Title行销学.docx

National Chiao Tung University
Department of Management Science
De

Final Examination

Term: Spring Year: 2009

Student Name (Chinese Characters): 黃彥銘 Student ID Number: 9631033
Student Name (Chinese Characters): 林韋君 Student ID Number: 9631010
Student Name (Chinese Characters): 李春霈 Student ID Number: 9631011
Student Name (Chinese Characters): 郭曉蓉 Student ID Number: 9631013
Student Name (Chinese Characters): 張欣怡 Student ID Number: 9631052

Course Abbreviation and Number DMS4577

Course Title 行銷學, Principles of Marketing

Instructor 張力元老師, Professor Trappey

Final Project Serving Target Markets
Due Date June 25, 2009
Number of Homework Pages 15 pages
Homework Type Typed, class hand-in, e3 log
Additional Materials Allowed Textbook, journal, magazine, observation

Marking Scheme:
Analysis of CI Data: 50%
Application of Concepts: 50%

Grade:

Introduction
We are going to make a survey for the Xiang-Si bean curd pudding store located in Dorm-Female-2 restaurant in NCTU. The store provides different kinds of drinks and sweets such as bean curd pudding, shaved ice and sweet soup. One of the workers, named aunt Chen-Jun, in the store is so nice that she remembers everyone’s name and favorite sweet. With her hard work, she is voted to be the most famous person in NCTU. The reporter in TTV even came to do an interview with her and promoted this store on TV. Sadly, although the store already had been promoted on TV news, the sales amount of the store just keeps in a “good” level, not in an “excellent” level. We want to use sales promotion to increase the sales amount of the store.

Figure 1 Xiang-Si bean curd pudding store located in Dorm-Female-2 restaurant in NCTU.

Literature Review
First, we define the sales promotion. According to Kotler (2000), “Sales promotion is composed of varieties of inducing tool, and the most are short-term property. It can promote customers and dealers to purchase more specific commodities.”
The sales promotions include a wide range of tools--from samples, coupons, refunds, premiums, price packs, promotional products, point-of-purchase, consumer contests, sweepstakes, games, caused related marketing and stamps. After ours discussion, we decide to use the “stamps” tool to promote the sales amount of this store.
The definition of “stamps” is that consumers can exchange for money or products with different amounts of the points they collect. That we use the stamps to collect points to get rewards is called Frequency program. The following is the definition of Frequency program. According to Blattberg and Neslin (1990), “Costumer’s consumption has to reach a designed amount of money or times in specific time and in specific customer place.”
A research shows that students take “whether the convenience store supplies the frequency program for them to exchange presents or not “as their consideration to choose which convenience store they want to go and buy products from that store. Moreover, a manager of Feng-Chia Business Park said that it is effective to release “stamps” during the depression. With higher discount, the turnover will be faster. We also found a research shows that from April 27th to July 19th, 2005, 7-11 released a “Collecting Hello Kitty magnet” activity. It was so successful that the gross of May reached 84.3 hundred million, and the gross rate of sales was 22% higher than in 2004. In June, the gross grew up to 93.89 hundred million, and the gross rate of sales was 36% higher than in 2004. Because the main customers are the students that don’t have stable income, we consider that sales promotion-- frequency program is the most suitable one for this store.
From the supportive sources above, we strongly believe that the frequency program is the most suitable sales promotion. We want to know how stamps stimulate consumer’s behavior. We want to try to use our “Point Credit Card” to see if it can stimulate consumers and make them buy product from the store. Therefore, we probe into the principal factors of the stamps whether influence the customer purchasing behavior or not.
The following are the hypotheses to the principal factors of the stamps.

Hypotheses
Xiang-Si bean curd pudding store is a store selling tofu pudding and drinks in Dorm-Female 2. Although it was reported on TV several months ago, there was no obvious increase for its sales. As a result, we want to know if consumers in NCTU would increase their frequencies to buy products in Xiang-Si bean curd pudding store by issuing a point credit card.

