Business Research Methods Part Iii
Business Research Methods Part III University of Phoenix QNT/561 July 28, 2010 Business Research Methods Part III A survey was conducted to determine whether or not Starbucks should introduce lunch and dinner foods to the menu. Three thousand individuals were surveyed at various retail locations and malls. A series of 11 questions regarding the likes and dislikes of current food and beverage choices as well as possible future lunch and dinner options revealed several findings for Starbucks. Starbucks has decided to analyze the data as follows.
If, 60% of the individuals answered Agree or above on a question Starbucks would accept. Furthermore, if seven of the eleven questions received 60% in the Agree or above column, the decision to introduce lunch and dinner foods will be exercised. Data Analysis According to this data the three highest scoring questions showed that 77% of the population surveyed would consider having lunch or dinner at Starbucks if offered. 83% of these individuals have confidence that the food served would be of good quality. Additionally 71% feel these foods would not deter them from purchasing coffee beverages.
It is very important that when introducing new products the value and consumption of the current high quality coffee does not diminish. Starbucks believes the high score in these categories strengthens and confirms the hypothesis. Further analysis of the survey data shows that nine of the eleven questions received a 60% in the Agree and above category. Two questions scored below the required level for acceptance. When asked if individuals would switch from which they currently eat lunch and dinner to Starbucks if they offered more food options only 28% agreed.
Moreover, only 41% agreed that they would be willing to spend five to ten dollars on lunch and dinner at Starbucks. The organization can assume that current economic strains may have a large affect on the willingness to spend. “Cutting back on spending is related strongly to feelings that prices have increased in the past months, fears of job difficulties ahead, and consumers feeling they cannot afford to sustain their current rate of spending (Survival and Growth Enterprise LLC, 2008). ” By and large, the survey received a positive response.
The population of consumers surveyed showed favorable responses to the idea of launching a new product line of lunch and dinner foods. Starbucks will continue to analyze the data further to determine the best strategic plan for the launch. Furthermore, additional research will classify these findings in order of power and will solidify the decision. Potential Challanges Several potential challenges exist to the validity and reliability of the research questions, data and analysis. After looking at the survey and the data collected, some concerns are apparent to the validity of the information.
This survey conducted used two methods. The first method was an online survey. The second survey method was a face-to-face questionnaire. The face-to-face survey was conducted in struggling retail locations and vicinity. Shopping Malls and heavy populated areas were the locations chosen for this survey. One major concern is that the participants used were not necessarily current Starbucks customers. The purpose for this was to increase and promote Starbucks to non-customers. Questions regarding the current Starbucks menu and ambiance does not solicit a true response if the individual surveyed is not a customer.
Furthermore, competition coffee retailers are also a large concern. Surveying a random set of people does not ensure that the participants are actually customers of Starbucks competitors. Starbucks is losing business to companies such as Paradise Bakery and Einstein Bagels. If the intention of this process is to regain market share, then current customers and non-customers should be surveyed separately and with different questions. Location is also a concern. If the individuals surveyed reside in weaker economic neighborhoods, then the data gathered may not be indicative for the rest of the country.
In this, the data may be skewed. Because the addition of lunch and dinner foods would occur nationwide, an accurate and true sampling would be imperative. The sample must reflect the nation as a whole. An additional concern regarding the similarity of two survey questions is apparent. However, the results from the two questions were greatly dissimilar. One question pertained to lunch, and whether participants would be willing to spend money on lunch at Starbucks. The survey results were very favorable for this question. However, the 2nd question pertained to dinner unlike the previous about lunch.
The results of this question were significantly different from the previous. The authors can assume a minor difference from one to another, but with such a difference in results, the validity would be stronger if the questions had been combined. The authors have analyzed the appropriate steps to alleviate these concerns. In general, the questions that asked within the survey were adequate. The major hurdle, is locating participants that give more validity to the results. The authors suggest that the survey be conducted a second time with consideration to these concerns. Current Starbucks customers will be surveyed first.
There will be incentives for participating in this project such as a drawing or coupons for free beverages. Starbucks locations in all regions will participate. The data will be collected and analyzed. Second, individuals whom are currently customers of competing retailers will be surveyed. A question on the survey will be added to indicate whether the individual is a Starbucks customer or a Competition customer. Once the information is collected, the data will be analyzed as well. Doing these surveys separately should provide Starbucks with valid data to interpret. Measurement Scale
In order to conclude on whether or not Starbucks should introduce lunch and dinner foods, it was necessary to have the right survey established. The survey that was created had specific details that made it appropriate for the specific target audience needed to make the conclusion. First, the survey needed to be multidimensional due to the variety of factors that needed to be considered to define the average customer response. It then used a multi-item rating grid in order to scale the responses. The response was formatted using a single-response strategy using forced choice, which forced the respondent to make a decision.
This form of measurement was used to minimize error to as little possible. By using the scale of strongly agree, agree, nuetral, disagree, strongly disagree, respondents were able to easily identify and comprehend the response options. Clearly definied responses were essential to the full understanding of the analysis. As always, the assumption was made that the raters of the surveys could and would make good judgments. Order of Power Once the surveys were collected, the responses were assigned a numeric value. By sorting the data using numeric values, the responses could then be evaluated using an interval scale.
Furthermore, by using this method the data was able to be analyzed statistically and allowed for the sample to be projected to a broader population. References Lind, D. A. , Marchal, W. G. , & Wathen, S. A. (2008). Statistical Techniques in Business and Economics. Boston: McGraw Hill. Starbucks Corporation. (2010). Starbucks. Retrieved July 19, 2010, from http://www. starbucks. com/ Survival and Growth Enterprise LLC. (2008). Spending for Food, Gasoline, and Other Consumables During the Recession. Retrieved July 27, 2010, from WhoSpends. com: http://whospends. com/articles/article-09. php
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