Marketing Research: Research Report Essay Example

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25MARKETING RESEARCH

Marketing Research Report

Executive summary

The research study by GoGym has been developed to respond to marketing and product specific issues that involve customer decision making on gym and fitness marketing. The study developed five research questions which were answered by analyzing consumer data using a number of statistical methods such as descriptives, inferences and regression measures. This study sampled 142 respondents who were administered with questionnaires and their results run on Ms Excel 2007 and SPSS 20.0 for analysis. Key variables in this study are devices used, time of day, interaction time, Instragram involvement, perceptions of GoGym Instagram, monthly visits to the site, demographics and psychographics. The study found that mobile devices were most commonly used to access GoGym’s Instagram page, and this influenced how New-to-health spent on the page. In its first month, GoGym’s Instagram page is most commonly accessed in the morning, and mainly 1-4 times in a month. GoGym’s Instagram users are dependent on social media, and it did influence the number of visits to the site in its first month after launch. Users, regardless of gender, spend interact withGoGym’s Instagram account for about a minute and influences the number of visits they make to the site. User’s perceptions of GoGym’s Instagram account are not defined by age but by attitudes, social groups and personal reputation.

Table of Contents

List of Figures and Tables 3

3a) Comment on the extent to which the device used differs across the three psychographic groups 4

3b) Comment on the extent to which the time of day in accessing the Instagram page differs across four age groups 5

3c) Comment on the extent to which the range of interaction times differs across gender 6

3d) Use measures of central tendency to interpret the Instagram perception of “New-to-Health” and “Social Posers” 7

3e) Comment on the variability of the 4 items of “Gym Junkies” Instagram involvement (II_5, II_7, II_8, II_10) 8

4) What strategies should GoGym put in place to increase the monthly visits 9

5a) Comment on the relationship between the gender of users and their interaction times with the Instagram page 11

5b) Comment on the extent to which the perceptions of the Instagram page differ across four age groups 12

5c) Determine what factors of Instagram involvement emerge 13

5d) Compare how Instagram involvement (“factors” elucidated above), interaction time, and perception of the Instagram site 14

What strategies should GoGym put in place to ensure consumers with differing perceptions of Instragram 15

Appendices 16

Appendix I: Crosstabs of time of day and monthly visits 16

Appendix II: Relationship between gender users and interaction times 17

Appendix III: ANOVA-Instagram page perceptions and age groups 18

Appendix IV: Factor analysis of Instagram Involvement 19

Appendix V(a): Regression tables of (New-to-health) psychographic groups 20

Appendix V(b): Regression tables of (Social Poser) psychographic group 21

Appendix V(c): Regression tables of (Gym Junkie) psychographic groups 22

Appendix VI: New Regression analysis for interaction time 23

Appendix VII: Social media as source of information on Gym facilities 24

Appendix VIII: Customer retention strategies 25

List of Figures and Tables

List of Figures

Figure 1: Device use across psychographic groups 4

Figure 2: Time of day the age groups access Instagram pages 5

Figure 3: Range of interactions across gender 6

Figure 4: Instagram perception of New-to-health and social posers 7

Figure 5: Variability of Gym Junkie items in Instagram Involvement 8

List of Tables

Table 1: Strategies to increase monthly visits to Instagram pages 9

Table 2: T-test results 11

Table 3: ANOVA 12

Table 4: Factor analysis 13

Table 5: Regression table (a) 14

15Table 6: Regression table (b)

3a) Comment on the extent to which the device used differs across the three psychographic groups. Provide your interpretation of why this may be.

Figure 1: Device use across psychographic groups

Marketing Research: Research Report

From Fig. 1 above, it is evident that most of the respondents use the mobile phone device 83(58.4%) to access the Instagram pages. This is followed by a distant number of respondents who use the computer 38(26.7%) to access GoGym Instagram pages. Majority of the New-to-health respondents 35(42%) use mobile phones to access Instagram pages while Social Posers 17(44.7%) predominatly use the computer to access the pages. Interestingly, the results of those who use the mobile phones (n=83) are exceptionally high compared to computer (n=38) and tablet (n=21) that it may affect the validity of results.

