers’ behavior on the purchase of new cookies, cracker or cereal items. In researching this decision process, a determination can be made of those factors that most influence the consumers’ purchase behavior. Recommendations can then be made on the development of a new item introduction strategy that will result in improved new item launches for Kelloggs. Since new items are considered new for a full calendar year, focus on the what determines repurchase behavior also needs to be evaluated. Survey Design
The survey was designed to focus on three areas that affect the consumers’ purchasing behavior: demographics, marketing influence and shopping patterns. In constructing the survey, the determination was made to group these areas within the questionnaire. Demographics are important to determine if patterns exist amount demographic groups and by identifying these patterns conclusions can be reached on a bigger scale as to their purchasing behavior. Shopping patterns were looked at to see if there was any correlation to shopping trip size and frequency with purchasing behavior.
Finally, the influence of different marketing tools was researched to determine if any one tool worked better than the rest. In constructing the survey, the team determined that both multiple choice and Likert scale questions would provide the data needed to answer the research question. During construction of the survey, the survey at times become too general and then too specific. To construct the survey to provide the most valid data the need was to determine what information was needed to answer the research question. Piloting the survey to another team provided valuable feedback.
The feedback included providing more alternatives to some of the multiple choice questions, and improving the visual interest of the survey. The survey went through 10 or more revisions prior to piloting and then two revisions once it was piloted. Summary of Findings The survey was distributed to a diverse demographic population. The sample population consisted of primarily female respondents as this is typically the household grocery shopper. Based on the survey consumers averaged over one grocery trip per week (67% of respondents) with an average bill consisting of $50 to $100 (60% of respondents).
Adults had the biggest influence on cereal, cracker, and cookie purchases (58% of respondents), making a cereal, cracker, and/or cookie purchase occasionally in their grocery shopping (53% of respondents). Nutritional value had the biggest influence in the reason for purchasing cereal, cracker, or cookies (36%). Coupons were rarely used with 88% of respondents either never using them or only occasionally. Consumers were open to the idea of purchasing a new cereal, cracker, or cookie product with 53% responding they were somewhat likely to purchase a cereal, cracker, or cookie product their family had not tried before and 42% not likely.
TV ads were the biggest influence (25%), with samples (13%) and store display (13%) rounding out the top 3 reasons consumers purchased a new cereal, cracker, or cookie. At the heart of our research was the consumer’s choice to not only purchase an item but continue to do so. Nutritional value played the biggest role in consumer loyalty (35%) with flavor a close second (30%). Kellogg Company aims to launch more successful new product campaigns in the cereal, cracker, and cookie market.
Based on the survey responses received by Team C this can be done most effectively by targeting television marketing to adults. At the grocery store a catchy display with samples is the most likely way to attract consumers, entice them, and have them purchase a new cereal, cracker, or cookie from Kellogg’s. By providing new products that have a combination of good nutritional value and flavor they will establish a lasting customer. References Cooper, D. R. & Schindler, P. S. (2006). Business research methods (9th ed. ). Boston: McGraw-Hill/Irwin.