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Wendy's Case Project

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International Marketing Research Project

Submitted By:
Group 5:
Sandeep Sandeep, Harmanjot Kaur, Diksha Sharma

1
Chapter 1
1. Discuss the role that marketing research can play in helping a fast-food restaurant such as
Wendy’s formulate sound marketing strategies.

MR can aid Wendy's in deciding whether or not to grow the company. Customer opinions
and surveys can assist Wendy's in finding areas for improvement, such as product quality,
personnel, services, and facilities. Possibly new market segments to join. Utilize MR to
determine the price of its products and study the competition to establish the proper price
adjustments. Assist Wendy's in better understanding buyer preferences or purchasing
patterns, for example, by identifying the elements that lead people to purchase pre-
packaged meals or a la carte items. MR can assist Wendy's in assessing its place in the
market in comparison to its rivals and in creating strategies to maintain competition. A
number of business factors, including customer service, product quality, and uniqueness,
have an impact on customers.

Chapter 2

1. Wendy’s is considering further expansion in the United States. Define the management
decision problem.

In order to plan for future expansion, it is necessary to determine which geographic


regions Wendy's should target. This would necessitate an analysis of factors such as
the cost of opening a store, the number of competitors, and the total population in
that geographic region.

2. Define an appropriate marketing research problem based on the management decision


problem you have identified.

Determine the location's target audience's preferences for consuming fast food in relation to
the competition and how they would like to be treated. This is a challenge in marketing
study. Given the management's decision to open a store, it is essential to understand the
local market's current state in order to create a marketing plan that is effective for its clients
and demonstrates the price points of their offerings, their target market, and the preferred
method of service delivery.

Chapter 3

1. Formulate an appropriate research design for investigating the marketing research problem
you have defined.

For the mentioned problem, a descriptive research approach might be


employed. Descriptive research is conducted to provide answers to who,
what, where, when, and how inquiries.

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Chapter 4
1. Use the Internet to determine the market shares of the major national fast-food chains for
the last calendar year.

Market share of leading fast food chains in the United states:

2. What type of syndicate data will be useful to Wendy’s?

Customers, who are a significant stakeholder in the fast food business, could provide
Wendy's with the type of syndicate data that will be used. The methodology to be used is to
perform surveys covering the following topics:
1) Consumer life style and psychographics. This would cater to the target population's
demographics and preferences and further present a clear picture in the segmentation
process.
2) A review of Wendy's rivals' advertising. - Wendy's needs to work on a suitable advertising
strategy for effective placement among the target audience because its rivals have always
had an advantage in advertising.

3
Chapter 5

1. Discuss the role of qualitative research in helping Wendy’s expand further in the United
States.

With more than 10,000 locations, Wendy's is one of the top quick food chains in the
US. Despite having a sizable market share after McDonald's and Burger King, the
business must increase its ability to compete with them. To grow even more in the
United States An essential survey instrument will be qualitative research. A group of
6 to 10 customers from various age categories can be chosen by Wendy's for a focus
group discussion. The conversation should be moderated with the following
objectives in mind:
1) To gain a clear understanding of the American fast food business
2) To comprehend how consumers, feel about rival restaurants like McDonald's and
Burger King. This will aid the business in identifying.
3) To comprehend how consumers, feel about the company's goods and services.
The qualitative study will provide theoretical context and advance the notion
regarding how customers perceive the company.

Chapter 6

1. Wendy’s has developed a new fish sandwich with a distinctive Cajun taste. It would like to
determine consumers’ response to this new sandwich before introducing it in the
marketplace. If a survey is to be conducted to determine consumer preferences, which
survey method should be used and why?

