GBK510Business Research Methods
Answerthe following questions I created for the case:
Q1:Given the information in the case, reconstructthe management-research question hierarchy by identifyingand discussingthemanagementdilemma,managementquestion,and researchquestions.
ManagementDilemma: Falcon is threatened to leave the minor league due to theinability of the management to sale enough tickets to raise revenuesustain it
Managementquestion: Does designing a pricing strategy for the tickets helpsustain Falcon in the league?
Investigativequestion: Does taking care of other marketing needs help sustainFalcon in the league?
Measurementquestion: which is the best pricing strategy that ensures fairness inticket pricing and ensures Nor’eastersmake a profit?
Managementdecision: Buckingham should adopt a fair pricing strategy for ticketsthat is not too low for Nor’easters to make a profit and not toohigh to turn people away from attending the events. Buckingham shouldmarket to families and find business around Springfield to buyseveral ads to achieve the break even within the first year
Q2:Based on the research questions you reconstructed in Q1, identifyand discus majorconstructsand conceptsrelevantto the questions. These relevant constructs and concepts are yourvariables.Find a meaningful way (e.g., a model in the form of graph) to showhow these variables are interrelated.
Majorconstructs and constructs: people who are willing to attend the minorleague game. The variables are: (1) percentage of people who arewilling to attend one game and those willing to attend a 5-gamepackage, (2) people who express willingness to pay: those who showthe willingness to pay $10, $12, and $14, and (3) the percentage ofparticipants living with children. In this case, the constructs arepeople.
Variablemodeled in a graph as shown:
Q3:Identifyand evaluateLarry Buckingham’s research design and implementation. In otherwords, identify and evaluate ALL the secondaryand primaryresearch studies he used and consider each step in the process thatled to the final findings of his survey.
Larryrelied on two secondary research studies: studies from the LeagueSport Association from National research and studies published on anewspaper by Blesch. The newspaper research study recognized theimportance of cultivating a loyal fan base and identified the areathat marketing effort should focus to help raise revenue theentertainment sector. Larry used what was reported by Blesch tounderstand where his marketing efforts should be focused on in orderto cultivate loyalty in the fans. Larry was guided by this evidencein conducting his research. However, the results by Blesch wereempirically unverified. Blesch’s data also cultivated some interestin Larry to research further about the secondary researches notablyresearch by League Sports Association. Results from League SportsAssociation supported Blesch’s data. However, these results werenot supported in the literature as there was no other study that hadinvestigated issue. Therefore, Larry felt it was erroneous to rely onresults to draw conclusions concerning the minor league market.
Larrycollected primary data from other minor league teams, from fourSport-related organizations located in Springfield and fromSpringfield census. First, he obtained data from other minor leagueteams and used it to understand these teams generated revenue, theirmarketing perspectives and their businesses. Secondly, he obtaineddata from Springfield census tracts. Lastly, Larry obtained data fromfour Sport-related organizations located in Springfield and fromSpringfield census.
Dataobtained from these studies were reliable. Data from minor leagueteams could be used reliably to understand how a minor league teamcould generate sustainable revenue. Information collected from theseteams could be generalized to Larry’s team. As such, using theseteams as source of information help reduce the threat of externalvalidity. Similarly, Springfield census tracts and four Sport-relatedorganizations were appropriate as the source of data on sportattendance, price sensitivity, concessions, seat locations andpersonal background of participants. This data could help Larry toeffectively meet his objective of collecting information that couldhelp him create a pricing strategy. Data from these sources alsohelped Larry to analyze the percentage of individuals who are likelyto attend the game, and understand how to categorize them into threepricing categories.
Q4:EvaluateLarry Buckingham’s survey questionnaire design (Exhibit 5) byfocusing on measurement level, wording, and order of questions. Inaddition, what is the response rate for his survey? Discuss responserate and possibility of nonresponse error/bias.
Buckngham’ssurvey questionnaire was well designed with appropriate wording. Itadequately probed the issue under investigation. It enabled theresearcher to meet the research objectives. It enabled Buckngham toobtain the most accurate and complete information possible. Thequestions were clear. This enabled the respondents to understand thequestions. It was also well worded and organized. This encouragedrespondents to provide unbiased, complete and accurate information.It made it easy for the Buckngham to record answers from therespondents. It also made it easy for the subjects to provide thenecessary information. Questions were arranged in a way that theresearcher could soundly analyze and interpret data. It also helpedBuckngham to keep the interview to the point.
Theresponse rate was low (i.e., 625 responses out of the 10,000surveys). This could potentially lead to higher non-responsebias/error. This suggests that the data did not adequately representthe population that was surveyed. As such, the data collected usingthis survey did not provide a close or good estimate of the expectedtrue value.
Q5:Identifyand evaluate LarryBuckingham’s sampling design.
LarryBuckingham used a probability sampling design. Data was randomlydistributed to the respondents. This type of sampling design wasappropriate because it enabled Buckingham to quantify the error andto make reliable inferences regarding the population. The randomnessof this probability sampling design also enabled Larry to obtainestimated that are accurate and precise.
Q6:What do you consider to be the key findings of the Buckingham’ssurvey? Comment on what Buckingham learned about a prospectivecustomer profile and pricing.
Thereare several key findings from the Buckingham’s survey. First, ofthe individuals who will attend the minor league game, 11% wouldprefer the 5-game package and 21% would consider one game. Secondly,with regard to paying of a single game, 22% show the willingness topay $14, 25% show the willingness to pay $12, and 31% show thewillingness to pay $10. These results are important because it meansthe highest percentage of people is willing to part with $10 or more.This means that the company could charge people more for a singlegame. Thirdly, people who will buy a five-game ticket packagedemonstrate the willingness to pay between $12 and $10. It was alsonoted that a large percentage of people (48%) are willing to pay forgrandstand seats which are more expensive than the bleacher seats.Lastly, majority of the people (66%) are living with their children.
Buckinghamlearned of learned about a prospective customer profile and pricing.He has the profile of his potential customers: people aged between 26and 35 years with children with the income ranging between $22,500and $75,000. These people are looking for family entertainment andwould attend fewer than five games each year. Larry can use thisprofile to understand the people who are likely to attend the gameand the reasons for their attending it. It was also revealed thatabout 39% of customer population would show the willingness to attendat least one game each year. This allows Buckingham to assume that atleast 21,582 individuals will attend the game once per year.Buckingham has a good idea of the customers who are willingness topay for the ticket. It was revealed that most customers can pay forthe premium seating: between $10 and $14 per game.