Case Study Title : Retention Programme (continued)

Background Information :

Before putting your recommended retention programme in operation, the company asks you to design a marketing research study that will test the effectiveness of your programme.

Theoretical Concepts Used

  1. ^ select of sampling users
    offer them a special coupon
  2. ^ effectiveness of the intended programme would be determined by the difference between the usage generated by members of the sample
    for the previous 12 months and
    the following 12 months.

Solution :

1. identify the managerial problem and establish research objectives : validate using the marketing research, the retention programme of the cars rental heavy users ;
2. the sources of data and types of data required :
  • primary data are collected from individual research subjects which will be included in the proposed marketing research
  • secondary data may be used from the business press in terms of similar programmes (see the frequent flyers programme of the airlines companies);
3. the research programme will include a qualitative research during the initial stage which will be validated at a later stage, by a quantitative research. The qualitative research will focus on the heavy users of the leasing services.
4. The design stage of the research :
  • the data collection method will have to be decided, with a strong preference for a combination between observation and experiment , followed by a survey during the quantitative stage of the research;
  • the population from which the sample of respondents will be drawn : the targe market of the retention programme is the heavy users population, which will have to be defined based on :
    • demographic characteristics : age, profession, revenue category
    • behavioural terms : how frequent they are using the services, for what purposes ( business, vacations etc)
  • non users of the actual service will be included in the quantitative research
  • the size of the sample will have to be determined using statistical methods in order to ensure a faur degree of accuracy of the research study;
5. the next decision facing the company is to decide in terms of the data collection method and the data collector
  • address the colector bias issue
6. Analyse and interpret the data

Standard Answer :

The programme could be tested by[1] selecting a sample of company users for the prior year and making them a special offer via a discount coupon good for a limited time period.

To validate the coupon, the recipients would have to join the company’s frequent mileage club, whereby they could receive credit for the points earned by using the car rental company’s cars.

The [2] effectiveness of the intended programme would be determined largely by the difference between the usage generated by members of the sample for the previous 12 months and the following 12 months.

Also, a tabulation should be make of new customers (those who had not patronised the company during the prior 12 months).


Case Study 1 Retention Programe

Tag Cloud

  1. client contact systems
  2. collector bias
  3. competitive advantage
  4. competitive intelligence
  5. computerised reorder system
  6. consumer behaviour
  7. data sources
  8. evidence based forecast
  9. experienced user
  10. internal records
  11. just in time
  12. logistical alliance
  13. market potential
  14. market segmentation
  15. market segments
  16. marketing program
  17. marketing research
  18. mass market
  19. mass market strategy
  20. michelin; us west;
  21. micro segmentation
  22. middleman
  23. modified rebuy
  24. multi-functional sales teams
  25. multilevel selling
  26. multiple buying
  27. multiple level relationships
  28. mutual trust
  29. narrow market segment
  30. narrow niche
  31. nationalisation of producers
  32. nerve center
  33. new task buy
  34. nine west group
  35. observation;direct observation' tanzania mobile;
  36. on-time delivery
  37. opportunity; research
  38. order handling
  39. organisation market
  40. organization marketing behaviour
  41. organizational behaviour
  42. organizational customers
  43. organizational demand
  44. organizational market
  45. organizational purchasing behaviour
  46. organizational purchasing process
  47. paperless exchange
  48. parity pricing
  49. personal selling
  50. personal use
  51. political risk
  52. potential market; penetrated market
  53. pre-delivery inspection
  54. pre-sale service
  55. prestige buyer
  56. pretender
  57. primary data
  58. procurement costs
  59. purchasing criteria
  60. qualitative data
  61. qualitative research
  62. quality assurance
  63. quality standards
  64. quantitative data
  65. quantitative research
  66. research objectives
  67. retention programme
  68. routine purchase
  69. sales forecast
  70. semantic differentiation scale
  71. sequence of information
  72. shared costs
  73. short term contracts
  74. social construction
  75. status oriented consumers
  76. stock availability
  77. straight rebuy
  78. supplier bargaining power
  79. supplier performance
  80. supplier reputation
  81. survey
  82. tabulation errors
  83. tanzania mobile
  84. target customers
  85. target market
  86. target marketing
  87. technical experts;
  88. test markets
  89. transaction cost
  90. trend forecasting
  91. trusting patron
  92. underlying consumer demand
  93. unethical demands
  94. unstated but implicit assumptions
  95. users
  96. value analysis
  97. value shopper
  98. vertical integration
  99. visceral thing that cannot be trained
  100. wild guess