The results show the dominance of mobile phones in accessing information on social media. Individuals who are new to certain products or services finds the mobile phone to be convenient and effective in searching information they want. Furthermore, it gives them confidence to try out new products or services. With the development of smartphones and emergence of the internet, users can engage themselves productively through social media such as Facebook, Twitter, Instagram and YouTube. For example, the social posers can post videos, pictures and search information with ease. People with recent experience of gym will always find the mobile and tablet easier to search for information. On the other hand, those seriously using the gym are not interested in using tablets and instead use computers and mobile phones more often.

3b) Comment on the extent to which the time of day in accessing the Instagram page differs across four age groups. Provide your interpretation of why this may be.

Figure 2: Time of day the age groups access Instagram pages

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As shown in Fig. 2 above, respondents aged 18-35 years mostly access the instagram pages at all times of the day; morning 35(68%), mid-morning (85.7%), afternoon 17(53%) and at night 22(57.9%). This was closely followed by those aged 36-55 years who mostly search the Instagram pages in the morning 10(19.6%) and at night 10(26.3%). It can also be observed that respondents aged over 75 years only search GoGym pages in the morning 1(2%).

From the results, it can be deduced that people aged between 18 and 35 years or generation Y access the Instagram pages often. The reason is that they are technologically savvy. This group was born and grew with the emergence of the internet and social media compared to the babyboomers who are in their early sixties. Generation Y have unlimited access to the social media at any time of day because they are knowledgeable and interested in chatting with friends, searching products and services online, and requesting and paying for goods online. They are also available to receive news and other important messages. Morning hours is more convenient to them since they are catching up with family and friends and also at night to get hold of what transpired during the day. This shows that morning and evening hours are suitable times of day for generation Y to access the GoGym Instagram pages.

3c) Comment on the extent to which the range of interaction times differs across gender. Provide your interpretation of why this may be.

Figure 3: Range of interactions across gender

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The figure above shows that both male 22(50%) and female 22(50%) are equal levels of interest and patience in accessing GoGym Instagram pages in less than a minute. However, female respondents 11(35.4%) tend to interact less compared to their male counterparts 19(61.3%) after one minute. As time goes by, female respondents regain interest and tend to open the pages even more 2(67%) compared to males 1(33%).

From the results above, women and men have equal interests and patience in interacting with the social media pages. At the onset of opening the pages, there is higher involvement of the mind in searching for information that is relevant to ones needs. However, this interest in terms of interaction time diminishes once one finds out that they are not getting around that they wanted. Women tend to get dissatisfied quickly and often perceive products and services with high regard if they satisft their needs. They also associate price with quality and the more time they take on searching for premium priced items or services, they more they settle on the quality products they are searching. Men on the other hand, are more receptive and looks at the superficial value of the product. When the personality or self-image of the product being searched is incogruent to the image of the buyer, the end result may be a sulky customers not interested in a purchase.

3d) Use measures of central tendency to interpret the Instagram perception of “New-to-Health” and “Social Posers”.

Figure 4: Instagram perception of New-to-health and social posers

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The figure 4 above shows that the measures of central tendency (inside the box) for both New-to-health and social poser psychographic groups. The mean value for social posers (μ=26.89) is higher that the mean for New-to-health (μ=19.67). Meanwhile, the median value for New-to-health is 15 while that of social poser is 22. On the other hand, the mode for social poser is 15 while that of New-to-health is 0. Generally, the above measures of central tendency show higher values for social posers that for New-to-health respondents.

As shown in the results, social posers perceive the Gym Instagram pages more positively and favorably compared to New-to-health who are just tasting the services. Their perception is favorable because they find an opportunity at the Gym to take pictures and post and the social media. Since they like sharing, they are more proactive and motivated to search for information about the gym. On the contrary, New-to-health have negative experience of the Gym environment and so are less motivated to search for information regarding fitness. In fact, the mode shows that the recurring perceptual sum among New-to-health is zero which indicates that the Gym culture is against their wishes and self-image. While the social posers are outgoing and confident, the New-to-health are reserved and less confident.

3e) Comment on the variability of the 4 items of “Gym Junkies” Instagram involvement (II_5, II_7, II_8, II_10). Provide your interpretation of what could explain the variability observed?