For the usage of point credit cards, if consumers in NCTU prefer to use point credit cards, there are four factors we want to find out, which include the amount of cash to get one point, length of activity period, amount of points to get a banana ship, and banana ship’s character. Except the fourth factor’s hypothesis (Hypothesis 7), we made subordinate hypotheses (Hypothesis 2, Hypothesis 4, and Hypothesis 6) individually under the three factors’ hypotheses (Hypothesis 1, Hypothesis 3, and Hypothesis 5). That is, Hypothesis 2 is established if Hypothesis 1 is failed to be rejected, Hypothesis 4 is established if Hypothesis 3 is failed to be rejected, and Hypothesis 6 is established if Hypothesis 5 is failed to be rejected.
These four factors would be the main reasons that affect the consumers in using point credit cards. We want to design a point credit card to boost the pudding store’s sales. After collecting valid data, we can find the best combination of several factors to design an attractive point credit card for consumers. Therefore, the following hypotheses are proposed:

Hypothesis 1: The period of activity does affect consumer’s behavior.

Hypothesis 2: The period of activity does affect consumer’s behavior. Among the three alternatives：”two weeks”, ” one month”, and” two months”, we suppose that “one month” is the shortest limit that consumers could accept for the activity.

Hypothesis 3: The amount of points to get the banana ship affects consumer’s behavior.

Hypothesis 4: The amount of points to get the banana ship affects consumer’s behavior. Among the three alternatives：”ten points”, “fifteen points”, and” twenty points”, we suppose that “twenty points” are the highest limit for consumers to attend the activity.

Hypothesis 5: The amount of cash to get one point affects consumer’s behavior.

Hypothesis 6: The amount of cash to get one point affects consumer’s behavior. Among the three alternatives：”twenty dollars”, “twenty-five dollars”, and” thirty dollars”, we suppose that “twenty-five dollars” is the highest limit for a consumer to get one point.

Hypothesis 7: The characteristic that banana ship is just sent for consumers finishing the point credit card and not for sale affects consumer’s behavior.

Methodologies
Analyzing tools
Our target sample for this survey consists of students in NCTU, the main customers of the bean curd pudding store questionnaires were distributed around the campus. We use network questionnaires to investigate that whether the feature of the bonus credit activities can affect the customers’ desire of collecting points.
First, the individual hypotheses were examined by using Microsoft Excel pie charts. In the first step, we input the collecting data to the Microsoft Excel.
In the second step, we use Excel to calculate the individual percentage of the four factors that we have assumed in the beginning and the amount of the survey candidates’ agreement or disagreement. After inputting those data, we will have some pie charts.
In the third step, we can make use of the pie charts to do the statistic analyses by comparing between the four factors and we will find out which factor influences customers’ behavior most and the relationship among the factors.
Second, we can use Minitab to analyze the collecting data. At first, we test the four factors to consider whether over half of the interviewees think that the four factors really influence consumers’ behavior or not. Then, if the result shows that there are 50% of interviewees think the four factors really affect consumers’ behavior, we would test the three choices of each factor to see what the most helpful choice for selling is.
Here are the steps of using Minitab. At first, we choose the “Stat” on the tool bar and select “Basic Statistics”, “2 proportions”, and “Summarized data”. Then, under the “Summarized data”, we fill out the relating data in “First sample” and “Second sample”. The “Option” sub dialog box gives us a chance to specify the confidence level (95.0), test proportion (0.05), alternative hypothesis (greater than), and whether Minitab should use a pooled estimate of p for the test. Finally, we will get the analyses and we can conclude from the confidence interval and p-value from the data.

Questionnaire (Appendix I. II)
Although the bean curd pudding store in Dorm-Female-2 restaurant in NCTU already had been promoted on TV news, the amount of sales is still in a “good” level but not in an “excellent” level. We consider whether “Point Credit Card” can stimulate consumers to consume and increase the store’s turnover.
To back up our suggestion, we have to do a survey to collect data with questionnaire. Consumers who did the questionnaires are students in NCTU. Prior to make the survey, we suppose that releasing point credit cards will increase revenue of the store.
The purpose of questionnaire is to confer whether those characteristics of the point credit card will affect the aspiration of collecting points by consumers.
First, we want to know that whether the limited period of activity will affect the aspiration of consumers. If they agree that the limited period is important to them, there are three choices for them to choose in the following, which are two weeks, one month and two months. They are going to choose which one is the shortest limited period they can accept.
The other specific element we want to confer is whether the quantity of points should consumers collect to exchange for a banana ship. If they agree that the quantity of points will affect their buying behavior, there are three choices for them to choose in the following, which are ten points, fifteen points and twenty points. They are going to choose which one is the best quantity they can accept.
Moreover, we also want to probe whether the price that consumers have to spend to get one point will influence them on supporting the point credit cards or not. If they approve, there are three choices which are twenty NTD, twenty-five NTD and thirty NTD. They are going to choose one which they can accept from the three choices.
Lastly, we set the present as “Banana Ship”, and we want to consider whether students in NCTU would like the dessert or not. Through the questionnaires, we will be aware of their interest in “Banana Ship”.
After collecting all the data from the questionnaire, we will know well whether “Point Credit Card” can stimulate consumers to consume and increase the store’s turnover.
Result
Test and CI for One Proportion: x1
Event = 1
Variable X N Sample p 95% CI
x1 36 50 0.720000 (0.575095, 0.837689)