An in-person mall intercept survey should be used to determine customer preferences for
Wendy's recently introduced fish sandwich. In this kind of study, participants are tested and
interviewed while they shop in the mall. It would be fascinating to know what consumers
think of Wendy's new fish sandwich and how they react to it. Wendy's is launching this
sandwich. This kind of survey technique will therefore be perfect for learning about their
tastes, size, sample, and point of view. This type of poll has the additional benefit of serving
as a test market on its own without charging consumers, in addition to providing information
about consumer preferences. Physically testing the food is essential because the survey is
about food, and this survey technique will offer all of the advantages. Additionally, a brief
questionnaire asking consumers about their happiness or dissatisfaction with this newly
created fish sandwich will be distributed prior to the food's testing.

Given below are the fact and findings from various researches to substantiate the importance
and advantages of using mall-intercept survey method-

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1. Mall-intercept research can benefit from spaces with kitchens for sensory tests like
taste and scent tests, realistic living and dining room settings for product testing, eye-
tracking and neuroscience studies that use pricey equipment, and more.
2. As opposed to calling or emailing someone and attempting to persuade them to come
to a mall and participate, encouraging someone while they are already in a mall to
engage in a central-location study is easier.
3. There is no need to worry about taking pictures or sharing products with others when
testing highly private intellectual property or still-developing goods and services.
4. With online surveys, it can occasionally be challenging for interviewers to confirm
that they are speaking to a real individual, especially as chatbots and artificial
intelligence become more credible.
5. The basic demographics of the individuals they speak with can be verified by
interviewers. Age, gender, language, language proficiency, and location, for instance,
can all be fairly well validated. A skilled interviewer also knows how to pose delicate
inquiries when a demographic response isn't immediately clear.

Chapter 7

1. Wendy’s has developed a new fish sandwich with a distinctive Cajun taste. It would like to
determine consumers’ response to this new sandwich before introducing it in the marketplace. If a
survey is to be conducted to determine consumer preferences, which survey method should be
used and why?

A personal interview survey should be used to ascertain consumer preferences for Wendy's
freshly developed fish sandwich mall. As in this type of poll, respondents are stopped and
tested while they are shopping in a mall.As Wendy's introduces its new fish sandwich, it
wants to know what consumers think of it and how they eat it. This type of survey technique
will be best for gathering consumer opinions on the sandwich's flavor, size, sample, and
price. Another significant advantage of using this kind of poll is that it not only reveals
consumer preferences, but it also functions as a test market all by itself, and in this case,
consumers are not being charged for anything. Since the survey is about food, physically
tasting the food is crucial. This survey technique will provide all those benefits, and the food
tasting will be followed by a brief questionnaire in which customers can express how
satisfied or unsatisfied they are with this newly created fish sandwich.

The information and conclusions from various studies are provided below to support the
value and benefits of using the mall-intercept survey technique.

A. Background: Mall intercept surveys are frequently used and, in theory, can reach a
sizable portion of the populace. About two-thirds of American households buy at a
mall once or more every two weeks. A CASRO membership poll found that 64% of
in-person interviews and about 25% of marketing research are carried out in malls.

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B. Positives and Negatives: The benefits of mall freebies include:
1) Control of the experiment.
2) The capacity for perception.
3) The presence of stoves, etc.
4) Low Price.
C. Results Affected by Mall Samples:
1) According to data, mall samples understate results for evaluations on copy, concepts,
and products.
2) Even after accounting for demographic differences, Some published findings from four
studies that mall surveys performed worse on top box concept tests than door-to-door
surveys.
3) For a concept/product test, Gannon reported a research comparing mail panel and mall
panel. The mall study received better product test attribute ratings but a lower concept top
box.
D. "Perfect" Mall Sampling Strategy: In an article, Seymour Sudman recommended using the
mall intercepts method to obtain a very excellent sample.
However, one can accomplish this.
1) Choose a few states or areas at random.
2) Choose a few local towns at random.
3) Choose shopping centres in towns at random.
4) Station interviewers at a few random mall exits.
5) Conduct interviews on any day that the mall is accessible.
6) Track traffic so that, depending on the day of the week and the hour, interviews are
proportionate to traffic.
7) Count the number of times people buy at the mall and weigh the sample to ensure that
regular shoppers are not overrepresented.