Figure 5: Variability of Gym Junkie items in Instagram Involvement

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As seen in figure 5, the likelihood Gym Junkies to get involved in Instagram are more or less driven by the same concerns and fears. The probability of one not attending the gym for more than a week (μ=4.52; SD=1.94) do not show much difference with sharing with social groups (μ=4.40; SD=1.76) such as friends more regularly (μ=4.26; SD=1.81). Similarly, there is little variability in not attending the Gym and losing one’s social status or reputation (μ=4.18; 1.89). The average absolute deviation among the four items is minimal.

The results above demonstrate that lack of consistency in attending the Gym do not result loss of social status or reputation among social posers. Yet, Gym Junkies find social media a great platform to share among friends and family members. People make purchase decisions based on the infleunce of social groups such as family and friends. On the other hand, they are driven by certain activities that are considered as belonging to a higher social status. For example, people tend to associate gym with wealth and financial success to an extent that they perceive the users as unable to burn fat and reduce weight normally. By posting on social pages or searching for Instagram pages, gym junkies can influence decision making among New-to-health and social posers. This is because they have strong gym culture compared to social posers and New-to-health users.

4) What strategies should GoGym put in place to increase the monthly visits for those who visit the Instagram at a particular time of day?

Table 1: Strategies to increase monthly visits to Instagram pages

Monthly visits to the gym

Time of day

1-4 times

5-8 times

9-11 times

12-15 times

34(66.7%)

13(25.5%)

51(100%)

13(61.9%)

6(28.6%)

21(100%)

Afternoon

19(59.4%)

11(34.4%)

32(100%)

26(68.4%)

10(26.3%)

38(100%)

92(64.8%)

40(28.2%)

142(100%)

As seen in the table 1 above, most of the respondents visiting GoGym pages at any time of day attend about 1-4 times in a month 92(64.8%). Specifically, the results show morning 34(66.7%), midday 13(61.9%), afternoon 19(59.4%) and night 26(68.4%) are dominated by respondents who visit the web pages 1-4 times a month. Furthermore, morning is more favorable to visit the gym pages 51(100%) followed by night hours 38(100%). The results show that it is more difficult to visit the gym pages for more than 12 times in the afternoons 0(0%). On the contrary, the 0% for those attending 9-11 times in midday could have resulted from sampling error (See Appendix I).

The results show that the typical hours that people prefer visiting the gym Instagram pages mostly in the morning and evening hours. This is also the time they visit the social media pages. Majority of working middle class employees, a good target market, prefer early morning exercise and body fitness before going for work. Similarly, those who do not get time in the morning will do so in the evening. As mentioned earlier, most of the people who attend the gym are New-to-health. They can be encouraged by offering give-aways online or discounts at the gym for those attending in the morning and evening by osting on Instagram pages. For example, the gym can also provide loyalty points or bonus points dubbed ‘GoGym Sweat Points’ for loyal customers who attend the gym for more than 9 times a month. After-sale services have the potential to draw existing and potential customers into additional buys by igniting the re-purchase intention. Some customers visiting the gym may be motivated by price to an extent that they are only willing to spend up to what their budget allows. Others can be constrained by time due to busy work schedules and may not be able to make constant visits. As such, introducing new gym packages for the economy class of customers and posting on Instagram pages by increase the number of visits in a month (See Appendix VIII).

5a) Comment on the relationship between the gender of users and their interaction times with the Instagram page. Provide an interpretation of why this may be.

Table 2: T-test results

Std. Deviation

Std. Error Mean

21.84814

22.93546

Sig. (2-tailed)

Mean Difference

42.26563

45.12821

As shown in the table above (Also Appendix II), there is no significant statistical difference in the number of times of interactions among males and females. The males have higher interaction times (t=17.37; p=0.01) compared to females (t=15.47; p=0.01). Moreover, the mean difference between males is higher (45.12) than that of females (42.26). The difference could be attributed to the sampling difference between the two groups with males being more that the females.