Figure 2 The period of activity will affect your aspiration to consume

In Hypothesis 1, we suppose that the amount of cash to get one point affects consumer’s behavior. Then, we suppose that H0: P<=0.5, H1: P>0.5. If the confidence interval is over 0.5, we can reject H0. Therefore, we have the sufficient evidence to conclude that the Hypothesis 1 is true.

Test and CI for Two Proportions: C2 (two weeks), C3 (one month)
Event = 1
Variable X N Sample p
C2 6 36 0.166667
C3 27 36 0.750000
Difference = p (C2) - p (C3)
Estimate for difference: -0.583333
95% CI for difference: (-0.769956, -0.396711)
Test for difference = 0 (vs not = 0): Z = -6.13 P-Value = 0.000
Fisher's exact test: P-Value = 0.000

Test and CI for Two Proportions: C2 (two weeks), C4 (two months)
Event = 1
Variable X N Sample p
C2 6 36 0.166667
C4 3 36 0.083333
Difference = p (C2) - p (C4)
Estimate for difference: 0.0833333
95% CI for difference: (-0.0682308, 0.234897)
Test for difference = 0 (vs not = 0): Z = 1.08 P-Value = 0.281
Fisher's exact test: P-Value = 0.478
* NOTE * The normal approximation may be inaccurate for small samples.

Test and CI for Two Proportions: C3 (one month), C4 (two months)
Event = 1
Variable X N Sample p
C3 27 36 0.750000
C4 3 36 0.083333
Difference = p (C3) - p (C4)
Estimate for difference: 0.666667
95% CI for difference: (0.498861, 0.834473)
Test for difference = 0 (vs not = 0): Z = 7.79 P-Value = 0.000
Fisher's exact test: P-Value = 0.000
* NOTE * The normal approximation may be inaccurate for small samples.

Figure 3 How long of the limited period of activity will you accept?

In Hypothesis 2, we suppose that one month is the shortest limit that consumers could accept for the activity. Then we use statistics analysis to compare them in groups. From the result, we find out p-value=0, which means there are significant differences among them. Then, we can choose the one with biggest probability. By using the method mentioned before, we find out that “one month” is the one with the biggest probability. Therefore, we can conclude that “one month” is the shortest limit that consumers could accept for the activity.

Test and CI for One Proportion: x2
Event = 1
Variable X N Sample p 95% CI
x2 44 50 0.880000 (0.756899, 0.954665)

Figure 4 Quantity of points in a point credit card will affect your aspiration to consume.

In Hypothesis 3, we suppose that the period of activity does affect consumer’s behavior. Then, we suppose that H0: P<=0.5, H1: P>0.5. If the confidence interval is over 0.5, we can reject H0. Therefore, we have the sufficient evidence to conclude that the Hypothesis 3 is true.

Test and CI for Two Proportions: 10points, 15points
Event = 1
Variable X N Sample p
10 points 26 43 0.604651
15 points 8 43 0.186047
Difference = p (10 points) - p (15 points)
Estimate for difference: 0.418605
95% CI for difference: (0.231832, 0.605378)
Test for difference = 0 (vs not = 0): Z = 4.39 P-Value = 0.000
Fisher's exact test: P-Value = 0.000

Test and CI for Two Proportions: 10 points, 20 points
Event = 1
Variable X N Sample p
10 points 26 43 0.604651
20 points 9 43 0.209302
Difference = p (10 points) - p (20 points)
Estimate for difference: 0.395349
95% CI for difference: (0.205243, 0.585455)
Test for difference = 0 (vs not = 0): Z = 4.08 P-Value = 0.000
Fisher's exact test: P-Value = 0.000

Test and CI for Two Proportions: 15 points, 20 points
Event = 1
Variable