Case Study: LExperience Restaurant Survey Descriptive and Inference Analysis

In addition to the Auto Concepts survey, Cory Rogers of CMG Research was working with Jeff Dean, who believed that there was an opportunity to build an upscale restaurant, possibly to be called LExperience (The Experience in French) somewhere in their metropolitan area. The proposed restaurant was described as follows:

A restaurant with sophisticated dcor offering very personal service in a spacious, semi-private atmosphere, featuring both traditional and unusual menu items prepared by a chef with an international reputation. The atmosphere, food, and service at this restaurant meet the standards of fine dining restaurants. Menu items are priced separately la carte, and the prices are what one would expect for a restaurant meeting the highest standards. Corys team had designed an online questionnaire and gathered a representative sample. The code book for the statistical software dataset follows.

Question Codes Labels

Do you eat at an upscale restaurant at least

once every two weeks? 1,2 Yes, No (If No, terminate the

survey)

How many total dollars do you spend per

month in restaurants (for your meals only)? Actual dollars No labels

this proposed new upscale restaurant? 1,2,3,4,5 Very unlikely, Unlikely,

How likely would it be for you to patronize

Standard, Likely, Very likely

What would you expect an average evening

meal entre item alone to be priced in the proposed new restaurant? (If not very unlikely in previous question)

Would you describe yourself as one who

Actual dollars No labels

listens to radio? 1,2 Yes, No do you most often listen? 1,2,3,4,5 Country, Easy listening, Rock,

(If yes) To which type of radio programming

Talk/news, No Preference

Would you describe yourself as a viewer of

TV local news? 1,2 Yes, No

(If yes) Which section of the local newspaper would you say you look at most frequently? 1,2,3,4,5

Editorial, Business, Local, Classifieds, Life-Health Entertainment

Do you subscribe to City Magazine? 1,2 Yes, No

How often in a typical month do you use

online reviews to choose products and

services? 0,1,2,1,3,4 Never, 12 times, 34 times, 57 times, more than 7 times

Age Number of years No lables What is your marital status? 1,2,3 Single, Married, Other What is your gender? 1,2 Male, Female Including children under 18 living with you,

what is your family size? Number of children No labels

What is your highest level of education?

1,2,3,4,5,6,7,8

Less than high school, Some high school, High school graduate, Some college, Associate degree, Bachelors degree, Masters degree, Doctorate degree

In this proposed new restaurant, to what degree would you prefer:

Waterfront view

Drive less than 30 minutes

Formal wait staff attire

Unusual desserts

Large variety of entres

Unusual entres

Simple dcor

Elegant dcor

Classical background music

Top forty background music

Please check the letter that includes the ZIP code in which you live (designated by letter by combining ZIPs using the last two digits).

1,2,3,4,5 1,2,3,4

Very strongly not prefer, Somewhat not prefer,

Neither prefer nor not prefer, Somewhat prefer,

Very strongly prefer

A (01 & 02), B (03, 04, & 05), C (07, 08, & 09),

D (10, 11 & 12)

Which of the following categories best describes your before-tax household income?

1,2,3,4,5,6,7

Under $50,000; $50,000 to $74,999; $75,000 to $99,999; $100,000 to $149,999; $150,000 to $199,999; $200,000 to $249,999; $250,000 and Above

Cory had other marketing research projects and meetings scheduled with present and prospective clients, so he called in his marketing intern, Christine Yu. Christine was a senior marketing major at Able State University, and she had taken marketing research in the previous semester. Cory said, Christine, it is time to do some analysis on the survey we did for Jeff Dean. For now, lets just get a feel for what the data look like. Ill leave it up to your judgment as to what basic analysis to run. Lets meet tomorrow at 2:30 p.m. and see what you have found.

Your task is to take the role of Christine Yu, marketing intern. The file name is LExperience.sav and it is in SPSS data file format. Your instructor will provide this SPSS data file to you or indicate how you can obtain it.

1. Determine what variables are categorical (either nominal or ordinal scales), perform the appropriate descriptive analysis, and interpret it.

2. Determine what questions are scale variables (either interval or ratio scales), perform the appropriate descriptive analysis, and interpret it.

3. What are the population estimates for each of the following?

a. Preference for easy listening radio programming

b. Viewing of 10 p.m. local news on TV

c. Subscribe to City Magazine

d. Average age of heads of households

e. Average total dollars spent per month in restaurants

4. Because this restaurant will be upscale, it will appeal to high-income consumers. The investors hope that 15% of the households represented in the survey have an income level of $200,000 or higher. Test this hypothesis.

5. With respect to those who are very likely to patronize LExperience restaurant, Jeff believes that they will either very strongly or somewhat prefer each of the following: (a) wait staff with formal attire; (b) unusual desserts; (c) large variety of entres; (d) unusual entres; (e) elegant dcor; and (f) classical background music. Does the survey support or refute Jeffs hypotheses? Interpret your findings.