The results above show that men and women are equally likely to have similar interaction times with the Instagram pages. This implies that either gender have the willingness and patience to interact with the social media pages. Although the previous data shows that women tend to reduce the intensity of interaction time past one minute, it is highly probable that could be an internal validity error. People of either gender have similar interests on social media and their search for information regarding fitness and physical exercise is even across the board. On the contrary, women may be concerned about the location, price, additional packages and quality of the services as posted on the Instagram pages. As such, their interaction times could be increased or reduced depending on their immediate evaluation of the promotional materials.

5b) Comment on the extent to which the perceptions of the Instagram page differ across four age groups. Provide your interpretation of why this may be.

Table 3: ANOVA

Age groups

Sum of Squares

Mean Square

Between Groups

Within Groups

Instagram perception

Std. Deviation

Std. Error

18-35yrs

36-55yrs

56-75yrs

Over 75yrs

As shown in the table above, the differences between and within the age groups is not significant at p=0.05 level. The mean (μ=2.00) for the age group aged over 75 years can be ignored because of insufficient sampling frequency to offer confidence in drawing conclusions (See Appendix III). The table show that respondents aged between 18 and 35 years (μ=1.79) perceive Instagram highly compared to those aged 36-55 years (μ=1.45) and 56-75years (μ=1.42). Because the level of significance is low, it can be deduced that the perceptions of Instagram pages do not differ across age groups.

From the results above, it is exceptional to realize that perceptions among age groups are not significant. This could be explained by renewed desire by people from all age groups to learn more about social media and gain adequate knowledge. Social media came as an excitement and pomp as people yearned to be part of the web 4.0 technological movement. The positive perceptions of social media and moreso Instagram could be related to good publicity and multiple functions that the media can do. With capabilities of sharing, editing content, and posting pictures and videos, Instagram is the best medium to post gym product ranges. The Instagram target market seems not to be defined by age. Therefore, Gogym is assured that posting its services and products on Instagram is guaranteed to be seen by users of all ages.

5c) Determine what factors of Instagram involvement emerge. Provide conceptual explanations for why these factors may have emerged.

Table 4: Factor analysis

Factor loading Component

I log on to Instagram within the first hour of when I wake up

I am influenced by posts on Instagram

I get bored by Instagram pages easily

Instagram helps make decisions of what to buy easier

Instagram is great for sharing my life with others

I have to visit Instagram multiple times everyday

I could go a week without visiting Instagram

All my friends use Instagram regularly

I often use information on Instagram to guide decision making

I care about what people think of my Instagram account

As shown in table 4 above, the factor loadings in component 1 represent the factors that are attributed to Instagram Involvement. The factors were identified based on positive values above 0.30. The component transformation correlation in the matrix table were high which gave higher confidence on the factors as seen in (Appendix IV). The critical factor in involvement is Influence of Posts (.941) followed by Ease of decision making (.935) and Information use in decision making (.935). Similarly, the respondents cared about their social status and reputation (.424) while getting involved in Instagram. Lastly, Instagram is a platform for sharing their experiences and knowledge (.325). However, the other factors were not significant and were ommited from the findings.

The results above shows that there are factors that influence people to make certain purchase decisions. In this case, the number and quality of posts influence the level of decisions that people make. While making these decisions, consumers consider information use (see Appendix VII) and the ease of making the decisions. In consumer behavior theory, the role of social groups is more pronounced in infleuncing decision making. From the results, it is evident that social groups like family and friends dictate their behavior and considerations for purchase of Gym services. To keep and secure their social status and reputation, customers would not want to be involved in products or services that would lower or damage their self-image. This means that they would be frequently checking for Gym packages that would satisfy their egos and cement strongly relationships among peers.

5d) Compare how Instagram involvement (“factors” elucidated above), interaction time, and perception of the Instagram site influences the number of monthly visits to the site for the three psychographic groups. Provide interpretations of why this may be.

