Plus Motors is planning to launch a two-wheeled electric vehicle, PEVO, in the UK market next year. The aim of this research would be to identify customer behaviors, attitudes and needs towards cycle-based commuting, perceptions of electric vehicles as well as provide recommendations of how PEVO should be marketed.
Research Methodology
The methodology will take a quantitative approach and research will be carried out using interview surveys, hall tests and online surveys. All the data collection methods will be used across the main cities of UK in various locations.
Contents
1.0 Research Objectives
PEVO is a new product which will be launched in the UK market next year. In order to ensure an effective and successful launch in the market a research will be contacted before the launch. The methodology of the research will be based on the following objectives:
Identifying consumer behaviors and attitudes towards cycle-based commuting.
Identifying consumers' needs regarding cycle-based commuting.
Determine consumers' perceptions about electric vehicles.
2.0 Methodology
2.1 Qualitative and quantitative methods
Straus and Corbin (1998) described qualitative method as "any kind of research that produces findings not arrived at by means of statistical procedures or other means of quantification". In other words, it concentrates on words and observations to express reality and it uses them in an attempt to describe people in natural situations. Qualitative research is usually used in situations where the variables need to be identified in order to be tested quantitatively at a later stage or in situations where the researched has determined that quantitative measures cannot adequately describe and interpret the given situation. Qualitative methods involve in-depth interviews and focus groups with guided group discussions, usually with a small sample of respondents who are used to determine attitudes, perceptions and motivation. Although they provide detailed quality data, the main problem is the lack of time and the size of the sample required.
For this research, a quantitative method is most suitable to be used since it would be easier to address a larger sample during a limited time . Quantitative methods come from a strong academic tradition which places considerable trust in numbers which represent opinions or concepts. This kind of methodology is considered the most convenient way to collect data since it relies on measurements, experiments and statistics. As a result, data collection comes from a controlled and representative sample and therefore it allows collection of information from a large number of subjects within a limited time. Within quantitative methods, the collection of data can be done using a standardized questionnaire, face to face or phone interviewing, postal or online surveys or custom panels.
2.2 Quantitative data collection techniques
2.2.1 Questionnaires
Questionnaires consist of a set of questions which are carefully phrased with the purpose of obtaining information from respondents. They usually involve a variety of questions including open-ended and close-ended questions, contingency questions and question where a scale is used for answering. Questionnaires allow large samples to be taken and large amounts of data to be collected, thus provide a reliable picture of the research problem without the need of great time availability. They provide a quick, inexpensive, efficient and accurate means of assessing information about a population (Brace, 2004).
2.2.2 Survey research
Survey research is the most common way of collecting data in market research and it includes collecting data with the use of structured questionnaires addressed to a sample of responders. The main advantage of survey research is that it allows you to collect large amounts of data in an economical and efficient way using large size samples. There are 4 main methods distinguishing surveys in terms of questionnaire administration; interview surveys, telephone surveys, postal survey and online surveys (Kent, 2007).
Interview surveys are personal, face-to-face interviews. During an interview survey, the interviewer simply reads out the questions from a structured questionnaire and records the responder's answers. These interviews can take place in the street such as in busy town centers, at the home of the respondent, in a pre-booked local venue, in a retail outlet or on business premises. Certain drawbacks of personal interviews are the expenses and logistics involved, the time requirements and the possibility of interviewer bias. On the other hand, personal interviews allow for the possibility of complex questions and visual stimuli, reduce non-response bias, offer a positive effect from the interviewer and have a high degree of flexibility as well as control over the sample.
Telephone interviews often take place from a call center by a phone operator or using a computerised telephone interviewer where the questionnaire is entered in the computer and questions are asked digitally. The sample to be used in a telephone interview can be selected through the phone directory, from client lists or using random digit dialing. Advantages of using telephone interviews are the efficiency of the process in term of expenses and speed of producing the results, easy access to busy people as well as allowance of repeated call backs and it offers anonymity. The drawbacks of this kind of interview are that the duration should be short and it is limited to verbal exchanges only and therefore body language cannot be monitored and visual aids cannot be used.
Postal surveys include a questionnaire sent directly to the house through post and a cover letter explaining the aim and purpose of the study as well as directions for completions. The main disadvantages of this method are the low response rate as well as the lack of control of who is the respondent. The advantages involved with postal surveys are cost efficiency, higher perceived anonymity, no interviewer bias and allows for completion at a convenient time for the respondent.