Chapter 7

1. Discuss the role of experimentation in helping Wendy’s determine its optimal level of
advertising expenditures.

Following Burger King and McDonald's in terms of revenue is Wendy's. Despite having a
significant market share, it must position itself so that people are attracted to its superior
quality and affordable price.
With an emphasis on higher quality, excellent taste, and fresh and never frozen ground
beef, Wendy's has added a number of new meals to their menu. Thus, Wendy's can
conduct a standard test marketing for their new meals by presenting them to customers
and gathering feedback on what they thought about them in order to study the customer's

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knowledge of the rivals and how they react to the new meals. If the preliminary results
are positive, they can extend the test to additional locations and ask participants if they
would prefer any changes to the taste, quality, or cost, and take appropriate action.
Additionally, it can be used to ascertain how customers rate Wendy's in relation to its
rivals.

Chapter 8

1. Illustrate the use of primary type of scales in measuring consumer preferences for fast-
food restaurants.

Scale Basic Characteristics Consumer Preference


measurement use
Nominal Objects are classified and Food groups, dish numbers,
identified by numbers. dish names, and store
names

Ordinal Statistics show how objects Rating for client


are positioned in relation to satisfaction, food quality,
one another, but not how and quality of service are
they vary in terms of also available.
magnitude.
Interval Comparing differences Index numbers, age
between things category, income group,
and attitudes, opinions

Ratio Since zero is a fixed Income, frequency range,


position, scale ratios can be expense, and age
calculated.

Chapter 9

1. Illustrate the use of Likert, semantic differential, and Stapel scales in measuring consumer
preferences for fast-food restaurants.

LIKERT SCALE: This score scale, which is frequently used, asks individuals to indicate
how much they concur or disagree with a number of assertions made about the stimulus
object.

Disagree Disagree Neither Agree Agree Agree


completely somewhat nor Disagree somewhat completely

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Select an answer to each of the statements.

1) I make an effort to keep up with the most recent research in nourishment and
wellness.

2) I review the dietary information on the majority of the goods I purchase.

3) I think about how much fat is in the food I consume at McDonald's.

Semantic differential: This is a seven-point rating system with semantically


significant endpoints for bipolar labels.

Give a 7-point rating scale to evaluate the restaurants you have personally visited
in the last three months, with 7 being the highest and 1 being the lowest.

Terrible(1) 2 3 4 5 6 Perfect(7)

Stapel Scale: A type of measurement scale with out a neutral spot which consists
of just one descriptor in the centre of an even-numbered range of values, from -5
to +5, (zero)

Fast-Food Restaurant

+5
+4
+3
+2
+1
High Quality
-1
-2
-3
-4
-5

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Chapter 10

1. Develop a questionnaire for assessing consumer preferences for fast-food restaurants.

Questionnaire for assessing consumer preferences for fast-food restaurants.

1.Age

 5-12
 13-16
 17-23
 24-32
 >32

2.Gender

 Male
 Female
 Other

3.Ethnicity

 Asian
 European
 American
 South American
 African
 Australian

4.Occupation

 Student
 Working Professional
 Other

5.What is your annual income?

 Below 2 lakh
 2 lakh - 5 lakh
 Above 5 lakh

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6.Relationship status

 Single
 Recently married
 Married and staying with children
 Married and staying with children

7.How often do you visit a fast food restaurant?

 Daily
 Once a week
 Occasionally
 I don't like fast food

8. Rate the following in a fast food restaurant which would influence you to visit a fast food
restaurant from 1 -5 (1 being the lowest and 5 being the highest)
 Ambience
 Comfort
 Cost effectiveness
 Healthy food
 Quick service

9. Which food are you likely to order in a fast food restaurant?


 Chicken Burgers
 Beef Burgers
 Ham Burgers
 Potatoes
 French fries
 Sandwiches
 Shakes
 Deserts

10.With whom do you usually like to visit a fast food restaurant?