Table 5: Regression table (a)

Regression

Equation 1 (N=57)

Equation 2 (N=56)

Equation 1 (N=29)

Dependent variable: Number of monthly visits

New-to-Health

Social Posers

Gym Junkie

Constant

0.289 (.359)

.292(.319)

-.092 (.808)

Instagram Involvement factors

0.008 (.397)

-.005(.583)

.009 (.514)

Interaction time

0.276** (0.001)

.315*(.034)

.231(.225)

Instagram perception

0.383 (0.905)

.487**(.000)

.610**(.000)

Adjusted R2

F-change

Sig. F-change

The regression table above shows three equations for the three psychographic groups; New-to-health, social posers and Gym Junkie. In the first equation (New-to-health; Appendix V(a)), interaction time (0.276**; p=0.01) significantly influences the number of monthly visits this groups makes on the Instagram pages. The variability of the number of monthly visits is explained by 32.8% of the independent variables. In the second equation (social posers; Appendix V(b)), interaction time (.315*; p=0.05) and Instagram perception (.487**; p=0.01) influence the number of monthly visits to Instagram made by this group. Again, the variability of the number of visits is explained by 50.9% of the independent variables. The F-change of 17.96 shows that the equation is a good fit for the data. In the third equation (Gym Junkie; Appendix V(c)) shows that Instagram perception (.610**; p=0.01) influences the number of monthly visits that this category of users make in a month. The study did not find any impact that Instagram involvement factors has on the number of monthly visits for all the three psychographic groups.

From the results above, interaction time with Instagram pages matters a lot among the New-to-health and social poser. Interestingly, there seems to be no relationship between the Instagram Involvement factors and the number of monthly visits. While this is so, it contradicts the aspects consumer behavior and decision-making which directly influence attitudes and motivations of buyers of particular products. The study shows that the involvement factors such as attitudes, behaviors, product information, knowledge and product awareness seem not to influence the intention to visit the Instagram pages. The perception of Instagram pages is positive and high to an extent that it influences decision making among social posers and Gym Junkies. This shows that perception and image of the Instagram pages should be enhanced for people who would like to work out on their physical appearance and health.

What strategies should GoGym put in place to ensure consumers with differing perceptions of Instragram and monthly visits increase interaction time on the GoGymInstagram page?

Table 6: Regression table (b)

Dependent variable: Interaction timeon the GoGym Instagram page

Regression Equation Values

Constant

0.753** (.000)

Instagram perceptions

0.103 (.120)

Monthly visits

0.279** (0.000)

Adjusted R2

F-change

Sig. F-change

The table above shows that the number of monthly visits to the Instagram pages (.279**; p=0.01) influence the interaction time on the GoGym Instagram pages (See Appendix VI). However, Instagram perceptions did not have any significant influence on the interaction time on the social media pages. The collinearity coefficients are close to 1 indicating that the variables have strong linear correlation. Similarly, the F-change of 20.55 shows that equation is a good fit for the data while the R-squared value of 0.228 shows that the variability of 22.8% of interaction time on GoGym Instagram pages is expalined by the independent variables; number of monthly visits and Instagram perceptions.

The results above shows that interaction time on the GoGym Instagram page is influenced by the number of monthly visits to the site. To increase the interaction time on the pages, the customers can be provided with free downloadable information from the links attached to the pages. GoGym while celebrating its anniversity can run a campaign for ‘First 20 non-members’ on television and direct people to visit the Instgram pages for more information. To succeed, a number of plans have to be put into place. First, there is need to increase the product range by introducing a number of packages at the Instagram pages. Secondly, the price should be favorable to motivate loyal customers of a competitor to switch. Third, the Instagram pages should be of high quality and with content that is accessible to all potential customers. Finally, other promotional mechanism such as Twitter, Facebook and YouTube can be linked up to draw in more followers. Instagram should also engage the services of lead generation softwares and news feed supremacy like Facebook does (See Appendix VIII).

Appendices

Appendix I: Crosstabs of time of day and monthly visits

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Appendix II: Relationship between gender users and interaction times

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Appendix III: ANOVA-Instagram page perceptions and age groups

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Appendix IV: Factor analysis of Instagram Involvement

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Appendix V(a): Regression tables of (New-to-health) psychographic groups

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Appendix V(b): Regression tables of (Social Poser) psychographic group

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Appendix V(c): Regression tables of (Gym Junkie) psychographic groups

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Appendix VI: New Regression analysis for interaction time

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Appendix VII: Social media as source of information on Gym facilities

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Appendix VIII: Customer retention strategies

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