Online surveys involve the administration of a survey using computer networks , usually the internet. Online surveys are very fast since data entry is automatic and there is an instant transmission and return of the questionnaire, coverage can be very large since there are no geographical boundaries with the internet, cost efficiency and anonymity can be easily achieved and its online nature allows for a 24/7 convenience.
2.2.3 Experimental research
Experimental research involves trying out possible versions of marketing actions on a small sample where one or more independent variables are manipulated in order for their effects to be examined. The main characteristics of an experimental research are the manipulations of certain variables, the comparison of at least two measures and the control of extraneous factors (Kent, 2007). Te main advantage for using experimental research is that the researcher can decide the variables to be manipulated. There are two types of experiments in marketing; laboratory experiments and field experiments.
Laboratory experiments usually take place in artificial environments which ensures control of any factor that might affect the experimental results. These are often used in product testing, package testing and for advertising effectiveness. These experiments can take place in different locations were people are recruited of the street with the purpose of showing them stimulus materials such s products, packaging or advertisements and record their reaction. Examples of these could be hall tests, van tests, test centers and cinema tests. The advantage of this method is that because it's an artificial environment it is cheaper than in-home and it is effective for confidential material. On the other hand, clustering will occur because of the many people which will be trying to see the materials available which might affect the smooth operation of the experiment.
Field experiments are another type of experimental research. These are conducted in realistic research environments where the products are featured to a marketplace so that they can be tested in situations and settings where they will be bought, used or consumed. These could include consumers trying the actual product at home and give back feedback (in-home placement tests), testing different prices and packaging in retail outlets (store tests), testing different marketing actions in a selected part of a market area to investigate consequences (test marketing) or introducing different marketing techniques and observe its effects on social behavior (social intervention).
2.2.4 Continuous research
Continuous research monitors any changes which take place in the consumer market by taking measurements on a regular basis. This can be by collecting data from the same respondents on a regular basis like panel research does or by having a new sample of respondents every measurement period, like regular interval surveys do. The main drawback for this type of research is that it is very time consuming and it is very expensive to set up and maintain the research.
Panel research consists of a sample of individuals which are recorder on their activities or opinions for a range of products or services. They are commonly used to provide estimates of market characteristics and use of the media. Market measurement panels can include customer panels where the individuals are consumers who bought and use the product investigated or retail panels which consist of retail outlets whose acquisition, display, pricing and stocking of a products is recorded (Kent, 2007).
Regular interval surveys include omnibus surveys and market tracking surveys. Omnibus surveys include regular interviews with an existing set of respondents were the questions are provided by different clients. They are quick, inexpensive, custom-designed questions can be used and reasonable size samples from minority groups can be obtained. In market tracking surveys, an agency produces the entire questionnaire and the collected data are then sold to other clients. The main advantage of this is that a large sample can be use to obtain the data and clients can buy only those data which match their requirements. Lack of confidentiality is a disadvantage of this methods as well as the availability of the data to competitors.
3.0 Proposed data collection techniques for PEVO
3.1 Interview surveys
Interview surveys will be used to identify the behaviors, attitudes and needs of the consumers regarding cycle based commuting. These will take place in busy market areas were people are easily accessible. Several locations will be used across the main cities of UK with several interviewers for each location.
There are several reasons for choosing to use interview surveys. The interviewer can ensure that the respondent is suitable to undertake the survey before the interview starts since the research will aim at respondents which are between the ages of 18 and 35. Also in case that the respondent is not clear for a certain question, the interviewer can provide further explanation. Interviewers will be able to convince respondents to complete the questionnaire and as a result response rates can be higher. Lastly, the interviewer can easily make sure that the target number of respondents is met. When all of the above are achieved, it can be ensured that the data obtained from the interviews are of high quality.
3.2 Hall tests
Hall tests will be carried out as a follow up of the interview surveys mentioned above. After the respondent complete the interview, testing of the product will be available at a nearby location where samples of the actual product will be there for them to see and use.
With the use f the hall tests, reactions of the respondents towards the product will be recorder. The hall test is an effective and efficient way of sampling the product since it is a low cost option, the product is too big and heavy to be carried at the respondents home and the respondents are situated within their local community which they are already familiar with (Bradley, 2010).
