Reference no: EM13891373

The Advanced Automobile Concepts Survey Relationships Analysis

Cory Rogers was very pleased with the way the Advanced Automobile Concepts was shaping up. Celeste Brown, the CMG data analyst, had applied differences analysis using the preferences for the various hybrid models that might be developed, and she had found a unique demographic target market profile for each model. Brown had summarized her findings into a professional PowerPoint presentation that she and Rogers presented to Nick Thomas and his assembled managers just yesterday.

The presentation was one of the smoothest possible, and Thomas's development team members became very excited and animated when they realized that Advanced Automobile Concepts had a possibility of five "winner" hybrid model vehicles to work with. In fact, at the end of the meeting, Thomas had decided to go ahead with a preliminary marketing plan for each model. Thomas informed Rogers and Brown that Zen Motors places a huge amount of emphasis on its communications, investing millions of dollars every year in many different types of advertising to convince prospective customers that the Zen Motors models are the best possible choices. Thomas explained, "Zen does not shotgun its advertising. Everything is based on solid marketing research that reveals the media usage characteristics of each target market. That is why I insisted on including the media usage information in our AAC survey.

Zen corporate will most certainly shoot us down if we come to it with any preliminary marketing plan for any hybrid model that does not have advertising recommendations based on media usage research. I did not realize at the time that we would be working on all five hybrid models, but each of my development teams will need whatever media usage findings you can come up with for its particular model." Rogers and Brown are in a meeting the following day to discuss further analysis for the Advanced Automobile Concepts project. Rogers says, "I recall that we have a lot of detail on the media habits of the AAC survey respondents. Let's see, it includes favorite television show type, radio genre, magazine type, and local newspaper section.

Nick Thomas called this morning and asked if we could have our findings to him inside of a week, so I guess he and his team are moving very fast. Nick also told me that he spoke to the Zen Motors advertising group, and they have strong preferences as to what demographic factors should be used for what media.

Nick says that for television, they prefer to use age; for newspaper and television, they prefer to use education; and for magazines, they prefer to use income." Brown says, "Needs it yesterday, so what is new? Seriously, I can get to it by the end of this week and have it ready to present early next week, assuming no glitches." Rogers concludes the meeting with, "Great, just let me know on Friday morning how it is coming, as I told Nick I will call him on that day to set up the presentation." Your task in Case 14.2 is to revisit Case 13.2 where Celeste Brown (that is, you) used differences analyses to find the unique demographic profiles for each of the five possible new hybrid models.

• Super cycle one-seat model; 120 mpg city

• Runabout sport two-seat model; 90 mpg city, 80 mpg highway

• Runabout with luggage two-seat model; 80 mpg city, 70 mpg highway

• Economy four-seat model; 70 mpg city, 60 mpg highway

• Standard four-seat model; 60 mpg city, 50 mpg highway

1. Use each unique hybrid model demographic profile to determine whether or not statistically significant associations exist, and if they do, recommend the specific media vehicles for radio, newspaper, television, and magazines. Do not forget to use the Zen Motors advertising division's preferred demographic.

2. What is the lifestyle of each of the possible target markets, and what are the implications of this finding for the advertising message that would "speak" to this market segment when the hybrid model is introduced?

3. Perform the proper analyses to identify the salient demographic, belief, and/or attitude factors that are related to preferences for each of the five different hybrid models under consideration. With each hybrid automobile model, prepare a summary that:

a. Lists the statistically significant independent variables (use 95% level of confidence).

b. Interprets the direction of the relationship of each statistically significant independent variable with respect to the preference for the hybrid model concerned.

c. Assesses the strength of the statistically significant independent variables as they join to predict the preferences for the hybrid model concerned.