Nick Thomas has been considering some of the issues identified in Case 3.2. He i

Question

Nick Thomas has been considering some of the issues identified in Case 3.2. He is considering different directions to take. First, he is a little concerned that most of the information on which Global Motors has based its decisions thus far is derived from either industry reports or opinions of company managers, designers, and engineers. Granted, these persons are quite knowledgeable of the automobile industry. But Nick is concerned that neither he nor the company have input from consumers. First, Nick wants some consumer feedback on the different models proposed. He would like to have some consumer input on what prospective customers think of the proposed models. Will they think they are too radically different or embrace them as the future in autos? Will they think the fuel-efficient cars are too light and less safe? Will they miss the luxury options? Nick wants a little input from consumers to give him confidence the company is on the right track with these proposed models. Second, assuming consumers believe the proposed models are appropriate, Nick wants to know the level of desirability among the U.S. car-buying public for each of the models. For the model or models Global Motors may produce, how can he determine which types of consumers will want them? For example, will higher, middle, or lower income consumers have different model preferences? Will gender, age, or education explain differences in preferences for the different models? With access to this information, Nick knows he can develop a good description of the target market for the proposed models, and this data will be invaluable in helping Global Motors market the model(s) efficiently. Also, Nick wants to know the media preferences of consumers. If he can determine that consumers who desire a particular model have preferences for types of TV programs, radio stations, magazines, or newspaper sections, this information will facilitate more efficient marketing. Finally, Nick is interested in a study that will help determine how much consumers will be willing to pay for each 5 mpg increase in fuel economy. He knows consumers will be willing to pay more for more fuel-efficient vehicles, but he hopes to be able to quantify the connection between lower fuel consumption and model price. 1. To deal with the first set of issues—determining how consumers feel about the proposed models—what research design would you suggest? Why? 2. Consider the second set of issues in the case. Nick needs to know the level of desirability among U.S. car buyers for each of the proposed models. He also needs to know the demographic characteristics of car buyers as well as their media habits. What research design would you suggest? Why? 3. The final issue concerns determining how much more consumers will be willing to pay for each 5 mpg incremental increase in fuel economy Global Motors can offer. What research design would you suggest? Why?

Explanation / Answer

To deal with the first set of issue in the Research Design I would suggest that exploratory design would be appropriate. As Nick stated that he doesn't know about customers feeling on certain issues as well as post of the information that he gets his from industrial report rather than being provided by actual working conditions. It is also provided by opinions of individuals in the industry rather than it personally looking into it. Therefore exploratory design would be the best approach that could be used in this specific condition to get better information as most of information in this condition is coming from alterable resources. It is very necessary to find background information as well as clarification of the consumer feelings about certain issues as well as the importance of the issues in the specific type of operational structure.

Descriptive research would be the most appropriate way of implementing in this situation as knowing the demographic characteristics would be extensively helped by specific approach. Descriptive research Looks for specific data which includes demographic characteristics of specific population as well as implementation of qualitative research would also be feasible in this condition as it would provide extensive availability of interpretation about the field of the specific product which is sold by the company. This type of qualitative approach would enable the company to understand market situation accordingly as well as to develop the change in the organisational structure by maintaining better standards and operation as well as to understand market situation by the qualitative and descriptive analysis methods.

In this the specific type of analysis requirement, quantitative analysis would be the most appropriate way of analysing the total amount that users would like to pay for 5 mpg incremental increase. This type of Quantitative approach would provide exact statistical information regarding calculations as well as input also help company to me standard in assumption making making it one of them best research method for the specific situation in which determination of the consumer prices expectations can be easily assessed.

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