3.3 Online surveys
Online surveys will be carried out to determine overall perception of electric vehicles. These surveys will be issued to current owners of electric vehicles as well as people who are not owners.
Online surveys will allow for a large sample to be surveyed in a relatively small amount of time and at a very low cost. The internet will allow for a very quick way of sending the questionnaire as well as for the return of the completed one. The online questionnaire also allows for visual aids to be included for the respondent to see, such as pictures of the product, advertisements and videos of other people using the product.
4.0 Implementation plan
4.1 Sampling
All the respondents used throughout the research should be of ages 18-35 since this is the specified target population of the product. For the interview survey this will be ensured by having the interviewer asking the potential respondents whether they fall within the age boundaries required, before giving out the questionnaire. 600 respondents wll be interviewed with 50% being male and 50% being female. These participants will be people from the central market place of the city which shop during Saturday morning. The same respondents will be used for the Hall test as well.
For the online survey 400 respondents will be surveyed were 50% will be owners of electric vehicles and the rest will be non-owners. The contact information of these participants will be bought from car companies which already sell electric vehicles such as Mitsubishi, Toyota and Volvo since they have both customers who own electric vehicles and customers that are non-owners.
4.2 Pilot testing
Both questionnaires used for interview surveys and online surveys will be tested in a small sample of respondents prior to the time that the large scale survey will take place. Pilot testing will ensure that questions are understood by the respondents and are not misinterpreted as well as the instructions for completing the questionnaire are clearly phrased.
4.3 Data collection plan
Method
Activity
Respondent Sample
Location
Interview survey
Interviewers will be given a questionnaire which for respondents to answer. The questionnaire will consist of questions regarding attitudes, behaviours and needs of cycle based commuting.
The respondents will be of ages 18-35. The number of respondents for each location are as follows:
Manchester- 100 respondents, 50 male and 50 female
Birmingham- 100 respondents, 50 male and 50 female
Glasgow- 100 respondents, 50 male and 50 female
Edinburgh- 100 respondents, 50 male and 50 female
London (2 locations within the city). For each location 100 respondents, 50 male and 50 female.
Interview surveys will take place in central market places during busy hours, such as Saturday mornings. These will take place in 5 main cities of the UK.
Manchester
Birmingham
Glasgow
Edinburgh
London (2 locations within the city)
Hall test
A hall will be rented near to the locations that the interview survey will take place. After the respondents complete the interview survey, they will be asked to come to this hall. Within this hall a number of product samples will be available for them to use and get familiar with. An observer will be present to record their reactions with the product and any feedback given by the respondents.
This will be a follow up of the interview survey and therefore the same respondents that took part in the interview survey will be used for each location.
Manchester- 100 respondents, 50 male and 50 female
Birmingham- 100 respondents, 50 male and 50 female
Glasgow- 100 respondents, 50 male and 50 female
Edinburgh- 100 respondents, 50 male and 50 female
London (2 locations within the city). For each location 100 respondents, 50 male and 50 female.
Hall tests will take place near the interview survey locations since the same respondents will be used. These might be parking places, public hotel rooms or any available public place within the predefined locations mentioned above which will be suitable for this purpose.
Online survey
An online survey will be available for existing owner of electric vehicles as well as non owners. The questionnaire will be sent through email and respondents will be asked to sent the email back as a reply when the questionnaire is completed.
For the online survey both owners of electric vehicles and non owners will be used as respondents.
EV owners - 200 participants
Non owners - 200 participants
Online surveys will be sent to the respondents via email and they will be able to complete it at their own time within the time period specified in the email.
4.4 Potential Problems and Mitigation
Possible problems which might arise throughout the research might be :
Interviewer bias: The way the interviewer approaches the potential participants and the way the questions are asked might affect the responses given. This can be minimized by briefing and training all interviewers prior to the research explaining to them the ways they can sustain the interest of the participant and persuading them to take part in the research. Training will also teach the interviewers the right way of asking questions, such as the tone used.
Low response rates for the online survey: Because of spam and other filters for unknown senders, many of the recipients might not receive the email or delete it before they take a look at it. This can be overcome by informing the potential participants that a survey will be sent to them, prior to sending the email.
Questionnaire design error: This can include problems with specific questions or with the overall design of the questionnaire. A pilot study done prior to the research would be able to locate such problems so that they can be solved before the actual research begins.