 Family
 Friends
 Someone special
 Alone

10
Chapter 14

1. How should the missing values be treated for the following demographic variables: education
(D5), income (D6), employment status (D7), and marital status (D8)?

D5 Variable:
The various degrees in education are displayed by the categorical variable D5. Where the
respondent selected "Prefer not to answer," the response was left blank. This can be regarded as
an incorrect value, and it can be changed to the most typical "level of education" answer to this
question.

D6 Variable:
The categorical factor D6 displays the yearly household income for the respondent's family.
Where the respondent chose to "Prefer not to answer," that message would be considered
unanswered. This could be viewed as a missing value that could be filled in with an imputed
answer. To estimate or compute a suitable answer to the value missing, the respondent's
pattern of responses to other queries is used.

D7 variable
D7 is a categorical variable that displays the respondent's "employment status." Where the
person who responded chose to "Prefer not to answer," that message would be considered
unanswered. This can be regarded as an invalid value, and the most common "employment
status" answer to this query can be used in its stead.

D8 variable

D8 is a variable of type categorical that displays the individual's "marital status" Where the
person who responded chose to "Prefer not to answer," that message would be considered
unanswered. This can be regarded as an insufficient response, and the most typical "marital
status" answer to this question can be used in its stead.

2. Recode payment method (D1) by combining Debit card, Check, and Other into one category.

Variable D1 has been recoded by combining Debit card, Check, and other into one category
Old values
Cash- 1
Credit card- 2
Debit card- 3
Check- 4
Other- 5
Prefer not to Respond- 6

New values
Debit, check, other- 1
Cash- 2
Credit card- 3
Prefer not to Respond- 4

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3.Recode number of people living at home (D3A) as follows: for adults age 18+, four or more
should be combined into one category labeled 4 plus; for each of the three remaining age groups
(under 5, 6–11, and 12–17), two or more should be combined into a single category labeled 2
plus.

Variable d3a_1 has been recoded into d3a_1_r.


New values in d3a_1_r
0 is 0
1 is 1
2 is 2
3 is 3
4-15 is 4 plus

Variable d3a_2 has been recoded into d3a_2_r


New vales in d3a_2_r
0 is 0
1 is 1
2-9 is 2 plus

Variable d3a_3 has been recoded into d3a_3_r


New vales in d3a_2_r
0 is 0
1 is 1

2-9 is 2 plus
Variable d3a_4 has been recoded into d3a_4_r
New vales in d3a_2_r
0 is 0
1 is 1
2-9 is 2 plus

4. Recode education (D5) by combining the lowest two categories and labeling it completed high
school or less.

Variable d5 has been recoded into variable d5_r


New values for d5_r
1 - Completed high school or less
2- Some college
3- Completed college
4- Post graduate
5- Prefer not to answer

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5. Recode income (D6) by combining the highest three categories and labeling it $100,000 or
more.

Variable d6 has been recoded into d6_r

New values for d6_r

1-Under $25000
2-$25000 but under $50000
3-$50000 but under $75000
4-$75000 but under $100000
5-$100000 or more
6-Prefer not to answer

Q6. Recode employment status (D7) by combining homemaker, retired and unemployed into
a single category.

Variable d7 has been recoded into d7_r

New values for d6_r

1-Home maker, retired, unemployed


2-Full time
3-Part time
4-Student
5-Prefer not to answer

Q7. Classify respondents into light, medium and heavy users of fast food based on the
frequency distribution of S3A: In the past four weeks, approximately how many times, have
you, your-self, eaten food from a fast-food restaurant? Use the following classification: 1-4
times =light, 5-8 times= medium, 9 or more times= heavy.

Variable s3a has been converted into s3a_r

New values for s3a_r


1-1 to 4/ light
2-5 to 8/ medium
3-9 to 99/ heavy

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